NextEra Energy Inc. (NEE)
NYSE:NEE
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NextEra Energy
(NYSE:NEE)
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Rating:72Outperform
Price Target:
$104.00
▲(13.07% Upside)
Action:Reiterated
Date:05/19/26
NEE’s score is driven primarily by strong underlying profitability and a constructive earnings outlook with reiterated guidance and long-term growth targets. The score is tempered by sustained leverage and historically volatile free cash flow, a relatively high P/E for the sector, and added deal/regulatory uncertainty from the Dominion merger; technical signals are broadly neutral.
Positive Factors
Scale from Dominion merger
The Dominion combination materially enlarges NextEra’s regulated footprint and generation base, diversifying geography and customer mix. Greater scale improves procurement, construction and regulatory leverage, supporting sustained regulated cash flows and more avenues to finance and deploy capital over the next decade.
Negative Factors
Sustained utility‑style leverage
NextEra carries elevated, sector‑typical leverage which increases fixed interest obligations and reduces balance‑sheet flexibility. With large ongoing capex needs and potential M&A, sustained leverage heightens refinancing sensitivity to higher rates and could constrain investment or raise funding costs over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale from Dominion merger
The Dominion combination materially enlarges NextEra’s regulated footprint and generation base, diversifying geography and customer mix. Greater scale improves procurement, construction and regulatory leverage, supporting sustained regulated cash flows and more avenues to finance and deploy capital over the next decade.
Read all positive factors
NextEra Energy Key Performance Indicators (KPIs)
Any
FPL Customers
Monitors the number of customers served by Florida Power & Light, highlighting market reach and stability in the utility sector.
Monitors the number of customers served by Florida Power & Light, highlighting market reach and stability in the utility sector.
Data provided by:
The Fly
The FlyNextEra Energy (NEE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$185.68B
Dividend Yield2.84%
Average Volume (3M)8.29M
Price to Earnings (P/E)22.2
Beta (1Y)0.32
Revenue Growth11.51%
EPS Growth47.33%
CountryUS
Employees16,800
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)3.95
Shares Outstanding2,085,341,600
10 Day Avg. Volume7,593,401
30 Day Avg. Volume8,294,865
Financial Highlights & Ratios
PEG Ratio-11.85
Price to Book (P/B)3.07
Price to Sales (P/S)6.10
P/FCF Ratio52.23
Enterprise Value/Market Cap1.54
Enterprise Value/Revenue10.16
Enterprise Value/Gross Profit15.10
Enterprise Value/Ebitda16.64
Forecast
1Y Price Target
$101.92Price Target Upside10.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)4.05
Revenue Forecast (FY)$31.01B
NextEra Energy Business Overview & Revenue Model
Company Description
NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear, coal, and natural gas f...
How the Company Makes Money
NextEra Energy primarily makes money through two major operating segments: (1) regulated utility earnings at Florida Power & Light (FPL) and (2) competitive power generation and related energy infrastructure earnings at NextEra Energy Resources.
...
NextEra Energy Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational and financial momentum: Q1 adjusted EPS rose ~10%, Energy Resources delivered a record quarter and backlog expansion, FPL showed robust customer additions and high reliability, and the company articulated multiple growth avenues (data center hubs, transmission, pipelines, storage). Management highlighted proactive risk mitigation (supply-chain contracts, large interest-rate hedges) and strategic initiatives (Rewire AI, Symmetry acquisition). Headwinds exist—customer supply margin normalization, higher financing costs, labor and permitting constraints for new gas builds, and timing risks for large projects—but these were framed as manageable and being actively addressed. Overall, the positive growth metrics, backlog, and strategic positioning outweigh the operational and execution challenges discussed.Positive Updates
Adjusted EPS Growth
Adjusted earnings per share increased ~10% year-over-year for Q1 2026, driven by strong performance at both Florida Power & Light (FPL) and Energy Resources.
Negative Updates
Customer Supply Business Headwinds
Comparative contribution from the customer supply business decreased ~$0.04 per share year-over-year, driven by lower production volume in upstream operations and continued normalization of margins in the full-requirements business.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EPS Growth
Adjusted earnings per share increased ~10% year-over-year for Q1 2026, driven by strong performance at both Florida Power & Light (FPL) and Energy Resources.
Read all positive updates
Company Guidance
Management reiterated 2026 adjusted EPS guidance of $3.92–$4.02 (targeting the high end) on a 2025 base of $3.71, and reiterated an 8%+ CAGR in adjusted EPS through 2032 (and the same 2032–2035), with average annual operating cash‑flow growth at or above that rate and dividend growth targeted ~10% per year through 2026 (off a 2024 base) and ~6% per year from year‑end 2026–2028. Key operational and capital metrics: FPL Q1 CapEx ≈ $3.2B and FY CapEx $12–13B, 12‑month ROE ≈ 11.7% (ending Mar‑2026), placed ~600 MW of solar in Q1 (FPL owned solar >8.5 GW), added ~100,000 customers year‑over‑year, retail sales +3.4% y/y (+0.3% weather‑normalized), used ~$306M of the rate stabilization mechanism leaving an after‑tax balance ≈ $1.2B, expects $90–100B of investment through 2032 and CIPLan roughly 4 GW new gas, >12 GW solar and >7 GW storage over 10 years, typical residential bill ~20% lower (inflation‑adjusted) vs 20 years ago and ~30% below national average with ~2% projected annual bill growth through the decade, and reliability ~68% better than the national average. Energy Resources and transmission metrics: Q1 adjusted earnings growth ≈ 14% y/y, contributions from new investments +$0.04/share, NextEra Energy Transmission contribution +$0.05/share, backlog ≈ 33 GW after adding 4 GW in Q1 (including 1.3 GW of batteries) and placing 0.3 GW into service, stand‑alone/co‑located battery pipeline >10 GW, recontracting opportunity of up to ~6 GW renewables and ~1.5 GW nuclear through 2032 (Q1 recontracts >600 MW with average contract length >18 years), ownership interest in >1,000 miles of FERC‑regulated pipelines, target for combined electric & gas transmission capital of $20B by 2032 (≈20% CAGR off 2025), NextEra Energy Transmission has secured >$5B of projects since 2023 (≈$8B regulated/secured capital total), transported ~2.9 Tcf/year (~8 Bcf/day), maintain an interest‑rate hedging program >$43B, and have secured panels and batteries through 2029, wind components through 2027 and transformer capacity through the end of the decade; Duane Arnold reentry remains on track no later than Q1 2029 and the company is advancing 9.5 GW of U.S.‑Japan gas projects under DoC selection.NextEra Energy Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.19B | 27.48B | 24.75B | 28.11B | 20.96B | 17.07B |
| Gross Profit | 18.98B | 17.25B | 14.87B | 17.98B | 10.14B | 8.56B |
| EBITDA | 17.22B | 16.16B | 14.03B | 16.76B | 9.21B | 8.66B |
| Net Income | 8.18B | 6.83B | 6.95B | 7.31B | 4.15B | 3.57B |
Balance Sheet | ||||||
| Total Assets | 221.42B | 212.72B | 190.14B | 177.49B | 158.94B | 140.91B |
| Cash, Cash Equivalents and Short-Term Investments | 2.00B | 2.81B | 1.49B | 2.69B | 1.60B | 639.00M |
| Total Debt | 104.40B | 95.62B | 82.33B | 73.21B | 64.97B | 54.83B |
| Total Liabilities | 154.79B | 146.24B | 129.28B | 118.47B | 109.50B | 95.24B |
| Stockholders Equity | 55.22B | 54.61B | 50.10B | 47.47B | 39.23B | 37.20B |
Cash Flow | ||||||
| Free Cash Flow | 2.36B | 3.21B | 4.75B | 1.75B | -1.48B | -277.00M |
| Operating Cash Flow | 12.33B | 12.48B | 13.26B | 11.30B | 8.26B | 7.55B |
| Investing Cash Flow | -26.96B | -23.86B | -22.26B | -23.47B | -18.36B | -13.59B |
| Financing Cash Flow | 14.55B | 12.98B | 7.00B | 12.15B | 12.23B | 5.81B |
NextEra Energy Technical Analysis
Negative
91.98
Price Trends
92.95
Negative
89.93
Negative
83.92
Positive
Market Momentum
-0.69
Positive
36.88
Neutral
26.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEE, the sentiment is Negative. The current price of 91.98 is below the 20-day moving average (MA) of 94.31, below the 50-day MA of 92.95, and above the 200-day MA of 83.92, indicating a neutral trend. The MACD of -0.69 indicates Positive momentum. The RSI at 36.88 is Neutral, neither overbought nor oversold. The STOCH value of 26.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEE.
NextEra Energy Risk Analysis
NextEra Energy disclosed 52 risk factors in its most recent earnings report. NextEra Energy reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NextEra Energy Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $185.68B | 22.23 | 15.24% | 2.84% | 11.51% | 47.33% | |
70 Outperform | $69.47B | 20.32 | 11.86% | 3.25% | 9.38% | 31.12% | |
66 Neutral | $105.64B | 20.00 | 12.28% | 3.40% | 8.33% | -6.26% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $95.77B | 16.43 | 9.85% | 3.61% | 7.21% | 8.97% | |
60 Neutral | $59.42B | 21.87 | 10.51% | 4.59% | 19.15% | 27.09% | |
59 Neutral | $44.99B | 13.66 | 9.76% | 3.68% | 4.58% | 1.43% |
* Utilities Sector Average
NEE
NextEra Energy
88.27
18.80
27.05%
AEP
American Electric Power
128.87
29.10
29.17%
D
Dominion Energy
67.73
13.70
25.36%
DUK
Duke Energy
123.81
11.30
10.05%
EXC
Exelon
44.87
1.82
4.22%
SO
Southern Co
93.62
6.80
7.83%
NextEra Energy Corporate Events
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsRegulatory Filings and Compliance
NextEra Energy Announces All-Stock Merger With Dominion
Positive
May 18, 2026
On May 15, 2026, NextEra Energy and Dominion Energy entered into a definitive all‑stock Agreement and Plan of Merger that will combine Dominion into a wholly owned NextEra subsidiary, followed by a second-step merger into a NextEra affiliate...
Business Operations and StrategyExecutive/Board Changes
NextEra Energy reshapes FPL leadership in planned transition
Positive
May 18, 2026
As part of a planned leadership succession at NextEra Energy’s Florida Power Light Company, Chief Executive Officer Armando Pimentel, Jr. resigned from his role effective May 18, 2026, and simultaneously assumed the position of vice chairma...
Business Operations and StrategyPrivate Placements and Financing
NextEra Energy Issues Long-Dated Subordinated Debentures for Funding
Positive
Mar 20, 2026
On March 20, 2026, NextEra Energy Capital Holdings sold $600 million of Series Z Junior Subordinated Debentures due April 15, 2086, carrying a 6.50% annual interest rate paid quarterly. The debentures, which are guaranteed on a subordinated basis ...
Business Operations and StrategyExecutive/Board Changes
NextEra Energy Chief Risk Officer Resigns for CFO Role
Negative
Mar 10, 2026
On March 5, 2026, NextEra Energy said Executive Vice President and Chief Risk Officer Terrell Kirk Crews II had notified the company he will resign, effective March 20, 2026, to become chief financial officer at another company. The departure remo...
Business Operations and StrategyPrivate Placements and Financing
NextEra Energy Raises $2.3 Billion via Equity Units
Positive
Mar 4, 2026
On March 3, 2026, NextEra Energy sold $2.3 billion of equity units, including those issued upon full exercise of the underwriters’ overallotment option, as part of a complex equity-linked financing. Each unit combines a stock purchase contra...
Private Placements and Financing
NextEra Energy Raises €1.75 Billion in Hybrid Debentures
Positive
Feb 26, 2026
On February 26, 2026, NextEra Energy Capital Holdings, a wholly owned subsidiary of NextEra Energy, raised €1.75 billion through the sale of junior subordinated debentures, split between €1.0 billion of Series X notes and €750 mi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.