Is NEE Building Sustainable Growth Through Capital Spending?

NextEra Energy’s NEE capital investment is designed to drive long-term, predictable revenue streams while delivering superior shareholder returns. The company’s approach is centered around expanding its regulated utility operations through Florida Power & Light (“FPL”) and renewables portfolio via NextEra Energy Resources. This investment model positions NEE to benefit from stable cash flows in its regulated segment while capturing growth opportunities in the fast-expanding clean energy space. The company intends to invest more than $72.6 billion through 2029 to strengthen its operations.

NEE’s multibillion-dollar capital plan emphasizes infrastructure modernization, grid reliability and low-cost clean energy generation. FPL continues to see robust customer and demand growth, making it a natural recipient for sustained infrastructure investment. Projects are aimed at hardening the grid, integrating renewables and enhancing infrastructure resilience.

NextEra Energy Resources is deploying capital into wind, solar, battery storage and green hydrogen projects. By investing in long-term contracted assets with high credit-quality counterparties, the company minimizes revenue volatility and positions itself as a key enabler of the U.S. energy transition. In first-quarter 2025 alone, NextEra Energy Resources added 3.2 gigawatt (“GW”) of renewable projects, growing its contracted renewables backlog to nearly 28 GW.

The systematic capital investments strengthen NextEra Energy’s competitive advantage in scale, cost efficiency and technology leadership. The stable utility earnings and growth-oriented renewables give NEE both downside protection and upside potential. NextEra Energy’s disciplined investment strategy successfully blends resilience and innovation in the evolving energy landscape.

How Other Utilities Are Investing in Energy Transition

Utilities across the U.S. are accelerating investments to lead the energy transition, channeling capital into renewable generation and storage technologies.

Duke Energy Corporation DUK, a major U.S. utility, is investing heavily in decarbonizing its generation fleet and modernizing its grid infrastructure. DUK plans to spend more than $83 billion through 2029 to strengthen its grid and expand its renewable energy portfolio.

Constellation Energy Corporation’s CEG strategic investment plans and focus on continuing to expand its renewable portfolio drive earnings performance. CEG expects to invest nearly $3 billion and $3.5 billion for 2025 and 2026, respectively, to upgrade its infrastructure.

NextEra Energy’s Earnings Estimates Moving Up

The company expects its 2025 earnings per share to be in the range of $3.45-$3.70 compared with $3.43 a year ago. The Zacks Consensus Estimate for NEE’s 2025 and 2026 earnings per share indicates year-over-year growth of 7.29% and 7.95%, respectively. NEE expects to increase its earnings per share in the range of 6-8% annually through 2027 from the 2024 level.

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 10.13%. 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 its peers.

NextEra Is Trading Above 50-Day SMA

NextEra Energy is trading above its 50-day simple moving average (“SMA”), signaling a bullish trend. The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend of a stock.

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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