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NextEra Energy (NYSE:NEE) presented its second quarter 2025 earnings results on July 23, showing strong performance across its business segments with adjusted earnings per share increasing over 9% year-over-year. The company also highlighted its expanding renewable energy development program and maintained its positive long-term financial outlook.
Quarterly Performance Highlights
NextEra Energy reported adjusted earnings of $2,164 million for Q2 2025, up from $1,968 million in the same period last year. Adjusted earnings per share increased to $1.05 from $0.96, representing a 9.4% year-over-year growth.
As shown in the following chart of NextEra Energy’s quarterly financial results:
The company’s premarket trading showed a slight decline of 0.53% to $77.13, despite the positive earnings report. NextEra Energy’s stock has traded between $61.72 and $86.10 over the past 52 weeks, with the most recent closing price at $77.54.
Segment Performance
Florida Power & Light (FPL), NextEra’s regulated utility business and the largest electric utility in the U.S., reported net income of $1,275 million for Q2 2025, up from $1,232 million in Q2 2024. FPL’s earnings per share increased by 2 cents to $0.62.
The growth in FPL’s earnings was primarily driven by continued investments in the business, with regulatory capital employed increasing from $67.6 billion in Q2 2024 to $72.9 billion in Q2 2025, representing approximately 7.9% growth.
NextEra Energy Resources, the company’s competitive energy business, delivered particularly strong results with adjusted earnings increasing to $1,091 million from $865 million in the prior-year quarter. On a per-share basis, adjusted earnings rose to $0.53 from $0.42, representing a 26% increase.
The following chart details NextEra Energy Resources’ quarterly performance:
The growth in NextEra Energy Resources was primarily driven by new investments, which contributed $0.14 to the adjusted EPS increase. Customer supply activities added another $0.06, while existing clean energy assets had a slight negative impact of $0.02.
Renewable Energy Development Program
NextEra Energy continues to expand its renewable energy portfolio, adding 3.2 gigawatts (GW) of new renewable and storage projects to its backlog since the first quarter call. This includes approximately 0.3 GW of wind, 1.7 GW of solar, 0.9 GW of battery storage, and 0.3 GW of repowering projects.
The company’s total renewables and storage backlog now stands at approximately 29.5 GW, underscoring NextEra’s position as a leader in the clean energy transition.
The following chart provides details on NextEra Energy Resources’ development program:
NextEra highlighted the growing demand for electricity and the competitive cost advantage of renewable energy sources. According to the company’s analysis, new onshore wind ($25-$50/MWh) and solar ($35-$75/MWh) are significantly more cost-effective than new natural gas combined cycle ($90-$115/MWh) and small modular nuclear reactors ($130-$150/MWh).
The following chart illustrates the projected growth in electricity demand and generation costs:
Financial Outlook and Guidance
NextEra Energy reaffirmed its financial expectations, projecting 6% to 8% annual growth in adjusted earnings per share through 2027, based on the 2024 adjusted EPS expectations range of $3.23 to $3.43.
The company also expects compound annual growth in operating cash flow to be at or above its adjusted EPS growth rate and continues to project approximately 10% annual dividend per share growth through at least 2026.
The following chart outlines NextEra Energy’s financial expectations:
NextEra Energy appears well-positioned to manage potential interest rate fluctuations, with notional interest rate hedges totaling nearly $37 billion. The company estimates minimal impact from potential interest rate increases, with a 50 basis point increase projected to affect adjusted EPS by only $0.00-$0.01 in 2025, $0.00-$0.02 in 2026, and $0.01-$0.03 in 2027.
"Energy realism is about embracing all forms of energy solutions," CEO John Ketchum had stated during the previous quarter’s earnings call, emphasizing the company’s commitment to diverse energy solutions. He had also highlighted the cost advantages of battery storage, noting that "Batteries are already more than two times cheaper than gas-fired plants."
With an enterprise value of approximately $241 billion and about 75 GW in operations, NextEra Energy continues to leverage its position as a leader in both the regulated utility sector through FPL and the renewable energy market through NextEra Energy Resources, positioning itself for continued growth in the evolving energy landscape.
Full presentation:
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