NextEra Energy (NEE)


Market Price (7/23/2026): $89.48 | Market Cap: $186.3 BilInvestor Relations Sector: Utilities | Industry: Multi-Utilities

NextEra Energy (NEE)


Market Price (7/23/2026): $89.48
Market Cap: $186.3 Bil
Sector: Utilities
Industry: Multi-Utilities

Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.

0

Attractive yield
Total YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 7.0%, Dividend Yield is 2.6%

Attractive cash flow generation
CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 44%, CFO LTM is 12 Bil, FCF LTM is 2.4 Bil

Low stock price volatility
Vol 12M is 23%

Megatrend and thematic drivers
Megatrends include Renewable Energy Transition, Smart Grids & Grid Modernization, and Hydrogen Economy. Themes include Solar Energy Generation, Show more.

Weak multi-year price returns
2Y Excs Rtn is -0.6%, 3Y Excs Rtn is -31%

Debt is significant
Net D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 55%

Expensive valuation multiples
P/SPrice/Sales ratio is 6.7x

Key risks
NEE key risks include [1] a substantial debt load and sensitivity to interest rates, Show more.

0 Attractive yield
Total YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 7.0%, Dividend Yield is 2.6%
1 Attractive cash flow generation
CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 44%, CFO LTM is 12 Bil, FCF LTM is 2.4 Bil
2 Low stock price volatility
Vol 12M is 23%
3 Megatrend and thematic drivers
Megatrends include Renewable Energy Transition, Smart Grids & Grid Modernization, and Hydrogen Economy. Themes include Solar Energy Generation, Show more.
4 Weak multi-year price returns
2Y Excs Rtn is -0.6%, 3Y Excs Rtn is -31%
5 Debt is significant
Net D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 55%
6 Expensive valuation multiples
P/SPrice/Sales ratio is 6.7x
7 Key risks
NEE key risks include [1] a substantial debt load and sensitivity to interest rates, Show more.

NEE in ETFs

Weight = NEE's share of each fund

SPY0.29%
VOO0.28%
IVV0.29%
VTI0.25%
ITOT0.26%
IWB0.27%
RSP0.20%
VTV0.65%
+33 more covered ETFs

Valuation & Metrics

Price Chart

Why The Stock Moved

Qualitative Assessment

AI Analysis | Feedback

Updated on 7/1/2026

NextEra Energy (NEE) stock has lost about 5% since 3/31/2026 because of the following key factors:

1. Acquisition-related regulatory uncertainty following the $67 billion Dominion Energy deal.

NextEra Energy's announcement on May 18, 2026, of its all-stock agreement to acquire Dominion Energy for approximately $67 billion introduced significant regulatory hurdles. The proposed transaction, which would create the world's largest regulated electric utility, led to a muted market reaction and contributed to a stock drawdown, as investors weighed the approval risks across the four affected states.

2. Persistent inflation and expectations for a "higher-for-longer" interest rate environment.

The Federal Reserve maintained its benchmark interest rate at 3.50%-3.75% following its June 2026 FOMC meeting. However, a hawkish shift among policymakers, with half signaling support for a rate hike later in 2026, was driven by persistent inflation, which reached 4.2% year-over-year in May 2026. This macroeconomic backdrop generally negatively impacts capital-intensive utility stocks like NextEra Energy by increasing borrowing costs and making their dividends less attractive.

Show more
Updated on 7/1/2026

NextEra Energy (NEE) stock has lost about 5% since 3/31/2026 because of the following key factors:

1. Acquisition-related regulatory uncertainty following the $67 billion Dominion Energy deal.

NextEra Energy's announcement on May 18, 2026, of its all-stock agreement to acquire Dominion Energy for approximately $67 billion introduced significant regulatory hurdles. The proposed transaction, which would create the world's largest regulated electric utility, led to a muted market reaction and contributed to a stock drawdown, as investors weighed the approval risks across the four affected states.

2. Persistent inflation and expectations for a "higher-for-longer" interest rate environment.

The Federal Reserve maintained its benchmark interest rate at 3.50%-3.75% following its June 2026 FOMC meeting. However, a hawkish shift among policymakers, with half signaling support for a rate hike later in 2026, was driven by persistent inflation, which reached 4.2% year-over-year in May 2026. This macroeconomic backdrop generally negatively impacts capital-intensive utility stocks like NextEra Energy by increasing borrowing costs and making their dividends less attractive.

3. Mixed fiscal Q1 2026 earnings, with a notable revenue miss.

On April 23, 2026, NextEra Energy reported fiscal Q1 2026 adjusted earnings per share (EPS) of $1.09, surpassing analysts' consensus estimates of $1.03 by $0.06. However, the company's revenue for the quarter was $6.70 billion, falling short of the consensus estimate of $7.43 billion. This revenue miss, despite the EPS beat, contributed to a 1.01% dip in the stock price on the reporting day, signaling investor caution.

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Stock Movement Drivers

Fundamental Drivers

The -3.0% change in NEE stock from 3/31/2026 to 7/22/2026 was primarily driven by a -19.0% change in the company's P/E Multiple.
(LTM values as of)33120267222026Change
Stock Price ($)92.2089.41-3.0%
Change Contribution By: 
Total Revenues ($ Mil)27,41327,8671.7%
Net Income Margin (%)24.9%29.4%17.8%
P/E Multiple28.122.8-19.0%
Shares Outstanding (Mil)2,0812,082-0.1%
Cumulative Contribution-3.0%

LTM = Last Twelve Months as of date shown

Market Drivers

3/31/2026 to 7/22/2026
ReturnCorrelation
NEE-3.0% 
Market (SPY)14.9%-4.0%
Sector (XLU)0.1%76.7%

Fundamental Drivers

The 13.0% change in NEE stock from 12/31/2025 to 7/22/2026 was primarily driven by a 18.8% change in the company's Net Income Margin (%).
(LTM values as of)123120257222026Change
Stock Price ($)79.1689.4113.0%
Change Contribution By: 
Total Revenues ($ Mil)26,29827,8676.0%
Net Income Margin (%)24.7%29.4%18.8%
P/E Multiple25.122.8-9.5%
Shares Outstanding (Mil)2,0652,082-0.9%
Cumulative Contribution13.0%

LTM = Last Twelve Months as of date shown

Market Drivers

12/31/2025 to 7/22/2026
ReturnCorrelation
NEE13.0% 
Market (SPY)9.9%2.0%
Sector (XLU)8.3%73.8%

Fundamental Drivers

The 32.5% change in NEE stock from 6/30/2025 to 7/22/2026 was primarily driven by a 34.7% change in the company's Net Income Margin (%).
(LTM values as of)63020257222026Change
Stock Price ($)67.4789.4132.5%
Change Contribution By: 
Total Revenues ($ Mil)25,26827,86710.3%
Net Income Margin (%)21.8%29.4%34.7%
P/E Multiple25.222.8-9.6%
Shares Outstanding (Mil)2,0562,082-1.3%
Cumulative Contribution32.5%

LTM = Last Twelve Months as of date shown

Market Drivers

6/30/2025 to 7/22/2026
ReturnCorrelation
NEE32.5% 
Market (SPY)22.0%6.0%
Sector (XLU)14.9%67.6%

Fundamental Drivers

The 31.6% change in NEE stock from 6/30/2023 to 7/22/2026 was primarily driven by a 12.4% change in the company's Total Revenues ($ Mil).
(LTM values as of)63020237222026Change
Stock Price ($)67.9289.4131.6%
Change Contribution By: 
Total Revenues ($ Mil)24,78227,86712.4%
Net Income Margin (%)27.0%29.4%8.9%
P/E Multiple20.322.812.0%
Shares Outstanding (Mil)2,0002,082-4.0%
Cumulative Contribution31.6%

LTM = Last Twelve Months as of date shown

Market Drivers

6/30/2023 to 7/22/2026
ReturnCorrelation
NEE31.6% 
Market (SPY)74.6%18.7%
Sector (XLU)52.6%75.0%

Return vs. Risk

Price Returns Compared

 202120222023202420252026Total [1]
Returns
NEE Return23%-9%-25%21%15%11%31%
Peers Return19%2%-9%17%17%12%71%
S&P 500 Return27%-19%24%23%16%10%100%

Monthly Win Rates [3]
NEE Win Rate75%58%42%50%58%71% 
Peers Win Rate55%62%53%62%65%60% 
S&P 500 Win Rate75%42%67%75%67%57% 

Max Drawdowns [4]
NEE Max Drawdown-18%-26%-41%-18%-16%-15% 
Peers Max Drawdown-10%-26%-22%-12%-12%-10% 
S&P 500 Max Drawdown-5%-25%-10%-8%-19%-9% 


[1] Cumulative total returns since the beginning of 2021
[2] Peers: DUK, SO, D, AEP, EXC. See NEE Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 7/22/2026 (YTD)

How Low Can It Go

EventNEES&P 500
Summer-Fall 2023 Five Percent Yield Shock
  % Loss-34.2%-9.5%
  % Gain to Breakeven51.9%10.5%
  Time to Breakeven213 days24 days
2022 Inflation Shock & Fed Tightening
  % Loss-24.8%-24.5%
  % Gain to Breakeven33.1%32.4%
  Time to Breakeven95 days427 days
2020 COVID-19 Crash
  % Loss-33.5%-33.7%
  % Gain to Breakeven50.4%50.9%
  Time to Breakeven116 days140 days
2016-2017 Trump Reflation Bond Selloff
  % Loss-10.2%-3.7%
  % Gain to Breakeven11.4%3.9%
  Time to Breakeven89 days6 days
2015-2016 China Devaluation / Global Growth Scare
  % Loss-12.9%-12.2%
  % Gain to Breakeven14.9%13.9%
  Time to Breakeven146 days62 days
2011 US Debt Ceiling Crisis & European Contagion
  % Loss-12.7%-17.9%
  % Gain to Breakeven14.5%21.8%
  Time to Breakeven80 days123 days

Compare to DUK, SO, D, AEP, EXC

In The Past

NextEra Energy's stock fell -6.4% during the 2025 US Tariff Shock. Such a loss loss requires a 6.8% gain to breakeven.

Preserve Wealth

Limiting losses and compounding gains is essential to preserving wealth.

Asset Allocation

Actively managed asset allocation strategies protect wealth. Learn more.

EventNEES&P 500
Summer-Fall 2023 Five Percent Yield Shock
  % Loss-34.2%-9.5%
  % Gain to Breakeven51.9%10.5%
  Time to Breakeven213 days24 days
2022 Inflation Shock & Fed Tightening
  % Loss-24.8%-24.5%
  % Gain to Breakeven33.1%32.4%
  Time to Breakeven95 days427 days
2020 COVID-19 Crash
  % Loss-33.5%-33.7%
  % Gain to Breakeven50.4%50.9%
  Time to Breakeven116 days140 days
2008-2009 Global Financial Crisis
  % Loss-44.8%-53.4%
  % Gain to Breakeven81.1%114.4%
  Time to Breakeven1167 days1085 days

Compare to DUK, SO, D, AEP, EXC

In The Past

NextEra Energy's stock fell -6.4% during the 2025 US Tariff Shock. Such a loss loss requires a 6.8% gain to breakeven.

Preserve Wealth

Limiting losses and compounding gains is essential to preserving wealth.

Asset Allocation

Actively managed asset allocation strategies protect wealth. Learn more.

About NextEra Energy (NEE)

NextEra Energy, Inc. (NEE) is a leading North American energy company primarily involved in the generation, transmission, distribution, and sale of electric power. The company utilizes a diverse portfolio of energy sources, including wind, solar, nuclear, natural gas, and coal, to produce electricity. This comprehensive approach allows NextEra Energy to serve a wide range of customers while also being a significant developer and operator of clean energy solutions.

The company's business model encompasses two main areas. Firstly, through its regulated utility operations, it provides essential electricity services to approximately 5.7 million customer accounts, serving about 11 million people across the east and lower west coasts of Florida. Secondly, NextEra Energy also develops, constructs, and operates long-term contracted clean energy assets, such as renewable generation facilities, battery storage projects, and electric transmission facilities across North America. It also sells energy commodities and manages generation facilities in wholesale energy markets.

NextEra Energy's primary customers include retail electric consumers in Florida, where it acts as a traditional utility. Beyond Florida, its market extends to wholesale customers and entities seeking long-term contracted clean energy solutions across North America. This dual focus allows NextEra Energy to maintain a stable regulated earnings base while also capitalizing on the growing demand for renewable energy and grid infrastructure improvements.

AI Analysis | Feedback

Here are 1-3 brief analogies for NextEra Energy (NEE):

  • The Amazon of utility-scale clean energy infrastructure.

  • Imagine Con Edison (a major city's power utility), but also as one of North America's largest developers and operators of wind and solar farms.

AI Analysis | Feedback

  • Electric Power Generation: Produces electricity using various sources, including wind, solar, nuclear, natural gas, and coal.
  • Electric Power Transmission & Distribution: Transmits and distributes generated electricity to retail and wholesale customers through its network of lines and substations.
  • Clean Energy Infrastructure Development & Operation: Develops, constructs, and operates long-term contracted assets such as renewable generation facilities, battery storage projects, and electric transmission facilities.
  • Energy Commodity Sales: Sells energy commodities in wholesale energy markets.

AI Analysis | Feedback

NextEra Energy (NEE) primarily serves a combination of retail and wholesale customers. Based on the provided information, a significant portion of its direct service is to individual consumers and businesses in Florida. Therefore, the company serves the following categories of customers:

1. Residential Customers: NextEra Energy serves approximately 11 million people through approximately 5.7 million customer accounts in the east and lower west coasts of Florida. These customers are individual households that consume electricity for personal use.

2. Commercial and Industrial Customers: Within its Florida service territory, NextEra Energy also serves various commercial establishments and industrial facilities. These customers represent businesses of different sizes that require electricity for their operations.

3. Wholesale Customers: Beyond its direct retail base in Florida, NextEra Energy also sells electric power to wholesale customers across North America. These include other utility companies, municipalities, and energy marketers who purchase electricity in bulk for distribution or resale, as well as entities involved in wholesale energy markets.

AI Analysis | Feedback

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AI Analysis | Feedback

John W. Ketchum, Chairman, President and Chief Executive Officer

John W. Ketchum joined NextEra Energy in 2002. He was appointed president and CEO in March 2022 and became chairman of the board of directors in July 2022. Mr. Ketchum also serves as chairman of Florida Power & Light Company (FPL) since February 2023. His previous roles at NextEra Energy include president and CEO of NextEra Energy Resources, chief financial officer of NextEra Energy, and chief financial officer of FPL. He also served as CEO, president, and chief financial officer of XPLR Infrastructure (NextEra Energy Partners). Before joining NextEra Energy, he worked as a lawyer. Mr. Ketchum holds a Master of Laws degree in taxation and a Juris Doctor from the University of Missouri-Kansas City School of Law, and a Bachelor of Arts in economics and finance from the University of Arizona. He completed the Emerging CFO – Strategic Financial Leadership Program at Stanford University.

Michael H. Dunne, Executive Vice President, Finance and Chief Financial Officer

Michael H. Dunne was appointed Executive Vice President, Finance and Chief Financial Officer for NextEra Energy, Inc. and Florida Power & Light Company, effective May 22, 2025. He previously served as treasurer and assistant secretary for NextEra Energy since January 2023 and as vice president, finance in 2022. Prior to joining NextEra Energy in April 2022, Mr. Dunne was a managing director, power and renewables, investment banking at Bank of America. At Bank of America, he led the firm's renewable and energy transition strategic advisory efforts, having joined the firm in 2002. He holds a law degree from Harvard Law School and a bachelor's in economics and history from Duke University.

Armando Pimentel, Jr., President and Chief Executive Officer, Florida Power & Light Company

Armando Pimentel, Jr. was appointed chief executive officer of Florida Power & Light Company (FPL) in February 2023. He previously served as president and CEO of NextEra Energy Resources, LLC and as executive vice president, finance, and chief financial officer of NextEra Energy.

Brian W. Bolster, President and Chief Executive Officer, NextEra Energy Resources, LLC

Brian W. Bolster became President and Chief Executive Officer of NextEra Energy Resources, LLC, effective May 22, 2025. He joined NextEra Energy in May 2024 as executive vice president, finance and CFO. Before joining NextEra Energy, Mr. Bolster was the head of natural resources in the Americas at Goldman Sachs, where he played an integral role in growing the firm's natural resources business. He started at Goldman Sachs in 1999, becoming a managing director in 2007 and a partner in 2012.

Kirk Crews, Executive Vice President and Chief Risk Officer

Kirk Crews is executive vice president and chief risk officer for NextEra Energy, Inc. He joined NextEra Energy in 2016 and has held various business and financial roles within the company. Prior to his current position, Mr. Crews served as executive vice president, finance and chief financial officer (CFO) for NextEra Energy, as well as executive vice president, finance and CFO of Florida Power & Light Company. He also held the role of CFO and was a member of the board of directors for XPLR Infrastructure, LP.

AI Analysis | Feedback

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The key risks to NextEra Energy (NEE) are primarily associated with the highly regulated nature of the utility industry, its significant operations in a hurricane-prone region, and its exposure to fuel price fluctuations.

  • Regulatory and Political Risks: NextEra Energy operates in a heavily regulated industry where changes in energy policies, environmental regulations (particularly concerning its coal and natural gas facilities), and rate-setting mechanisms can directly impact its operations and financial performance. Its significant presence and customer base in Florida make it particularly susceptible to the state's regulatory environment and political shifts.
  • Weather-Related Risks and Climate Change: Given its extensive transmission and distribution infrastructure and customer concentration in Florida, NextEra Energy is highly vulnerable to severe weather events such as hurricanes and tropical storms. These events can cause significant damage to infrastructure, lead to costly repairs, service disruptions, and increased operating expenses. The broader impacts of climate change, including rising sea levels and altered weather patterns, could also affect long-term operational costs and infrastructure resilience.
  • Commodity Price Volatility: Although NextEra Energy has a growing portfolio of renewable energy assets, it still generates electricity through natural gas and coal facilities and sells energy commodities in wholesale markets. Fluctuations in the prices of natural gas and coal can affect the cost of electricity generation and impact profitability, especially for generation not covered by long-term, fixed-price contracts.
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AI Analysis | Feedback

The clear emerging threat for NextEra Energy is the increasing adoption of distributed energy resources, specifically customer-owned rooftop solar and battery storage systems. This trend allows residential and commercial customers to generate and store their own electricity, reducing their reliance on purchasing power from NextEra's grid and potentially impacting the company's retail electricity sales and distribution revenue streams, which are core to its traditional utility business model in Florida.

AI Analysis | Feedback

NextEra Energy (NEE) operates in several significant addressable markets across North America, primarily in electric power generation, transmission, distribution, and clean energy solutions such as wind, solar, and battery storage. The addressable market sizes for its main products and services are detailed below:

Electricity Generation and Retail/Wholesale Market

  • The power generation industry within the North American Free Trade Agreement (NAFTA) countries (U.S., Canada, and Mexico) had a total market value of approximately $229.4 billion in 2024. This market is projected to grow to approximately $279.7 billion by 2029. The U.S. alone accounted for $168.0 billion of this market in 2024, with a projection to reach $210.1 billion by 2029.
  • In Florida, where NextEra Energy's subsidiary Florida Power & Light (FPL) operates, the total electricity net generation was approximately 266,119,236 megawatthours in 2024. FPL serves approximately 5.9 million customer accounts, totaling about 12 million people in Florida, and reported operating revenues of $18.37 billion in 2023. In March 2026, FPL held a 50% market share among utilities in Florida.

Renewable Energy Market (Overall)

  • The U.S. renewable energy market was valued at approximately $94.86 billion in 2024. It is estimated to reach $98.30 billion in 2025 and is projected to grow to approximately $122.0 billion by 2032. In terms of installed capacity, the U.S. renewable energy market is expected to grow from 545.16 gigawatts in 2026 to 778.78 gigawatts by 2031.

Wind Energy Market

  • The North America wind power market, in terms of cumulative installed capacity, is estimated at 198.17 gigawatts in 2026 and is projected to reach 252.83 gigawatts by 2031.
  • The North America wind turbine market size was valued at over $25.1 billion in 2024 and is anticipated to reach approximately $43.2 billion by 2034.
  • The North America offshore wind energy market was valued at $6.75 billion in 2024 and is projected to reach $51.24 billion by 2033.

Solar Energy Market

  • The North America Solar Photovoltaic (PV) market, in terms of installed capacity, was estimated at 277.27 gigawatts in 2026 and is projected to reach 492.16 gigawatts by 2031.
  • The North America solar PV market size (revenue) was valued at $45.4 billion in 2025 and is anticipated to grow to $82.1 billion by 2035.
  • Specifically, the U.S. solar PV market was valued at $44.1 billion in 2025.

Battery Storage Market

  • The North America Battery Energy Storage System (BESS) market was valued at approximately $20.82 billion in 2025 and is estimated to grow to $49.34 billion by 2031.

Electric Transmission and Distribution (T&D) Market

  • The North America power transmission and distribution market generated a revenue of approximately $98.15 billion in 2024 and is projected to reach approximately $125.48 billion by 2030.
  • Another estimate places the North America electricity Transmission and Distribution market at $115.97 billion in 2025, projected to reach $118.59 billion in 2026.

AI Analysis | Feedback

NextEra Energy (NEE) is strategically positioned for significant revenue growth over the next 2-3 years, primarily driven by three key areas:
  1. Expansion of Renewable Energy and Storage Portfolio: NextEra Energy Resources (NEER) is a leading driver of future revenue growth, with analysts projecting a substantial increase in operating revenues. The company boasts a robust backlog of over 20 gigawatts (GW) of new wind, solar, and battery storage projects, providing clear visibility for growth through 2026 and beyond. NextEra aims to significantly increase its solar capacity, targeting approximately 35% of its total by 2032, and expects its combined renewable generation portfolio to reach around 81 GW by the end of 2027. This expansion is supported by substantial capital expenditures in renewables and includes strategies like repowering existing wind projects through 2026 to enhance their value.
  2. Customer Growth and Infrastructure Investment at Florida Power & Light (FPL): Florida Power & Light, NextEra Energy's regulated utility, benefits from Florida's rapidly expanding population, which drives consistent customer growth and increased electricity demand in its service territory. FPL's sustained capital investments, which amounted to approximately $9.4 billion in 2023, are aimed at rate base expansion and adding new generation capacity. The approval of FPL's 2025 rate agreement also provides regulatory certainty for four years, supporting stable earnings expansion and continued investment in infrastructure to serve its growing customer base.
  3. Meeting Increased Power Demand from Data Centers and Decarbonization Initiatives: NextEra Energy is actively addressing the surging demand for power from data centers, with over three gigawatts of projects currently in development. The company anticipates building 15-30 GW of generation capacity for data centers by 2035 and is forging partnerships with major technology companies, such as Google, to expand energy infrastructure for data center needs. Additionally, NextEra is focused on leading the decarbonization of the U.S. economy, including efforts to develop the hydrogen market, which presents further opportunities for new energy solutions and revenue streams.

AI Analysis | Feedback

Share Repurchases

  • NextEra Energy has indicated that its stable free cash flow, derived from organic and inorganic assets, contributes to increasing shareholder value through dividends and share repurchases.
  • As of October 2025, NextEra Energy had a current buyback authorization that would enable the company to repurchase 180 million shares.
  • Historical data from late 2025 and early 2026 suggests minimal or zero share repurchases by NextEra Energy on a per-share basis.

Share Issuance

  • In December 2025, NextEra Energy established an at-the-market equity issuance program to offer and sell up to $4 billion of its common stock over time through an Equity Distribution Agreement.
  • NextEra Energy's funding plan for 2024-2027 includes equity units totaling $5 billion to $7 billion.
  • In February 2026, the company announced a public offering of $2 billion in equity units, with the potential to increase to $2.27 billion, to support energy projects and for general corporate purposes, including debt repayment.

Outbound Investments

  • In December 2025, NextEra Energy Resources, LLC announced an agreement to acquire Symmetry Energy Solutions, a natural gas supply, storage, and asset management company, with the transaction expected to close in the first quarter of 2026.
  • NextEra Energy acquired CenterPoint Energy, a manufacturer of electric transmission equipment, in November 2023.
  • In December 2025, NextEra Energy and Google Cloud expanded their partnership to develop approximately 15 gigawatts of new power generation capacity by 2035 to support several large-scale data center campuses in the United States.

Capital Expenditures

  • NextEra Energy plans to invest approximately $72.6 billion to $75 billion from 2025 through 2029 (or 2028), with a primary focus on infrastructure modernization, grid reliability, and the development of low-cost clean energy generation.
  • Between 2025 and 2030, the company plans to invest nearly $94.2 billion to support growth and infrastructure development.
  • For the full year 2025, capital expenditures for Florida Power & Light (FPL) are projected to be between $9.3 billion and $9.8 billion, aimed at expanding its regulatory capital base and ensuring the utility's reliability and cost-effectiveness.

Better Bets vs. NextEra Energy (NEE)

Recent Active Movers

Peer Comparisons

Peers to compare with:

Financials

NEEDUKSODAEPEXCMedian
NameNextEra .Duke Ene.Southern Dominion.American.Exelon  
Mkt Price89.41127.9595.8071.09133.0746.7092.60
Mkt Cap186.299.5107.762.572.147.885.8
Rev LTM27,86733,16630,17417,44922,43324,78626,326
Op Inc LTM7,7518,5817,2935,0195,4925,2136,392
FCF LTM2,363-3,299-3,466-7,391-3,242-2,163-3,270
FCF 3Y Avg3,250-1,762-1,452-6,706-2,005-1,915-1,838
CFO LTM12,33011,6659,7785,0607,0136,7788,396
CFO 3Y Avg12,66211,5229,1755,2456,5205,9227,848

Growth & Margins

NEEDUKSODAEPEXCMedian
NameNextEra .Duke Ene.Southern Dominion.American.Exelon  
Rev Chg LTM10.3%7.2%8.3%17.1%11.3%4.6%9.3%
Rev Chg 3Y Avg4.3%4.6%1.7%5.1%4.5%8.8%4.5%
Rev Chg Q7.3%11.3%8.0%23.1%10.2%7.9%9.1%
QoQ Delta Rev Chg LTM1.7%2.9%2.1%5.7%2.5%2.2%2.4%
Op Inc Chg LTM4.8%3.1%-1.1%18.0%20.5%10.1%7.5%
Op Inc Chg 3Y Avg3.2%9.4%12.3%9.5%15.1%14.0%10.9%
Op Mgn LTM27.8%25.9%24.2%28.8%24.5%21.0%25.2%
Op Mgn 3Y Avg29.9%25.9%25.2%27.1%22.8%19.7%25.6%
QoQ Delta Op Mgn LTM-1.4%-0.7%-0.5%-1.1%-0.1%-0.2%-0.6%
CFO/Rev LTM44.2%35.2%32.4%29.0%31.3%27.3%31.8%
CFO/Rev 3Y Avg47.4%37.0%33.0%34.3%31.6%25.1%33.6%
FCF/Rev LTM8.5%-9.9%-11.5%-42.4%-14.5%-8.7%-10.7%
FCF/Rev 3Y Avg12.3%-5.6%-5.0%-43.1%-9.5%-8.1%-6.8%

Valuation

NEEDUKSODAEPEXCMedian
NameNextEra .Duke Ene.Southern Dominion.American.Exelon  
Mkt Cap186.299.5107.762.572.147.885.8
P/S6.73.03.63.63.21.93.4
P/Op Inc24.011.614.812.413.19.212.8
P/EBIT18.910.212.910.212.48.711.3
P/E22.819.424.721.219.717.220.4
P/CFO15.18.511.012.310.37.110.6
Total Yield7.0%8.5%6.9%8.4%7.9%9.2%8.1%
Dividend Yield2.6%3.4%2.8%3.7%2.8%3.4%3.1%
FCF Yield 3Y Avg2.1%-2.0%-1.4%-13.4%-3.3%-4.7%-2.6%
D/E0.60.90.70.80.71.10.8
Net D/E0.50.90.70.80.71.10.8

Returns

NEEDUKSODAEPEXCMedian
NameNextEra .Duke Ene.Southern Dominion.American.Exelon  
1M Rtn3.9%3.6%2.5%4.5%2.1%1.7%3.1%
3M Rtn0.1%3.0%5.1%17.8%1.8%2.8%2.9%
6M Rtn8.1%9.0%9.2%19.1%13.5%5.7%9.1%
12M Rtn18.6%9.7%3.2%26.9%24.6%8.9%14.2%
3Y Rtn28.7%51.5%45.7%52.8%69.1%22.8%48.6%
1M Excs Rtn3.5%3.2%2.2%4.1%1.8%1.3%2.7%
3M Excs Rtn-6.7%-3.5%-1.1%11.4%-4.5%-4.3%-3.9%
6M Excs Rtn-1.7%-1.5%-0.7%8.5%3.0%-4.6%-1.1%
12M Excs Rtn1.9%-8.4%-14.6%9.7%7.6%-8.3%-3.2%
3Y Excs Rtn-31.4%-9.3%-14.1%-5.7%8.1%-40.7%-11.7%

Comparison Analyses

Financials

Segment Financials

Revenue by Segment
$ Mil20252024202320222021
Florida Power & Light Company (FPL)18,26217,01918,36517,28212,600
NextEra Energy Resources (NEER)8,7607,5429,6723,7203,053
Corporate and Other39019277-46-87
Gulf Power    1,503
Total27,41224,75328,11420,95617,069


Operating Income by Segment
$ Mil20042000
FPL749607
FPL Energy17282
Corporate-3415
Total887704


Net Income by Segment
$ Mil20252024202320222021
Florida Power & Light Company (FPL)5,0124,5434,5523,7012,935
NextEra Energy Resources (NEER)2,9752,2993,558285599
Corporate and Other-1,152104-800161-232
Gulf Power    271
Total6,8356,9467,3104,1473,573


Assets by Segment
$ Mil20252024202320222021
Florida Power & Light Company (FPL)105,15898,14191,46986,55978,067
NextEra Energy Resources (NEER)103,52889,39883,14570,71362,113
Corporate and Other4,0352,6052,8751,663732
Total212,721190,144177,489158,935140,912


Price Behavior

Price Behavior
Market Price$89.41 
Market Cap ($ Bil)186.2 
First Trading Date06/10/1983 
Distance from 52W High-8.0% 
   50 Days200 Days
DMA Price$87.77$86.58
DMA Trendupdown
Distance from DMA1.9%3.3%
 3M1YR
Volatility27.5%22.9%
Downside Capture-0.09-6.86
Upside Capture0.2614.68
Correlation (SPY)-4.3%6.1%
NEE Betas & Captures as of 6/30/2026

 1M2M3M6M1Y3Y
Beta-0.10-0.03-0.000.050.120.34
Up Beta0.15-0.230.050.020.090.44
Down Beta-0.07-0.57-0.390.160.290.33
Up Capture-10%-15%-2%11%14%8%
Bmk +ve Days11244067140429
Stock +ve Days14203171137398
Down Capture-27%62%26%-13%-14%48%
Bmk -ve Days10172358112321
Stock -ve Days7203152112349

[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
Annualized
Return
Annualized
Volatility
Sharpe
Ratio
Correlation
with NEE
NEE20.9%22.9%0.76-
Sector ETF (XLU)11.7%15.0%0.5368.4%
Equity (SPY)20.0%12.6%1.165.8%
Gold (GLD)21.2%28.1%0.6716.6%
Commodities (DBC)33.0%19.1%1.363.5%
Real Estate (VNQ)13.9%14.0%0.7036.3%
Bitcoin (BTCUSD)-43.6%42.9%-1.2110.6%

Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
Annualized
Return
Annualized
Volatility
Sharpe
Ratio
Correlation
with NEE
NEE6.1%26.9%0.22-
Sector ETF (XLU)10.3%17.3%0.4476.8%
Equity (SPY)12.8%17.1%0.5833.9%
Gold (GLD)17.3%18.4%0.7616.9%
Commodities (DBC)9.3%19.5%0.379.3%
Real Estate (VNQ)2.7%18.9%0.0450.1%
Bitcoin (BTCUSD)15.2%53.5%0.468.9%

Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
Annualized
Return
Annualized
Volatility
Sharpe
Ratio
Correlation
with NEE
NEE13.8%25.5%0.52-
Sector ETF (XLU)9.2%19.3%0.4181.6%
Equity (SPY)15.1%17.9%0.7244.8%
Gold (GLD)11.5%16.1%0.5817.3%
Commodities (DBC)7.1%17.9%0.3110.7%
Real Estate (VNQ)5.0%20.7%0.2057.6%
Bitcoin (BTCUSD)58.5%66.2%0.9910.3%

Smart multi-asset allocation framework can stack odds in your favor. Learn How

Short Interest

Short Interest: As Of Date6302026
Short Interest: Shares Quantity58.0 Mil
Short Interest: % Change Since 615202616.6%
Average Daily Volume13.4 Mil
Days-to-Cover Short Interest4.3 days
Basic Shares Quantity2,082.5 Mil
Short % of Basic Shares2.8%

Earnings Returns History

Updated 6/2/2026
Expand for More
 Forward Returns
Earnings Date1D Returns5D Returns21D Returns
4/23/20266.9%4.6%-0.3%
1/27/20262.0%1.0%11.3%
10/28/2025-2.9%-4.9%-0.7%
7/23/2025-6.1%-7.2%-1.8%
4/23/20250.9%0.9%7.4%
1/24/20255.2%3.0%2.3%
10/23/20241.5%-4.9%-8.1%
7/24/20244.6%3.0%10.4%
...
SUMMARY STATS   
# Positive131412
# Negative111012
Median Positive2.0%3.0%10.9%
Median Negative-2.9%-4.9%-9.0%
Max Positive7.0%11.0%17.8%
Max Negative-8.7%-11.0%-15.1%
Collapse to Preview
 Forward Returns
Earnings Date1D Returns5D Returns21D Returns
4/23/20266.9%4.6%-0.3%
1/27/20262.0%1.0%11.3%
10/28/2025-2.9%-4.9%-0.7%
7/23/2025-6.1%-7.2%-1.8%
4/23/20250.9%0.9%7.4%
1/24/20255.2%3.0%2.3%
10/23/20241.5%-4.9%-8.1%
7/24/20244.6%3.0%10.4%
4/23/20241.4%3.2%17.8%
1/25/20241.7%2.8%-0.4%
10/24/20237.0%11.0%12.5%
7/25/2023-0.1%-2.9%-10.6%
4/25/2023-1.5%-2.8%-6.2%
1/25/2023-8.7%-11.0%-13.1%
10/28/20224.7%3.6%11.5%
7/22/20221.7%7.2%13.7%
4/21/2022-6.5%-10.1%-13.6%
1/25/2022-8.3%-4.6%-11.7%
10/20/20212.3%4.2%7.0%
7/23/20211.4%2.7%13.3%
4/21/2021-3.2%-4.0%-9.8%
1/26/2021-1.9%-6.0%-15.1%
10/21/2020-1.1%0.7%0.7%
7/24/2020-0.3%0.5%0.5%
SUMMARY STATS   
# Positive131412
# Negative111012
Median Positive2.0%3.0%10.9%
Median Negative-2.9%-4.9%-9.0%
Max Positive7.0%11.0%17.8%
Max Negative-8.7%-11.0%-15.1%

SEC Filings

Expand for More
Report DateFiling DateFiling
03/31/202604/23/202610-Q
12/31/202502/13/202610-K
09/30/202510/28/202510-Q
06/30/202507/23/202510-Q
03/31/202504/23/202510-Q
12/31/202402/14/202510-K
09/30/202410/23/202410-Q
06/30/202407/24/202410-Q
03/31/202404/23/202410-Q
12/31/202302/16/202410-K
09/30/202311/07/202310-Q
06/30/202307/26/202310-Q
03/31/202304/26/202310-Q
12/31/202202/17/202310-K
09/30/202211/03/202210-Q
06/30/202207/27/202210-Q
Collapse to Preview
Report DateFiling DateFiling
03/31/202604/23/202610-Q
12/31/202502/13/202610-K
09/30/202510/28/202510-Q
06/30/202507/23/202510-Q
03/31/202504/23/202510-Q
12/31/202402/14/202510-K
09/30/202410/23/202410-Q
06/30/202407/24/202410-Q
03/31/202404/23/202410-Q
12/31/202302/16/202410-K
09/30/202311/07/202310-Q
06/30/202307/26/202310-Q
03/31/202304/26/202310-Q
12/31/202202/17/202310-K
09/30/202211/03/202210-Q
06/30/202207/27/202210-Q
03/31/202204/22/202210-Q
12/31/202102/18/202210-K
09/30/202110/25/202110-Q
06/30/202107/26/202110-Q
03/31/202104/23/202110-Q
12/31/202002/12/202110-K
09/30/202010/23/202010-Q
06/30/202007/24/202010-Q
03/31/202004/23/202010-Q
12/31/201902/14/202010-K
09/30/201910/23/201910-Q
06/30/201907/24/201910-Q

Recent Forward Guidance

Updated 7/8/2026

Latest: Q1 2026 Earnings Reported 4/23/2026

Forward GuidanceGuidance Change
MetricLowMidHigh% Chg% DeltaChangePrior
2026 Adjusted EPS3.923.974.020 AffirmedGuidance: 3.97 for 2026
2032 Adjusted EPS Growth 8.0%  0AffirmedGuidance: 8.0% for 2032
2026 Dividends per share growth 10.0%  0AffirmedGuidance: 10.0% for 2026
2028 Dividends per share growth 6.0%  0AffirmedGuidance: 6.0% for 2028
2026 Capital Expenditures12.00 Bil12.50 Bil13.00 Bil   

Prior: Q4 2025 Earnings Reported 1/27/2026

Forward GuidanceGuidance Change
MetricLowMidHigh% Chg% DeltaChangePrior
2026 Adjusted EPS3.923.974.024.1% RaisedGuidance: 3.81 for 2026
2032 Adjusted EPS Growth 8.0%    
2035 Adjusted EPS Growth 8.0%    
2026 Dividends per share growth 10.0%  0.0%AffirmedGuidance: 10.0% for 2026
2028 Dividends per share growth 6.0%    
2032 Capital Expenditures90.00 Bil95.00 Bil100.00 Bil   

Q3 2025 Earnings Reported 10/28/2025

Forward GuidanceGuidance Change
MetricLowMidHigh% Chg% DeltaChangePrior
2025 Adjusted EPS3.453.583.70 AffirmedGuidance: 3.58 for 2025
2026 Adjusted EPS3.633.8140 AffirmedGuidance: 3.81 for 2026
2027 Adjusted EPS3.854.084.320 AffirmedGuidance: 4.08 for 2027
2026 Dividends per share growth 10.0%  0AffirmedGuidance: 10.0% for 2026
2025 Capital Investments9.30 Bil9.55 Bil9.80 Bil13.7% RaisedGuidance: 8.40 Bil for 2025

Insider Activity

Updated 7/9/2026
Expand for More
#OwnerTitleHoldingActionFiling DatePriceSharesTransacted
Value
Value of
Held Shares
Form
1Daggs, Nicole JEVP, Human Res & Corp SvcsDirectSell316202693.004,934458,8621,572,165Form
2May, James MichaelTreasurer and Asst. SecretaryDirectSell310202690.277,161646,4232,411,924Form
3Crews, Terrell Kirk IIEVP, Chief Risk OfficerDirectSell310202690.2719,6721,775,7916,667,071Form
4Lemasney, MarkEVP Power Generation DivisionDirectSell310202690.273,845347,088811,979Form
5Reagan, Ronald REVP, Eng., Const. & ISCDirectSell218202695.005,079482,5051,041,200Form
Collapse to Preview
#OwnerTitleHoldingActionFiling DatePriceSharesTransacted
Value
Value of
Held Shares
Form
1Daggs, Nicole JEVP, Human Res & Corp SvcsDirectSell316202693.004,934458,8621,572,165Form
2May, James MichaelTreasurer and Asst. SecretaryDirectSell310202690.277,161646,4232,411,924Form
3Crews, Terrell Kirk IIEVP, Chief Risk OfficerDirectSell310202690.2719,6721,775,7916,667,071Form
4Lemasney, MarkEVP Power Generation DivisionDirectSell310202690.273,845347,088811,979Form
5Reagan, Ronald REVP, Eng., Const. & ISCDirectSell218202695.005,079482,5051,041,200Form
6Ketchum, John WChairman, President & CEODirectSell210202689.3499,6038,898,53227,332,054Form
7Reagan, Ronald REVP, Eng., Const. & ISCDirectSell205202690.0018,6201,675,800867,870Form
8Sieving, Charles EEVP, Chief LegalDirectSell205202690.0030,0002,700,00015,073,290Form
9Reagan, Ronald REVP, Eng., Const. & ISCDirectSell123202685.0010,826920,2101,329,655Form
10Reagan, Ronald REVP, Eng., Const. & ISCDirectSell1212202581.2512,129985,4812,150,606Form
11Pimentel, Armando JR DirectSell1118202583.91145,14012,178,69713,651,570Form
12Sieving, Charles EEVP, Chief LegalDirectSell1006202580.0011,336906,88013,398,480Form
13Lemasney, MarkEVP Power Generation DivisionDirectSell1002202577.9080862,943658,956Form
14Lemasney, MarkEVP Power Generation DivisionDirectSell926202574.9084663,365694,098Form
15Lemasney, MarkEVP Power Generation DivisionDirectSell915202571.9084660,827727,125Form
16Dunne, MichaelEVP, Finance & CFODirectSell909202570.7910,000707,9004,393,511Form
17Coffey, RobertEVP, Nuclear Div & CNODirectSell729202571.847,500538,8001,906,562Form
18May, James MichaelTreasurer and Asst. SecretaryDirectSell723202577.502,177168,7182,143,805Form

Investor Activity (13F)

Updated Jul 23, 2026
13F holdings as of Mar 31, 2026 (Q1 2026)

Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.

Active ManagerValue% of PortfolioTotal PositionsQoQFiling
Portman Square Capital LLP$73.1 Mil11.1%44ADD +105.1%13F
BlackBarn Capital Partners LP$31.1 Mil9.4%14Hold13F
Electron Capital Partners, LLC$189.5 Mil8.9%44ADD +15.4%13F
Mirova US LLC$336.5 Mil3.8%42Hold13F
HFR Wealth Management, LLC$12.2 Mil3.0%49Hold13F
Haverford Financial Services, Inc.$9.7 Mil2.9%46Hold13F
Iyo Bank, Ltd.$7.7 Mil2.7%35ADD +85.8%13F
Ovata Capital Management Ltd$12.6 Mil1.8%38New13F
Castellan Group$5.0 Mil0.7%34Hold13F
Woodbridge Co Ltd$32.3 Mil0.1%46New13F
Active ManagerValue% of PortfolioTotal PositionsQoQFiling
Woodbridge Co Ltd$32.3 Mil0.1%46New13F
Ovata Capital Management Ltd$12.6 Mil1.8%38New13F
Portman Square Capital LLP$73.1 Mil11.1%44ADD +105.1%13F
Iyo Bank, Ltd.$7.7 Mil2.7%35ADD +85.8%13F
Electron Capital Partners, LLC$189.5 Mil8.9%44ADD +15.4%13F
Active ManagerValue% of PortfolioTotal PositionsQoQFiling
Vantage Wealth$19.4 Mil4.2%30Exited13F
Benson Investment Management Company, Inc.$6.4 Mil2.2%50Exited13F
Active ManagerValue% of PortfolioTotal PositionsQoQFiling
Mirova US LLC$336.5 Mil3.8%42Hold13F
Electron Capital Partners, LLC$189.5 Mil8.9%44ADD +15.4%13F
Portman Square Capital LLP$73.1 Mil11.1%44ADD +105.1%13F
Woodbridge Co Ltd$32.3 Mil0.1%46New13F
BlackBarn Capital Partners LP$31.1 Mil9.4%14Hold13F
Ovata Capital Management Ltd$12.6 Mil1.8%38New13F
HFR Wealth Management, LLC$12.2 Mil3.0%49Hold13F
Haverford Financial Services, Inc.$9.7 Mil2.9%46Hold13F
Iyo Bank, Ltd.$7.7 Mil2.7%35ADD +85.8%13F
Castellan Group$5.0 Mil0.7%34Hold13F

NEE Trade Sentinel


Stock Conviction

Constructive

CONVICTION RATIONALE

Conviction is constructive, centered on NextEra's unique ability to capture accelerating power demand. A record 4 gigawatts of new projects were added in Q1 2026, feeding a 33 gigawatt backlog. This growth must, however, be funded by a highly leveraged balance sheet with $102.4 billion in net debt, creating a clear tension.

STOCK ARCHETYPE
Hybrid: Regulated Utility & Project-Based Contractual

(FPL Regulated Rate Base * Allowed ROE) + (NEER Contracted MW * PPA Price) Growth in FPL's rate base from capital investment and NEER's ability to develop and contract new generation/storage projects at attractive returns in a high-demand market.

Looking for high-conviction positions with a better risk/reward profile? See what's currently in the Trefis High Quality Portfolio.
INVESTMENT THESIS
Can NEE's dual-engine model capture the data center power boom?

Evidence suggests it is uniquely positioned to do so, with both its regulated and competitive businesses firing.

Mechanism: Monetizing a 33 gigawatt contracted project backlog at NEER and a 21 gigawatt large-load interest pipeline at FPL.
Supporting Evidence:
  • NEER added a record 4 gigawatts of new projects in Q1 2026.
  • The total NEER project backlog now stands at approximately 33 gigawatts.
  • FPL has a pipeline of about 21 gigawatts of interest from large-load customers.
  • NEER recontracted projects in Q1 with a price increase of roughly $20/MWh.
  • Company affirmed 2026 adjusted EPS guidance of $3.92 to $4.02.
PRIMARY RISK
Debt-Fueled Expansion

Aggressive growth is straining the balance sheet, with net debt at $102.4 billion and operating expenses growing faster than revenue.

Mechanism: A credit downgrade or major project delay that halts access to capital needed for growth.
Supporting Evidence:
  • Net debt is $102.4 billion, up from $87.3 billion a year earlier.
  • The ratio of net debt to trailing EBITDA is 5.99 times.
  • Interest coverage is low at 2.4 times.
  • Operating expenses grew 17.3% year-over-year, outpacing 10.3% revenue growth.
Key KPI Watchlist
KPI Status Rationale
NextEra Energy Resources (NEER) New Project Origination4 gigawatts of new renewables and storage projects added to the backlog in Q1 2026 - AcceleratingNew project origination has accelerated for three consecutive quarters, from 3.0 GW in Q3 2025 to 3.6 GW in Q4 2025, and a record 4.0 GW in the most recent quarter. This indicates strengthening demand and execution in the high-growth competitive energy segment.
Florida Power & Light (FPL) Regulatory Capital Employed Growth8.8% year-over-year growth in Q1 2026 - AcceleratingThe growth rate of FPL's regulatory capital, a key driver of its regulated earnings, has shown a slight but steady acceleration over the last three reported periods. This reflects continued investment in its service territory to support a growing customer base.
NEER New Project Backlogapproximately 33 gigawatts (As of Q1 2026 earnings call (4/23/2026))Indicates the volume of future generation and storage capacity that NEER has secured under long-term contracts, providing strong visibility into future growth.
FPL Large Load Interestabout 21 gigawatts (As of Q1 2026 earnings call (4/23/2026))Market rewards Company expects at least one large load customer to sign up for capacity under FPL's tariff by the end of the year.. Represents the pipeline of potential demand from very large customers, primarily data centers, which could drive significant future capital investment and rate base growth at the regulated utility.
NEER New Originations (Quarterly)4 gigawatts (Q1 2026)Measures the pace of new long-term contracts being signed for renewables and storage, reflecting current market demand and NEER's ability to capture it. The Q1 2026 result was a record quarter.
Core Investment Debate

Growth Engine vs. Balance Sheet Strain

BULL VIEW

The unprecedented demand for power, captured in a 33 gigawatt backlog, will generate sufficient earnings growth to service debt and deleverage the company over time.

CORE TENSION

Can accelerating demand from a 33 GW backlog offset the risk from $102.4B in net debt, which the market rewarded with a 6.0% stock gain last quarter?


PREVAILING SENTIMENT
CAUTIOUSLY BULLISH

The latest evidence, including a record 4 gigawatts of new originations and a strong stock reaction to earnings, favors the growth narrative for now.

BEAR VIEW

High leverage at 5.99x Net Debt/EBITDA and poor cost control will lead to a funding crisis if project execution falters or capital markets tighten.

Next 6 months: Risks and Catalysts
Timeline Event & Metric To Watch
Friday, July 24, 2026
Q2 2026 Earnings Report
Watch: NextEra Energy to report second-quarter 2026 financial results and host an investor presentation.
10/26/2026
Earnings Execution and Margin Pressure
Watch: Updates on operating margins, expense growth trends, and any revision to full-year guidance.
10/26/2026
Q3 2026 Earnings Report
Watch: NextEra Energy to report its next scheduled earnings.
10/27/2026 - 11/5/2026
Peer Contagion from Utility Sector
Watch: Peer commentary on data center demand, project costs, regulatory headwinds, or capital plans.
10/28/2026
Peer SO Earnings Report
Watch: Peer Southern (SO) is scheduled to report earnings.
10/29/2026
Peer D Earnings Report
Watch: Peer Dominion Energy (D) is scheduled to report earnings.
No set date
Merger Integration and Execution Risk
Watch: Official deal announcement, terms, regulatory filings, and outcomes of shareholder investigations.
No set date
Litigation Settlement Failure
Watch: Court filings on preliminary or final approval of the settlement. A failure would reopen litigation risk.
Key Events in Last 6 Months
Date Event Stock Impact
2026-07-21
Class Action Lawsuit Settlement
Details: The company entered into a settlement term sheet to resolve a 2023 securities class action lawsuit for an aggregate payment of $150 million, to be covered by insurance.
+1.6%
$88.00 -> $89.41
2026-07-21
Quarterly Dividend Increased
Details: The company announced an increase in its quarterly common stock dividend to $0.6232 per share from $0.5665 per share.
+1.6%
$88.00 -> $89.41
2026-07-10
Q2 Earnings Date Announced
Details: NextEra announced it plans to report second-quarter 2026 financial results on Friday, July 24, 2026, before the opening of the New York Stock Exchange.
+1.5%
$87.10 -> $88.38
2026-05-18
Dominion Merger News Emerges
Details: News reports indicated NextEra Energy was near a deal to merge with rival utility Dominion Energy, Inc. Law firms subsequently announced investigations into the potential transaction.
-3.5%
$92.68 -> $89.40
2026-04-23
Q1 2026 Earnings Reported
Details: NextEra reported a 10% year-over-year increase in adjusted EPS. The company affirmed its 2026 adjusted EPS guidance. The stock had a positive two-day reaction of 6.0%.
+5.9%
$89.35 -> $94.59
2026-01-27
Q4 2025 Earnings Reported
Details: Company reported full-year 2025 adjusted EPS of $3.71, an increase of over 8% from 2024. The stock had a positive two-day reaction of 2.0%.
+2.5%
$84.27 -> $86.34
Risk Management
Position Sizing

5% - 7%

NORMAL POSITION

Sizing is volatility-based: NEE trades at roughly 23% annualized options-implied volatility versus about 15% for the S&P 500 (1.5x the market), around the 17th percentile of its own trailing year. A 5% - 7% position keeps a single-name swing of that size within a diversified portfolio's risk budget.

Diversification Alternatives
DUK - Duke Energy
Larger-Scale Regulated Peer

Duke Energy operates at a larger scale, with trailing-twelve-month revenue of $33.2 billion and capital expenditures of $15 billion, offering a different risk profile within the same sector.

Core Thesis: A major utility also capitalizing on data center demand, having signed agreements for 2.7 gigawatts with such customers recently.
SO - Southern Company
Southeastern Utility Peer

Southern Company provides concentrated exposure to the high-growth Southeastern U.S. market, a focal point for new industrial and data center development.

Core Thesis: The company is aggressively pursuing hyperscaler demand, having signed contracts for 1.9 gigawatts of new customer load in early 2026.
How Is The Market Pricing NEE?

A two-engine growth machine: a regulated utility (FPL) in a booming state provides a stable, growing earnings base, while a national, best-in-class developer (NEER) captures the massive, accelerating demand for new energy infrastructure.

NEE's investment thesis rests on its dual structure. FPL is a regulated monopoly in Florida, one of the fastest-growing states, allowing for steady, predictable rate base growth and earnings. This stable foundation supports NEER, a national leader in building energy projects, which is capitalizing on the 'golden age of power demand' driven by AI and data centers. NEER's scale, development expertise, and long-term contracts provide a visible, high-growth trajectory.

What will confirm the thesis

Announcements of new large-load data center contracts at FPL; quarterly backlog additions at NEER exceeding 3-4 GW; successful re-contracting of nuclear or renewable assets at significantly higher prices.

What will damage the thesis

An adverse regulatory decision in Florida impacting FPL's rate structure or cost recovery; significant project cancellations or delays in NEER's backlog; evidence of waning demand from hyperscalers.

Noise: Real but irrelevant to thesis

Minor quarterly fluctuations in wind resource at NEER; shareholder lawsuits from M&A law firms investigating potential deals; short-term stock price reactions to earnings that are within guidance.

Repricing Catalyst

Execution on the massive demand from data centers, both through FPL's new large load tariff and NEER's 'bring your own generation' (BYOG) data center hub strategy, including the 9.5 GW gas-fired generation projects with the U.S. and Japan.

What NEE Makes & Who Pays
TTM figures based on the twelve months through fiscal Q1 2026
Florida Power & Light Company (FPL)
$18.5B TTM (67% of Total)
What It Is

A rate-regulated electric utility that generates, transmits, distributes, and sells electric energy to over six million customer accounts, serving approximately 12 million people in Florida.

Who Pays & How

Retail customers (residential, commercial, industrial) and a limited number of wholesale customers in Florida pay for electricity. They are largely captive customers within FPL's service territory who rely on the utility for reliable power at rates approved by the Florida Public Service Commission (FPSC).

Rates are set by the FPSC through multi-year agreements and are designed to recover the cost of providing service plus a reasonable rate of return on invested capital. Pricing includes base rates and cost-recovery clauses for items like fuel and storm protection.
Competition
FPL's retail service is provided primarily under franchise agreements, limiting direct competition. However, it faces competition from customer self-generation (e.g., rooftop solar) and other suppliers for wholesale and industrial customers.
FPL's moat is its status as a regulated monopoly in a growing state, its large scale, and its focus on maintaining low customer bills and high reliability, which makes self-generation less economically attractive for most customers.
NextEra Energy Resources (NEER)
$8.9B TTM (32% of Total)
What It Is

Develops, constructs, and operates generation facilities (wind, solar, nuclear, natural gas), battery storage, and regulated transmission assets. It sells energy, capacity, and related products to utilities, cooperatives, municipalities, and commercial & industrial customers across the U.S. and Canada.

Who Pays & How

Utilities and large corporations (including hyperscalers like Google) pay NEER for power and capacity, primarily through long-term contracts. They choose NEER for its track record of completing projects on schedule, creditworthiness, scale, and ability to offer cost-effective, customized energy solutions to meet rising demand and clean energy goals.

Primarily long-term power purchase agreements (PPAs) and battery storage tolling agreements with a weighted-average remaining contract term of approximately 14 years. A smaller portion of output is sold into merchant power markets.
Competition
The wholesale power generation market is highly fragmented. Competitors vary by region and technology.
NEER's moat is its massive scale, development expertise, supply chain control, strong balance sheet, and ability to build and operate across the entire energy value chain, which are difficult for smaller developers to replicate.
NEE Evolution: Price Return by Era
2021-2022 · Regulated Core with Growing Renewables
+17%
FPL provided a large, steadily growing revenue base, increasing from $12,600 million to $17,282 million. NEER was a smaller but growing part of the business, with revenue of $3,053 million, demonstrating the early stages of its significant expansion in renewables development.
2023-2025 · Explosive Growth in Competitive Energy
+4%
NEER's revenue grew from $3,720M to $9,672M before settling at $2,975M in 2025, showcasing its emergence as a major growth engine fueled by the demand for renewable energy. FPL continued its stable growth, solidifying its role as the foundational earnings driver while NEER capitalized on the energy transition.
Market Is In Wait-and-See Mode
Price structure is mildly positive. The trend shows early signs of health but hasn't fully committed. Relative to SPY: Lagging the market on the 63D window, but 'relative strength' is beginning to stabilize; watch for inflection. Volume and momentum show mild positive lean. The accumulation signals present but not yet dominant. Earnings history is mildly cautionary. The reaction or drift are negative, and the market is beginning to push back on the thesis.
① Structure
+1
Structural pillar score (-4 to +4). Driven by trend regime, SMA cross events, proximity to 52W high, and relative strength vs SPY.
② Volume / Momentum
+1
Volume/Momentum pillar score (-4 to +4). Driven by institutional footprint score, OBV divergence, and momentum character.
③ Catalyst
-1
Catalyst pillar score (-4 to +4). Driven by earnings day reaction, 20D post-earnings drift, and post-earnings volume character.
Combined Score
1 / 12
1 Price Structure & Trend Uptrend Cooling · -
2 Momentum Mixed
3 Relative Strength vs. SPY Neutral Relative Strength
4 Institutional Footprint & Volume Neutral / Mixed
5 Volatility Normal
6 Key Price Levels Range · Vol Falling
7 Earnings Reaction History Diminishing Reward
8 How the Verdict Is Derived Three Pillars
Core Cache Last Updated: 7/22/2026