Can NextEra Ride Florida's Economic Momentum for Long-Term Growth?

Core Viewpoint - NextEra Energy Inc. (NEE) is positioned as a leading clean energy company in the U.S., benefiting from Florida's economic growth and increasing electricity demand [1][4]. Group 1: Company Overview - NextEra Energy's subsidiary, Florida Power & Light (FPL), serves over 12 million customers and is crucial for Florida's economic development [1]. - The company is experiencing strong demographic momentum, with FPL adding nearly 108,000 customers year-over-year in Q1 2025 [3][8]. - NextEra Energy's return on equity (ROE) stands at 12.06%, surpassing the industry average of 10.41%, indicating efficient use of shareholders' equity [8][11]. Group 2: Economic Impact - Florida's expanding economy, characterized by a robust job market and population inflows, is driving increased electricity demand across all customer segments [2]. - FPL's infrastructure investments are aligned with the growing demand, enhancing grid reliability and supporting revenue growth [2][5]. - Utilities, including NextEra Energy, benefit from economic growth through customer additions and higher electricity consumption, leading to stable long-term returns [5][6]. Group 3: Financial Performance - NextEra Energy's shares have increased by 15.2% over the past three months, outperforming the Zacks Utility Electric-Power industry's growth of 5.7% [7]. - The company's earnings per share (EPS) estimates for 2025 are projected to be between $3.45 and $3.70, compared to $3.43 the previous year, with consensus estimates for 2025 and 2026 remaining unchanged at $3.68 and $3.97, respectively [10].