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NextEra Energy
(NYSE:NEE)
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Rating:74Outperform
Price Target:
$92.00
â–²(9.24% Upside)
Action:Reiterated
Date:09/14/26
The score is driven primarily by strong underlying financial profitability and improving cash flow, reinforced by constructive earnings-call guidance and large-scale backlog/pipeline indicators. These positives are tempered by currently weak technical momentum (price below key moving averages with negative MACD and low RSI) and balance-sheet leverage considerations typical for a capital-intensive utility.
Positive Factors
Profitability and Cash Generation
Strong profitability and improving cash generation provide internal funding capacity for NextEra’s substantial utility and renewable investment program. High EBITDA margins and positive free cash flow support financial resilience, dividend funding, and continued expansion across regulated and competitive energy businesses.
Negative Factors
Leverage and Capital Intensity
NextEra’s capital-intensive model requires substantial ongoing financing, while elevated historical leverage and free cash flow below net income reduce financial flexibility. These features can constrain capital allocation and increase sensitivity to funding conditions as the company expands utility, transmission, and renewable assets.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability and Cash Generation
Strong profitability and improving cash generation provide internal funding capacity for NextEra’s substantial utility and renewable investment program. High EBITDA margins and positive free cash flow support financial resilience, dividend funding, and continued expansion across regulated and competitive energy businesses.
Read all positive factors
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:
The Fly
The FlyNextEra Energy (NEE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$166.46B
Dividend Yield3.05%
Average Volume (3M)11.58M
Price to Earnings (P/E)17.9
Beta (1Y)0.25
Revenue Growth11.83%
EPS Growth55.48%
CountryUS
Employees17,400
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)4.47
Shares Outstanding2,085,978,300
10 Day Avg. Volume10,770,237
30 Day Avg. Volume11,577,207
Financial Highlights & Ratios
PEG Ratio-11.71
Price to Book (P/B)3.07
Price to Sales (P/S)6.10
P/FCF Ratio52.23
Enterprise Value/Market Cap1.81
Enterprise Value/Revenue10.40
Enterprise Value/Gross Profit14.48
Enterprise Value/Ebitda17.14
Forecast
1Y Price Target
$95.23Price Target Upside13.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)4.02
Revenue Forecast (FY)$30.78B
NextEra Energy Business Overview & Revenue Model
Company Description
NextEra Energy, Inc., operating through its diverse subsidiaries, is a prominent electric power provider in North America. The company's operations encompass the generation, transmission, distribution, and sale of electricity to both individual co...
How the Company Makes Money
NextEra Energy primarily makes money through two major business segments: (1) regulated electric utility operations and (2) competitive energy generation and renewable project development/ownership.
1) Regulated utility revenues (Florida Power & ...
NextEra Energy Earnings Call Summary
Earnings Call Date:Jul 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
The call emphasized broad operational execution, substantial backlog and pipeline expansion, strong origination and recontracting momentum, and disciplined capital deployment (notably at FPL and Energy Resources). Key metrics showed double-digit year-over-year growth in several areas (e.g., 9.8% YTD EPS growth; ~18% Energy Resources earnings growth) and meaningful capacity additions and pipeline scale (backlog ~35.1 GW; >110 GW storage pipeline). Lowlights were mainly execution and timing risks (backlog still short of midpoint, government timing for federal hubs), modest retail sales growth, a small corporate earnings drag, and a sizable rate stabilization balance. Overall, the positive operating and financial progress and the magnitude of growth opportunities materially outweighed the manageable risks cited on the call.Positive Updates
Strong Quarterly and Year-to-Date EPS Performance
Adjusted EPS of $1.15 in Q2 2026 and adjusted EPS increased 9.8% year-over-year through the first 6 months, with full-year 2026 adjusted EPS guidance unchanged at $3.92 to $4.02 and management targeting the high end.
Negative Updates
Modest Retail Sales Growth
FPL second quarter retail sales rose only ~0.4% year-over-year and weather-normalized sales increased roughly 0.6%, reflecting modest consumption growth despite strong customer additions.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly and Year-to-Date EPS Performance
Adjusted EPS of $1.15 in Q2 2026 and adjusted EPS increased 9.8% year-over-year through the first 6 months, with full-year 2026 adjusted EPS guidance unchanged at $3.92 to $4.02 and management targeting the high end.
Read all positive updates
Company Guidance
NextEra reiterated 2026 adjusted EPS guidance of $3.92–$4.02 (targeting the high end) and reported Q2 adjusted EPS of $1.15 with YTD EPS up 9.8% year‑over‑year; management expects adjusted EPS CAGR of 8%+ through 2032 (and cited 9%+ targets in the proposed Dominion combination) off a 2025 base of $3.71 and said operating cash flow should grow at or above that pace through 2032. Key operational and financial metrics include FPL Q2 capex ~$2.8B and full‑year capex $12–13B, regulatory capital employed growth ~9.3%, 12‑month regulatory ROE ~11.7%, a $110M RSM reversal leaving an after‑tax balance of ~$1.3B, >90,000 net customers added in Q2, retail sales +0.4% (+0.6% weather‑normalized), and full‑year targets of ~900 MW solar and >1.4 GW battery storage; FPL raised large‑load expectations from 6 GW to 8 GW by 2032 (≈21 GW of interest, ~12 GW in advanced talks; expect at least one large‑load deal by year‑end, with ~ $2B CapEx per GW). Energy Resources added 3.6 GW to backlog this quarter (2 GW battery), backlog ≈35.1 GW after placing 1.1 GW in service, co‑located/standalone storage pipeline >110 GW, YTD recontracting >1,100 MW (500+ MW this quarter) at ~+$20/MWh premium with ~15‑year average terms, up to 6 GW renewables and 1.5 GW nuclear recontracting opportunities through 2032, and ER adjusted earnings grew ~18% YoY; corporate noted a >$46B interest‑rate hedging program. Other milestones: Duane Arnold targeted online no later than Q1 2029, the Dominion combination expected to close in H2 2027 with a plan to more than double the combined company by 2032, and dividend growth guidance of ~10%/yr through 2026 (off 2024 base) and ~6%/yr from YE‑2026 through 2028.NextEra Energy Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
63
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.02B | 27.48B | 24.75B | 28.11B | 20.96B | 17.07B |
| Gross Profit | 20.84B | 17.25B | 14.87B | 17.98B | 10.14B | 8.56B |
| EBITDA | 17.60B | 16.04B | 14.03B | 16.76B | 9.21B | 8.66B |
| Net Income | 9.30B | 6.83B | 6.95B | 7.31B | 4.15B | 3.57B |
Balance Sheet | ||||||
| Total Assets | 232.81B | 212.72B | 190.14B | 177.49B | 158.94B | 140.91B |
| Cash, Cash Equivalents and Short-Term Investments | 2.87B | 2.81B | 1.49B | 2.69B | 1.60B | 639.00M |
| Total Debt | 110.20B | 95.62B | 82.33B | 73.21B | 64.97B | 54.83B |
| Total Liabilities | 164.65B | 146.24B | 129.28B | 118.47B | 109.50B | 95.24B |
| Stockholders Equity | 57.13B | 54.61B | 50.10B | 47.47B | 39.23B | 37.20B |
Cash Flow | ||||||
| Free Cash Flow | 3.05B | 3.21B | 4.75B | 1.75B | -1.48B | -277.00M |
| Operating Cash Flow | 13.80B | 12.48B | 13.26B | 11.30B | 8.26B | 7.55B |
| Investing Cash Flow | -29.43B | -23.86B | -22.26B | -23.47B | -18.36B | -13.59B |
| Financing Cash Flow | 16.88B | 12.98B | 7.00B | 12.15B | 12.23B | 5.81B |
NextEra Energy Technical Analysis
Negative
84.22
Price Trends
80.96
Negative
83.70
Negative
86.28
Negative
Market Momentum
-0.59
Negative
55.59
Neutral
81.95
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEE, the sentiment is Negative. The current price of 84.22 is above the 20-day moving average (MA) of 77.39, above the 50-day MA of 80.96, and below the 200-day MA of 86.28, indicating a neutral trend. The MACD of -0.59 indicates Negative momentum. The RSI at 55.59 is Neutral, neither overbought nor oversold. The STOCH value of 81.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEE.
NextEra Energy Risk Analysis
NextEra Energy disclosed 52 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $166.46B | 17.85 | 16.82% | 3.05% | 11.83% | 55.48% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $69.21B | 21.85 | 10.01% | 2.99% | 8.63% | -14.89% | |
63 Neutral | $94.71B | 18.24 | 9.88% | 3.52% | 6.33% | 8.98% | |
62 Neutral | $104.89B | 21.87 | 12.61% | 3.29% | 6.40% | 6.90% | |
60 Neutral | $47.67B | 20.79 | 9.64% | 3.08% | 4.57% | 1.46% | |
58 Neutral | $55.90B | 21.99 | 8.89% | 4.20% | 21.98% | -0.39% |
* Utilities Sector Average
NEE
NextEra Energy
79.80
-2.60
-3.16%
AEP
American Electric Power
127.14
12.87
11.26%
D
Dominion Energy
63.56
4.63
7.85%
DUK
Duke Energy
121.47
-3.10
-2.49%
SO
Southern Co
91.18
-3.39
-3.58%
XEL
Xcel Energy
76.31
-2.52
-3.20%
NextEra Energy Corporate Events
Business Operations and StrategyM&A Transactions
NextEra Energy unveils Virginia-focused merger benefits package
Positive
Sep 14, 2026
On Sept. 14, 2026, NextEra Energy and Dominion Energy announced a transformational Virginia benefits package tied to their proposed merger, aimed at delivering long-term residential bill relief and strengthening the Commonwealth’s energy lea...
Business Operations and StrategyM&A TransactionsShareholder Meetings
NextEra Shareholders Approve Key Steps for Dominion Merger
Positive
Sep 3, 2026
On September 3, 2026, NextEra Energy held a special shareholder meeting to consider matters related to its pending merger with Dominion Energy, with more than 1.62 billion of the company’s over 2.08 billion outstanding shares represented, co...
Legal ProceedingsM&A TransactionsRegulatory Filings and Compliance
NextEra Energy issues disclosures on Dominion merger
Neutral
Aug 25, 2026
On May 15, 2026, NextEra Energy and Dominion Energy signed a merger agreement under which Dominion will be merged into a NextEra subsidiary and then into a NextEra LLC, leaving Dominion as part of a wholly owned NextEra entity. The First Merger re...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
NextEra Energy Moves to Acquire Dominion Energy
Positive
Aug 11, 2026
On May 15, 2026, NextEra Energy entered into a merger agreement with Dominion Energy that outlines a two-step transaction to make Dominion a wholly owned subsidiary. A Florida subsidiary of NextEra will first merge into Dominion, followed by a sec...
Business Operations and StrategyShareholder Meetings
NextEra Energy Updates Bylaws on Shareholder Meeting Procedures
Positive
Jul 8, 2026
On July 8, 2026, NextEra Energy, Inc.’s board of directors approved immediate amendments to the company’s Amended and Restated Bylaws concerning shareholder meetings. The changes give the board explicit authority to set the time and pl...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
NextEra Energy Issues $3.75 Billion Hybrid Debentures
Positive
Jun 22, 2026
On June 22, 2026, NextEra Energy Capital Holdings sold a total of $3.75 billion in long-dated junior subordinated debentures in three series, maturing in 2056 and 2066, with initial fixed interest rates ranging from 6.000% to 6.625% before transit...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
NextEra Energy Advances Dominion Energy Merger Integration Steps
Positive
Jun 15, 2026
On May 15, 2026, NextEra Energy and Dominion Energy entered into a merger agreement under which a NextEra subsidiary will merge with Dominion Energy, leaving Dominion as a wholly owned subsidiary in a first-step merger, followed by a second-step m...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.