Last Updated: 30 May 2026
NextEra Energy (NYSE: NEE) is the largest electric power and energy infrastructure company in North America, pairing Florida Power & Light (FPL) — the biggest US electric utility — with NextEra Energy Resources (NEER), the country’s leading developer of wind, solar, battery storage and large-scale gas generation. On 18 May 2026 the company agreed to combine with Dominion Energy in an all-stock deal that would create the world’s largest regulated electric utility, reshaping the long-term story. This report reviews the most recent reported figures, balance sheet, valuation and risks using only primary filings and official releases.
1. Company Snapshot
| Field | Value |
|---|---|
| Ticker / Exchange | NEE / NYSE |
| Headquarters | Juno Beach, Florida, USA |
| CEO | John Ketchum (Chairman, President & CEO since March 2022) |
| Sector | Utilities — regulated electric & clean energy |
| Employees | ~16,800 (FY2025 10-K) |
| Market cap | ~$181bn (late May 2026) |
| FY2025 revenue | $27.41bn |
| FY2025 GAAP net income | $6.84bn ($3.30/sh) |
| FY2025 adjusted EPS | $3.71 |
| Dividend yield | ~2.9% (forward) |
2. Bull & Bear Case
Bull Case
- Unrivalled scale across the value chain: NextEra builds, owns and operates every major form of generation — nuclear, gas, solar, wind and storage — at a scale no rival matches, with a service reach spanning 49 states.
- Visible, balanced growth: Management reaffirmed 8%+ adjusted-EPS compound growth through 2032 (and targets the same to 2035) off a 2025 base of $3.71, split between regulated FPL and long-term contracted NEER.
- Record renewables backlog: NEER added 4 GW in Q1 2026 to reach an ~33 GW development backlog, plus a mandate to build 9.5 GW of gas generation tied to the US–Japan investment programme.
- Data-centre demand tailwind: Surging US electricity demand from AI and data centres underpins both FPL rate-base growth and NEER origination.
- Transformational Dominion combination: If approved, the all-stock merger would create the world’s largest regulated utility, more than 80% regulated, targeting 9%+ adjusted-EPS growth through 2032.
Bear Case
- Heavy capital intensity and negative free cash flow: Growth is funded by tens of billions in annual capex, leaving consolidated free cash flow deeply negative and reliant on continuous capital-market access.
- Rising leverage: Long-term debt climbed to ~$89.6bn at year-end 2025 from ~$72.4bn a year earlier; higher-for-longer rates raise financing and refinancing costs.
- Merger execution and regulatory risk: The Dominion deal needs shareholder, antitrust and multi-state regulatory approvals before a targeted Q4 2027 close — a long, uncertain path with integration risk.
- Policy and incentive dependence: NEER’s economics lean on clean-energy tax credits and supportive policy that could be reduced or repealed.
- Premium valuation: NEE trades well above the regulated-utility peer group on most multiples, leaving little room for disappointment.
3. Business Segments
NextEra reports through two principal businesses plus a corporate segment. The split below uses first-quarter 2026 operating revenues of $6,701m.
| Segment | % of revenue | What it is |
|---|---|---|
| Florida Power & Light (FPL) | ~64% | Regulated electric utility serving ~12 million people across Florida; earns a regulated return on a growing rate base. |
| NextEra Energy Resources (NEER) | ~34% | Competitive clean-energy and infrastructure developer — wind, solar, battery storage, transmission and gas generation under long-term contracts. |
| Corporate & Other | ~2% | Corporate functions, financing and consolidating eliminations. |
4. Business Model
How it makes money. FPL invests capital in regulated generation, transmission and distribution and earns an authorised return on that rate base, recovering prudent costs through customer rates approved by the Florida Public Service Commission. NEER develops and operates clean-energy and infrastructure assets, selling power and capacity under long-term contracts to utilities, corporates and large loads such as data centres.
Unit economics. Earnings growth is driven by deploying capital: FPL grew regulatory capital employed ~8.8% year-over-year in Q1 2026 while keeping bills roughly 30% below the national average, and NEER converts its backlog into contracted cash flows. Both rely on low-cost capital and operational scale.
Moat. NextEra’s advantages are scale, a decades-long construction track record, a diversified generation fleet (including four nuclear units at FPL), and the balance sheet to finance very large projects — barriers few competitors can replicate.
5. Financial Health
Figures below are taken from NextEra Energy’s earnings releases and the FY2025 Form 10-K. Revenue swings reflect GAAP mark-to-market effects on hedges and equity investments.
| Year | Revenue | YoY % | GAAP EPS | Adjusted EPS | Dividend/share | Long-term debt (YE) |
|---|---|---|---|---|---|---|
| 2021 | $17.07bn | — | $1.81 | $2.55 | $1.54 | ~$50.9bn |
| 2022 | $20.96bn | +22.8% | $2.10 | $2.90 | $1.70 | $55.3bn |
| 2023 | $28.11bn | +34.2% | $3.60 | $3.17 | $1.87 | $61.4bn |
| 2024 | $24.75bn | −12.0% | $3.37 | $3.43 | $2.06 | $72.4bn |
| 2025 | $27.41bn | +10.7% | $3.30 | $3.71 | $2.27 | $89.6bn |
Quarterly progression (most recent first). Adjusted EPS is NextEra’s headline measure; some quarterly revenue figures are approximate where not separately disclosed, and the full-year row is shown in bold.
| Quarter | Revenue | Adjusted EPS | GAAP EPS |
|---|---|---|---|
| Q1 2026 | $6.70bn | $1.09 | $1.04 |
| Q4 2025 | ~$6.5bn | $0.54 | — |
| Q3 2025 | ~$8.0bn | $1.13 | — |
| Q2 2025 | ~$6.7bn | $1.05 | — |
| Q1 2025 | $6.25bn | $0.99 | $0.40 |
| FY 2025 | $27.41bn | $3.71 | $3.30 |
Operating cash flow was ~$12.5bn in 2025, but capital investment of roughly $24bn left consolidated free cash flow firmly negative — the hallmark of a fast-growing, capital-intensive utility. Year-end 2025 long-term debt was $89.6bn against total equity of $66.5bn.
6. Valuation
Raw metrics, May 2026. Not opinions on whether the stock is cheap or expensive.
| Metric | Value |
|---|---|
| Market cap | ~$181bn (price ~$86, ~2.09bn shares, late May 2026) |
| Enterprise value | ~$273.8bn (market cap ~$181bn + total debt ~$95.6bn − cash ~$2.8bn per FY2025 balance sheet) |
| Trailing P/E (GAAP) | ~26x ($86 / $3.30 FY2025 GAAP EPS) |
| P/E (forward) | ~21.7x ($86 / $3.97 midpoint of 2026 guidance $3.92–$4.02) |
| P/S (TTM) | ~6.6x ($181bn / $27.41bn FY2025 revenue) |
| EV/EBITDA (TTM) | ~18.4x (EV ~$273.8bn / EBITDA ~$14.9bn; EBITDA = operating income ~$8.8bn + D&A ~$6.0bn per FY2025) |
| P/FCF | Not meaningful — FCF negative (operating CF ~$12.5bn − capex ~$24bn = ~−$11bn; heavy growth investment) |
| Dividend yield | ~2.9% (forward annualised ~$2.49/share) |
| 52-week high | $98.75 |
| 52-week low | $66.77 |
| Short interest (% of float) | Low — under ~1.5% of float (typical for a mega-cap regulated utility); verify on MarketBeat/Finviz |
| Days to cover | Low — see MarketBeat NEE short-interest page |
7. What Are They Building
NextEra Energy Resources reached a record quarter for new renewables and storage origination in Q1 2026, adding 4 GW (including 1.3 GW of battery storage) to lift its backlog to approximately 33 GW. It is executing a data-centre “hub” strategy — over 30 hubs today with a goal of roughly 40 by year-end — and was selected by the US Department of Commerce to build 9.5 GW of new gas-fired generation in Texas and Pennsylvania in connection with Japan’s $550bn US investment commitment. At FPL, the latest Ten-Year Site Plan adds roughly 4 GW of new gas generation alongside more than 12 GW of solar and 7 GW of storage over the next decade, while FPL’s owned solar fleet now exceeds 8.5 GW.
8. Competitive Landscape
NextEra competes with other large regulated and integrated US utilities. Market caps are approximate as of May 2026.
| Peer | Market cap (May 2026) | Key 2025 metric |
|---|---|---|
| Duke Energy (DUK) | ~$96bn | FY2025 adjusted EPS $6.31; 5–7% EPS growth target through 2030 |
| American Electric Power (AEP) | ~$69.5bn | Pure-play regulated transmission & distribution across 11 states |
| Dominion Energy (D) | ~$54.3bn | Announced all-stock merger counterparty to NextEra (pending approvals) |
9. Leadership & Ownership
John Ketchum is Chairman, President and Chief Executive Officer, a role he has held since March 2022; he would continue as CEO of the combined company if the Dominion merger completes. Recent insider activity has been a routine mix of equity-compensation grants, tax-related share withholdings, and pre-planned (Rule 10b5-1) sales rather than open-market conviction buying.
| Name | Date | Type | Shares | Price | Value | Plan Type |
|---|---|---|---|---|---|---|
| Nicole J. Daggs (EVP) | 13 Mar 2026 | Sale | 4,934 | $93.00 | ~$459k | Rule 10b5-1 |
| Armando Pimentel Jr. | 12 Feb 2026 | Grant (RSU) | 16,664 | — | — | 2021 LTIP |
| Armando Pimentel Jr. | 15 Feb 2026 | Tax withholding | 7,373 | $93.80 | ~$692k | Vesting |
10. Risks
- Financing & leverage (Financial): A multi-tens-of-billions annual capital programme funded with rising debt (~$89.6bn long-term at year-end 2025) leaves NextEra dependent on continuous, reasonably priced capital-market access; higher rates raise costs.
- Merger execution (Operational): The Dominion combination requires shareholder, antitrust and multi-state regulatory approvals and carries integration risk before a targeted Q4 2027 close.
- Regulatory & policy (Regulatory): Earnings depend on favourable rate-case outcomes and on clean-energy tax incentives that could be reduced, repealed or reinterpreted.
- Interest-rate sensitivity (Macro): As a capital-intensive, dividend-focused utility, NEE’s valuation and financing costs are sensitive to the rate environment.
- Weather & operational hazards (Operational): Florida hurricane exposure, nuclear operations and large construction projects all carry significant operational and cost risk.
- Commodity & hedging (Financial): GAAP earnings are volatile due to non-qualifying hedges and mark-to-market movements on NEER positions.
11. Recent Developments
- 18 May 2026 — NextEra and Dominion agree to combine. The companies announced a definitive all-stock merger (valued at nearly $67bn) to create the world’s largest regulated electric utility, serving ~10 million customer accounts and owning ~110 GW of generation; NextEra holders would own ~74.5% of the combined group, with a targeted Q4 2027 close subject to approvals.
- 23 Apr 2026 — Q1 2026 results beat on earnings. Adjusted EPS rose ~10% year-over-year to $1.09 (GAAP $1.04) on revenue of $6.70bn; the company reiterated 2026 adjusted-EPS guidance of $3.92–$4.02 and 8%+ growth through 2032.
- 23 Apr 2026 — Record renewables origination. NEER added 4 GW to its backlog (including 1.3 GW of storage), reaching ~33 GW.
- March 2026 — US–Japan gas mandate. The US Department of Commerce selected NEER to build 9.5 GW of new gas-fired generation in Texas and Pennsylvania tied to Japan’s $550bn US investment commitment.
12. Key Dates
- 29 Jul 2026 — Q2 2026 financial results (expected)
- 15 Jun 2026 — approximate next quarterly dividend payment date
- Expected Q4 2027 Q4 2027 — targeted completion of the Dominion combinationmdash; targeted completion of the Dominion combination, subject to regulatory approvals
Explore more on ChartsView: Live Charts, the Economic Calendar, and join the discussion on the Forum.
Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.