NextEra Energy(NEE) - 2025 Q2 - Quarterly Report

FORM 10-Q Filing Information Registrant and Filing Details This section details the filing specifics for NextEra Energy, Inc. (NEE) and Florida Power & Light Company (FPL), confirming their status as large accelerated filers (NEE) and non-accelerated filers (FPL), compliance with SEC reporting requirements, and the number of outstanding common shares as of June 30, 2025 - NextEra Energy, Inc. (NEE) and Florida Power & Light Company (FPL) filed a combined Form 10-Q for the quarterly period ended June 30, 2025[1][6] | Registrant | Filing Status | SEC Reports Filed (12 months) | Interactive Data File Submitted (12 months) | Shell Company | Outstanding Common Stock (June 30, 2025) | | :----------------------- | :-------------------- | :---------------------------- | :------------------------------------------ | :-------------- | :--------------------------------------- | | NextEra Energy, Inc. | Large Accelerated Filer | Yes | Yes | No | 2,059,292,588 shares | | Florida Power & Light Company | Non-Accelerated Filer | Yes | Yes | No | 1,000 shares (held by NEE) | Definitions Acronyms and Defined Terms This section provides a glossary of acronyms and defined terms used throughout the report, clarifying their meanings for better understanding of the financial statements and discussions - The report includes a comprehensive list of acronyms and defined terms to ensure clarity and consistency in financial and operational discussions[8][9] Table of Contents Report Structure This section outlines the organizational structure of the Form 10-Q report, detailing the main parts (Part I – Financial Information, Part II – Other Information) and their respective items, including financial statements, management's discussion, market risk disclosures, controls, legal proceedings, and exhibits - The report is divided into two main parts: Part I – Financial Information (Items 1-4) and Part II – Other Information (Items 1, 1A, 2, 5, 6)[11] Forward-Looking Statements Forward-Looking Statements Disclaimer This section provides a standard disclaimer regarding forward-looking statements, emphasizing that such statements involve estimates, assumptions, and uncertainties that could cause actual results to differ materially from those projected - The report contains forward-looking statements subject to estimates, assumptions, and uncertainties, which could cause actual results to differ materially from projections[13] Key Risk Categories The company identifies several critical risk categories that could significantly impact its operations and financial results, including extensive regulatory oversight, development and operational challenges, nuclear generation-specific risks, and factors affecting liquidity, capital requirements, and common stock value - Key risk categories include regulatory, legislative, and legal risks, development and operational risks, nuclear generation risks, and liquidity, capital requirements, and common stock risks[14][15][16][17][18][19][20] - Regulatory decisions, changes in laws, and environmental regulations can materially adversely affect business, financial condition, results of operations, and prospects[16] - Operational risks such as severe weather, terrorism, cyberattacks, and commodity price volatility pose significant threats to financial performance[18] - Disruptions in credit and capital markets, inability to maintain credit ratings, and poor market performance affecting pension and decommissioning funds could impact liquidity and growth[23] Website Access to SEC Filings NextEra Energy, Inc. and Florida Power & Light Company provide free access to their SEC filings, including 10-K, 10-Q, and 8-K reports, on NEE's website (www.nexteraenergy.com) as soon as practicable after electronic filing - NEE and FPL SEC filings are available free of charge on www.nexteraenergy.com[22](index=22&type=chunk) PART I – FINANCIAL INFORMATION Item 1. Financial Statements This section presents the unaudited condensed consolidated financial statements for NextEra Energy, Inc. (NEE) and Florida Power & Light Company (FPL), including statements of income, comprehensive income, balance sheets, cash flows, and equity, along with detailed notes explaining significant accounting policies, derivative instruments, fair value measurements, income taxes, related party transactions, variable interest entities, employee benefits, debt, equity, commitments, and segment information NextEra Energy, Inc. Condensed Consolidated Financial Statements Condensed Consolidated Statements of Income (NEE) | Metric | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Operating Revenues | $6,700 | $6,069 | $12,947 | $11,801 | | Operating Income | $1,911 | $1,670 | $4,167 | $3,682 | | Net Income Attributable to NEE | $2,028 | $1,622 | $2,862 | $3,890 | | Basic Earnings Per Share Attributable to NEE | $0.99 | $0.79 | $1.39 | $1.90 | | Diluted Earnings Per Share Attributable to NEE | $0.98 | $0.79 | $1.39 | $1.89 | - NEE's net income attributable to NEE increased by $406 million (25.0%) for the three months ended June 30, 2025, but decreased by $1,028 million (26.4%) for the six months ended June 30, 2025, compared to the prior year periods[26] Condensed Consolidated Statements of Comprehensive Income (NEE) | Metric | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net Income | $1,639 | $1,296 | $2,104 | $3,233 | | Total Other Comprehensive Income (Loss), Net of Tax | $44 | $(6) | $56 | $(25) | | Comprehensive Income Attributable to NEE | $2,072 | $1,618 | $2,918 | $3,871 | - Total other comprehensive income (loss), net of tax, significantly improved from a loss of $(6) million in Q2 2024 to a gain of $44 million in Q2 2025, and from a loss of $(25) million in H1 2024 to a gain of $56 million in H1 2025[28] Condensed Consolidated Balance Sheets (NEE) | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | | :------------------------------------ | :------------------------- | :--------------------------- | | Total Assets | $198,830 | $190,144 | | Total Liabilities | $137,898 | $129,283 | | Total Equity | $60,883 | $60,460 | | Common Stock Outstanding (shares) | 2,059 | 2,057 | - Total assets increased by $8,686 million (4.6%) from December 31, 2024, to June 30, 2025, primarily driven by an increase in property, plant and equipment – net[31] - Total liabilities increased by $8,615 million (6.7%) over the same period, with long-term debt increasing by $10,305 million[31] Condensed Consolidated Statements of Cash Flows (NEE) | Metric | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net Cash Provided by Operating Activities | $5,958 | $7,010 | | Net Cash Used in Investing Activities | $(13,545) | $(14,126) | | Net Cash Provided by Financing Activities | $8,160 | $5,800 | | Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | $580 | $(1,318) | - Net cash provided by operating activities decreased by $1,052 million (15.0%) in H1 2025 compared to H1 2024[33] - Net cash provided by financing activities increased by $2,360 million (40.7%) in H1 2025, primarily due to higher issuances of long-term debt and net change in commercial paper[33] Condensed Consolidated Statements of Equity (NEE) | Metric | Balances, December 31, 2024 (millions) | Balances, June 30, 2025 (millions) | | :------------------------------------ | :------------------------------------- | :--------------------------------- | | Total Common Shareholders' Equity | $50,101 | $50,797 | | Noncontrolling Interests | $10,359 | $10,086 | | Total Equity | $60,460 | $60,883 | - Total common shareholders' equity increased by $696 million (1.4%) from December 31, 2024, to June 30, 2025, driven by net income and other comprehensive income, partly offset by dividends[36] - Dividends per share were $0.5665 for each of the quarterly periods in 2025, an increase from $0.515 in 2024[35][41][42] Florida Power & Light Company Condensed Consolidated Financial Statements Condensed Consolidated Statements of Income (FPL) | Metric | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Operating Revenues | $4,708 | $4,389 | $8,705 | $8,224 | | Operating Income | $1,717 | $1,740 | $3,516 | $3,415 | | Net Income | $1,275 | $1,232 | $2,591 | $2,404 | - FPL's operating revenues increased by $319 million (7.3%) for the three months and $481 million (5.8%) for the six months ended June 30, 2025, compared to the prior year periods[46] - Net income increased by $43 million (3.5%) for the three months and $187 million (7.8%) for the six months ended June 30, 2025[46] Condensed Consolidated Balance Sheets (FPL) | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | | :------------------------------------ | :------------------------- | :--------------------------- | | Total Assets | $101,805 | $98,141 | | Total Liabilities | $56,238 | $55,065 | | Total Equity | $45,567 | $43,076 | - FPL's total assets increased by $3,664 million (3.7%) from December 31, 2024, to June 30, 2025, primarily due to growth in electric utility plant and other property[50] - Total equity increased by $2,491 million (5.8%) over the same period[50] Condensed Consolidated Statements of Cash Flows (FPL) | Metric | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net Cash Provided by Operating Activities | $3,841 | $4,488 | | Net Cash Used in Investing Activities | $(4,438) | $(4,524) | | Net Cash Provided by Financing Activities | $635 | $133 | | Net Increase in Cash, Cash Equivalents and Restricted Cash | $38 | $97 | - Net cash provided by operating activities decreased by $647 million (14.4%) in H1 2025 compared to H1 2024[52] - Net cash provided by financing activities increased significantly by $502 million (377.4%) in H1 2025, primarily due to changes in capital contributions from and dividends to NEE[52] Condensed Consolidated Statements of Common Shareholder's Equity (FPL) | Metric | Balances, December 31, 2024 (millions) | Balances, June 30, 2025 (millions) | | :------------------------------------ | :------------------------------------- | :--------------------------------- | | Total Common Shareholder's Equity | $43,076 | $45,567 | - FPL's total common shareholder's equity increased by $2,491 million (5.8%) from December 31, 2024, to June 30, 2025, primarily due to net income[54] - Dividends to NEE decreased substantially from $3,700 million in H1 2024 to $100 million in H1 2025[54] Notes to Condensed Consolidated Financial Statements Note 1. Revenue from Contracts with Customers - NEE's operating revenues from contracts with customers were approximately $6.4 billion for Q2 2025 (up from $6.0 billion in Q2 2024) and $12.3 billion for H1 2025 (up from $11.4 billion in H1 2024)[58] - FPL's revenues from contracts with customers were approximately $4.7 billion for Q2 2025 (up from $4.4 billion in Q2 2024) and $8.7 billion for H1 2025 (up from $8.2 billion in H1 2024)[58] - FPL's unbilled revenues increased from $573 million at December 31, 2024, to $831 million at June 30, 2025[59] - NEER expects to record approximately $700 million in fixed-price revenues from contracts over their remaining terms through 2038[60] Note 2. Derivative Instruments - NEE and FPL use derivatives (swaps, options, futures, forwards) to manage risks in fuel/electricity, interest rates, and foreign currency, and to optimize NEER's assets[61] | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | | :------------------------------------ | :------------------------- | :--------------------------- | | NEE Total Derivative Assets | $2,490 | $2,653 | | NEE Total Derivative Liabilities | $3,555 | $3,081 | | FPL Total Derivative Assets | $18 | $40 | | FPL Total Derivative Liabilities | $62 | $7 | - NEE's net notional interest rate contracts increased from approximately $35.2 billion at December 31, 2024, to $45.2 billion at June 30, 2025[88] - If FPL's and NEECH's credit ratings were downgraded to below investment grade, NEE subsidiaries could be required to post approximately $2.5 billion in additional collateral at June 30, 2025[90] Note 3. Non-Derivative Fair Value Measurements - Non-derivative fair value measurements include cash equivalents, restricted cash equivalents, special use funds, and other investments[94] | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | | :------------------------------------ | :------------------------- | :--------------------------- | | NEE Special Use Funds | $10,232 | $9,800 | | FPL Special Use Funds | $7,193 | $6,875 | | NEE Equity Securities (Cash Equivalents) | $762 | $677 | | FPL Equity Securities (Cash Equivalents) | $40 | $101 | - NEE recognized an impairment charge of $0.7 billion ($0.5 billion after tax) on its equity method investment in XPLR due to a significant decline in trading price and strategic repositioning[112] Note 4. Income Taxes | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | NEE Effective Income Tax Rate | (18.5)% | (5.2)% | (58.6)% | 4.8% | | FPL Effective Income Tax Rate | 11.4% | 17.3% | 12.8% | 18.2% | - NEE's effective income tax rate for H1 2025 was significantly impacted by an impairment charge related to the investment in XPLR and increased clean energy tax credits[113][114][115] - The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, modified tax legislation affecting clean energy tax credits, bonus depreciation, and interest deduction calculations, but had no impact on NEE's H1 2025 financial statements[116] Note 5. Related Party Transactions - NextEra Energy Resources incurred $577 million in costs for services to XPLR during H1 2025 (up from $120 million in H1 2024), primarily for wind repowering, which will be reimbursed by XPLR[117] - NEE has an approximately 52.5% noncontrolling interest in XPLR, accounted for as an equity method investment[117] - NEECH or NextEra Energy Resources guaranteed or provided credit support totaling approximately $1.7 billion at June 30, 2025, primarily for XPLR's subsidiaries[117] Note 6. Variable Interest Entities - NEER consolidates 29 VIEs primarily related to wind, solar, and battery storage facilities, with total assets of approximately $24,875 million and liabilities of $916 million at June 30, 2025[122] - NEE subsidiaries hold noncontrolling interests in other VIEs accounted for under the equity method, with investments totaling approximately $2,592 million at June 30, 2025[124] Note 7. Employee Retirement Benefits | Metric | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | NEE Net Periodic Pension Cost (Income) | $(53) | $(51) | $(105) | $(74) | | FPL Net Periodic Pension Cost (Income) | $(30) | $(31) | $(60) | $(40) | - NEE's net periodic pension income increased for both the three and six months ended June 30, 2025, primarily due to expected returns on plan assets[126] Note 8. Debt | Issuer | Principal Amount (millions) | Interest Rate | Maturity Date | | :------- | :-------------------------- | :------------ | :------------ | | FPL | $2,000 | 5.30% – 5.80% | 2034 – 2065 | | NEECH | $4,500 | 4.85% – 5.90% | 2028 – 2055 | | NEECH | $500 | Variable | 2028 | | NEECH | $2,500 | 6.38% – 6.50% | 2055 | | NEECH | $875 | 6.50% | 2085 | | NEECH | $506 (AUD) | Variable | 2055 | | NEECH | $1,463 (CAD) | 3.83% – 4.67% | 2030 – 2035 | - NEECH issued $2,500 million in junior subordinated debentures in February 2025 with initial fixed interest rates, which will become variable after August 2030 and August 2035, respectively[128] Note 9. Equity | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic EPS Attributable to NEE | $0.99 | $0.79 | $1.39 | $1.90 | | Diluted EPS Attributable to NEE | $0.98 | $0.79 | $1.39 | $1.89 | - NEE's diluted EPS increased by $0.19 (24.1%) for the three months ended June 30, 2025, but decreased by $0.50 (26.5%) for the six months ended June 30, 2025[130] | AOCI Component | Balances, December 31, 2024 (millions) | Balances, June 30, 2025 (millions) | | :------------------------------------ | :------------------------------------- | :--------------------------------- | | Net Unrealized Gains on Cash Flow Hedges | $23 | $24 | | Net Unrealized Gains (Losses) on Available for Sale Securities | $(37) | $(15) | | Defined Benefit Pension and Other Benefits Plans | $(19) | $(19) | | Net Unrealized Gains (Losses) on Foreign Currency Translation | $(101) | $(68) | | Other Comprehensive Income Related to Equity Method Investees | $8 | $8 | | Total AOCI | $(126) | $(70) | - Accumulated Other Comprehensive Loss (AOCI) improved from $(126) million at December 31, 2024, to $(70) million at June 30, 2025, primarily due to improvements in unrealized gains/losses on available-for-sale securities and foreign currency translation[134] Note 10. Summary of Significant Accounting and Reporting Policies - The Florida Supreme Court affirmed the FPSC's final order regarding FPL's 2021 rate agreement in July 2025[139] - FPL filed a petition for a four-year base rate plan starting January 2026, requesting annual revenue increases of $1,545 million (2026) and $927 million (2027), and a Solar and Battery Base Rate Adjustment mechanism[140] - FPL began recovering $1.2 billion in storm costs and reserve replenishment through a storm surcharge in January 2025, related to 2024 hurricanes[142] - NEE's outstanding obligations under its structured payables program decreased from approximately $4.0 billion at December 31, 2024, to $1.1 billion at June 30, 2025[144] - A NextEra Energy Resources subsidiary entered an agreement in July 2025 to sell a 50% equity interest in a rate-regulated transmission asset for approximately $270 million, expected to close in Q1 2026[147] Note 11. Commitments and Contingencies | Segment | Remainder of 2025 (millions) | 2026 (millions) | 2027 (millions) | 2028 (millions) | 2029 (millions) | Total (millions) | | :-------- | :--------------------------- | :-------------- | :-------------- | :-------------- | :-------------- | :--------------- | | FPL | $4,195 | $10,520 | $9,905 | $10,170 | $10,585 | $45,375 | | NEER | $7,380 | $11,895 | $5,275 | $2,780 | $1,445 | $28,775 | - FPL's estimated capital expenditures for 2025-2029 total $45,375 million, with significant investments in transmission and distribution ($19,480 million) and new generation ($15,240 million)[151] - NEER's estimated capital expenditures for 2025-2029 total $28,775 million, primarily for solar ($13,090 million) and wind ($4,510 million) projects[151] - NEE is subject to retrospective assessments of up to $1,161 million per incident at any U.S. nuclear reactor under the Price-Anderson Act[160] - NEE is vigorously defending against multiple shareholder class action and derivative lawsuits related to alleged campaign finance activities and XPLR's business model[166][167][169] Note 12. Segment Information | Segment | Net Income Attributable to NEE (Q2 2025, millions) | Net Income Attributable to NEE (Q2 2024, millions) | Net Income Attributable to NEE (H1 2025, millions) | Net Income Attributable to NEE (H1 2024, millions) | | :-------- | :----------------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | FPL | $1,275 | $1,232 | $2,591 | $2,404 | | NEER | $983 | $552 | $1,155 | $1,518 | | Corporate and Other | $(230) | $(162) | $(884) | $(32) | - FPL's net income attributable to NEE increased by $43 million (3.5%) in Q2 2025 and $187 million (7.8%) in H1 2025[171][172] - NEER's net income attributable to NEE increased by $431 million (78.1%) in Q2 2025 but decreased by $363 million (23.9%) in H1 2025, largely due to an XPLR impairment charge[171][172] | Segment | Property, Plant and Equipment – net (June 30, 2025, millions) | Total Assets (June 30, 2025, millions) | | :-------- | :---------------------------------------------------- | :------------------------------------- | | FPL | $78,885 | $101,805 | | NEER | $66,694 | $94,272 | Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on the company's financial condition and results of operations, analyzing performance drivers for FPL, NEER, and Corporate and Other segments, and discussing liquidity, capital resources, critical accounting estimates, and market risk sensitivities Overview - NEE's net income attributable to NEE increased by $406 million for Q2 2025 but decreased by $1,028 million for H1 2025, primarily due to lower NEER and Corporate and Other results in H1[184] | Segment | Q2 2025 EPS (Diluted) | Q2 2024 EPS (Diluted) | H1 2025 EPS (Diluted) | H1 2024 EPS (Diluted) | | :-------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | FPL | $0.62 | $0.60 | $1.26 | $1.17 | | NEER | $0.48 | $0.27 | $0.56 | $0.74 | | Corporate and Other | $(0.12) | $(0.08) | $(0.43) | $(0.02) | | NEE Total | $0.98 | $0.79 | $1.39 | $1.89 | - The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, modified clean energy tax credits and bonus depreciation rules, but NEE believes its wind and solar facilities through 2029 will still qualify for tax credits based on prior guidance[190][191] Segment Results of Operations - FPL's net income increase was driven by continued investments in plant in service, growing average rate base by approximately $5.3 billion for both Q2 and H1 2025[185][194] - FPL's operating revenues increased by $319 million (Q2) and $481 million (H1) primarily due to higher storm cost recovery revenues ($308 million Q2, $426 million H1) and retail base revenues from customer growth[198] - NEER's Q2 2025 results increased by $431 million, reflecting higher earnings from new investments and customer supply, and favorable changes in nuclear decommissioning funds' equity securities fair value[186][202] - NEER's H1 2025 results decreased by $363 million, primarily due to a $0.7 billion impairment charge related to the XPLR investment and higher interest expense[186][202][211] - Corporate and Other's results decreased by $68 million (Q2) and $852 million (H1) primarily due to higher average interest rates, higher average debt balances, and unfavorable non-qualifying hedge activity in H1[187][215] Liquidity and Capital Resources - NEE's total net available liquidity was approximately $17.1 billion at June 30, 2025[223] | Metric | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Total Sources of Cash | $22,214 | $24,023 | | Total Uses of Cash | $(21,641) | $(25,339) | | Net Increase (Decrease) in Cash | $580 | $(1,318) | | Segment | H1 2025 Capital Investments (millions) | H1 2024 Capital Investments (millions) | | :-------- | :------------------------------------- | :------------------------------------- | | FPL | $4,383 | $4,408 | | NEER | $9,237 | $10,120 | | Corporate and Other | $6 | $106 | | Total | $13,626 | $14,634 | - NEE's primary capital requirements are for FPL's electric system expansion and NEER's independent power projects, with estimated capital expenditures for 2025-2029 totaling $45,375 million for FPL and $28,775 million for NEER[151][217] - NEE fully and unconditionally guarantees certain payment obligations of NEECH, including most of its debt and commercial paper issuances[234][235] Critical Accounting Estimates - There have been no material changes to NEE's significant accounting policies or critical accounting estimates since the 2024 Form 10-K[238] - The impairment related to NextEra Energy Resources' equity method investment in XPLR is a key accounting estimate discussed[239] Energy Marketing and Trading and Market Risk Sensitivity - NEE and FPL are exposed to commodity price, interest rate, and equity price risks, managed through derivative instruments and risk management policies[240][241] | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | | :------------------------------------ | :------------------------- | :--------------------------- | | NEE's total mark-to-market energy contract net liabilities | $(318) | $(335) | - A hypothetical 10% decrease in interest rates would increase NEE's net liabilities by approximately $3,732 million ($1,268 million for FPL) at June 30, 2025[251] - A hypothetical 10% decrease in equity prices would reduce the fair value of NEE's nuclear decommissioning funds by approximately $598 million ($406 million for FPL) at June 30, 2025[252] - NEE's credit risk exposure from energy marketing and trading operations, net of collateral and netting rights, totaled approximately $2.9 billion ($92 million for FPL) at June 30, 2025, with 92% (99% for FPL) with investment-grade counterparties[255] Item 3. Quantitative and Qualitative Disclosures About Market Risk This section refers to the detailed discussion on market risk sensitivity, including commodity price risk, interest rate risk, equity price risk, and credit risk, provided within Management's Discussion and Analysis of Financial Condition and Results of Operations - Quantitative and qualitative disclosures about market risk are incorporated by reference to the 'Energy Marketing and Trading and Market Risk Sensitivity' section of Management's Discussion and Analysis[256] Item 4. Controls and Procedures Management, including the CEO and CFO of both NEE and FPL, concluded that their disclosure controls and procedures were effective as of June 30, 2025, and no material changes in internal control over financial reporting occurred during the most recent fiscal quarter - NEE's and FPL's disclosure controls and procedures were effective as of June 30, 2025[257] - No material changes in internal control over financial reporting occurred during the most recent fiscal quarter[257] PART II – OTHER INFORMATION Item 1. Legal Proceedings This section refers to Note 11 for details on legal proceedings, which include shareholder securities class action and derivative lawsuits, an antitrust lawsuit, and a federal securities class action against XPLR, NEE, and certain executives - Legal proceedings are detailed in Note 11, including shareholder lawsuits and an antitrust lawsuit[260] - Environmental proceedings with potential monetary sanctions of $1 million or more are disclosed[260] Item 1A. Risk Factors This section states that there have been no material changes to the risk factors previously disclosed in the 2024 Form 10-K, and advises investors to consider those factors, along with other information in this report, which could materially adversely affect the companies' business, financial condition, results of operations, and prospects - No material changes to risk factors from the 2024 Form 10-K[261] Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities This section reports on NEE's common stock repurchases during the three months ended June 30, 2025, noting that 13,037 shares were purchased at an average price of $73.81 per share, primarily for tax withholding purposes related to stock awards | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--------------- | :------------------------------- | :--------------------------- | | 4/1/25 – 4/30/25 | — | — | | 5/1/25 – 5/31/25 | 13,037 | $73.81 | | 6/1/25 – 6/30/25 | — | — | | Total | 13,037 | $73.81 | - NEE has authorization to purchase up to 180,000,000 shares under a program authorized in May 2017[263] Item 5. Other Information This section discloses Rule 10b5-1 trading arrangements adopted by three NextEra Energy executives during the three months ended June 30, 2025, for the sale of common stock - Three executives adopted Rule 10b5-1 trading arrangements for common stock sales between April and June 2025, with expiration dates ranging from March to April 2026[264] Item 6. Exhibits This section lists all exhibits filed with the Form 10-Q, including officer's certificates for debenture creation, an executive employment agreement, guaranteed securities, CEO/CFO certifications, and XBRL interactive data files - Exhibits include officer's certificates for debenture creation, an executive employment agreement, guaranteed securities, and various certifications (Rule 13a-14(a)/15d-14(a) and Section 1350)[265] - XBRL Instance, Schema, Presentation, Calculation, and Label Linkbase Documents are included[265] Signatures This section contains the duly authorized signatures of the principal accounting officers for NextEra Energy, Inc. and Florida Power & Light Company, confirming the filing of the report on July 23, 2025 - The report was signed on July 23, 2025, by William J. Gough for NextEra Energy, Inc. and Keith Ferguson for Florida Power & Light Company, both serving as Principal Accounting Officers[269]