NextEra Energy Q1 2025 slides: adjusted EPS grows 9%, renewables backlog expands

Introduction & Market Context

NextEra Energy (NYSE:NEE) reported solid first-quarter 2025 results on April 23, with adjusted earnings per share growing by nearly 9% year-over-year, driven by strong performance across its business segments. The company continues to position itself as a leader in the renewable energy transition, expanding its development portfolio while maintaining its long-term financial outlook.

The results come as the utility sector faces increasing demand for clean energy solutions and grid reliability. NextEra’s presentation highlighted its strategy to capitalize on the growing U.S. power demand through continued investments in renewables, storage, and grid infrastructure.

As shown in the following chart comparing 2024 and 2025 first quarter results, NextEra Energy’s adjusted earnings increased from $1,873 million to $2,038 million, while adjusted EPS rose from $0.91 to $0.99:

Quarterly Performance Highlights

Florida Power & Light (FPL), NextEra’s regulated utility subsidiary, delivered strong results with earnings per share increasing by 7 cents from the prior-year quarter. FPL’s net income grew from $1,172 million in Q1 2024 to $1,316 million in Q1 2025, with EPS rising from $0.57 to $0.64.

The following chart illustrates FPL’s year-over-year growth in both net income and EPS:

FPL’s growth was primarily driven by new investments, which contributed $0.04 to EPS, while other factors including share dilution added $0.03. The company’s regulatory capital employed grew by approximately 8.1% year-over-year, from $66.0 billion in Q1 2024 to $71.4 billion in Q1 2025.

NextEra Energy Resources, the company’s competitive energy business, also performed well with adjusted earnings increasing nearly 10% from the prior-year comparable quarter. The segment’s adjusted net income grew from $828 million to $908 million, with adjusted EPS rising from $0.40 to $0.44.

The following chart shows Energy Resources’ GAAP and adjusted results for Q1 2025 compared to Q1 2024:

The primary driver for Energy Resources’ adjusted EPS growth was new investments, which contributed $0.12 per share. This was partially offset by declines in existing clean energy (-$0.03), customer supply (-$0.01), and other factors (-$0.05), while NextEra Energy Transmission contributed $0.01.

The following waterfall chart breaks down these contributions to Energy Resources’ adjusted EPS:

Renewable Energy Strategy

A key highlight of NextEra’s presentation was the continued expansion of its renewables and storage portfolio. Energy Resources added approximately 3.2 GW of new renewable and storage projects to its backlog since the fourth quarter of 2024, including:

• ~0.2 GW of wind
• ~2.0 GW of solar
• ~0.9 GW of battery storage
• ~0.1 GW of repowering

This marks the fifth quarter of the past seven where the company has added more than 3 GW to its backlog, which now stands at approximately 27.7 GW. The company expects to operate more than 70 GW of generation and storage capacity by the end of 2027.

The following table details Energy Resources’ development program, including current backlog and expectations through 2027:

NextEra also highlighted its efforts to diversify and domesticate its supply chain, noting that Energy Resources fully sources wind turbines in the U.S. with manufacturing in Florida, has diversified its global solar supply chain, and has secured arrangements to purchase batteries from key domestic suppliers.

The company’s renewable energy operations continue to show strong performance, as evidenced by the Wind Production Index data presented in the following chart:

Financial Outlook

NextEra Energy reaffirmed its long-term financial expectations, projecting 6-8% annual growth in adjusted EPS through 2027, based on its 2024 expectations. The company also continues to expect approximately 10% annual dividend per share growth through at least 2026.

The following chart illustrates NextEra’s financial expectations for the coming years:

The company provided a comprehensive breakdown of its EPS performance across segments, comparing both GAAP and adjusted figures for Q1 2024 and Q1 2025:

NextEra also shared projected financial information for its portfolio in 2025, including adjusted EBITDA expectations for various asset categories:

Strategic Initiatives

FPL continues to focus on smart capital investments to improve its customer value proposition. The company plans to invest approximately $50 billion from 2025-2029 and add more than 25 GW of new generation and storage by 2034. FPL’s Ten Year Site Plan projects that solar will comprise approximately 35% of all energy produced across the FPL system by 2034.

On February 28, FPL submitted testimony to the Florida Public Service Commission for its 2025 base rate proceeding. The proposal includes base rate adjustment requests of approximately $1.6 billion in 2026 and $0.9 billion for 2027, as well as continued recovery through the Solar and Battery Base Rate Adjustment mechanism in 2028 and 2029. These adjustments would result in an estimated average annual increase in total customer bills of approximately 2.5% from January 2025 through the end of 2029.

The company also highlighted its credit metrics, maintaining strong ratings from major agencies. NextEra’s FFO/Debt ratio was 19.3% in 2024, with a target of >18% for 2025, well within the A- range of 13-23% set by S&P.

Conclusion

NextEra Energy’s Q1 2025 presentation portrays a company with strong financial performance and continued momentum in expanding its renewable energy portfolio. With nearly 9% growth in adjusted EPS, significant additions to its development backlog, and reaffirmed long-term financial expectations, NextEra appears well-positioned to capitalize on the growing demand for clean energy solutions.

The company’s strategy of investing in both regulated utilities and competitive renewable energy development provides diversification while maintaining focus on the energy transition. As power demand continues to grow across the United States, NextEra’s expanding portfolio of renewable generation and storage capacity positions it to potentially benefit from this long-term trend.

Investors will likely focus on the company’s ability to execute its ambitious development plans while navigating regulatory processes, supply chain challenges, and evolving market conditions in the coming quarters.

Full presentation:

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