NEXTERA ENERGY INC Q1 FY2025 earnings call

• NextEra Energy had solid first quarter results with adjusted earnings per share increasing nearly 9% year-over-year. FPL placed 894 MW of new solar and Energy Resources originated ~3.2 GW of new renewables and storage.
• Emphasized energy realism (embracing all energy solutions) and energy pragmatism (recognizing some tech ready now, others need time), noting renewables and storage are low-cost bridge to other technologies, while gas faces high costs and long build times, and nuclear has limited restart opportunities.
• FPL, celebrating 100 years, continues to make smart capital investments, has ~8.4 GW of solar and batteries installed in Florida, plans to invest nearly $50B from 2025-2029 and add over 25 GW of new generation and battery storage by 2034.
• Energy Resources had strong quarter with ~3.2 GW of new renewables and storage origination, first solar repowering project planned for 2026, and backlog additions reflecting diverse demand.
• Diversified and domesticated supply chain to manage tariff risk, battery sourcing strategy favorable, and announced leadership transitions with Rebecca Kujawa retiring, Brian Bolster and Mike Dunne taking new roles.

FPL: First quarter earnings per share increased $0.07 year-over-year. Capital expenditures were approximately $2.4 billion for the quarter, and full year capital investments are expected to be between $8 billion and $8.8 billion. FPL placed into service 894 megawatts of new cost-effective solar, with its owned and operated solar portfolio at over 7.9 gigawatts. FPL plans to invest nearly $50 billion from 2025 to 2029 and add more than 25 gigawatts of new generation and battery storage by 2034. FPL had a strong quarter of customer growth, with the average number of customers increasing by nearly 108,000 from the comparable prior year period, and retail sales increased by approximately 1.8% year-over-year. Energy Resources: Adjusted earnings growth was nearly 10% year-over-year. Originated approximately 3.2 gigawatts of new renewables and storage to the backlog, with the backlog now totaling roughly 28 gigawatts. Had its first solar repowering project, and backlog additions represent diverse power demand with roughly 40% driven by commercial and industrial customer demand and 60% by power companies.

• Expect adjusted earnings per share to be at or near the top end of ranges in 2025, 2026, and 2027.
• Anticipate average annual growth in operating cash flow from 2023 to 2027 to be at or above adjusted EPS compound annual growth rate.
• Expect to grow dividends per share at a roughly 10% rate per year through at least 2026.
• FPL plans to invest nearly $50B from 2025 to 2029 and add over 25 GW of new generation and battery storage by 2034.
• Energy Resources expects continued strong growth in backlog with new renewables and storage origination.

• Gas-fired plants face issues like high cost due to supply shortages, skilled labor challenges, and long build times.
• Tariff risk exists, although efforts have been made to diversify supply chain and work with customers to mitigate it.
• Policy changes and other external factors could impact energy investments and costs.

Q: Steve Fleishman with Wolfe Research asked about tariff disclosure, battery domestic content, supplier health, and transferability.

A: John Ketchum responded on battery domestic content, supplier health due to NextEra's buying power and contract protections, and detailed on transferability importance for various technologies like utilities, nuclear, and manufacturing under 45X credit.

Q: Julien Dumoulin-Smith with Jefferies asked about adjusted EPS range contributing factors and tariff timing.

A: John Ketchum discussed adjusted EPS being on track and tariff exposure being low due to working with customers and contractual protections.

Q: Nick Campanella with Barclays asked about Duane Arnold contracting opportunity and GEV partnership update.

A: John Ketchum said Duane Arnold is progressing well and GEV partnership framework agreement is advancing with customer origination work.

Q: Jeremy Tonet with JPMorgan asked about data center renewable demand and gas power for hyperscalers.

A: John Ketchum said no change in data center renewable demand and hyperscalers prefer front-of-the-meter solutions with gas as part of the solution.

Q: David Arcaro with Morgan Stanley asked about transferability financing and data center renewable demand.

A: John Ketchum discussed tax equity providers flocking to NextEra and no change in data center renewable demand.

Q: Carly Davenport with Goldman Sachs asked about backlog additions and project slippage.

A: John Ketchum noted near-term demand for electrons and impact of Washington on backlog.

Q: Bill Appicelli with UBS asked about FPL's 10-year site plan and rate case settlement.

A: Armando Pimentel said CapEx plan is in line with expectations and John Ketchum mentioned settlement is possible and focus is on mid-August technical hearings.