NextEra Energy, Inc. Q4 FY2025 earnings call

Management Statement and Operational Highlights

• FPL: New 4-year rate agreement approved by Florida Public Service Commission allows $90-100 billion investment through 2032. Focus on keeping customer bills low with non-fuel O&M costs >71% lower than industry average. Large load tariff balances hyperscaler needs and customer protection.
• Energy Resources: Regulated portfolio growth, with NextEra Energy Transmission securing ~$5 billion in new projects since 2023. Originated ~13.5 GW of new generation and storage projects in 2025. Battery storage backlog ~95 GW. Partnership with Google Cloud for enterprise-wide AI transformation (Rewire).
• Nuclear and SMRs: Advancing Duane Arnold nuclear plant recommissioning. Evaluating SMR OEMs, with 6 GW SMR co-location opportunities at nuclear sites.
• Data Center Hubs: Goal to place 15 GW of new generation for data centers by 2035, with 20 potential hubs expected to rise to 40 by year-end. Focus on BYOG model to address affordability concerns.

Segment Performance

• FPL: Full-year 2025 earnings per share increased $0.21 vs 2024. Regulatory capital employed grew ~8.1%. Full-year capital investments totaled ~$8.9 billion. Retail sales increased 1.7% on a weather-normalized basis in 2025, driven by strong customer growth (over 90,000 new customers added). Customer bills are expected to increase ~2% annually from 2025-2029. Non-fuel O&M is >71% lower than the industry average.
• Energy Resources: Full-year adjusted earnings grew ~13% y/y. Contributed $0.47 per share from new investments. Originated nearly 13.5 gigawatts of new generation and battery storage projects in 2025, with a backlog of ~30 gigawatts. Placed over 2 gigawatts of battery storage into service in 2025. NextEra Energy Transmission secured ~$5 billion in new projects since 2023. Partnered with Google Cloud for AI transformation (Rewire).
• Corporate and Other: Adjusted earnings per share decreased $0.12 per share y/y, primarily due to higher interest costs.

Guidance

• 2026 adjusted earnings per share range $3.92-$4.02, unchanged from prior guidance. Target 8%+ compound annual growth rate (CAGR) in adjusted earnings per share through 2032, and same CAGR from 2032-2035 off the 2025 base. Energy Resources' combined electric and gas transmission business expected to grow to $20 billion in regulated and invested capital by 2032.

Risks

• Uncertainty around regulatory approvals for transmission projects (e.g., PJM project). Potential impact of market changes on gas pipeline EBITDA. Risks related to SMR commercial terms and conditions. Uncertainty in nuclear recontracting outcomes.

Question and Answer

• **Q: Google acquiring Intersect, impact on partnership?

A: No impact, NextEra has extensive inventory, permitted sites, and supply chain advantage.**

• **Q: FPL data center opposition in Florida?

A: Supportive legislation in Florida, focus on protecting customer bills while meeting hyperscaler needs.**

• **Q: Cadence of data center announcements?

A: Expect chunkier announcements as discussions progress, not waiting for quarterly calls.**

• **Q: Nuclear recontracting in Wisconsin?

A: Interest in Point Beach, favorable for data center build-out, careful approach to shareholder value.**

• **Q: PJM backstop auction participation?

A: Need regulatory certainty for new investment, watching PJM's future plans.**

• **Q: Wind additions and SMRs?

A: Solar, storage, and gas trends continue; SMRs under evaluation with focus on commercial terms.**

• **Q: PJM transmission project pushback?

A: Confidence high, PJM recommends project for reliability, listening to stakeholders.**

• **Q: Gas infrastructure EBITDA decline?

A: Divestment in Explorer reduced EBITDA, but pipelines remain key for growth.**