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 Strong 2025 Performance and Growth Outlook

NextEra Energy reported adjusted earnings per share of $3.71 for 2025, an 8% increase from 2024, with the actual EPS for the quarter coming in at $0.53, slightly below estimates of $0.56. The company's full-year adjusted earnings per share growth was driven by strong operational performance across its subsidiaries, including FPL and Energy Resources. FPL's earnings per share increased by $0.21, driven by 8.1% regulatory capital employed growth, while Energy Resources reported full-year adjusted earnings growth of approximately 13% year over year.

Publication Date: Feb -02

📋 Highlights
  • Robust Earnings Growth: Full-year adjusted EPS of $3.71, up 8% YoY, with 8%+ CAGR target through 2032-2035.
  • Massive CapEx Commitments: FPL plans $90–100B in investments through 2032, leveraging a new four-year rate agreement and 11.7% ROE.
  • Energy Resources Expansion: Added 13.5 GW to backlog (total 30 GW), driving 13% YoY adjusted earnings growth and 20% CAGR in regulated portfolio.
  • Data Center & Hyperscaler Momentum: 20 GW of large-load interest, with FPL’s rate stabilization mechanism attracting hyperscalers at competitive prices.
  • AI & Grid Innovation: Strategic AI partnership with Google Cloud to launch first AI-enhanced grid product in Feb 2026, enhancing reliability and operations.

Segment Performance

FPL begins the year with a new four-year rate agreement that runs through 2032, allowing the company to invest between $90 billion and $100 billion in smart, long-term infrastructure. FPL's capital expenditures were $8.9 billion in 2025, with a return on equity for regulatory purposes expected to be 11.7% for the twelve months ending December 31, 2025. Energy Resources had a record year, adding approximately 13.5 gigawatts to its backlog, with contributions from new investments increasing by $0.47 per share.

Growth Outlook

NextEra Energy expects to grow adjusted earnings per share at a compound annual growth rate of 8% plus through 2032 and 2035. The company's 2026 adjusted earnings per share guidance ranges from $3.92 to $4.02 per share, with the company targeting the high end of that range. Energy Resources is expected to continue its strong performance, driven by its growing backlog and increasing demand for its generation and storage portfolio.

Valuation

NextEra Energy's current valuation metrics indicate a P/E Ratio of 27.8, EV/EBITDA of 19.5, and a Dividend Yield of 2.58%. These metrics suggest that the market is pricing in a certain level of growth, but the company's strong track record of delivering on its financial expectations and its growth outlook may justify these valuations. As Mike Dunne mentioned, "we are targeting the high end of our 2026 adjusted earnings per share guidance range," indicating confidence in the company's ability to continue delivering strong financial performance.

3. NewsRoom

Card image cap

Forget Tech Stocks: The Utility Play That Could Outperform Nvidia

Feb -05

Source: fool.com

Card image cap

Savant Capital LLC Trims Holdings in NextEra Energy, Inc. $NEE

Feb -05

Source: defenseworld.net

Card image cap

Bessemer Group Inc. Has $663.91 Million Stock Holdings in NextEra Energy, Inc. $NEE

Feb -05

Source: defenseworld.net

Card image cap

NextEra Energy, Inc. $NEE Shares Sold by Border to Coast Pensions Partnership Ltd

Feb -05

Source: defenseworld.net

Card image cap

Triglav Investments D.O.O. Increases Stock Holdings in NextEra Energy, Inc. $NEE

Feb -05

Source: defenseworld.net

Card image cap

2 Utility Stocks to Buy in February

Feb -05

Source: fool.com

Card image cap

SouthState Bank Corp Has $20.33 Million Stock Holdings in NextEra Energy, Inc. $NEE

Feb -05

Source: defenseworld.net

Card image cap

Cullen Capital Management LLC Increases Stake in NextEra Energy, Inc. $NEE

Feb -05

Source: defenseworld.net

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
Exelon

A-Score: 6.7/10

Value: 6.7

Growth: 3.8

Quality: 4.4

Yield: 7.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
WEC Energy

A-Score: 6.7/10

Value: 5.3

Growth: 4.8

Quality: 4.9

Yield: 7.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Dominion Energy

A-Score: 6.5/10

Value: 5.8

Growth: 3.6

Quality: 5.0

Yield: 8.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
DTE Energy

A-Score: 6.2/10

Value: 4.8

Growth: 3.7

Quality: 4.1

Yield: 7.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
NextEra Energy

A-Score: 6.1/10

Value: 2.5

Growth: 5.9

Quality: 5.5

Yield: 6.0

Momentum: 8.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Xcel Energy

A-Score: 6.0/10

Value: 4.3

Growth: 4.6

Quality: 3.2

Yield: 6.0

Momentum: 8.0

Volatility: 10.0

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

89.47$

Current Price

89.47$

Potential

-0.00%

Expected Cash-Flows