NextEra Energy's Q1 Earnings Beat Estimates, Revenues Miss

NextEra Energy, Inc. NEE reported first-quarter 2025 adjusted earnings of 99 cents per share, which beat the Zacks Consensus Estimate of 97 cents by 2.1%. The bottom line was also up nearly 8.8% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news)

The year-over-year improvement in earnings per share was due to solid financial and operational performance at both of its businesses.

GAAP earnings per share for the first quarter were 40 cents compared with $1.1 in the year-ago period.

NEE’s Total Revenues

In the first quarter, NextEra Energy’s operating revenues were $6.24 billion, which lagged the Zacks Consensus Estimate of $7.34 billion by 14.9%. However, the top line improved 9% year over year.

NextEra Energy, Inc. Price, Consensus and EPS Surprise

NextEra Energy, Inc. price-consensus-eps-surprise-chart | NextEra Energy, Inc. Quote

Segment Results of NEE

Florida Power & Light Company (FPL): The segment’s revenues amounted to nearly $3.99 billion, up 4.25% from the prior-year figure of $3.83 billion. Its earnings were 64 cents per share compared with 57 cents in the year-ago quarter.

NextEra Energy Resources: Its revenues amounted to $2.16 billion, up 16% from the prior-year figure of $1.86 billion. The segment’s earnings were 44 cents per share compared with 40 cents in the year-ago quarter.

Corporate and Other: Operating revenues for the reported quarter were $87 million compared with $33 million in the year-ago period. The operating loss in the first quarter was 9 cents per share, which was wider than the year-ago loss of 6 cents.

Highlights of NEE’s Release

FPL remains committed to operating efficiently and delivering strong value to its customers, driven by strategic capital investments that serve their long-term interests. In the first quarter, FPL added 894 megawatts (MW) of new, cost-effective solar capacity, bringing its total owned and operated solar portfolio to more than 7.9 gigawatts (GW).

In April, FPL filed its Ten-Year Site Plan with the Florida Public Service Commission. The 2025 plan identifies the need for over 17 GW of cost-effective solar generation throughout its service area in the next ten years, along with more than 7.6 GW of battery storage deployment. With this plan, FPL aims to expand solar energy’s contribution to its total energy generation from roughly 9% in 2024 to about 35% by 2034. FPL plans to invest nearly $50 billion from 2025-2029 to add more clean assets to its portfolio.

NextEra Energy Resources expanded its contracted renewables backlog by adding nearly 3.2 GW of renewable projects in the quarter under discussion. Its backlog additions include nearly 200 MW of wind projects, 2 GW of solar projects, 900 MW of battery storage projects and 100 MW of wind repowering. The company’s renewables backlog is now more than 28 GW.

Financial Update of NEE

NEE had cash and cash equivalents of nearly $2.41 billion as of March 31, 2025, compared with $1.49 billion on Dec. 31, 2024.

Long-term debt, as of March 31, 2025, was $79.8 billion, up from $72.4 billion on Dec. 31, 2024.

Cash flow from operating activities in first-quarter 2025 was $2.76 billion compared with $3.07 billion in first-quarter 2024.

NextEra Energy’s Guidance

NEE reaffirmed its 2025 earnings guidance. The metric is expected in the range of $3.45-$3.70 per share. The midpoint of the guided range is $3.575 per share, lower than the Zacks Consensus Estimate of $3.68.

For 2026 and 2027, NextEra Energy expects adjusted earnings per share to be in the range of $3.63 to $4.00 and $3.85 to $4.32, respectively. The company also continues to expect its earnings per share to grow at a roughly 6-8% range through at least 2027, off a 2024 base.

NEE’s unit, Energy Resources, currently aims to add 36,500-46,500 MW of renewable power projects to its portfolio in the 2024-2027 span.

NEE’s Zacks Rank

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

Upcoming Releases

PG&E Corporation PCG is set to release first-quarter 2025 results on April 24. The Zacks Consensus Estimate for earnings per share is pegged at 36 cents.

PCG’s long-term (three-to-five years) earnings growth rate is 9.61%. The Zacks Consensus Estimate for first-quarter earnings per share indicates a decline of 2.7% from the prior-year actual.

Dominion Energy D is scheduled to announce first-quarter 2025 results on May 1. The Zacks Consensus Estimate for earnings is pegged at 76 cents per share.

Dominion’s long-term earnings growth rate is estimated at 13.59%. The Zacks Consensus Estimate for first-quarter earnings per share indicates an increase of 38.18% from the year-earlier level.

The Southern Company SO is scheduled to announce first-quarter 2025 results on May 1. The Zacks Consensus Estimate for earnings per share is pegged at $1.17.

SO’s long-term earnings growth rate is 6.48%. The Zacks Consensus Estimate for first-quarter earnings per share indicates an increase of 13.59% from the prior-year actual.

 

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

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