Download PDF

1. Company Snapshot

1.a. Company Description

NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America.The company generates electricity through wind, solar, nuclear, coal, and natural gas facilities.It also develops, constructs, and operates long-term contracted assets that consists of clean energy solutions, such as renewable generation facilities, battery storage projects, and electric transmission facilities; sells energy commodities; and owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets.


As of December 31, 2021, the company had approximately 28,564 megawatts of net generating capacity; approximately 77,000 circuit miles of transmission and distribution lines; and 696 substations.It serves approximately 11 million people through approximately 5.7 million customer accounts in the east and lower west coasts of Florida.The company was formerly known as FPL Group, Inc.


and changed its name to NextEra Energy, Inc.in 2010.The company was founded in 1925 and is headquartered in Juno Beach, Florida.

Show Full description

1.b. Last Insights on NEE

NextEra Energy's recent performance was driven by its strong clean energy growth, rising earnings, and improving dividends. The company's diversified generation mix, including renewables and nuclear power, provides a stable and long-term growth outlook. NextEra's robust utility operations and expanding renewables backlog, driven by AI and data center demand, support its ability to deliver increasing shareholder returns. The company's 6-8% annual EPS growth through 2027, supported by expanding renewables and robust utility operations, enhances its total return potential. Additionally, NextEra's 3.2% dividend yield and 10% annual dividend growth offer value to investors.

1.c. Company Highlights

2. NextEra Energy's Q3 2025 Earnings: A Strong Performance

NextEra Energy reported adjusted earnings per share of $1.13, beating analyst estimates of $0.967. The company's financial performance was driven by a 9.7% year-over-year increase in adjusted earnings per share, with a 9.3% increase through the first 9 months. Florida Power & Light Company (FPL) drove the growth with an 8% year-over-year increase in regulatory capital employed. The company's return on equity for regulatory purposes was approximately 11.7% for the 12 months ending September 2025, indicating a strong profitability.

Publication Date: Oct -29

📋 Highlights
  • Adjusted EPS Growth: 9.7% YoY increase in Q3 2025, with 9.3% growth for the first 9 months driven by FPL’s regulatory capital employed growth (8% YoY).
  • Capital Expenditures: FPL spent $2.5B in Q3, with full-year 2025 investments projected between $9.3B and $9.8B, supporting regulatory return on equity of ~11.7% (12 months through September 2025).
  • Renewables & Storage Momentum: NextEra Energy Resources grew adjusted earnings by 13% YoY, adding 3 GW to backlog (totaling 30 GW) and originating 1.9 GW of battery storage (highest quarterly record).
  • Duane Arnold Nuclear PPA: 25-year agreement with Google to recommission Iowa’s plant, expected to add $0.16 annual adjusted EPS on average over 10 years post-2028/2029 restart.

Segment Performance

NextEra Energy Resources reported adjusted earnings growth of 13% year-over-year, driven by growth in its renewables portfolio and customer supply business. The company added 3 gigawatts to its backlog, totaling nearly 30 gigawatts, and originated 1.9 gigawatts of battery storage, its strongest quarter ever in this area. FPL's capital expenditures were $2.5 billion for the quarter, with expected full-year investments between $9.3 billion and $9.8 billion.

Growth Outlook

The company reaffirmed its long-term financial expectations, targeting adjusted earnings per share growth at or near the top end of its expectation ranges for 2025, 2026, and 2027. It also expects to grow its dividends per share at roughly 10% per year through at least 2026. Analysts estimate next year's revenue growth at 10.7%, indicating a strong growth outlook.

Valuation

NextEra Energy's current valuation metrics indicate a premium valuation. The company's P/E Ratio is 26.44, P/B Ratio is 3.17, and EV/EBITDA is 21.79. The Dividend Yield is 2.65%, and the ROE is 12.69%. These metrics suggest that the market has priced in a strong growth outlook, but the company's ability to deliver on its expectations will be crucial in justifying the current valuation.

Nuclear and Gas Strategy

The company announced a 25-year power purchase agreement with Google to recommission the Duane Arnold Energy Center nuclear plant in Iowa. The plant is expected to return to operation by the fourth quarter of 2028 or the first quarter of 2029 and contribute up to $0.16 of annual adjusted EPS on average over its first 10 years of operation. NextEra Energy is also focused on SMRs and restarts of current large-scale plants, with 6 gigawatts of SMR capacity across three sites.

Competitive Advantage

NextEra Energy has a unique competitive advantage in providing comprehensive solutions including renewables, storage, and grid upgrades. The company's renewables business is growing, with a focus on providing solutions for data centers. Data centers want to build out quickly, but often need to secure load interconnect, which can require bringing their own generation. NextEra can provide this through a combination of renewables and storage.

3. NewsRoom

Card image cap

Halper Sadeh LLC Encourages NextEra Energy, Inc. Shareholders to Contact the Firm to Discuss Their Rights

Dec -04

Source: businesswire.com

Card image cap

NextEra: Strong Regulatory Backdrop And Renewables Leadership Support A Higher Target Price

Dec -04

Source: seekingalpha.com

Card image cap

5 Energy Stocks That Could Benefit From the Genesis Mission

Dec -04

Source: fool.com

Card image cap

What Every NextEra Energy Investor Should Know Before Buying

Dec -04

Source: fool.com

Card image cap

AI needs power desperately. Here's how to invest in companies profiting from the pain.

Dec -03

Source: marketwatch.com

Card image cap

How Good Has NEE Stock Actually Been?

Dec -03

Source: fool.com

Card image cap

NextEra Energy, Inc. $NEE Shares Acquired by Edgestream Partners L.P.

Dec -03

Source: defenseworld.net

Card image cap

The Utility Stock That's Actually Exciting

Dec -03

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.50%)

6. Segments

Florida Power & Light (Incl. Gulf Power)

Expected Growth: 8.0%

The stable regulatory environment and steady demand for electricity in Florida support a relatively lower growth rate compared to the global hypothesis. However, it is still expected to grow due to increasing population and economic activities, albeit at a slightly lower rate than the global average.

Nextera Energy Resources (NEER)

Expected Growth: 8.0%

NEER is well-positioned to benefit from the growing demand for renewable energy, driven by increasing government regulations and corporate sustainability goals. Its diversified customer base and ability to offer customized energy solutions will drive revenue growth.

Corporate and Other

Expected Growth: 9.5%

As this segment is more about supporting functions and not directly related to energy production or distribution, its growth is assumed to follow the global growth hypothesis closely. It is expected to grow in line with the company's overall growth strategy and financial management.

7. Detailed Products

Renewable Energy

NextEra Energy, Inc. generates renewable energy through wind and solar power, providing clean and sustainable electricity to customers.

Electricity Distribution

NextEra Energy, Inc. distributes electricity to customers through its subsidiary, Florida Power & Light Company (FPL), serving over 5 million customers in Florida.

Energy Storage

NextEra Energy, Inc. offers energy storage solutions, enabling customers to store excess energy generated from renewable sources for later use.

Transmission and Infrastructure

NextEra Energy, Inc. develops and operates transmission infrastructure, connecting renewable energy sources to the grid and ensuring reliable energy delivery.

Energy Marketing

NextEra Energy, Inc. provides energy marketing services, offering customized energy solutions to commercial and industrial customers.

8. NextEra Energy, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

NextEra Energy, Inc. operates in a highly regulated industry, and the threat of substitutes is low due to the high barriers to entry and the complexity of the energy market.

Bargaining Power Of Customers

NextEra Energy, Inc. has a diverse customer base, including residential, commercial, and industrial customers. While customers have some bargaining power, the company's scale and diversification mitigate this threat.

Bargaining Power Of Suppliers

NextEra Energy, Inc. has a diversified supply chain and is not heavily dependent on a single supplier, reducing the bargaining power of suppliers.

Threat Of New Entrants

The energy industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to compete with NextEra Energy, Inc.

Intensity Of Rivalry

NextEra Energy, Inc. operates in a competitive industry, but its scale, diversification, and strong brand reputation help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 60.67%
Debt Cost 5.27%
Equity Weight 39.33%
Equity Cost 6.41%
WACC 5.72%
Leverage 154.23%

11. Quality Control: NextEra Energy, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
WEC Energy

A-Score: 6.9/10

Value: 6.1

Growth: 4.9

Quality: 6.7

Yield: 6.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
DTE Energy

A-Score: 6.5/10

Value: 4.7

Growth: 3.7

Quality: 6.9

Yield: 6.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Exelon

A-Score: 6.4/10

Value: 5.9

Growth: 3.8

Quality: 4.4

Yield: 7.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Xcel Energy

A-Score: 6.4/10

Value: 5.0

Growth: 4.6

Quality: 3.9

Yield: 6.0

Momentum: 9.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Dominion Energy

A-Score: 6.3/10

Value: 5.5

Growth: 3.6

Quality: 4.6

Yield: 8.0

Momentum: 6.5

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
NextEra Energy

A-Score: 5.3/10

Value: 2.4

Growth: 6.0

Quality: 5.4

Yield: 6.0

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

83.13$

Current Price

83.13$

Potential

-0.00%

Expected Cash-Flows