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NextEra Energy
(NYSE:NEE)
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Rating:75Outperform
Price Target:
$101.00
â–²(12.50% Upside)
Action:Reiterated
Date:07/25/26
NEE’s score is led by strong underlying financial performance (high and improving margins, rising revenue, and meaningfully better free cash flow) and a constructive earnings outlook with reiterated high-end guidance and long-run 8%+ EPS CAGR targets. Technicals are supportive with a modest uptrend and positive momentum. Valuation is a moderate headwind with a ~20x P/E, partly offset by a ~2.65% dividend yield and low beta.
Positive Factors
Regulated utility scale and efficiency
FPL’s large, low-cost retail footprint and above-average reliability create a durable competitive advantage for regulated earnings. Lower O&M and materially cheaper customer bills support customer growth, rate-base expansion and predictable cash flow, underpinning long-term EPS from the regulated franchise.
Negative Factors
Elevated leverage and balance-sheet complexity
NextEra’s capital‑intensive model relies on significant debt and hybrid financings, which elevates leverage and refinancing risk. Large, multi‑decade debt issuances and step changes in reported leverage reduce financial flexibility, increase interest‑cost sensitivity and complicate comparability across periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated utility scale and efficiency
FPL’s large, low-cost retail footprint and above-average reliability create a durable competitive advantage for regulated earnings. Lower O&M and materially cheaper customer bills support customer growth, rate-base expansion and predictable cash flow, underpinning long-term EPS from the regulated franchise.
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
$185.26B
Dividend Yield2.67%
Average Volume (3M)10.84M
Price to Earnings (P/E)20.0
Beta (1Y)0.28
Revenue Growth11.83%
EPS Growth55.48%
CountryUS
Employees17,400
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)4.47
Shares Outstanding2,085,803,200
10 Day Avg. Volume9,121,712
30 Day Avg. Volume10,836,949
Financial Highlights & Ratios
PEG Ratio-11.71
Price to Book (P/B)3.07
Price to Sales (P/S)6.10
P/FCF Ratio52.23
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$104.20Price Target Upside16.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)4.05
Revenue Forecast (FY)$30.94B
NextEra Energy Business Overview & Revenue Model
Company Description
NextEra Energy, Inc. (NEE) is a U.S.-based electric power and energy infrastructure company that operates through two primary subsidiaries: Florida Power & Light (FPL), a regulated electric utility serving customers in Florida, and NextEra Energy ...
How the Company Makes Money
NextEra Energy primarily makes money through a combination of regulated utility earnings and competitive energy/renewables revenues.
1) Regulated utility revenue (Florida Power & Light - FPL)
- Regulated electric service: FPL earns revenue by gen...
NextEra Energy Earnings Call Summary
Earnings Call Date:Jul 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call emphasized broad operational execution, substantial backlog and pipeline expansion, strong origination and recontracting momentum, and disciplined capital deployment (notably at FPL and Energy Resources). Key metrics showed double-digit year-over-year growth in several areas (e.g., 9.8% YTD EPS growth; ~18% Energy Resources earnings growth) and meaningful capacity additions and pipeline scale (backlog ~35.1 GW; >110 GW storage pipeline). Lowlights were mainly execution and timing risks (backlog still short of midpoint, government timing for federal hubs), modest retail sales growth, a small corporate earnings drag, and a sizable rate stabilization balance. Overall, the positive operating and financial progress and the magnitude of growth opportunities materially outweighed the manageable risks cited on the call.Positive Updates
Strong Quarterly and Year-to-Date EPS Performance
Adjusted EPS of $1.15 in Q2 2026 and adjusted EPS increased 9.8% year-over-year through the first 6 months, with full-year 2026 adjusted EPS guidance unchanged at $3.92 to $4.02 and management targeting the high end.
Negative Updates
Modest Retail Sales Growth
FPL second quarter retail sales rose only ~0.4% year-over-year and weather-normalized sales increased roughly 0.6%, reflecting modest consumption growth despite strong customer additions.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly and Year-to-Date EPS Performance
Adjusted EPS of $1.15 in Q2 2026 and adjusted EPS increased 9.8% year-over-year through the first 6 months, with full-year 2026 adjusted EPS guidance unchanged at $3.92 to $4.02 and management targeting the high end.
Read all positive updates
Company Guidance
NextEra reiterated 2026 adjusted EPS guidance of $3.92–$4.02 (targeting the high end) and reported Q2 adjusted EPS of $1.15 with YTD EPS up 9.8% year‑over‑year; management expects adjusted EPS CAGR of 8%+ through 2032 (and cited 9%+ targets in the proposed Dominion combination) off a 2025 base of $3.71 and said operating cash flow should grow at or above that pace through 2032. Key operational and financial metrics include FPL Q2 capex ~$2.8B and full‑year capex $12–13B, regulatory capital employed growth ~9.3%, 12‑month regulatory ROE ~11.7%, a $110M RSM reversal leaving an after‑tax balance of ~$1.3B, >90,000 net customers added in Q2, retail sales +0.4% (+0.6% weather‑normalized), and full‑year targets of ~900 MW solar and >1.4 GW battery storage; FPL raised large‑load expectations from 6 GW to 8 GW by 2032 (≈21 GW of interest, ~12 GW in advanced talks; expect at least one large‑load deal by year‑end, with ~ $2B CapEx per GW). Energy Resources added 3.6 GW to backlog this quarter (2 GW battery), backlog ≈35.1 GW after placing 1.1 GW in service, co‑located/standalone storage pipeline >110 GW, YTD recontracting >1,100 MW (500+ MW this quarter) at ~+$20/MWh premium with ~15‑year average terms, up to 6 GW renewables and 1.5 GW nuclear recontracting opportunities through 2032, and ER adjusted earnings grew ~18% YoY; corporate noted a >$46B interest‑rate hedging program. Other milestones: Duane Arnold targeted online no later than Q1 2029, the Dominion combination expected to close in H2 2027 with a plan to more than double the combined company by 2032, and dividend growth guidance of ~10%/yr through 2026 (off 2024 base) and ~6%/yr from YE‑2026 through 2028.NextEra Energy Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.02B | 27.48B | 24.75B | 28.11B | 20.96B | 17.07B |
| Gross Profit | 20.84B | 17.25B | 14.87B | 17.98B | 10.14B | 8.56B |
| EBITDA | 17.70B | 16.16B | 14.03B | 16.76B | 9.21B | 8.66B |
| Net Income | 9.30B | 6.83B | 6.95B | 7.31B | 4.15B | 3.57B |
Balance Sheet | ||||||
| Total Assets | 232.81B | 212.72B | 190.14B | 177.49B | 158.94B | 140.91B |
| Cash, Cash Equivalents and Short-Term Investments | 2.87B | 2.81B | 1.49B | 2.69B | 1.60B | 639.00M |
| Total Debt | 11.41B | 95.62B | 82.33B | 73.21B | 64.97B | 54.83B |
| Total Liabilities | 164.65B | 146.24B | 129.28B | 118.47B | 109.50B | 95.24B |
| Stockholders Equity | 57.13B | 54.61B | 50.10B | 47.47B | 39.23B | 37.20B |
Cash Flow | ||||||
| Free Cash Flow | -10.18B | 3.21B | 4.75B | 1.75B | -1.48B | -277.00M |
| Operating Cash Flow | 13.80B | 12.48B | 13.26B | 11.30B | 8.26B | 7.55B |
| Investing Cash Flow | -29.43B | -23.86B | -22.26B | -23.47B | -18.36B | -13.59B |
| Financing Cash Flow | 16.88B | 12.98B | 7.00B | 12.15B | 12.23B | 5.81B |
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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $72.69B | 19.53 | 11.86% | 2.79% | 9.38% | 31.12% | |
75 Outperform | $185.26B | 19.97 | 16.82% | 2.65% | 11.83% | 55.48% | |
66 Neutral | $108.76B | 24.56 | 12.28% | 3.06% | 8.33% | -6.26% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $100.44B | 19.79 | 9.85% | 3.26% | 7.21% | 8.97% | |
61 Neutral | $61.80B | 20.77 | 10.51% | 3.76% | 19.15% | 27.09% | |
59 Neutral | $48.24B | 17.27 | 9.76% | 3.45% | 4.58% | 1.43% |
* Utilities Sector Average
NEE
NextEra Energy
89.28
20.29
29.41%
AEP
American Electric Power
133.02
23.25
21.18%
D
Dominion Energy
70.62
14.83
26.59%
DUK
Duke Energy
129.24
12.83
11.02%
EXC
Exelon
47.31
4.59
10.75%
SO
Southern Co
96.78
4.88
5.31%
NextEra Energy Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
NextEra Energy Updates Bylaws on Shareholder Meeting Procedures
Positive
Jul 8, 2026
On July 8, 2026, NextEra Energy, Inc.’s board of directors approved immediate amendments to the company’s Amended and Restated Bylaws concerning shareholder meetings. The changes give the board explicit authority to set the time and pl...
Private Placements and FinancingBusiness Operations and StrategyRegulatory Filings and Compliance
NextEra Energy Issues $3.75 Billion Hybrid Debentures
Positive
Jun 22, 2026
On June 22, 2026, NextEra Energy Capital Holdings sold a total of $3.75 billion in long-dated junior subordinated debentures in three series, maturing in 2056 and 2066, with initial fixed interest rates ranging from 6.000% to 6.625% before transit...
M&A TransactionsBusiness Operations and StrategyRegulatory Filings and Compliance
NextEra Energy Advances Dominion Energy Merger Integration Steps
Positive
Jun 15, 2026
On May 15, 2026, NextEra Energy and Dominion Energy entered into a merger agreement under which a NextEra subsidiary will merge with Dominion Energy, leaving Dominion as a wholly owned subsidiary in a first-step merger, followed by a second-step m...
Private Placements and FinancingBusiness Operations and Strategy
NextEra Energy Bolsters FPL with Major Bond Issuance
Positive
Jun 1, 2026
On June 1, 2026, Florida Power Light Company issued three tranches of first mortgage bonds totaling $2.25 billion in principal, with maturities in 2036, 2056 and 2066 and coupons ranging from 5.125% to 5.900%. The bonds, registered under the Secu...
Executive/Board ChangesShareholder Meetings
NextEra shareholders approve board, reject added climate measures
Neutral
May 27, 2026
At its 2026 Annual Meeting of Shareholders held on May 21, 2026, NextEra Energy investors elected all 12 board nominees to one-year terms, ratified Deloitte Touche LLP as the independent auditor for 2026 and gave non-binding approval to the compa...
Private Placements and Financing
NextEra Energy Raises Capital via Ultra-Long Floating Notes
Positive
May 26, 2026
On May 26, 2026, Florida Power Light Company issued and sold $255.394 million of Floating Rate Notes, Series due June 1, 2076, in a transaction registered under the Securities Act of 1933. The notes pay interest quarterly at a rate tied to compou...
Executive/Board ChangesM&A TransactionsBusiness Operations and StrategyRegulatory 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...
Executive/Board ChangesBusiness Operations and Strategy
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...
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.