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NextEra Energy's Q2 Earnings Surpass, Revenues Lag Estimates
ZACKS· 2025-07-23 16:41
Core Insights - NextEra Energy, Inc. (NEE) reported second-quarter 2025 adjusted earnings of $1.05 per share, exceeding the Zacks Consensus Estimate of $1.02 by 2.9% and reflecting a year-over-year increase of 9.4% [1][9] - Total revenues for the quarter were $6.7 billion, which fell short of the Zacks Consensus Estimate of $7.22 billion by 7.28%, but showed a year-over-year improvement of 10.4% [2][9] Segment Performance - Florida Power & Light Company generated revenues of approximately $4.71 billion, up 7.1% from $4.38 billion in the prior year, with earnings of 62 cents per share compared to 60 cents in the same quarter last year [3] - NextEra Energy Resources reported revenues of $1.91 billion, a 16.4% increase from $1.64 billion year-over-year, with earnings of 53 cents per share compared to 42 cents in the previous year [3] - Corporate and Other segment had operating revenues of $78 million, up from $35 million in the year-ago period, but reported an operating loss of 10 cents per share, wider than the previous year's loss of 6 cents [4] Financial Highlights - Cash and cash equivalents stood at nearly $1.72 billion as of June 30, 2025, an increase from $1.49 billion on December 31, 2024 [8] - Long-term debt rose to $82.7 billion as of June 30, 2025, up from $72.4 billion at the end of 2024 [8] - Cash flow from operating activities in the first half of 2025 was $5.95 billion, down from $7.10 billion in the first half of 2024 [10] Growth and 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 [11] - The company anticipates adjusted earnings per share for 2026 and 2027 to be in the range of $3.63 to $4.00 and $3.85 to $4.32, respectively, with expected earnings growth of approximately 6-8% through at least 2027 [11] - NextEra Energy Resources aims to add 36,500-46,500 MW of renewable power projects to its portfolio from 2024 to 2027 [12] Operational Developments - Florida Power & Light Company's growth was driven by ongoing business investments, with capital expenditures of around $2 billion during the quarter and full-year capital investments projected between $8 billion and $8.8 billion [5] - NextEra Energy Resources added 3.2 gigawatts to its renewables backlog, bringing the total backlog to nearly 30 gigawatts after accounting for over 1.1 gigawatts of new projects placed into service since the first quarter of 2025 [7][9]
FirstEnergy to Release Q2 Earnings: What's in Store for the Stock?
ZACKS· 2025-07-23 14:36
Core Viewpoint - FirstEnergy Corporation (FE) is set to release its second-quarter 2025 results on July 30, with an earnings surprise of 11.7% in the previous quarter [1] Factors Impacting Q2 Performance - In June 2025, FirstEnergy's subsidiary completed its third utility-scale solar site in West Virginia, producing up to 5.75 megawatts (MW) of renewable power, which is expected to positively impact Q2 results [2] - The deployment of Advanced Light Detection and Ranging (LiDAR) technology across 7,100 miles of high-voltage power lines is anticipated to enhance service reliability and performance in the upcoming quarter [3] - In April 2025, enhancements to the energy delivery system in Pennsylvania, including the replacement of over 40 wood poles and other equipment, aimed to minimize service disruptions for nearly 1,000 customers [4] - The 'Energize365' program is expected to continue benefiting the company by enhancing customer experience while maintaining competitive rates [5] - Severe storms in April 2025 caused widespread damage and power outages, potentially leading to increased operating expenses for restoration, which may offset some positive impacts [6] Q2 Expectations - The Zacks Consensus Estimate for earnings is 53 cents per share, reflecting a year-over-year decrease of 5.4% [7] - Revenue is estimated at $3.43 billion, indicating a 4.7% year-over-year improvement [7] - Total electric distribution deliveries are expected to reach 36,000.5 megawatt-hours, up 1.5% from the previous year [7] Earnings Prediction - The company's Earnings ESP is -10.80%, indicating that an earnings beat is not predicted for this quarter [10] - FirstEnergy currently holds a Zacks Rank of 3, suggesting a neutral outlook [10] Summary of Q2 Results - Q2 results may reflect gains from new solar sites and advanced LiDAR deployment, while grid upgrades and the Energize365 program likely improved system reliability [9] - However, the costs associated with restoration from severe April storms may offset operational improvements [9]
Could Investing in These American-Made High Yielders Pay Dividends for Your Portfolio?
The Motley Fool· 2025-05-24 08:24
If you are looking for American-made dividend stocks, you can't do much better than buying U.S. utilities. Companies like NextEra Energy (NEE 1.42%), Black Hills (BKH 0.90%), and American Electric Power (AEP 1.07%) are built on regional and regulated U.S. monopolies. Each one of these American high-yield stocks has a different story to tell. Here's a quick look at why you might want to buy each one.1. NextEra Energy is all about dividend growthThe average utility stock is yielding around 2.9% today. NextEra ...
Is Dominion Energy the Smartest Investment You Can Make Today?
The Motley Fool· 2025-05-01 08:05
Core Viewpoint - Dominion Energy presents attractive features for dividend investors despite concerns over past management decisions and dividend cuts [1][5] Group 1: Dividend Performance - Dominion Energy projected continued dividend growth before selling pipeline assets to Berkshire Hathaway, leading to a material cash flow loss and a subsequent dividend reset [2] - The company made a single dividend increase before conducting a year-long business review, resulting in further asset sales without cutting the dividend, but indicating a need to strengthen the balance sheet before resuming dividend growth [4][5] - The 2025 dividend guidance is set at $2.67 per share, the same as in 2024, indicating that the company's revamp is still ongoing despite reasonable overall business performance [5] Group 2: Investment Appeal - Dominion Energy offers a dividend yield of 5%, significantly higher than the average utility yield of around 2.9%, enhancing income for dividend investors [7] - The company projects 5% to 7% earnings growth supported by a $50 billion capital investment plan, which is a 16% increase from the previous year [8] - Key components of the capital investment plan include renewable energy projects and assets for data centers and AI, with a notable 88% increase in demand from data centers in Virginia between July and December 2024 [9] Group 3: Future Outlook - Long-term dividend investors may find it wise to invest in Dominion Energy now, as the company has streamlined its operations and is focused on executing its growth plan [10] - The elevated yield provides a generous return while waiting for the anticipated return of dividend growth, which could lead to a higher valuation from Wall Street once it occurs [10]