NextEra Energy Inc Earnings - Q4 2025 Analysis & Highlights
NextEra Energy Inc. (NEE) discussed its strong operational and financial performance in Q4 2025, highlighting adjusted earnings per share (EPS) growth, significant capital investments in Florida Power & Light (FPL), and record origination in Energy Resources. The company emphasized its strategic focus on energy infrastructure development, particularly in renewables, battery storage, and gas-fired generation, driven by increasing power demand from hyperscalers and economic growth in Florida. Management also addressed the competitive landscape, regulatory environment, and future growth opportunities, including Small Modular Reactors (SMRs) and AI transformation.
Key Financial Results
NextEra Energy delivered full-year adjusted earnings per share of $3.71 in 2025, an increase of over 8% from 2024.
FPL's earnings per share increased by $0.21 in 2025 compared to 2024.
FPL's full-year capital investments totaled approximately $8.9 billion.
FPL's reported return on equity for regulatory purposes is expected to be approximately 11.7% for the 12 months ending December 31, 2025.
Energy Resources reported full-year adjusted earnings growth of approximately 13% year-over-year.
Contributions from new investments at Energy Resources increased by $0.47 per share.
Contributions from existing clean energy assets at Energy Resources decreased $0.04 per share.
Customer supply and trading business increased Energy Resources' results by $0.04 per share.
Other impacts decreased Energy Resources' results by $0.30 per share year over year, primarily due to higher financing costs of $0.17 per share.
NextEra Energy's corporate and other segment adjusted earnings per share decreased by $0.12 per share year-over-year, mainly due to higher interest costs.
Business Segment Results
FPL's regulatory capital employed growth was approximately 8.1% in 2025.
FPL's retail sales increased 1.7% in Q4 2025 and for the full year 2025 on a weather-normalized basis, driven by strong customer growth.
FPL added over 90,000 customers in Q4 2025 compared to the prior year.
FPL's non-fuel O&M is more than 71% lower than the industry average.
Energy Resources added approximately 13.5 gigawatts to its backlog in 2025, including 3.6 gigawatts since the last call.
Energy Resources placed 7.2 gigawatts of projects into commercial operations in 2025.
FPL and Energy Resources combined placed approximately 8.7 gigawatts of new generation and storage projects into service in 2025.
Energy Resources' backlog stands at approximately 30 gigawatts.
Energy Resources placed over 2 gigawatts of battery storage into service in 2025, a 220% increase from 2024.
NextEra Energy Transmission has secured roughly $5 billion in new projects since 2023.
NextEra Energy Transmission and Exelon were recommended to develop a new $1.7 billion high-voltage transmission line by PJM.
Energy Resources has ownership interests in over 1,000 miles of FERC regulated pipelines.
Capital Allocation
FPL expects to invest between $90 billion and $100 billion through 2032.
FPL's capital expenditures were approximately $2.1 billion in the fourth quarter.
NextEra Energy expects to grow its dividends per share at roughly 10% per year through 2026 (off a 2024 base) and 6% per year from year-end 2026 through 2028.
Industry Trends and Dynamics
There is a significant need for more electrons on the grid in America.
Renewables remain the lowest cost and fastest solution to meet customer needs.
Battery storage is the only new capacity resource available at scale.
Gas demand is high in the southeast.
Hyperscalers are looking for speed-to-market power solutions.
The White House and Mid-Atlantic governors have proposed a framework to address affordability challenges in the PJM market.
The federal government is providing significant support for SMR and nuclear development.
Competitive Landscape
NextEra Energy is positioned as a proven energy infrastructure builder.
NextEra Energy has a national footprint, decades of development experience, unmatched energy infrastructure capabilities, and a strong balance sheet.
NextEra Energy can work with hyperscalers and various local service providers (investor-owned utilities, municipal utilities, cooperatives, retail electric providers).
NextEra Energy's renewables and storage portfolio provides a speed-to-market solution for data centers.
NextEra Energy has secured solar panels and domestic battery supply through 2029.
NextEra Energy has secured gas turbine slots with GE Vernova for 4 gigawatts of gas-fired generation projects.
NextEra Energy has built more gas-fired generation than anyone else over the last 20 years.
NextEra Energy's non-fuel O&M is more than 71% lower than the industry average, making it the lowest cost electric utility operator in the country.
Macroeconomic Environment
The Florida economy remains strong, with its annual gross domestic product at approximately $1.8 trillion, making it the 15th largest economy in the world if it were a stand-alone country.
Florida's population continues to be one of the fastest growing in the country.
Florida leads the nation in income migration, manufacturing job growth, and corporate headquarter relocations.
Florida expects to add 1.5 million new jobs by 2034.
FPL expects typical residential customer bills to increase only about 2% annually between 2025 and 2029, which is lower than the current inflation rate of about 3%.
Growth Opportunities and Strategies
NextEra Energy has over 12 ways to grow.
FPL's new four-year rate agreement allows for smart, long-term infrastructure investments.
FPL's agreement includes a large load tariff to protect existing customers from infrastructure buildout costs for hyperscalers.
FPL has over 20 gigawatts of large load interest, with 9 gigawatts in advanced discussions, some of which could be served as soon as 2028.
Each gigawatt of large load is equivalent to roughly $2 billion of CapEx.
NextEra Energy Transmission expects to grow its total regulated and invested capital to $20 billion by 2032, a 20% compounded annual growth rate off a 2025 base.
Energy Resources has a 95-gigawatt pipeline for stand-alone and co-located battery storage assets.
Energy Resources has a gas-fired generation build pipeline that has topped 20 gigawatts.
NextEra Energy is advancing the recommissioning of its Duane Arnold nuclear plant in Iowa.
NextEra Energy is evaluating SMR OEMs for advanced nuclear development at its nuclear fleet outside Florida.
NextEra Energy has 6 gigawatts of SMR co-location opportunities at its nuclear sites.
NextEra Energy has 1.7 gigawatts of capacity available at its Seabrook and Point Beach nuclear plants.
Energy Resources' data center hub strategy aims to place 15 gigawatts of new generation for data center hubs by 2035.
NextEra Energy has 20 potential data center hubs under discussion, expecting to rise to 40 by year-end.
Energy Resources is focused on the "bring your own generation" (BYOG) market for large loads.
NextEra Energy has up to 6 gigawatts of recontracting opportunities in its renewables fleet through 2032.
NextEra Energy successfully closed its acquisition of Symmetry Energy Solutions, a leading supplier of natural gas.
NextEra Energy and Google Cloud have partnered for an AI transformation called REWIRE.
Financial Guidance and Outlook
NextEra Energy expects to grow adjusted earnings per share at a compound annual growth rate of 8% plus through 2032, and targets the same from 2032 through 2035, all off the 2025 base of $3.71.
NextEra Energy's 2026 adjusted earnings per share expectation range of $3.92 to $4.02 per share remains unchanged, with the company targeting the high end of that range.
From 2025 to 2032, NextEra Energy expects its average growth in operating cash flow to be at or above its adjusted earnings per share compound annual growth rate range.
NextEra Energy expects to grow its dividends per share at roughly 10% per year through 2026 (off a 2024 base) and 6% per year from year-end 2026 through 2028.
