Can NextEra Ride Florida's Economic Momentum for Long-Term Growth?

NextEra Energy Inc. NEE is a top-tier clean energy company in the United States, with a strong footprint in both renewable generation and regulated utility services. Its subsidiary, Florida Power & Light (“FPL”), serves more than 12 million people and plays a pivotal role in supporting the state’s ongoing economic development. As the state experiences accelerating population growth and economic expansion, NextEra Energy stands to benefit from increasing electricity demand and a favorable regulatory climate.

Florida’s expanding economy, driven by a robust job market, business migration and population inflows, has created fresh demand for electricity from all customer groups. FPL’s ongoing infrastructure investments are aligned with this upward trajectory, enabling the utility to meet increasing customer needs while enhancing grid reliability. Rising electricity consumption directly translates to higher revenue and earnings growth potential for NextEra Energy.

In the first quarter of 2025, FPL added nearly 108,000 customers compared with the prior year, reflecting strong demographic momentum in its service areas. As Florida remains one of the fastest-growing states, organic customer growth acts as a powerful long-term catalyst for the company’s utility segment. The company’s ability to keep customer bills low while maintaining service quality strengthens its leadership position in the market.

Paired with customer-friendly rate structures and a constructive regulatory framework, NextEra Energy’s scale and innovation position it well for sustainable returns. Its clean energy leadership, combined with deep exposure to Florida’s economic engine, makes NextEra Energy a compelling long-term investment for consistent value creation.

How Utilities Gain From Improving Economic Conditions?

Utilities benefit from improving economic conditions through increased electricity demand from expanding residential, commercial and industrial sectors. Economic growth drives customer additions, higher consumption and infrastructure investments, enabling utilities to boost revenues, enhance grid reliability and deliver stable, long-term returns for investors.

Utilities like Duke Energy DUK and Tampa Electric, a unit of Emera Inc., have both benefited from Florida’s improving economic conditions. Duke Energy has seen rising electricity demand across its Florida service areas due to population growth and business expansion. Tampa Electric has gained from an increase in customer numbers and electricity usage, driven by new housing developments and expanding commercial activity.

NEE’s Price Performance

NextEra Energy’s shares have gained 15.2% in the past three months compared with the Zacks Utility Electric-Power industry’s growth of 5.7%.

NextEra Energy’s Earnings Estimates Remain Same

The company expects its 2025 earnings per share to be $3.45-$3.70 compared with $3.43 a year ago. The Zacks Consensus Estimate for NEE’s 2025 and 2026 earnings per share remained unchanged at $3.68 and $3.97, respectively, in the past 60 days.

NEE Stock Returns Better Than Its Industry

NextEra Energy’s trailing 12-month return on equity (“ROE”) is 12.06%, ahead of the industry average of 10.41%. ROE is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.

NEE’s Zacks Rank

NextEra Energy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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This article originally published on Zacks Investment Research (zacks.com).

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