NextEra Energy (NEE) — Company Research

Last Updated: 14 Oct 2026

NextEra Energy (NYSE: NEE) owns Florida Power & Light (FPL), Florida's rate-regulated electric utility, and NextEra Energy Resources (NEER), one of the world's largest developers of wind, solar and battery storage. FY2025 operating revenues were $27.4 billion and adjusted EPS was $3.71. In Q2 2026 adjusted EPS rose 9.5% to $1.15 and NEER added 3.6 GW to a renewables and storage backlog of about 35 GW. The biggest change since our last update is the pending all-stock merger with Dominion Energy, announced on 18 May 2026 and approved by both sets of shareholders on 3 Sep 2026; it is now in regulatory review with closing expected in the second half of 2027. Track the share price on our Live Charts.

1. Company Snapshot

Field	Value
Ticker / Exchange	NYSE: NEE
Sector / Industry	Utilities: Electric Utilities and Renewable Generation
CEO / Leadership	John W. Ketchum, Chairman, President and CEO since 2022; Michael H. Dunne, EVP Finance and CFO
Employees	~17,300 (FPL ~9,400 and NEER ~7,900 at 31 Dec 2025, FY2025 10-K)
Market cap	~$163.2bn ($78.22 close on 13 Oct 2026 x ~2.09bn shares)
FY2025 Revenue	$27,412m operating revenues (+10.7% YoY)
FY2025 net income (GAAP)	$6,835m ($3.30 diluted EPS; adjusted EPS $3.71)
Latest quarter	Q2 2026: revenue $7,534m, GAAP EPS $1.50, Adjusted EPS $1.15
Dividend	$0.6232 per share quarterly (~$2.49 annualised)
Pending deal	All-stock merger with Dominion Energy (0.8138 NEE shares per Dominion share); combined company keeps the NEE name and ticker

2. Bull & Bear Case

Bull Case

• Visible earnings growth targets: Management guides 2026 adjusted EPS of $3.92 to $4.02 (targeting the high end) and adjusted EPS growth of 8% or more a year through 2032 off the 2025 base of $3.71, rising to 9% or more for the combined company with Dominion.
• Record development pipeline: NEER added a record 4 GW to its backlog in Q1 2026 and 3.6 GW in Q2 2026, taking it to about 35.1 GW after projects placed in service.
• Data center and large-load demand: FPL reports about 21 GW of large-load interest, 12 GW in advanced discussions, and NEER has contracts with Google and Meta plus the 6.47 GW Project Star gas campus in Texas announced on 30 Sep 2026.
• Regulated growth in Florida: FPL's four-year rate settlement (2026 to 2029) includes base-rate increases of $945m from 2026 and $705m from 2027 at a 10.95% authorised ROE, and FPL plans $90bn to $100bn of investment through 2032.
• Nuclear restart backed by federal loan: The DOE closed a loan of up to $1.9bn on 8 Sep 2026 to restart the 615 MW Duane Arnold plant, contracted to Google, by Q1 2029 at the latest.

Bear Case

• Merger approval risk: The Dominion deal needs Virginia, South Carolina, FERC and NRC approvals; at the 9 Oct 2026 Virginia hearing many local officials asked for denial or tougher conditions, and NEE has already enlarged its Virginia benefits package.
• Heavy and rising debt: Total debt rose to about $110.2bn at 30 Jun 2026 from about $95.6bn at year-end 2025, and operating cash flow of $12.5bn in 2025 covered only about half of capital expenditure.
• Share dilution ahead: About 716m new NEE shares would be issued to Dominion holders, and $2.3bn of equity units issued in March 2026 convert to common stock by February 2029.
• Tax-credit cliff for renewables: Under the 2025 federal tax law, wind and solar projects keep full credits only if construction began before 5 Jul 2026 or they enter service by the end of 2027.
• Weather exposure: Hurricane Isaias hit FPL's territory in October 2026, leaving about 332,000 customers without power on 10 Oct, and storm costs must be recovered through regulators.

3. Products & Segments

NextEra reports two principal segments plus Corporate and Other. FPL is a rate-regulated utility in Florida that added more than 90,000 customers in the year to Q2 2026; NEER develops, owns and operates generation and storage across the US and sells power under long-term contracts.

Segment	% of revenue	What it is
Florida Power & Light (FPL)	~65.0% ($4,896m, Q2 2026)	Regulated electricity generation, transmission and distribution in Florida, including gas, nuclear and more than 8.5 GW of utility-owned solar.
NextEra Energy Resources (NEER)	~33.6% ($2,532m, Q2 2026)	Competitive wind, solar, battery storage, nuclear and gas generation, gas pipelines and transmission (GridLiance), mostly under long-term contracts.
Corporate and Other	~1.4% ($106m, Q2 2026)	Holding-company items and other businesses.

Mix is based on Q2 2026 operating revenues of $7,534m from the Q2 2026 earnings release. NEER revenue includes non-qualifying hedge gains and losses, which make segment shares vary from quarter to quarter.

4. Business Model & Moat

How it makes money. FPL earns a regulated return on the capital it invests in its grid and power plants, set by the Florida Public Service Commission. NEER builds renewables, storage, gas and nuclear assets and sells their output under long-term contracts to utilities and large corporate buyers. In FY2025 FPL earned $5.0bn of net income ($2.42 per share) and NEER $3.5bn of adjusted earnings ($1.70 per share).

Why scale matters. NextEra had about 80 GW of net generation and storage capacity at year-end 2025. Its size gives it purchasing power with equipment suppliers, a large land and interconnection pipeline, and the balance sheet to originate around 13.5 GW of new backlog in a single year.

Where the moat lies and its limits. The advantages are FPL's constructive regulatory framework and low-cost generation fleet, and NEER's development platform. The limits are capital intensity and policy: the business needs continual access to debt and equity markets, and federal tax-credit changes, interest rates and regulators' affordability concerns all affect returns.

5. Financial Health

NextEra reports on a calendar year. Revenue is total operating revenues. Figures are from NextEra's earnings releases, 10-K and 10-Q filings and SEC XBRL data.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021	$17,069m	-5.2%	$1.81	$2.55	$1.54	$50,960m
FY2022	$20,956m	+22.8%	$2.10	$2.90	$1.70	$55,256m
FY2023	$28,114m	+34.2%	$3.60	$3.17	$1.87	$61,405m
FY2024	$24,753m	-12.0%	$3.37	$3.43	$2.06	$72,385m
FY2025	$27,412m	+10.7%	$3.30	$3.71	$2.27	$89,556m

Adjusted EPS is NextEra's adjusted earnings per share, which excludes non-qualifying hedge activity, XPLR-related items, impairments and other items. Long-term debt is the non-current balance-sheet line and excludes the current portion ($3,500m at year-end 2025), commercial paper and other short-term debt. FY2023 revenue was lifted by non-qualifying hedge gains, which explains the swing between 2023 and 2024.

Quarterly trend, most recent quarter first:

Quarter / Half	Revenue	Adjusted EPS	GAAP EPS
Q2 2026 (Jun-26)	$7,534m	$1.15	$1.50
Q1 2026 (Mar-26)	$6,701m	$1.09	$1.04
Q4 2025 (Dec-25)	$6,500m	$0.54	$0.73
Q3 2025 (Sep-25)	$7,966m	$1.13	$1.18
Q2 2025 (Jun-25)	$6,700m	$1.05	$0.98
Q1 2025 (Mar-25)	$6,247m	$0.99	$0.40
FY2025 total	$27,412m	$3.71	$3.30

Cash flow and balance sheet. FY2025 cash flow from operations was $12,485m against capital expenditure of about $24.6bn (FPL $8,719m, NEER independent power and other investments $15,332m, nuclear fuel $553m). Depreciation and amortisation was $6,580m and operating income $8,280m. At 30 Jun 2026 NextEra had long-term debt of $98,790m, current portion of long-term debt of $5,413m, commercial paper of $1,736m and other short-term debt of $4,258m (total about $110.2bn), cash of $2,866m and common shareholders' equity of $57,126m.

6. Valuation

Raw metrics, October 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Market cap	~$163.2bn ($78.22 close on 13 Oct 2026 x ~2.09bn shares)
Enterprise value	~$270.5bn (market cap ~$163.2bn + total debt ~$110.2bn [long-term $98.8bn + current portion $5.4bn + commercial paper $1.7bn + other short-term $4.3bn] - cash ~$2.9bn, per 30 Jun 2026 balance sheet; excludes $11.0bn of noncontrolling interests)
Trailing P/E (GAAP)	~17.6x ($78.22 / TTM GAAP EPS $4.45, Q3 2025 to Q2 2026); on TTM adjusted EPS of $3.91 the multiple is ~20.0x
P/E (forward)	~19.7x ($78.22 / midpoint of management's 2026 adjusted EPS guidance of $3.92 to $4.02)
P/S (TTM)	~5.7x (market cap ~$163.2bn / TTM operating revenues $28,701m)
EV/EBITDA (TTM)	~18.2x (EV ~$270.5bn / EBITDA ~$14.86bn; EBITDA = operating income $8,280m + D&A $6,580m, FY2025 income and cash flow statements)
P/FCF	n/m — FCF negative (operating CF $12,485m - capex ~$24.6bn = about -$12.1bn in FY2025), as is typical for a utility in a heavy build-out phase
Price/book	~2.9x (market cap ~$163.2bn / common equity $57,126m at 30 Jun 2026)
52-week high	$98.75
52-week low	$74.41
Dividend yield	~3.2% ($2.49 annualised / $78.22)
Short interest (% of float)	~2.85% (59.3m shares, settlement 30 Sep 2026, MarketBeat)
Days to cover	~4.6 days (MarketBeat, 30 Sep 2026)

7. What Are They Building

Renewables and storage backlog. NEER's backlog stood at about 35.1 GW after Q2 2026, following about 13.5 GW of additions in 2025 and 7.6 GW in the first half of 2026. At the Wolfe Research conference on 1 Oct 2026 management flagged a further 6 GW to 11 GW battery storage opportunity at federal hubs that is not in current financial expectations.

Gas generation for new load. The US Commerce Department selected NEER in Q1 2026 to build 9.5 GW of gas generation in Texas and Pennsylvania tied to Japan's US investment commitment. On 30 Sep 2026 NextEra and Related Companies announced Project Star, a $22.3bn campus in Encinal, Texas with 6.47 GW of gas generation serving an adjacent 5 GW data center campus.

Nuclear. NEER became sole owner of the Duane Arnold plant in Iowa in Q2 2026 and closed a DOE loan of up to $1.9bn on 8 Sep 2026 to restart it by Q1 2029 at the latest, with output contracted to Google.

Transmission and FPL. A 137-mile 345-kV line in New Mexico was energised in Q2 2026, GridLiance West broke ground on a Nevada upgrade on 9 Sep 2026, and FPL's ten-year plan includes more than 12 GW of solar, more than 7 GW of storage and about 4 GW of new gas.

Dominion combination. The merger would add Dominion's regulated utilities in Virginia and the Carolinas; management targets about 11% annual growth in regulatory capital employed for the combined company through 2032.

8. Peer Comparison

Peer	Market cap (Oct 2026)	Key 2025 metric
Constellation Energy (CEG)	~$105.6bn (Oct 2026, Motley Fool utilities ranking)	FY2025 adjusted operating EPS $9.39; GAAP EPS $7.40 (Constellation FY2025 release)
Southern Company (SO)	~$99bn (12 Oct 2026, Morningstar)	FY2025 adjusted EPS $4.30; revenue $29.6bn (Southern FY2025 release)
Duke Energy (DUK)	~$92bn (13 Oct 2026)	FY2025 adjusted EPS $6.31 vs $5.90 in 2024 (Duke FY2025 release)
Dominion Energy (D)	~$54.3bn (8 Oct 2026)	FY2025 operating EPS $3.42; GAAP EPS $3.45 (Dominion FY2025 release); merger partner

9. Insider Activity

Form 4 filings for 2026 show option exercises and sales by executives, all under Rule 10b5-1 plans, and no open-market purchases; no Form 4 trades were found after March 2026. Chairman and CEO John Ketchum exercised and sold 99,603 options on 9 Feb 2026 and held 305,933 shares directly afterwards.

Name	Date	Type	Shares	Price	Value	Plan Type
Nicole Daggs (EVP Human Resources)	13 Mar 2026	Sale	4,934	$93.00	~$0.46m	10b5-1 (adopted 12 Dec 2025)
Kirk Crews (EVP Chief Risk Officer)	09 Mar 2026	Option exercise and sale	19,672	$90.27	~$1.78m	10b5-1 (adopted 9 Dec 2025)
Mark Lemasney (EVP Power Generation)	09 Mar 2026	Sale	3,845	$90.27	~$0.35m	10b5-1 (adopted 9 Dec 2025)
Ronald Reagan (EVP Engineering)	17 Feb 2026	Sale	5,079	$95.00	~$0.48m	10b5-1 (adopted 12 Sep 2025)
John Ketchum (CEO)	09 Feb 2026	Option exercise and sale	99,603	$89.34	~$8.90m	10b5-1 (adopted 7 Aug 2025)
Charles Sieving (EVP Chief Legal Officer)	04 Feb 2026	Option exercise and sale	30,000	$90.00	~$2.70m	10b5-1 (adopted 5 Feb 2025)
Ronald Reagan (EVP Engineering)	04 Feb 2026	Sale	18,620	$90.00	~$1.68m	10b5-1 (adopted 12 Sep 2025)

10. Key Risks

• Merger regulation and execution: Approvals could be withheld, delayed or come with costly conditions; NEE has already committed $2.25bn of bill credits and extended Virginia commitments, and the business is restricted in some actions while the deal is pending.
• Interest rates and capital access: With about $110bn of debt and negative free cash flow, NextEra depends on debt and equity markets and on keeping its credit ratings; higher rates raise financing costs, which already cut NEER's 2025 results by about $0.17 per share.
• Federal tax-credit changes: The 2025 federal tax law phases out wind and solar credits for later projects and adds foreign-entity sourcing rules, which could slow or reprice part of the NEER backlog.
• Florida regulation and affordability: FPL's returns depend on the 2025 rate settlement, which opponents said they would appeal to the Florida Supreme Court, and on recovering storm costs.
• Hurricanes and severe weather: Storms such as Hurricane Isaias in October 2026 damage FPL's network and raise restoration costs and customer bills.
• Dilution: About 716m shares for the Dominion merger and the 2026 equity units would increase the share count materially.

11. Recent Developments

• 09 Oct 2026 — Virginia merger hearing. At a Virginia State Corporation Commission local hearing, officials and residents raised concerns about rates, data centers and competition, and many asked for the merger to be denied or conditioned.
• 07 Oct 2026 — Hurricane Isaias response. FPL activated its emergency plan and mobilised about 12,000 personnel; after landfall near Destin on 9 Oct, about 332,000 FPL customers were without power on 10 Oct as restoration continued.
• 06 Oct 2026 — Derivative suit settlement. NextEra published notice of a proposed settlement of shareholder derivative actions under which insurers would pay $15.5m to the company and governance reforms would be adopted.
• 30 Sep 2026 — Project Star announced. The US Commerce Department and South Korea announced investment in a $22.3bn energy campus in Encinal, Texas, jointly developed by Related Companies and NextEra, with 6.47 GW of gas generation.
• 14 Sep 2026 — Expanded Virginia benefits. NextEra and Dominion extended the residential bill credit to four years ($480 per customer), added $100m to bill assistance and committed 1,000 new Virginia jobs.
• 08 Sep 2026 — Duane Arnold loan closed. The DOE closed a loan of up to $1.9bn to restart the 615 MW Iowa nuclear plant by Q1 2029 at the latest.
• 03 Sep 2026 — Shareholders approve merger. NextEra and Dominion shareholders approved the merger at special meetings, leaving regulatory approvals as the remaining conditions.

12. Key Dates & Catalysts

• 21 Oct 2026 — Q3 2026 results before the NYSE open, webcast at 9:00 a.m. ET (per NextEra's 7 Oct 2026 announcement).
• Expected Oct 2026 — Q4 dividend declaration; in 2025 it was declared on 23 Oct with payment on 15 Dec.
• Expected Jan 2027 — Q4 and full-year 2026 results, and an update on 2027 guidance and dividend growth (6% a year targeted from year-end 2026 to 2028).
• Expected Jan 2027 — Approximate end of Virginia's six-month statutory review of the Dominion merger, which was filed on 15 Jul 2026.
• Expected Dec 2027 — Dominion merger closing, guided for the second half of 2027 subject to approvals.
• 15 Feb 2029 — Settlement date for the 2026 equity units, when holders must buy NEE common stock.

Also worth watching: FPL storm-cost recovery after Hurricane Isaias, quarterly NEER backlog additions and any large-load agreements under FPL's tariff. Check our Economic Calendar for interest-rate decisions that affect utility valuations, and discuss the stock on the ChartsView Forum.

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