NextEra Energy's Q1 Earnings Beat Estimates, Revenues Miss

Core Viewpoint - NextEra Energy, Inc. (NEE) reported strong first-quarter 2025 adjusted earnings, exceeding expectations, driven by solid operational performance across its segments [1][3]. Financial Performance - Adjusted earnings per share for Q1 2025 were 99 cents, beating the Zacks Consensus Estimate of 97 cents by 2.1% and reflecting an 8.8% year-over-year increase [1]. - GAAP earnings per share for the same period were 40 cents, down from $1.1 in the previous year [2]. - Total operating revenues for Q1 2025 were $6.24 billion, which was 14.9% below the Zacks Consensus Estimate of $7.34 billion, but represented a 9% year-over-year improvement [3]. Segment Results - Florida Power & Light Company (FPL) generated revenues of approximately $3.99 billion, a 4.25% increase from $3.83 billion in the prior year, with earnings of 64 cents per share compared to 57 cents [4]. - NextEra Energy Resources reported revenues of $2.16 billion, up 16% from $1.86 billion year-over-year, with earnings of 44 cents per share compared to 40 cents [4]. - Corporate and Other segment revenues were $87 million, significantly higher than $33 million in the previous year, but the operating loss widened to 9 cents per share from a loss of 6 cents [5]. Strategic Initiatives - FPL added 894 megawatts (MW) of new solar capacity in Q1 2025, increasing its total solar portfolio to over 7.9 gigawatts (GW) [6]. - FPL's Ten-Year Site Plan anticipates a need for over 17 GW of solar generation and more than 7.6 GW of battery storage by 2034, aiming to increase solar energy's contribution to total generation from 9% in 2024 to 35% by 2034, with planned investments of nearly $50 billion from 2025-2029 [7]. - NextEra Energy Resources expanded its contracted renewables backlog by adding nearly 3.2 GW of renewable projects, bringing the total backlog to over 28 GW [8]. Financial Update - As of March 31, 2025, NEE had cash and cash equivalents of approximately $2.41 billion, up from $1.49 billion at the end of 2024 [9]. - Long-term debt increased to $79.8 billion from $72.4 billion over the same period [9]. - Cash flow from operating activities in Q1 2025 was $2.76 billion, down from $3.07 billion in Q1 2024 [9]. Guidance - NEE reaffirmed its 2025 earnings guidance, expecting earnings per share in the range of $3.45-$3.70, with a midpoint of $3.575, which is lower than the Zacks Consensus Estimate of $3.68 [10]. - For 2026 and 2027, adjusted earnings per share are expected to be in the range of $3.63 to $4.00 and $3.85 to $4.32, respectively, with anticipated earnings growth of approximately 6-8% through at least 2027 [10][11].