Latest news with #NextEraEnergyResources
Globe and Mail
08-08-2025
- Business
- Globe and Mail
Can NextEra Energy Grow Through Transmission & Distribution Expansion?
NextEra Energy NEE stands at the forefront of the U.S. clean energy transition, with its vast network of transmission and distribution ('T&D') lines serving as a critical pillar of the long-term growth strategy. As the nation's largest producer of renewable energy from wind and solar, the company's ability to move this clean power efficiently and reliably to end-users is central to its competitive advantage. NextEra's T&D infrastructure, primarily through its regulated utility subsidiary Florida Power & Light ('FPL'), spans thousands of miles, ensuring grid stability while accommodating the rising penetration of renewable generation. The company plans to invest $21.68 billion in 2025-2029 period to further expand T&D lines. FPL operates nearly 91,000 circuit miles of transmission and distribution lines and 921 substations to provide efficient services to its customers. The continued upgrades to these lines, fortifying them against extreme weather to deploying smart-grid technologies and increasing capacity, assist the company to cater rising electricity demand, driven by Florida's population growth and the expansion of energy-intensive industries such as data centers. The build-out of high-voltage transmission lines also supports its subsidiary, NextEra Energy Resources, by enabling renewable projects in resource-rich regions to deliver power to high-demand markets. This creates a dual revenue stream from both regulated and competitive operations, enhancing earnings stability. With federal and state policies incentivizing grid upgrades and renewable integration, NextEra's T&D investments are expected to generate predictable returns under regulated rate structures. This infrastructure not only safeguards reliability but also cements NextEra's role as a backbone of America's clean energy economy, fueling consistent, long-term shareholder value creation. Transmission & Distribution Lines Support Utility Growth Robust transmission and distribution networks enable utilities to deliver power reliably, integrate renewables efficiently and support demand growth. These assets generate stable, regulated returns while positioning utilities to capitalize on electrification and infrastructure modernization trends. Utilities like Duke Energy DUK and Dominion Energy D benefit significantly from expansive transmission and distribution networks. Both Duke Energy and Dominion could ensure reliable electricity delivery, enable integration of renewable generation and support rising demand through these networks. Investments in grid modernization and capacity expansion provide stable, regulated returns while strengthening their competitive positioning in an increasingly electrified economy. NEE's Price Performance NextEra's shares have gained 3.2% in the past three months compared with the Zacks Utility Electric-Power industry's rise of 2.3%. NEE Stock Returns Better Than Its Industry NextEra's trailing 12-month return on equity ('ROE') is 12.31%, ahead of the industry average of 10.41%. ROE is a financial ratio that measures how well a company uses its shareholders' equity to generate profits. The current ROE of the company indicates that it is using shareholders' funds more efficiently than peers. NextEra's Earnings Estimates Moving North NextEra expects its 2025 earnings per share to be in the range of $3.45-$3.70 compared with $3.43 a year ago. The Zacks Consensus Estimate for NEE's 2025 and 2026 earnings per share indicates year-over-year growth of 7.3% and 7.9%, respectively. NEE expects to increase its earnings per share in the range of 6-8% annually through 2027 from the level of 2024. NEE's Zacks Rank NextEra currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here See our %%CTA_TEXT%% report – free today! 7 Best Stocks for the Next 30 Days Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE): Free Stock Analysis Report Duke Energy Corporation (DUK): Free Stock Analysis Report Dominion Energy Inc. (D): Free Stock Analysis Report
Yahoo
23-07-2025
- Business
- Yahoo
Why NextEra Energy Stock Sank Today
Key Points NextEra Energy just announced earnings growth that doesn't resemble a sleepy utility. The company plans to continue to boost dividends by about 10% per year. "Significant" demand will keep the company growing in the coming years. 10 stocks we like better than NextEra Energy › NextEra Energy (NYSE: NEE) just reported a very strong second quarter. Adjusted earnings per share jumped more than 9% year over year. Yet shares in the company are sinking today. NextEra stock was down by 6.3% as of 12:35 p.m. ET. A solid quarterly earnings report, along with a subsequent plunge in the stock, is a combination that should make investors wonder whether opportunity is knocking. NextEra may be one of those opportunities, and there's a good explanation for why the stock is retreating today. Growth, income, and surging demand NextEra is one of the largest electric utility companies in the country. As such, it should be on the radar of any investor in the utility sector. It's not just a stodgy utility, though. NextEra operates Florida Power & Light Company (FPL), one of the largest rate-regulated electric utilities in the U.S. It also runs NextEra Energy Resources. That's a subsidiary with higher growth prospects as a leading generator of renewable energy through various solar and wind projects. The strong performance was coupled with expectations for continued solid results going forward. NextEra management sees adjusted earnings per share increasing by as much as 8% annually through 2027. NextEra also plans to continue to increase its dividend payout by about 10% per year, at least through next year. That confidence in its FPL subsidiary comes from what it calls "significant demand from [Florida's] growing population." It's not just Florida that has increasing power needs. NextEra is seeing growth across all sectors, it says. It plans for renewables, natural gas-fired generation, and new nuclear supply in the future to satisfy that demand. So why is the stock tanking today? It's probably just a matter of investors selling the news. NextEra stock had jumped by more than 16% in just the last three months prior to today's drop. With power demand on the rise, investors seeking dividend income with a growing underlying business might want to take advantage of today's decline for a long-term investment. Do the experts think NextEra Energy is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did NextEra Energy make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,034% vs. just 180% for the S&P — that is beating the market by 853.75%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,023,813!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Howard Smith has positions in NextEra Energy. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool has a disclosure policy. Why NextEra Energy Stock Sank Today was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
23-07-2025
- Business
- Yahoo
NextEra Energy second-quarter 2025 financial results available on company's website
JUNO BEACH, Fla., July 23, 2025 /PRNewswire/ -- NextEra Energy, Inc. (NYSE: NEE) has posted its second-quarter 2025 financial results in a news release available on the company's website by accessing the following link: Members of NextEra Energy's senior management team will discuss the company's second-quarter 2025 financial results during an investor presentation to be webcast live, beginning at 9 a.m. ET today. The listen-only webcast will be available on NextEra Energy's website by accessing the following link: A replay will be available for 90 days by accessing the same link as listed above. NextEra Energy, Energy, Inc. (NYSE: NEE) is one of the largest electric power and energy infrastructure companies in North America and is a leading provider of electricity to American homes and businesses. Headquartered in Juno Beach, Florida, NextEra Energy is a Fortune 200 company that owns Florida Power & Light Company, America's largest electric utility, which provides reliable electricity to approximately 12 million people across Florida. NextEra Energy also owns one of the largest energy infrastructure development companies in the U.S., NextEra Energy Resources, LLC. NextEra Energy and its affiliated entities are meeting America's growing energy needs with a diverse mix of energy sources, including natural gas, nuclear, renewable energy and battery storage. For more information about NextEra Energy companies, visit these websites: View original content to download multimedia: SOURCE NextEra Energy, Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-06-2025
- Business
- Yahoo
NextEra Energy: Built for Long-Term Growth?
NextEra Energy is the largest regulated electric utility traded on American exchanges. The nature of its operations will appeal to conservative investors looking for resilient businesses. There are ample opportunities available for the company to pursue continued growth. 10 stocks we like better than NextEra Energy › Forget the allure of companies promising groundbreaking innovations. While some of these may, in fact, provide handsome returns, the savviest investors know that the road to greater personal wealth is largely paved with tried-and-true stocks that can provide a firm foundation for one's portfolio -- stocks like utility powerhouse NextEra Energy (NYSE: NEE). But it's not only the fact that NextEra Energy stock has outperformed the market for the past two decades that makes it an alluring attraction. Between management's steadfast commitment to rewarding shareholders -- its dividend currently offers a forward yield over 3% -- and the company's conservative business model, NextEra Energy will appeal to those looking to fortify their portfolios. Since there are so many things to like about the stock, it's worth asking if the company has the power to prosper over the long term. One of the largest regulated electric utilities in North America, NextEra Energy primarily generates revenue from its two businesses: Florida Power and Light (FPL) and NextEra Energy Resources. With over six million customers, FPL mostly serves retail customers, while NextEra Energy Resources operates renewable energy assets throughout the United States. The conservative nature of the company's business is demonstrated in two distinct ways. Because FPL is a regulated utility, NextEra Energy is guaranteed certain rates of return on its Sunshine State operations by the Florida Public Service Commission. Similarly, NextEra Energy Resources also represents a low-risk business. From solar power to battery storage to wind power to nuclear power, NextEra Energy Resources has a diversified portfolio of clean energy assets totaling about 38 gigawatts (GW). The company inks long-term power-purchase agreements (PPAs) with customers in wholesale electricity markets to which it sells the energy, capacity, credits, and other products. While the nature of NextEra Energy's business model should light up the eyes of investors who are seeking reliable companies, management's adept ability to generate profits will make them downright sparkle. Averaging an annual earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 51.8% from 2020 through 2024, NextEra Energy has consistently demonstrated superior profitability on an EBITDA margin basis over the past 10 years compared to its closest peers based on market capitalization: Southern Company and Duke Energy. Besides its strong EBITDA margin, NextEra Energy's proficiency in growing operating cash flow further differentiates it from its peers. Of course, it bears remembering that simply because the company has succeeded in these regards over the past decade doesn't guarantee similar growth over the next decade; however, it's certainly an auspicious sign that's worthy of recognition. Moreover, NextEra Energy has averaged a payout ratio of 81% over the past five years, and the company has hiked the dividend higher for more than 30 consecutive years -- all of which should help assuage the concerns. To ensure that NextEra Energy achieves growth in the coming year, investors can expect management to pull several levers. For one, the company will certainly petition the Florida Public Service Commission to raise rates on its regulated electric utility customers. Already, the company has proposed raising base rates by about $1.6 billion and $0.9 billion for 2026 and 2027, respectively. Another growth option for the company is the advancement of projects that currently are in the backlog of NextEra Energy Resources. In 2024, NextEra Energy Resources added about 1.4 GW of wind-generating capacity, 2.5 GW of solar-generating capacity, and 0.8 GW of battery-storage capacity. As of late April 2025, NextEra Energy had a backlog of renewable energy projects that totaled 28 GW and 300 GW in the pipeline. Lastly, the company can grow through acquisitions as it has repeatedly done in the past. In 2019, for example, NextEra Energy added about 470,000 customers when it acquired Southern Company's regulated electricity business Gulf Power, which operates in northwestern Florida, for about $4.4 billion. Growing its electricity transmission business, NextEra Energy completed a $502 million acquisition of GridLiance in 2021. From the opportunities to expand its renewable energy portfolio to its ability to grow its regulated electricity business through rate increases and acquisitions, it's clear that NextEra Energy has the capacity to continue growing in the coming years. And with the stock trading in early June at 11.4 times operating cash flow, a discount to its five-year average cash-flow multiple of 14.9, now seems like a great time to click the buy button. Before you buy stock in NextEra Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and NextEra Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool recommends Duke Energy. The Motley Fool has a disclosure policy. NextEra Energy: Built for Long-Term Growth? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-06-2025
- Business
- Yahoo
20250604 - NextEra Energy: A Misunderstood Growth Machine
It's not easy to find bargains among well-established corporate giants. However, Mr. Market sometimes presents such opportunities to prudent investors. The renewable energy sector has taken a beating since President Trump's victory in November as he has made his intentions clear to support the fossil fuel sector. NextEra Energy, Inc. (NYSE:NEE), which owns the largest electric utility in the United States (Florida Power & Light Company) and also one of the leading clean energy companies in the world (NextEra Energy Resources) has also come under pressure as a result, losing over 6% of its market value in 2025 alone. A deeper dive into the company's supply chain reveals NextEra is largely immune to tariffs, making it a contrarian play in the renewable energy sector. The reasonable valuation of the company sweetens the deal, while attractive long-term macroeconomic prospects suggest a long runway for NextEra to grow. Warning! GuruFocus has detected 9 Warning Signs with NEE. NextEra Energy, headquartered in Florida, is the parent company of both Florida Power & Light and NextEra Energy Resources. Based on retail electricity sold, FPL is the largest rate-regulated utility in the U.S., serving approximately 12 million customers in Florida. NEER, on the other hand, serves the wholesale energy markets in both the U.S. and Canada and is the world's largest wind and solar projects operator. The company also has a battery storage business. Through FPL and NEER, NextEra maintains a well-diversified energy portfolio consisting of wind, solar, nuclear power, and even natural gas. Before moving on to discuss the long-term outlook for NextEra, it is important to address the tariff threats facing the renewable energy industry that have dampened the investor sentiment toward NextEra stock. On April 21, the U.S. Department of Commerce announced its study results from an investigation of antidumping duties on solar cells imported from several Southeast Asian nations, including Cambodia, Malaysia, Thailand, and Vietnam. Based on the findings, the Commerce Department recommended substantial tariffs on crystalline photovoltaic cells imported from these countries. For context, several Cambodian companies are expected to see tariffs exceeding a staggering 3,400%, while almost all other exporters representing Southeast Asian nations are expected to see tariffs exceeding 100%. The International Trade Administration is expected to announce its final determination on these tariffs by June 2, in less than a month. Southeast Asian nations have played a critical role in helping solar project costs remain low for Americans for years. In 2023, the four main countries targeted by the latest round of U.S. tariffs exported almost $12 billion worth of solar modules to the United States. Exhibit 1: Import statistics Source: International Trade Administration Newly announced tariffs are likely to make it more expensive for Americans to access solar power. However, NextEra Energy is in a unique position to show resilience from these tariffs compared to many of its peers that are heavily reliant on solar modules imported from Southeast Asia. First, NextEra Energy has commendably managed its supply chain efficiently in the last few years, reducing its reliance on Southeast Asia. For example, the company is currently sourcing wind turbines domestically, which includes manufacturing required components in its plants in Florida. The company also has ties with tariff-unaffected nations such as India. Strategic diversification of the supply chain to gain exposure to U.S. allies has made it possible for NextEra to weather the tariff storm better than most of its peers. Second, NextEra is often the largest customer of many of its suppliers, which creates wiggle room for the company to negotiate deals with suppliers to pass on any tariff impact to them. Suppliers have little bargaining power with NextEra because of its scale, which is likely to come to the rescue in the next few months. Third, NextEra has already secured contracts with domestic suppliers to meet the majority of its backlog for its battery storage business, leaving little exposure to tariffs. Commenting on the overall tariff exposure of the company during the first-quarter earnings call a couple of weeks ago, NextEra CEO John Ketchum revealed that the overall tariff exposure of the company through 2028 is just $150 million compared to total capital expenditures planned through 2028 of $75 billion. In a nutshell, only 0.2% of the company's capex budget is exposed to new tariffs. Encouragingly, CEO Ketchum is confident of NextEra's ability to shield itself from this exposure through renegotiated contracts. We think that we're looking at around $150 million of exposure on tariffs. That is based on the contractual protections we have in our existing contracts with suppliers and the discussions that we have had with them since Liberation Day on April 2. So that's the first piece. So that works you down to $150 million. Then the point we were making in the prepared remarks is that not only do we have the ability to shift tariff risk to suppliers and supply contracts, which I just covered, we also have trade measure protection provisions in our customer contracts. So we believe we got a really good shot at working with our customers to take that $150 million exposure down significantly and perhaps even down to zero if we use the track record we had around circumvention. Going by the CEO's above remarks and the strengths highlighted earlier in this segment, investor fears over new tariffs seem overblown. Tariff threats aside, the next step is to evaluate the long-term industry outlook for NextEra Energy. After a period of lackluster demand growth, the U.S. has entered a new era in which the demand for electricity is expected to grow at a healthy rate. According to Deloitte, the electricity demand in the U.S. will increase by 10% to 17% between 2024 and 2030, marking a notable improvement from stable demand over the past five years. The main reasons behind these rosy projections include the growing electricity consumption by data centers and the exponential growth in EVs. According to Deolitte, data center demand alone will lead to around 11 GW of incremental electricity demand by 2030. In addition to this, the expected boost in domestic manufacturing will also drive electricity demand higher in the coming years. With electricity demand predicted to see historically high growth in the next five years, NextEra's utility arm, Florida Power, is well-positioned to thrive. To capture a sizeable share of the growing electricity demand, FPL is planning to invest approximately $50 billion through 2029 and add more than 25 GW of new capacity by 2034. These ambitious goals align well with the projected growth in electricity demand. Another tailwind helping NextEra is the expected growth in renewable energy consumption. Although the Trump administration may initially focus on fossil fuel growth, the long-term outlook for renewable energy adoption remains strong. According to the International Energy Administration's ambitious plans which aim to achieve 100% clean electricity by 2035, wind and solar energy projects are expected to account for around 70% of energy generation. This equates to approximately 2 TW of capacity. As the global leader in wind and solar power generation, NextEra Energy Resources is well-positioned to benefit from this projected growth. NextEra will also benefit from its battery storage facilities. To meet renewable energy goals, high-quality energy storage solutions are necessary. Identifying this need, NextEra has aggressively expanded into battery storage, which has enabled the company to be recognized as a 360-degree renewable energy solutions provider. NextEra Energy is currently valued at a forward P/E of 18.28 in comparison to its five-year average of 24.33, which implies the company is cheaply valued from a historical valuation perspective. At the current market price, the dividend yield is also attractive at just over 3.4%. Interestingly, the company is expected to return to growth this year after registering a 12% YoY revenue decline in 2024. According to analyst projections, revenue will grow almost 16% this year, followed by 8.3% in 2026 and 11.6% in 2027. Earnings are also expected to grow at high-single-digit rates through 2029. These estimates seem rational given the strong growth expectations for electricity demand in the U.S. and the steady growth in renewable energy usage. Despite the market pessimism toward renewable energy stocks following President Trump's victory last November, some investing gurus are betting on NextEra Energy. Some of the institutional investors that added to their long position in NextEra leading up to 2025 include Blackstone Group, T. Rowe Price, and D. E. Shaw. However, there are other gurus who have reduced their exposure to NextEra in recent times, including Mario Gabelli (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), and Robert Bruce (Trades, Portfolio). According to GuruFocus data, NextEra has seen more guru sells than buys in recent times. Source: GuruFocus NextEra Energy stock has performed poorly this year due to concerns hanging over the sustainability of the renewable industry's growth under President Trump's administration. Although short-term challenges persist, a closer evaluation of newly announced tariffs reveals NextEra is unlikely to be hurt. The long-term outlook for FPL is promising with several tailwinds driving the demand for electricity in the United States, and NEER will benefit from the momentum behind renewable energy. Valued reasonably along with a dividend yield of 3.4%, NextEra Energy seems an attractive bet on the global energy transition. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
