Image Source: NextEra Energy
By Brian Nelson, CFA
NextEra Energy (NEE) recently reported mixed third quarter results with non-GAAP earnings per share beating the consensus forecast but revenue coming up short relative to expectations. On an adjusted basis, third-quarter earnings were $2.348 billion, or $1.13 per share, compared to $2.127 billion, or $1.03 per share, in the third quarter of last year. FPL grew regulatory capital employed by approximately 8% year-over-year, while NextEra Energy Resources achieved a strong quarter of new renewables and storage origination, adding 3 gigawatts to its backlog.
Management had the following to say about the results:
NextEra Energy delivered strong third-quarter results, with adjusted earnings per share increasing by 9.7% year-over-year. We believe the continued strong financial and operational performance at both FPL and NextEra Energy Resources positions us well to meet our overall objectives for the year. Earlier this month, FPL completed its evidentiary hearing on its proposed four-year base rate settlement agreement, which would support continued smart capital investments through 2029, while keeping typical residential customer bills well below the current national average and 20% lower than they were 20 years ago when adjusted for inflation.
And I’m very excited about our announcement yesterday of a two-pronged collaboration with Google that we believe will strengthen U.S. leadership in nuclear power. Importantly, the cornerstone of this new collaboration will enable us to continue with the recommissioning of our 615-megawatt Duane Arnold Energy Center, putting us on a path to bring Iowa’s only nuclear plant back online. We have also entered into an agreement with Google to explore new advanced nuclear capacity to be deployed in the U.S. These efforts with Google are laying the foundation for creating thousands of jobs, invigorating Iowa’s economy, delivering long-term value to our shareholders and helping power our nation’s future with innovation and technology.
We believe we are well positioned to continue delivering for our customers and shareholders, and will be disappointed if we are not able to deliver financial results at or near the top of our adjusted earnings per share expectations ranges in each year through 2027, while maintaining our strong balance sheet and credit ratings.
NextEra reiterated its long-term financial expectations. For 2025, NextEra Energy expects adjusted earnings per share to be in the range of $3.45-$3.70. For 2026 and 2027, NextEra Energy expects adjusted earnings per share to be in the ranges of $3.63-$4.00 and $3.85-$4.32, respectively. The utility also expects to grow its dividends per share at a roughly 10% annual rate through at least 2026, off a 2024 base. We continue to like NextEra Energy’s fundamentals, and the firm remains a key idea in the ESG Newsletter portfolio.
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Brian Nelson owns shares in SPY, SCHG, QQQ, QQQM, DIA, VOT, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, QQQM, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, RSP, SCHG, QQQ, QQQM, and VOO. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
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