NextEra Energy Reports Mixed Q2 Results, Reaffirms FY24 Outlook

Renewable energy utility NextEra Energy Inc. (NYSE:NEE) has reported mixed Q2 2024 results and reaffirmed outlook for FY 2024, with revenue of $6.07B (-17.4% Y/Y), $1.38B below the Wall Street consensus. 

NextEra’s Q2 non-GAAP EPS clocked in at $0.96, beating consensus by $0.03. The company’s earnings reflect a 9%Y/Y increase, indicating robust financial and operational results. 

Florida Power & Light (FPL), a subsidiary of NextEra Energy, reported net income of $1.232 billion, or $0.60 per share, driven by a 10.7% increase in regulatory capital employed YoY as well as significant investment in the business. According to NextEra, FPL's commitment to modernization and solar expansion has resulted in substantial fuel cost savings and reliability that outperforms the national average.

NextEra Energy Resources, another NextEra subsidiary, reported net income of $865 million, or $0.42 per share, on an adjusted basis. NER had its second-best quarter for new renewables and storage origination, adding over 3,000 megawatts to its backlog.

"Our businesses are benefiting from strong tailwinds, creating opportunities to replace less efficient and more expensive power generation," company chairman, president and chief executive  John Ketchum stated. 

Looking ahead, NextEra Energy reiterated its FY 214 outlook of adjusted earnings per share to be in the range of $3.23 to $3.43. The company also forecast adjusted earnings for 2025, 2026 and 2027 in the ranges of $3.45 to $3.70, $3.63 to $4.00 and $3.85 to $4.32, respectively.

NextEra Energy said that it expects to grow its dividends per share at 10%Y/Y over the next two years.

NEE shares have surged 50% since October 2023 thanks to cooler than expected inflation data raising hopes the Federal Reserve will start lowering interest rates sooner rather than later. 

Two weeks ago, analysts at Citi predicted that the U.S. Federal Reserve could slash interest rates by 200 basis points in its next eight meetings through the summer of 2025 as the U.S. economy cools down. 

By Alex Kimani for Oilprice.com

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