NextEra Energy, Inc. Q2 FY2025 earnings call

• NextEra Energy delivered strong second quarter results with adjusted earnings per share increasing 9.4% year-over-year. Through the first 6 months of the year, adjusted earnings per share has increased 9.1% year-over-year.
• America is seeing growth in electricity demand across sectors, and NextEra is well-positioned to meet this demand with all forms of energy, including renewables, storage, gas, and nuclear.
• FPL continues to invest in infrastructure in Florida, with plans to add more than 8 gigawatts of reliable, cost-effective solar and battery storage by 2029.
• Energy Resources is the nation's leading energy infrastructure developer, having originated 3.2 gigawatts of new projects since the last earnings call, with a backlog of approximately 6 gigawatts serving technology and data center customers.
• NextEra has a large pipeline of early and late-stage projects, strong supply chain capability, and is leveraging artificial intelligence across its business.

FPL's earnings per share increased by $0.02 year-over-year, driven by regulatory capital employed growth of nearly 8% year-over-year. FPL's capital expenditures were approximately $2 billion for the quarter, with full year capital investments expected between $8 billion and $8.8 billion. FPL's second quarter retail sales increased 1.7% from the prior year comparable period, with a 2.6% weather-normalized growth. Energy Resources reported an adjusted earnings per share increase of $0.11 year-over-year, with contributions from new investments increasing $0.14 per share year-over-year. Energy Resources added 3.2 gigawatts to its backlog, with a backlog now totaling nearly 30 gigawatts. Consolidated adjusted earnings from corporate and other decreased by $0.04 per share.

• Expect to deliver financial results at or near the top end of adjusted earnings per share expectation ranges in 2025, 2026, and 2027.
• Average annual growth in operating cash flow from 2023 to 2027 is expected to be at or above adjusted earnings per share compound annual growth rate range.
• Dividends per share are expected to grow at roughly 10% per year through at least 2026 off a 2024 base.

• Challenging regulatory and policy environment, including executive orders, agency rulemakings, tariffs, and trade actions.
• Uncertainty around federal permitting issues for solar and wind projects, with new procedures requiring Secretary or Deputy Secretary review.
• Potential impact of small developers falling away, which could create opportunities but also introduces competition and execution risks.

Q: Could you talk to the safe harbor start of construction issue under OBBB and federal lands permitting?

A: The OBBB provides an exception where projects beginning construction before July 4, 2026, are not subject to the December 31, 2027 placed in service requirement. On federal lands, there was an EO and response from DOI, with new procedures requiring Secretary or Deputy Secretary review, but most backlog already has secured federal permits.

Q: How is progress on nuclear contracting, specifically Duane Arnold and Point Beach?

A: Duane Arnold continues to advance with on-site reviews and engineering analysis, and discussions with customers. Point Beach offers opportunities including SMR, and NextEra has development capabilities for new generation assets.

Q: Update on FPL rate case and settlement?

A: Preparing for hearings in mid-August, with opportunity for discussions leading to settlement if it makes sense for customers.

Q: Thoughts on gas strategy, new build vs. market opportunities?

A: Will look at new build and market opportunities, with value needing to make sense and focusing on contracting front in near term.

Q: Foreign entities of concern (FEOC) and Duane Arnold earnings contribution?

A: Feel confident about FEOC provisions with continuity safe harbor through 2029. Duane Arnold could contribute to earnings growth and smooth out potential cliffs in the future.

Q: Origination tied to hyperscalers, resource mix, timing, geography?

A: Varies by customer and region, with different needs depending on demand and build plans, and NextEra's broad portfolio allows meeting customer needs.

Q: Practical limitations to accelerating development plans?

A: NextEra's competitive advantages in sites, interconnects, engineering construction, supply chain, and balance sheet create opportunities in pull-forward scenarios.

Q: Gas generation regions and ERAS decision impact?

A: Gas generation demand across the country, with ERAS decision potentially creating opportunities but also needing all-of-the-above solution. Key milestones on Duane Arnold include site work and equipment checks, with progress continuing well.