• Adjusted Earnings Per Share: Increased by nearly 9% year over year.
• FPL Earnings Per Share: Increased by $0.07 year over year.
• FPL Regulatory Capital Employed Growth: Approximately 8.1% year over year.
• FPL Capital Expenditures: Approximately $2.4 billion for the quarter.
• FPL Full Year Capital Investments: Expected to be between $8 billion and $8.8 billion.
• FPL Return on Equity: Approximately 11.6% for regulatory purposes.
• FPL Reserve Amortization: Utilized approximately $622 million, leaving a balance of roughly $274 million.
• FPL New Solar Capacity: 894 megawatts placed into service.
• FPL Retail Sales Growth: Increased by approximately 1.8% year over year.
• Energy Resources Adjusted Earnings Growth: Nearly 10% year over year.
• Energy Resources New Investments Contribution: Increased $0.12 per share year over year.
• Energy Resources Backlog: Totals roughly 28 gigawatts.
• Energy Resources New Renewables and Storage Originations: Approximately 3.2 gigawatts added to the backlog.
• Interest Rate Hedges: Nearly $37 billion in place, with a hedged risk-free rate at roughly 3.9%.

• Warning! GuruFocus has detected 9 Warning Signs with NEE.

Release Date: April 23, 2025

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

Positive Points

• NextEra Energy Inc (NYSE:NEE) reported a nearly 9% year-over-year increase in adjusted earnings per share, indicating strong financial and operational performance.
• Florida Power & Light (FPL) placed into service 894 megawatts of new solar, contributing to a total of over 7.9 gigawatts of solar capacity, the largest utility solar portfolio in the U.S.
• Energy Resources originated approximately 3.2 gigawatts of new renewables and storage projects, marking strong demand for these technologies.
• NextEra Energy Inc (NYSE:NEE) has diversified its supply chain, reducing tariff exposure to less than $150 million on over $75 billion in expected capital spend.
• The company has nearly $37 billion of interest rate hedges in place, allowing flexible management of interest rate exposure over the coming years.

Negative Points

• The cost to build gas-fired plants has tripled in recent years, posing challenges for meeting future energy demand.
• There are significant challenges in reestablishing a skilled workforce for building complex power plants, leading to increased costs and construction delays.
• Gas turbines are in short supply and high demand, contributing to higher costs for gas-fired generation.
• Nuclear technology, such as SMR, is still 10 years away from being ready at scale and comes at a higher price point than gas-fired generation.
• There is a potential risk of project slippage beyond the current plan into 2028 and beyond due to the uncertain macro environment and complex contract discussions.

Q & A Highlights

Q: Regarding the tariff disclosure, are you moving towards domestic battery cells? A: John Ketchum, CEO: Yes, we have entered into a domestic battery contract where the assembly is done in the US. Some components are imported, but the contract qualifies for domestic content, and we have protections against tariff exposure.

Q: How confident are you in your suppliers' ability to meet commitments despite tariffs? A: John Ketchum, CEO: We are confident due to our buying power and strong contractual protections. Suppliers are incentivized to fulfill commitments, and the US remains an attractive market for them.

Q: What is the impact of potential changes to transferability on existing assets? A: John Ketchum, CEO: It depends on the drafting of future bills. Transferability is crucial for monetizing tax credits, and we are advocating for its continuation as it is essential for utilities and nuclear projects.

Q: Can you elaborate on the $150 million tariff exposure and its timeline? A: John Ketchum, CEO: The $150 million exposure is based on current contracts and discussions with suppliers. We aim to reduce this significantly by working with customers, potentially down to zero.

Q: How do you view the impact of tariffs on your returns compared to competitors? A: John Ketchum, CEO: We are well-positioned due to our risk-shifting contracts. This creates opportunities as smaller developers may struggle, similar to past circumvention issues.

Q: What is the status of the Duane Arnold contracting opportunity? A: John Ketchum, CEO: Progress is ongoing with no showstoppers. There is strong demand for generation from the project, and we continue to explore this opportunity.

Q: Any updates on the GB partnership and its progress? A: John Ketchum, CEO: The partnership is advancing well, with joint customer origination efforts and events to explore opportunities, particularly around large-scale load.

Q: How do you plan to handle potential restrictions on tax credit transfers? A: Michael Dunne, CFO: We have a strong history with tax equity financing and are seeing increased interest from tax equity providers. We will choose the best project returns between transferability and tax equity.

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