• Adjusted Earnings Per Share (EPS): $3.43 for full year 2024, up over 8% from 2023.
• Regulatory Capital Employed Growth: Approximately 10% for FPL in 2024.
• FPL Reported ROE: Approximately 11.4% for full year 2024.
• FPL Reserve Amortization: $328 million used in 2024, with a year-end balance of $895 million.
• FPL Capital Expenditures: Approximately $8.2 billion for full year 2024.
• FPL Retail Sales Growth: 1.9% increase for full year 2024 on a weather-normalized basis.
• Energy Resources Adjusted Earnings Growth: More than 13% year-over-year for full year 2024.
• Energy Resources New Investments Contribution: Increased by $0.48 per share in 2024.
• Energy Resources Renewables Backlog: More than 25 gigawatts.
• Cash Flow from Operations Growth: More than 17% increase for full year 2024.
• Interest Rate Hedges: $28.5 billion in place.

• Warning! GuruFocus has detected 8 Warning Signs with NEE.

Release Date: January 24, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• NextEra Energy Inc (NYSE:NEE) delivered strong operational and financial performance in 2024, with adjusted earnings per share of $3.43, up over 8% from 2023.
• The company has a robust growth plan, with a commitment to invest approximately $120 billion over the next four years to expand its energy infrastructure.
• NextEra Energy Inc (NYSE:NEE) is a leader in renewables and storage, having added more than 12 gigawatts to its backlog in 2024, reflecting strong demand for clean energy solutions.
• Florida Power and Light (FPL) continues to deliver high reliability and outstanding customer service while keeping bills 40% below the national average.
• The company has a strong balance sheet and has been successful in maintaining a high return on equity, with FPL's reported ROE for regulatory purposes at approximately 11.4% for 2024.

Negative Points

• The cost of gas-fired generation has more than doubled over the last five years due to limited supply of gas turbines and higher EPC costs.
• There are uncertainties and risks associated with nuclear energy, with new nuclear projects unlikely to contribute significantly to the grid over the next decade.
• The company faces challenges in meeting the increasing power demand, with potential delays in bringing new generation online.
• Interest rate increases pose a risk, with higher interest costs impacting earnings, as seen with a $0.13 per share decrease in 2024.
• The company is beginning from a standing start in gas-fired generation, with significant time and cost pressures expected before it can contribute at scale.

Q & A Highlights

Q: Could you provide more details on the GE Vernova framework agreement? Will these projects be co-owned, and will they be contracted or merchant projects? A: John Ketchum, Chairman, President, and CEO, explained that the agreement with GE Vernova involves co-owning projects as part of a 50/50 joint venture. These will be long-term contracted assets, potentially including build-on-transfer projects with renewables and other growth opportunities. The focus is on targeting large load customers with integrated gas-fired generation and renewable battery storage solutions.

Q: What are your thoughts on the new administration's policies, particularly regarding wind leases on federal lands and the IRA risk? A: John Ketchum emphasized the need for all forms of energy, including gas, nuclear, renewables, and storage, to meet current power demand. He expressed optimism about working through any issues with the administration, highlighting the importance of low-cost energy and domestic job creation. He also noted that NextEra's investments are largely in Republican states, emphasizing the economic benefits.

Q: Can you provide an update on the Duane Arnold nuclear plant and its potential restart? A: John Ketchum stated that they have filed with the NRC for licensing recommissioning and are in active discussions with customers. The plant is in good condition, with the only issue being the cooling tower damaged by a derecho, which is a conventional construction task. He noted that recommissioning opportunities like Duane Arnold are near-term, while small modular reactors are more of a next-decade solution.

Q: How are you managing interest rate exposure, and have there been any changes in your strategy? A: John Ketchum mentioned that NextEra has $32 billion of interest rate swaps in place with an average coupon of around 3.9%. The sensitivity to interest rate changes is minimal, with an EPS impact of $0.01 to $0.03 for 2025 and 2026, and $0.03 to $0.05 for 2027, indicating a well-managed interest rate risk exposure.

Q: Are there any changes in customer conversations regarding renewables, especially with potential policy changes? A: John Ketchum and Rebecca Kujawa, CEO of NextEra Energy Resources, stated that customers are primarily concerned with ensuring projects are built on time to meet their power needs. There is strong demand for renewables and storage, and customers are focused on speed to market and cost-effectiveness. The conversations have not been negatively impacted by policy changes.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.