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NextEra Energy Inc. (NEE)
NYSE:NEE
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NextEra Energy
(NYSE:NEE)
75Outperform
Positive Factors
Financial Performance
Management reaffirmed its 2025-2027 EPS guidance ranges, noting its expectation for NEER Clean Energy EBITDA in the upper half of its 2025 range.
Renewable Energy Growth
Origination activity at NEER was above expectation with its backlog increasing, largely driven by solar and battery storage.
Tariff Exposure
A better-than-expected estimate of tariff exposure was highlighted due to the company's diversified and domesticated supply chain for solar, wind, and battery storage.
Negative Factors
Regulatory Concerns
NEE shares have come under pressure due to concerns surrounding the potential repeal/modification of the IRA and recently tariff-related impacts.
NextEra Energy (NEE) vs. S&P 500 (SPY)
Market Cap
$136.98B
Dividend Yield3.17%
Average Volume (3M)12.43M
Price to Earnings (P/E)24.7
Beta (1Y)0.35
Revenue Growth20.35%
EPS Growth-27.07%
CountryUS
Employees16,800
SectorUtilities
Sector Strength91
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.99
Shares Outstanding2,058,631,000
10 Day Avg. Volume11,891,151
30 Day Avg. Volume12,434,185
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.78
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit16.40
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$81.75Price Target Upside21.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
NextEra Energy Business Overview & Revenue Model
Company DescriptionNextEra Energy, Inc. (NEE) is a leading clean energy company headquartered in Juno Beach, Florida. It operates through its subsidiaries, primarily Florida Power & Light (FPL) and NextEra Energy Resources. FPL is the largest rate-regulated electric utility in the United States, serving more than 5 million customer accounts across Florida. NextEra Energy Resources is a global leader in renewable energy, focusing on the development, construction, and operation of wind, solar, and energy storage projects. The company is committed to sustainability and innovation, aiming to provide affordable and reliable energy while minimizing environmental impact.
How the Company Makes MoneyNextEra Energy makes money primarily through its two main subsidiaries, Florida Power & Light (FPL) and NextEra Energy Resources. FPL generates revenue by providing electricity to residential, commercial, and industrial customers in Florida. It operates under a regulated utility model, meaning its rates are set and approved by regulatory bodies, providing a stable and predictable revenue stream. NextEra Energy Resources generates revenue by developing, constructing, and operating renewable energy projects, including wind, solar, and battery storage, across North America and beyond. This subsidiary sells the electricity generated from these projects through long-term power purchase agreements (PPAs) to utility companies and other large power consumers. Additionally, NextEra Energy benefits from federal and state incentives and tax credits for renewable energy projects, which enhance its profitability. The company's focus on clean energy and strategic investments in renewable technologies are key factors contributing to its earnings growth.
NextEra Energy Key Performance Indicators (KPIs)
Any
FPL Customers
Monitors the number of customers served by Florida Power & Light, highlighting market reach and stability in the utility sector.
Monitors the number of customers served by Florida Power & Light, highlighting market reach and stability in the utility sector.
Data provided by:
Main Street Data
Main Street DataNextEra Energy Financial Statement Overview
Summary
NextEra Energy shows strong financial performance with robust revenue growth, effective cost management, and a stable capital structure. Despite a slight decrease in net income due to increased expenses, the company maintains impressive operating cash flows and manageable leverage.Income Statement
NextEra Energy's income statement shows robust profitability with a consistent increase in EBIT and EBITDA margins, both above 30% for the TTM. Gross profit margins have remained strong, indicating effective cost management. However, net income has slightly decreased in the TTM compared to the previous year due to increased expenses, which impacts the net profit margin. Despite this, the revenue growth rate remains healthy, signaling positive growth trends.85
Very Positive
Balance Sheet
The company's balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of approximately 0.20, showing prudent leverage. The equity ratio indicates a well-capitalized structure with stockholders' equity making up a significant portion of total assets. Return on equity is strong, supporting profitability. However, the high total liabilities remain a potential risk factor that needs monitoring.78
Positive
Cash Flow
Cash flow analysis reveals strong operational cash flows exceeding net income, a positive indicator of financial health. Free cash flow growth is robust, supporting future investments and dividend payments. The company's ability to generate cash from operations is impressive, although high capital expenditures limit free cash flow growth potential.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 24.75B | 28.11B | 20.96B | 17.07B | 18.00B | Gross Profit |
| 14.87B | 17.98B | 10.14B | 8.59B | 10.71B | EBIT |
| 7.48B | 10.24B | 4.08B | 3.89B | 3.70B | EBITDA |
| 14.03B | 16.76B | 10.36B | 8.82B | 8.23B | Net Income Common Stockholders |
| 6.95B | 7.31B | 3.25B | 2.83B | 2.92B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.49B | 2.69B | 1.60B | 639.00M | 1.10B | Total Assets |
| 190.14B | 177.49B | 158.94B | 140.91B | 127.68B | Total Debt |
| 82.33B | 73.21B | 64.97B | 54.83B | 48.09B | Net Debt |
| 80.85B | 70.52B | 63.37B | 54.19B | 46.99B | Total Liabilities |
| 129.28B | 118.47B | 109.50B | 95.49B | 82.75B | Stockholders Equity |
| 50.10B | 47.47B | 39.23B | 37.20B | 36.51B |
| Cash Flow | Free Cash Flow | |||
| 4.75B | 1.75B | -1.48B | -277.00M | 224.00M | Operating Cash Flow |
| 13.26B | 11.30B | 8.26B | 7.55B | 7.98B | Investing Cash Flow |
| -22.26B | -23.47B | -18.36B | -13.59B | -13.70B | Financing Cash Flow |
| 7.00B | 12.15B | 12.23B | 5.81B | 6.17B |
NextEra Energy Technical Analysis
Neutral
67.36
Price Trends
69.02
Negative
69.58
Negative
73.89
Negative
Market Momentum
-0.55
Negative
50.15
Neutral
51.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEE, the sentiment is Neutral. The current price of 67.36 is above the 20-day moving average (MA) of 66.60, below the 50-day MA of 69.02, and below the 200-day MA of 73.89, indicating a neutral trend. The MACD of -0.55 indicates Negative momentum. The RSI at 50.15 is Neutral, neither overbought nor oversold. The STOCH value of 51.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NEE.
NextEra Energy Risk Analysis
NextEra Energy disclosed 51 risk factors in its most recent earnings report. NextEra Energy reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NextEra Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $95.53B | 20.12 | 9.48% | 3.38% | 5.02% | 45.08% | |
76 Outperform | $46.73B | 17.07 | 10.10% | 3.33% | 6.71% | 16.09% | |
75 Outperform | $136.98B | 24.72 | 11.19% | 3.17% | 20.35% | -27.07% | |
74 Outperform | $100.26B | 21.83 | 14.01% | 3.16% | 9.58% | 8.02% | |
71 Outperform | $59.79B | 20.71 | 10.41% | 3.37% | 4.20% | -3.64% | |
70 Outperform | $46.63B | 20.42 | 8.22% | 4.88% | 3.62% | 40.33% | |
63 Neutral | $8.52B | 11.01 | 5.35% | 4.37% | 3.39% | -11.87% |
* Utilities Sector Average
Performance Comparison
NEE
NextEra Energy
67.36
-5.18
-7.14%
AEP
American Electric Power
107.48
19.04
21.53%
D
Dominion Energy
55.15
4.77
9.47%
DUK
Duke Energy
122.60
23.42
23.61%
EXC
Exelon
46.34
9.49
25.75%
SO
Southern Co
92.11
16.48
21.79%
NextEra Energy Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: 1.08%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally strong performance by NextEra Energy, with significant growth in renewable energy projects and effective management of tariff risks. However, there are challenges related to the rising costs of gas-fired plants and some potential slowdown in near-term development expectations.Q1-2025 Updates
Positive Updates
Strong Financial Performance
Adjusted earnings per share increased by nearly 9% year-over-year, and FPL's earnings per share increased by $0.07 year-over-year, driven by regulatory capital employed growth of approximately 8.1%.
Significant Renewable Energy Expansion
FPL placed into service 894 megawatts of new solar, and Energy Resources originated approximately 3.2 gigawatts of new renewables and storage projects, marking strong demand and expansion in renewable energy.
Record Solar and Battery Storage Origination
Energy Resources had its largest solar origination quarter and largest solar and battery storage origination quarter ever, demonstrating strong demand for low-cost renewables and storage.
Robust Capital Investment Plans
FPL plans to invest nearly $50 billion from 2025 to 2029, adding more than 25 gigawatts of new battery storage by 2034, indicating a commitment to long-term growth and infrastructure development.
Effective Tariff Mitigation Strategy
NextEra has managed tariff exposure to less than $150 million on over $75 billion in expected capital spend, with strategies to potentially reduce this to zero.
Negative Updates
Challenges with Gas-Fired Plant Costs
The cost to build a gas-fired plant has tripled in recent years, with further increases expected due to tariff exposure and workforce challenges.
Potential Slowdown in Near-Term Development Expectations
Due to circumvention impacts, there is an expectation to come in at the low end of the range for '24 and '25 development numbers.
Company Guidance
During the NextEra Energy, Inc. First Quarter 2025 Earnings Conference Call, the company provided detailed guidance and metrics highlighting its robust performance and future plans. Adjusted earnings per share increased by nearly 9% year-over-year, driven by strong financial and operational results across Florida Power & Light (FPL) and Energy Resources. FPL placed 894 megawatts of new solar into service, while Energy Resources originated approximately 3.2 gigawatts of new renewables and storage projects. The company expects over 450 gigawatts of new generation demand in the U.S. by 2030 and plans to invest nearly $50 billion from 2025 to 2029 to add more than 25 gigawatts of new generation and battery storage by 2034. FPL's capital expenditures for the quarter were approximately $2.4 billion, with full-year investments expected to be between $8 billion and $8.8 billion. The company also reported a regulatory capital employed growth of approximately 8.1% year-over-year and a reported return on equity for regulatory purposes of approximately 11.6% for FPL. Additionally, NextEra Energy has nearly $37 billion of interest rate hedges in place to manage interest rate exposure, and the company continues to explore various energy solutions, including gas and nuclear, while emphasizing the importance of renewables and battery storage as critical components of its strategy.NextEra Energy Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
NextEra Energy Announces Leadership Transition in 2025
Neutral
Mar 17, 2025
On March 12, 2025, Rebecca Kujawa, CEO of NextEra Energy Resources, announced her retirement effective May 22, 2025, as part of a planned leadership succession. In response, Brian W. Bolster will become the new CEO of NEER, while other key leadership changes include James M. May and Michael H. Dunne taking on new roles within the company. These changes are part of a strategic plan to ensure a smooth transition and continued leadership in the renewable energy sector. The appointments also come with approved compensation adjustments for the executives involved, reflecting their new responsibilities.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.