NextEra Energy Q2 Earnings Call Highlights
Key Points
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- NextEra Energy reported Q2 adjusted EPS of $1.15 and kept its 2026 EPS outlook at $3.92 to $4.02, while reaffirming long-term annual EPS growth targets of at least 8% through 2032 and 2035.
- Florida Power Light continued to drive results with customer growth, higher capital spending, and a bigger large-load demand outlook; NextEra now sees 8 GW of large-load demand by 2032, up from 6 GW previously.
- NextEra Energy Resources added 3.6 GW to its backlog and now has about 35.1 GW of backlog, while the company also advanced major transmission, nuclear, gas, and Dominion transaction plans that could support future growth.
NextEra Energy (NYSE:NEE) reported second-quarter 2026 adjusted earnings per share of $1.15, while adjusted EPS for the first six months of the year rose 9.8% from a year earlier. Chairman, President and CEO John Ketchum said the results reflected continued execution at Florida Power Light Co. and NextEra Energy Resources amid rising electricity demand.
The company maintained its 2026 adjusted EPS outlook of $3.92 to $4.02 and said it is targeting the high end of that range. Chief Financial Officer Mike Dunne said NextEra continues to expect adjusted EPS growth of at least 8% annually through 2032 and is targeting the same growth rate through 2035, using 2025 adjusted EPS of $3.71 as the base.
FPL customer growth and capital investment
Florida Power Light's EPS increased $0.05 year over year in the second quarter, driven in part by approximately 9.3% growth in regulatory capital employed, Dunne said. FPL invested about $2.8 billion during the quarter and expects full-year capital investments of $12 billion to $13 billion.
FPL added more than 90,000 customers compared with the prior-year quarter. Retail sales rose approximately 0.4%, or roughly 0.6% on a weather-normalized basis, supported primarily by population growth, according to Dunne.
Ketchum said FPL's typical residential bill remains about 30% below the national average and is projected to rise by an average of 2% annually through the end of the decade. He also said FPL's non-fuel operations and maintenance costs are more than 70% below the industry average on a dollar-per-megawatt-hour basis, while reliability is more than 60% better than the national average.
FPL placed four solar sites into service during the quarter and remains on track to install approximately 900 megawatts of solar capacity and more than 1.4 gigawatts of battery storage this year. The company said about 90% of FPL's generation mix is anchored by baseload natural gas and nuclear generation.
Large-load demand and Energy Resources backlog
NextEra raised its forecast for large-load demand at FPL to 8 gigawatts by 2032 from 6 gigawatts previously. Ketchum said FPL has roughly 21 GW of large-load interest and is in advanced discussions involving 12 GW, with some potential service beginning as early as 2028. The company expects to announce at least one transaction under FPL's large-load tariff by year-end.
FPL President and CEO Scott Bores said legislation enacted in Florida in May provides greater certainty for customers planning multibillion-dollar investments. He said the utility's baseload generation fleet allows it to integrate new generation quickly to meet customers' speed-to-market requirements.
At NextEra Energy Resources, adjusted earnings increased approximately 18% year over year. New investments added $0.09 per share, primarily reflecting growth in the power-generation portfolio, while other items were roughly flat on a net basis, Dunne said.
Energy Resources added 3.6 GW of renewable and storage projects to its backlog in the quarter, including 2 GW of battery storage. Its backlog totaled about 35.1 GW after accounting for 1.1 GW of projects placed into service since the prior earnings call. The company said it has secured solar panels and domestic battery-storage supply through 2029, as well as transformer capacity to support its development forecast through the end of the decade.
The company also recontracted more than 500 MW of existing projects since the prior call, bringing year-to-date renewable recontracting activity above 1,100 MW. Ketchum said the quarter's recontractings were priced at an average premium of about $20 per megawatt-hour above recent realized pricing, with average contract terms of about 15 years.
Energy Resources is pursuing large-load and data-center opportunities through 30 potential hubs, a figure it expects to increase to 40 by year-end. The company has a base-case goal of securing 15 GW of new generation to serve large-load customers by 2035, with an upside case of 30 GW or more.
Transmission, nuclear and gas development
NextEra Energy Transmission energized a 137-mile, 345-kilovolt transmission line in New Mexico ahead of schedule and on budget. Ketchum said an independent Southwest Power Pool study projected that the project could reduce typical residential electric bills in 2031 by about $13 per month. The company said the line was completed 31 months after it was awarded.
In the Midwest, MISO selected NextEra Energy Transmission as part of a consortium for two 765-kilovolt transmission projects in Illinois. NextEra would hold a 43% interest in the approximately $1.6 billion project.
The company remains on track to recommission the Duane Arnold nuclear plant no later than the first quarter of 2029. During the quarter, the Iowa Utilities Commission approved a generating certificate for the plant, and NextEra acquired the remaining 30% minority interest held by two cooperative partners.
NextEra is also advancing up to 9.5 GW of gas-fired generation projects in Texas and Pennsylvania, though Ketchum said discussions on definitive agreements with the U.S. and Japanese governments are still progressing. He said the company is evaluating small modular reactor technologies but would require commercial terms and risk-sharing arrangements that limit its exposure to cost overruns.
Dominion Energy transaction
NextEra and Dominion Energy filed for merger approval during July with regulators in Virginia, North Carolina, South Carolina, the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission. The companies expect shareholder meetings in early September and continue to anticipate closing the transaction in the second half of 2027.
Ketchum said the proposed combination includes $2.25 billion in shareholder-funded bill credits for Dominion customers in Virginia, North Carolina and South Carolina. The companies project that the combined business would support about 11% annual growth in regulatory capital employed through 2032 and adjusted EPS growth of more than 9% through 2032 and through 2035, based on 2025 results.
Management said discussions with state and local stakeholders have been constructive. Ketchum said the company intends to retain dual headquarters in Richmond, Virginia, and Juno Beach, Florida, along with an operational headquarters in Cayce, South Carolina.
About NextEra Energy (NYSE:NEE)
NextEra Energy, Inc (NYSE: NEE), headquartered in Juno Beach, Florida, is a leading clean energy company with both regulated utility operations and competitive renewable generation businesses. The company's principal operating subsidiaries include Florida Power Light Company (FPL), a regulated electric utility serving customers in Florida, and NextEra Energy Resources, which develops, constructs, owns and operates a large portfolio of wind, solar and energy storage projects. Together these businesses provide electricity supply, transmission and distribution services as well as utility-scale renewable generation and related services.
NextEra's activities cover the full lifecycle of power assets, from project development and construction to operation, maintenance and asset optimization.
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