NextEra Energy's Q4 Earnings Surpass Estimates, Revenues Fall Y/Y

Core Insights - NextEra Energy, Inc. (NEE) reported fourth-quarter 2024 adjusted earnings of 53 cents per share, exceeding the Zacks Consensus Estimate of 51 cents by 3.9% and showing a year-over-year increase of nearly 1.9% [1] - The company's total revenues for the fourth quarter were $5.38 billion, falling short of the Zacks Consensus Estimate of $6.49 billion by 17% and representing a 21.7% decline year over year [3] - NextEra Energy reaffirmed its 2025 earnings guidance in the range of $3.45-$3.70 per share, with the midpoint lower than the Zacks Consensus Estimate of $3.68 [12] Financial Performance - GAAP earnings per share for the fourth quarter were 58 cents, compared to 59 cents in the same period last year [2] - Adjusted earnings for 2024 were $3.43 per share, an 8.2% increase from $3.17 in 2023, matching the upper end of the guided range [2] - Operating revenues for 2024 totaled $24.8 billion, down from $28.1 billion in 2023 [3] Segment Results - Florida Power & Light Company (FPL) generated revenues of nearly $3.86 billion, an 8.1% decrease from $4.19 billion in the prior year, with earnings per share remaining at 41 cents [4] - NextEra Energy Resources reported revenues of $1.44 billion, down 45.5% from $2.56 billion in the previous year, with earnings per share increasing to 22 cents from 18 cents [4] - Corporate and Other segment revenues were $82 million, up from $25 million in the year-ago period, but the operating loss widened to 10 cents per share from a loss of 7 cents [5] Operational Highlights - FPL's non-fuel O&M cost per customer is 50% lower than the second-best in its peer group, saving customers over $24 monthly on a typical residential bill [6] - FPL's typical residential customer bill is nearly 40% below the national average [7] - NextEra Energy Resources expanded its contracted renewables backlog by adding nearly 3.3 gigawatts (GW) of renewable projects, bringing the total backlog to over 25 GW [8] Financial Position - As of December 31, 2024, NEE had cash and cash equivalents of nearly $1.49 billion, down from $2.7 billion a year earlier [10] - Long-term debt increased to $72.4 billion from $61.4 billion on December 31, 2023 [11] - Cash flow from operating activities in 2024 was $13.26 billion, compared to $8.42 billion in 2023 [11] Future Outlook - For 2026 and 2027, NextEra Energy expects adjusted earnings per share to be in the range of $3.63 to $4.00 and $3.85 to $4.32, respectively [12] - The company aims to grow its dividend per share at a roughly 10% rate per year through at least 2026, based on 2024 figures [12] - NextEra Energy Resources plans to add 36,500-46,500 MW of renewable power projects to its portfolio from 2024 to 2027 [13]