NextEra Energy(NEE) - 2025 Q3 - Quarterly Report

Financial Performance - Operating revenues for Q3 2025 reached $7,966 million, a 5.3% increase from $7,567 million in Q3 2024[27] - Net income attributable to NextEra Energy (NEE) for Q3 2025 was $2,438 million, up 31.5% from $1,852 million in Q3 2024[27] - Earnings per share attributable to NEE increased to $1.18 in Q3 2025, compared to $0.90 in Q3 2024, reflecting a 31.1% growth[27] - Comprehensive income attributable to NEE for Q3 2025 was $2,436 million, compared to $1,894 million in Q3 2024, marking a 28.7% increase[29] - Operating income for the nine months ended September 30, 2025, was $6,694 million, slightly up from $6,538 million in the same period of 2024[27] - Net income for the nine months ended September 30, 2025, was $4,239 million, a decrease of 12.1% compared to $4,825 million in 2024[34] - Operating cash flows provided amounted to $9,986 million, down 11.4% from $11,279 million in the previous year[34] - Net income for the nine months ended September 30, 2025, was $4,054 million, up from $3,698 million in 2024, reflecting an increase of 9.6%[53] - Net income attributable to NEE for the three months ended September 30, 2025, was $2,438 million, compared to $1,852 million for the same period in 2024, representing a 31.5% increase[137] - Net income attributable to NextEra Energy, Inc. for reportable segments was $2,738 million for the three months ended September 30, 2025, compared to $2,516 million for the same period in 2024, reflecting a year-over-year increase of 8.8%[189] Assets and Liabilities - Total assets as of September 30, 2025, were $204,354 million, a 7.4% increase from $190,144 million at the end of 2024[32] - Current liabilities decreased to $22,911 million as of September 30, 2025, down from $25,355 million at the end of 2024, representing a 9.6% reduction[32] - Total assets as of September 30, 2025, reached $103,614 million, compared to $98,141 million at the end of 2024, indicating a growth of 5.0%[51] - Total current liabilities decreased to $7,148 million as of September 30, 2025, from $7,495 million at the end of 2024, a reduction of 4.6%[51] - The total equity as of September 30, 2025, was $47,028 million, up from $43,076 million at the end of 2024, reflecting an increase of 9.0%[51] Cash Flow and Investments - Cash and cash equivalents increased to $2,391 million as of September 30, 2025, compared to $1,487 million at the end of 2024, reflecting a 60.7% increase[32] - Cash flows from operating activities for the nine months ended September 30, 2025, were $6,835 million, compared to $7,341 million in 2024, a decline of 6.9%[53] - Net cash used in investing activities was $18,653 million, slightly higher than $18,384 million in 2024[34] - Proceeds from the sale or maturity of securities for NEE in the nine months ended September 30, 2025, were $2,854 million[111] - NEE holds investments in equity securities without readily determinable fair values, recorded at approximately $660 million as of September 30, 2025[100] Capital Expenditures - Capital expenditures for FPL were $6,736 million, an increase from $6,221 million in 2024[34] - Estimated capital expenditures for FPL from 2025 to 2029 total approximately $42,960 million, with $14,160 million allocated for new generation projects[165] - NextEra Energy Resources (NEER) has committed approximately $31,305 million for capital expenditures, including $14,505 million for new solar projects and $4,420 million for new wind projects[165] Debt and Interest - Issuances of long-term debt totaled $15,246 million, compared to $16,175 million in the prior year[34] - Interest expense for the nine months ended September 30, 2025, was $964 million, compared to $874 million in 2024, an increase of 10.3%[47] - NEE's long-term debt, including the current portion, was $87,760 million as of September 30, 2025, with an estimated fair value of $85,990 million[106] - FPL's long-term debt, including the current portion, was $27,512 million as of September 30, 2025, with an estimated fair value of $25,802 million[106] Regulatory and Legal Matters - The proposed 2025 rate agreement includes annualized retail base revenue increases of $945 million starting January 1, 2026, and an additional $705 million beginning January 1, 2027[150] - FPL's authorized regulatory return on equity (ROE) is set at 10.95%, with a range of 9.95% to 11.95%, allowing for potential adjustments based on performance[150] - FPL filed a petition for a new four-year base rate plan to replace the 2021 rate agreement, with a ruling expected on November 20, 2025[211] - The Florida Supreme Court affirmed the FPSC's final order regarding FPL's 2021 rate agreement in July 2025[212] - The company is vigorously defending against multiple legal proceedings, including a shareholder securities class action lawsuit and derivative actions, which may impact future financial performance[182][183][184] Operational Highlights - FPL's average rate base grew by approximately $5.4 billion for both the three and nine months ended September 30, 2025, reflecting solar generation additions and ongoing transmission and distribution additions[208] - FPL's retail customers account for approximately 90% of its operating revenues, primarily from electricity sales to residential customers[60] - NEE is the world's largest generator of renewable energy from wind and solar, with significant battery storage capacity, based on 2024 MWh produced[195] - For the three and nine months ended September 30, 2025, operating revenues increased by $346 million and $826 million, respectively, primarily due to storm cost recovery revenues related to Hurricanes Debby, Helene, and Milton[213] Taxation - The effective income tax rate for NEE for the nine months ended September 30, 2025, was -32.0%, significantly impacted by the impairment charge[118] - NEE's effective income tax rate for the three months ended September 30, 2025, was approximately (13)%, compared to 0% for the same period in 2024[206] - Income taxes decreased by $225 million and $382 million during the three and nine months ended September 30, 2025, primarily due to higher clean energy tax credits[217] Derivative Instruments - NEE and FPL utilize derivative instruments to manage risks associated with fuel and electricity purchases, with significant impacts on their financial performance[62] - As of September 30, 2025, NEE's total derivative assets amounted to $2,692 million, while total derivative liabilities were $3,509 million, resulting in a net derivative position of $(817) million[74] - The total derivative liabilities for NEE included $2,030 million in commodity contracts and $917 million in interest rate contracts as of September 30, 2025[74] - NEE's significant unobservable inputs for commodity contracts included forward prices for power and gas, with ranges impacting fair value measurements[84] Impairments and Gains - NextEra Energy Resources recognized an impairment charge of $0.7 billion ($0.5 billion after tax) related to its investment in XPLR, reducing the carrying amount from approximately $1.7 billion to $1.0 billion[116] - The nine months ended September 30, 2025, included an impairment charge related to the investment in XPLR, impacting NEER's results[199] - The company recorded a gain of approximately $120 million from the sale of certain natural gas and oil shale formations, contributing positively to its financial performance for the nine months ended September 30, 2024[160] Shareholder Equity - The total shareholder's equity for FPL increased to $47,028 million as of September 30, 2025, up from $42,231 million a year earlier[55] - The weighted-average number of common shares outstanding assuming dilution for the nine months ended September 30, 2025, was 2,064.3 million, compared to 2,058.3 million for the same period in 2024[137] - Dividends on common stock for the three months ended September 30, 2025, were $1,167 million, reflecting a payout of $0.5665 per share[36]