NextEra Energy, Inc. Series U J

What they do

NextEra Energy operates through FPL, Florida's largest electric utility serving over 6 million customer accounts, and NEER, a major developer of long-term contracted generation and energy infrastructure. FPL generates, transmits, and distributes electricity in Florida, while NEER develops and operates renewable, nuclear, and natural gas generation, battery storage, and transmission assets.

Revenue drivers

• FPL (Florida Power & Light) — Rate-regulated electric utility; generates revenue from retail and wholesale electricity sales in Florida. As of December 31, 2025, had 35,963 MW of net generating capacity.
• NEER (NextEra Energy Resources) — Develops and operates long-term contracted generation, storage, and transmission assets; also supplies natural gas and power, and provides integrated energy solutions to utilities and businesses.

Recent performance

In Q2 2026, NextEra reported GAAP net income of $3.144 billion, or $1.50 per share, up from $2.028 billion, or $0.98 per share, in Q2 2025. Adjusted earnings were $2.407 billion, or $1.15 per share, an increase of 9.5% year-over-year. FPL's net income rose to $1.412 billion from $1.275 billion, and regulatory capital employed grew ~9.3% year-over-year. NEER added 3.6 gigawatts of new renewables and storage to its backlog during the quarter.

Strategy

NextEra plans to grow adjusted earnings per share at an 8%+ compound annual growth rate through 2032, targeting the same from 2032 through 2035, off the 2025 base. FPL focuses on disciplined capital investment to maintain low bills and high reliability. NEER aims to expand its contracted renewables and storage backlog. The company also filed applications to merge with Dominion Energy, potentially supporting ~11% annual growth in regulatory capital employed through 2032.

Risks

• Regulatory actions — FPL's rates are set by the FPSC and FERC; adverse decisions could limit cost recovery or returns.
• Incentive changes — Reduction or elimination of clean energy tax incentives could affect NEER's project returns and development pipeline.
• Project execution — Delays or cost overruns in constructing generation, storage, or transmission facilities could hurt financial results.
• Merger approval — The proposed Dominion Energy combination is subject to regulatory and shareholder approvals; failure to close could create uncertainty.

Outlook

Management expects continued growth in both FPL and NEER, with FPL planning full-year capital investments between $12 billion and $13 billion in 2026. The company is pursuing the Dominion Energy combination, which if approved would be a major expansion. NextEra reiterates its long-term adjusted EPS growth targets of 8%+ through 2032.