NextEra Energy Inc. (NEE)
NYSE:NEE
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NextEra Energy
(NYSE:NEE)
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Rating:67Neutral
Price Target:
$100.00
▲(7.35% Upside)
Action:ReiteratedDate:03/21/26
The score is anchored by solid underlying profitability and constructive forward guidance, but is held back by balance-sheet and funding pressures—especially the sharp turn to negative 2025 free cash flow and rising debt. Technicals are moderately supportive, while valuation looks somewhat expensive for the sector and recent financing activity underscores capital intensity.
Positive Factors
Regulated utility earnings stability
A multi‑year FPL rate agreement with a ~10.95% midpoint ROE and an explicit equity ratio provides predictable regulated returns and rate‑base growth visibility. That stable regulatory framework supports durable cash generation and funds long‑term infrastructure investment over the next several years.
Negative Factors
Rising leverage and negative free cash flow
Rapid debt growth and a swing to materially negative free cash flow reflect heavy capex and reinvestment. Higher leverage and negative FCF reduce financial flexibility, increase refinancing and interest‑rate exposure, and heighten sensitivity to execution or regulatory delays during the multi‑year investment cycle.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated utility earnings stability
A multi‑year FPL rate agreement with a ~10.95% midpoint ROE and an explicit equity ratio provides predictable regulated returns and rate‑base growth visibility. That stable regulatory framework supports durable cash generation and funds long‑term infrastructure investment over the next several years.
Read all positive factors
NextEra Energy (NEE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$194.08B
Dividend Yield2.84%
Average Volume (3M)10.46M
Price to Earnings (P/E)24.5
Beta (1Y)0.39
Revenue Growth26.96%
EPS Growth-6.80%
CountryUS
Employees16,800
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.54
Shares Outstanding2,083,522,000
10 Day Avg. Volume10,532,076
30 Day Avg. Volume10,463,590
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 Cap1.47
Enterprise Value/Revenue10.41
Enterprise Value/Gross Profit16.58
Enterprise Value/Ebitda17.69
Forecast
1Y Price Target
$95.53Price Target Upside2.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)4.02
Revenue Forecast (FY)$31.33B
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 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 Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive outlook driven by strong 2025 results (adjusted EPS up >8%), record origination and backlog growth (13.5 GW added in 2025, ~30 GW backlog), robust FPL regulatory outcomes and large‑load pipeline (>20 GW interest with ~9 GW in advanced discussions), material investments in storage and transmission, and strategic partnerships (Google Cloud, Symmetry acquisition). Offsetting these positives are notable headwinds from higher financing costs (reducing EPS and increasing development costs), some operational impacts from wind resource and asset divestitures, and timing/regulatory uncertainty in PJM and around large‑load approvals which could delay conversions. Overall, the highlights meaningfully outweigh the lowlights and the company frames the negatives as manageable near‑term risks rather than structural problems.Positive Updates
Strong full-year financial performance and clear growth targets
Adjusted earnings per share of $3.71 for full-year 2025, up over 8% versus 2024; 2026 adjusted EPS guidance unchanged at $3.92–$4.02 with management targeting the high end; company targets 8%+ CAGR in adjusted EPS through 2032 (and the same 2032–2035) off the 2025 base.
Negative Updates
Higher financing costs and corporate headwinds
Other impacts reduced Energy Resources results by $0.30 per share year‑over‑year, including higher financing costs of ~$0.17 per share related to borrowing for new investments; Corporate & Other adjusted EPS decreased ~$0.12 year‑over‑year primarily due to higher interest costs.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong full-year financial performance and clear growth targets
Adjusted earnings per share of $3.71 for full-year 2025, up over 8% versus 2024; 2026 adjusted EPS guidance unchanged at $3.92–$4.02 with management targeting the high end; company targets 8%+ CAGR in adjusted EPS through 2032 (and the same 2032–2035) off the 2025 base.
Read all positive updates
Company Guidance
The company provided detailed financial and operational guidance and targets: a 2025 adjusted EPS base of $3.71 (up >8% vs. 2024) with a target CAGR of 8%+ through 2032 (and the same 2032–2035) off that base, 2026 adjusted EPS guidance of $3.92–$4.02 (targeting the high end), and dividend growth of ~10% per year through 2026 (off a 2024 base) and ~6% per year from year-end 2026–2028. FPL guidance includes $90–$100 billion of expected investment through 2032, a regulated ROE midpoint of 10.95% (range 9.95%–11.95%), an equity ratio of 59%, reported ROE ~11.7% for the 12 months ended Dec 31, 2025, Q4 capex ~$2.1 billion and full-year capex ~$8.9 billion, regulatory capital employed growth ~8.1%, weather-normalized retail sales +1.7% in 2025, over 90,000 customer additions year-over-year (comparable quarter), typical residential bills >30% below the national average and expected to rise ~2% annually 2025–2029, non-fuel O&M >71% lower than the industry average, and rate-stabilization/reserve balances (Q4 reserve amortization ~$170 million; remaining pretax ~$300 million; aggregate after-tax balance available ~ $1.5 billion). Energy Resources and corporate targets include a 2025 origination of ~13.5 GW (record quarter 3.6 GW), ~35 GW originated over three years, a backlog of ~30 GW, 7.2 GW placed into commercial operations since last year (8.7 GW combined FPL+ER in 2025), battery storage now ~1/3 of the 30 GW backlog with ~5 GW originated in the past 12 months and >2 GW of storage placed in 2025 (≈+220% vs. 2024), a 95 GW pipeline of standalone/co‑located storage (with potential to double), a gas-fired pipeline >20 GW and 4 GW of secured GE Vernova turbine slots, nuclear recontracting opportunity up to ~6 GW through 2032 (Point Beach 14% deal = $0.03 annual EPS; full plant extrapolation ~$0.21), NextEra Energy Transmission with ~$8 billion regulated/secured capital and ~$5 billion secured since 2023 (transmission + gas transmission expected to reach ~$20 billion of regulated/invested capital by 2032 at a ~20% CAGR), Energy Resources full‑year adjusted earnings growth ~13% with new investments contributing +$0.47/share (existing assets -$0.04, customer supply +$0.04, other impacts -$0.30 including ~$0.17 financing), and corporate operating cash flow CAGRs of >14% (3‑year) and >9% (5‑year); management reiterated their visibility and execution focus while noting these expectations assume the usual caveats and regulatory certainty.NextEra Energy Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
49
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 27.48B | 24.75B | 28.11B | 20.96B | 17.07B |
| Gross Profit | 17.25B | 14.87B | 17.98B | 10.14B | 8.56B |
| EBITDA | 16.16B | 14.03B | 16.76B | 9.21B | 8.66B |
| Net Income | 6.83B | 6.95B | 7.31B | 4.15B | 3.57B |
Balance Sheet | |||||
| Total Assets | 212.72B | 190.14B | 177.49B | 158.94B | 140.91B |
| Cash, Cash Equivalents and Short-Term Investments | 2.81B | 1.49B | 2.69B | 1.60B | 639.00M |
| Total Debt | 95.62B | 82.33B | 73.21B | 64.97B | 54.83B |
| Total Liabilities | 146.24B | 129.28B | 118.47B | 109.50B | 95.24B |
| Stockholders Equity | 54.61B | 50.10B | 47.47B | 39.23B | 37.20B |
Cash Flow | |||||
| Free Cash Flow | 3.21B | 4.75B | 1.75B | -1.48B | -277.00M |
| Operating Cash Flow | 12.48B | 13.26B | 11.30B | 8.26B | 7.55B |
| Investing Cash Flow | -23.86B | -22.26B | -23.47B | -18.36B | -13.59B |
| Financing Cash Flow | 12.98B | 7.00B | 12.15B | 12.23B | 5.81B |
NextEra Energy Technical Analysis
Positive
93.15
Price Trends
90.70
Positive
86.22
Positive
80.23
Positive
Market Momentum
0.51
Negative
58.38
Neutral
73.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEE, the sentiment is Positive. The current price of 93.15 is above the 20-day moving average (MA) of 91.77, above the 50-day MA of 90.70, and above the 200-day MA of 80.23, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 58.38 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEE.
NextEra Energy Risk Analysis
NextEra Energy disclosed 51 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $71.76B | 16.71 | 12.06% | 3.25% | 7.66% | 37.42% | |
71 Outperform | $102.82B | 18.33 | 9.69% | 3.61% | 4.80% | 14.44% | |
67 Neutral | $194.08B | 24.54 | 13.05% | 2.84% | 26.96% | -6.80% | |
66 Neutral | $109.08B | 22.16 | 12.50% | 3.40% | 9.40% | -6.05% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $50.46B | 15.92 | 9.87% | 3.68% | 6.07% | 15.20% | |
63 Neutral | $55.16B | 16.69 | 10.77% | 4.59% | 12.72% | 4.90% |
* Utilities Sector Average
NEE
NextEra Energy
93.15
29.97
47.43%
AEP
American Electric Power
132.68
34.39
34.99%
D
Dominion Energy
62.77
14.19
29.21%
DUK
Duke Energy
132.22
19.36
17.15%
EXC
Exelon
49.33
6.18
14.31%
SO
Southern Co
97.45
13.00
15.40%
NextEra Energy Corporate Events
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...
Private Placements and Financing
NextEra Energy Raises Euro Debentures for Long-Term Funding
Positive
Feb 10, 2026
On February 10, 2026, NextEra Energy Capital Holdings, a subsidiary of NextEra Energy, issued €650 million of 2.989% debentures due 2030 and €650 million of 3.624% debentures due 2034, both guaranteed by the parent company. The euro-de...
Private Placements and FinancingRegulatory Filings and Compliance
NextEra Energy Subsidiary Issues $1.3B Long-Term Debentures
Positive
Feb 5, 2026
On February 5, 2026, NextEra Energy Capital Holdings, Inc., a wholly owned subsidiary of NextEra Energy, Inc., completed the sale of $700 million of 4.40% debentures due March 1, 2031, and $600 million of 5.85% debentures due March 1, 2056, both s...
Business Operations and StrategyDividendsFinancial Disclosures
NextEra Reaffirms Long-Term Earnings and Dividend Growth Outlook
Positive
Jan 2, 2026
NextEra Energy said its senior management will hold investor meetings throughout January 2026 to reiterate that the company’s financial outlook remains intact, with no changes to its expectations for adjusted earnings per share (EPS) growth ...
Business Operations and StrategyPrivate Placements and Financing
NextEra Energy Launches $4 Billion Equity Distribution Program
Positive
Dec 31, 2025
On December 31, 2025, NextEra Energy, Inc. entered into an equity distribution agreement with a syndicate of major financial institutions that allows the company to offer and sell, from time to time, up to $4 billion of its common stock either thr...
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.