NextEra Energy, Inc. (NEE) Business Profile

What it does

NextEra Energy, Inc. was founded in 1925 and is headquartered in Juno Beach. It is an electric-power and energy-infrastructure company with two principal businesses: Florida Power & Light (FPL) and NextEra Energy Resources (NEER).

FPL is a rate-regulated electric utility. It generates, buys, moves and delivers electricity to homes, businesses and other users in Florida, then sells that electricity at rates approved by regulators. Its system links power plants, storage assets, transmission lines and local distribution networks. At December 31, 2025, FPL had 35,963 MW of net generating capacity, approximately 93,000 circuit miles of transmission and distribution lines and 932 substations.

NEER develops, builds, owns and operates power-generation, battery-storage and transmission assets. It sells electricity, generating capacity, renewable-energy credits and related grid services primarily to utilities, retail electricity providers, cooperatives, municipal providers and commercial and industrial customers. Much of this business is contracted in advance through long-term power-sale and storage agreements. NEER also owns regulated electric and gas transmission assets and supplies power and fuel products with risk-management services.

Across the company, the generation and storage portfolio was approximately 80 gigawatts of net capacity at December 31, 2025. Its assets primarily use natural gas, wind, solar and nuclear generation, alongside battery storage.

How it makes money

FPL earns most of its revenue from retail electricity sales in Florida. The Florida Public Service Commission approves its retail rates, which are intended to recover the cost of service and provide an opportunity to earn a return on invested capital. Base rates cover costs such as operations, maintenance, depreciation and taxes, as well as a return on rate base. Separate cost-recovery clauses pass through or recover specified costs, including fuel, storm protection, capacity, conservation and certain environmental costs.

FPL’s 2025 rate agreement became effective in January 2026 and continues through at least December 2029. It established annualized retail base-revenue increases of $945 million from January 1, 2026 and $705 million from January 1, 2027. The agreement also permits conditional base-rate adjustments for qualifying solar and battery projects and sets an authorized regulatory return on equity of 10.95%, within a 9.95% to 11.95% range.

NEER earns revenue mainly by selling energy, capacity, renewable-energy credits and ancillary services. Its generation and storage assets are generally contracted under long-term agreements; approximately 95% of its net generating capacity was committed under long-term contracts at December 31, 2025. It also earns regulated returns from transmission assets, supplies full electricity requirements and customized power and fuel products, and uses commodity contracts in its supply and trading activities.

For 2025, net income attributable to NextEra Energy was $6.84 billion; in the third quarter of 2026, adjusted earnings per share increased 9.7% year over year. FPL’s 2025 net income was $5,012 million, while higher earnings from new investments contributed to NEER’s 2025 results.

Customers and how it sells

FPL serves approximately 12 million people through more than 6 million customer accounts. Its service territory covers most of Florida’s east and lower west coasts and areas in ten counties in northwest Florida. Retail customers are its main revenue source, with a limited number of wholesale customers also served within Florida. FPL’s summer electricity use and operating revenue are usually higher because air conditioning is widely used in its service area.

FPL serves customers through an integrated transmission and distribution system. It holds 226 franchise agreements with Florida municipalities and counties, covering most of its retail customer base; these agreements generally give FPL the right to provide service to residents during their terms. It also serves some municipalities and unincorporated areas under its obligation as a public utility.

NEER’s customer base includes utilities, retail electricity providers, power cooperatives, municipal electric providers, and commercial and industrial customers. It operates generation assets across 44 U.S. states and four Canadian provinces, and sells mainly into regional wholesale power markets. Its long-term agreements generally cover capacity and energy output, while its customer-supply business provides full-requirements electricity, fuel and risk-management services to distribution utilities and other wholesale customers.

In the second quarter of 2026, FPL added more than 90,000 customers compared with the prior-year quarter.

Suppliers and costs

FPL’s generating fleet uses natural gas, low-sulfur diesel, nuclear fuel, solar resources and battery storage. It had firm natural-gas transportation contracts with ten suppliers for aggregate maximum deliveries of 2,836,000 MMBtu per day, with terms extending through 2042. It also held uranium supply, conversion, enrichment and fabrication contracts through 2039, while some natural-gas needs are met through shorter-term contracts and spot-market purchases.

Fuel and many related energy costs are largely recovered through FPL’s regulatory cost-recovery clauses. FPL’s energy marketing and trading division procures fuel and energy commodities, sells excess fuel and electricity when available, and uses swaps, options and forwards to manage physical and financial risks.

NEER’s costs include developing and constructing generation, storage and transmission projects; operating generation assets; financing; and procuring power and fuel. Its merchant generation assets require active marketing and hedging because they are not covered by long-term power-sale agreements. The company also requires access to operating cash flow, debt and, from time to time, equity issuance, tax-credit sales and asset-interest sales to fund capital requirements.

The company has secured solar panels and competitively priced domestic battery-storage supply through 2029.

Competitive position

No individual competing company is named as a competitor in the available materials. FPL competes in practice with customers that can self-generate electricity, other suppliers to wholesale and industrial users, alternative energy sources, and independent power producers bidding to supply certain new generating capacity. Its wholesale and industrial electric customers together represented approximately 5% of operating revenue in 2025.

NEER competes in regional wholesale electricity markets with numerous participants. Competition varies by location and product, including energy, capacity, renewable-energy credits, ancillary services, full-requirements supply and customized risk-management products. NEER states that wholesale generation is capital-intensive, commodity-driven and fragmented, and that it generally competes on price. Available transmission capacity, market price caps and regional-market rules can constrain its sales and pricing.

Our reading: FPL’s regulated service territory and its 226 franchise agreements are a durable moat because they govern access to most of its retail customer base, although customers can self-generate and regulators set retail rates.

Our reading: NEER’s long-term contracting is a meaningful moat for cash-flow visibility because approximately 95% of net generating capacity was committed under long-term contracts, but its wholesale markets remain regional and competitive.

Our reading: Operating scale across generation, storage and transmission supports project delivery and customer offerings, but it does not remove exposure to commodity markets, transmission constraints or competitive bidding.

Growth opportunities

FPL’s growth is tied to customer additions, electricity demand, new generation, battery storage and expansion of the transmission and distribution system in Florida. The company expects to serve growing large-load customers under tariffs for new or incremental load of 50 MW or greater. Its 2025 rate agreement also provides for conditional solar and battery base-rate adjustments for qualifying projects entering service through 2029.

NEER’s growth avenues include contracted wind, solar and battery projects; electric and gas transmission; recontracting existing assets; gas-fired generation; and projects designed for large electricity loads. NEER added 3.7 gigawatts of renewables and storage projects to its backlog in the third quarter of 2026, and its backlog totaled nearly 36.7 gigawatts after more than 1.8 gigawatts of projects entered service since the prior call.

The company has advanced more than 20 gigawatts of large-load projects, including over 18 gigawatts of gas-fired generation. It has signed definitive agreements to develop, construct and operate three federal-hub projects in Texas and Pennsylvania totaling approximately 16.5 gigawatts, with $5.7 billion in initial funding year to date. It expects significant load at these sites as early as 2028 and 2029 using behind-the-meter generation, with full requirements ramping from 2030 through 2032.

The company expects FPL’s full-year 2026 capital investments to be approximately $12 billion. It expects adjusted earnings per share to grow at a compound annual rate of 8% plus through 2032, from a 2025 base of $3.71.

Structural risks

• Regulation and cost recovery. FPL’s retail rates and many cost-recovery mechanisms require regulatory approval. Regulators can determine the allowed return and can disallow costs considered excessive or imprudently incurred. There is no assurance that FPL will achieve a particular regulatory return or recover all costs.

• Project development and construction. Generation, storage, transmission, distribution and pipeline projects may not proceed, or may be delayed or completed over budget. They require permits, rights-of-way, equipment, labor, financing and other approvals.

• Weather and physical operations. Hurricanes, tornadoes, extreme temperatures, floods, droughts, wildfires and other events can damage assets, interrupt service, increase restoration spending or reduce output. Equipment failures, fuel-transport disruptions and insufficient insurance or performance guarantees can also affect results.

• Fuel, commodity and market exposure. Natural-gas availability and prices, purchased-power costs, fuel transport and merchant-power pricing affect operations. NEER’s uncontracted generation requires marketing and hedging, while transmission constraints and changing regional market rules can affect sales.

• Nuclear and environmental requirements. Nuclear operations carry environmental, health, financial and licensing risks that can lead to fines, closures, higher capital spending or increased operating costs. Future greenhouse-gas limits could raise fuel and compliance costs or make some generating units uneconomic.

• Funding and interest rates. The company depends on operating cash flow and access to debt and capital markets. Credit-market disruption, higher borrowing costs or a lower credit rating could affect financing capacity, cost of capital and growth execution.

Bottom line

Our reading

Our reading: NextEra Energy combines a regulated Florida utility with a broad portfolio of contracted generation, storage and transmission assets; FPL’s regulated model and NEER’s long-term contracts give the business two different revenue frameworks. Our reading: Its current buildout depends on executing large capital projects, obtaining regulatory approvals and maintaining access to financing. Our reading: Weather, fuel markets, merchant exposure and the pending Dominion Energy combination add operational and regulatory variables to that model.