Press release·10/28/2025 12:12:51

Financial Performance Overview

NextEra Energy (NEE) reported mixed results for the three and nine months ended September 30, 2025. Net income attributable to NEE increased by $586 million for the three-month period, but decreased by $443 million for the nine-month period.

The increase in net income for the three-month period was driven by higher results at Florida Power & Light (FPL), NextEra Energy Resources (NEER), and the Corporate and Other segment. The decrease for the nine-month period was due to lower results at NEER and Corporate and Other, partially offset by higher results at FPL.

FPL: Steady Performance

FPL’s net income increased by $170 million and $356 million for the three and nine months ended September 30, 2025, respectively. This was primarily driven by continued investments in plant and other property, which grew FPL’s average rate base by approximately $5.4 billion for both periods compared to the prior year.

FPL earned a regulatory return on equity (ROE) of approximately 11.70% and 11.80% for the three and nine months ended September 30, 2025, respectively, based on a trailing 13-month average retail rate base.

In January 2025, FPL began recovering eligible storm costs and replenishing the storm reserve through a storm surcharge totaling approximately $1.2 billion related to Hurricanes Debby, Helene, and Milton in 2024. FPL also filed a petition in February 2025 requesting approval of a four-year base rate plan to begin in January 2026, which is currently under review by the Florida Public Service Commission.

NEER: Mixed Performance

NEER’s results increased by $52 million for the three-month period but decreased by $311 million for the nine-month period.

The increase in the three-month period was primarily driven by higher earnings from new investments and the customer supply business, partially offset by lower gains related to asset recycling and higher financing costs.

The decrease in the nine-month period was primarily due to an impairment charge related to the investment in XPLR, as well as higher financing costs, partially offset by higher earnings from new investments and the customer supply business.

NEER’s operating revenues decreased by $19 million for the three-month period but increased by $549 million for the nine-month period. The decrease in the three-month period was primarily due to lower non-qualifying hedge gains, partially offset by increases in the customer supply business and new investments. The increase in the nine-month period was primarily due to higher revenues from the customer supply business and new investments, partially offset by lower revenues from the existing clean energy business.

Corporate and Other: Volatile Performance

Corporate and Other’s results increased by $364 million for the three-month period but decreased by $488 million for the nine-month period.

The increase in the three-month period was primarily due to favorable non-qualifying hedge activity, partially offset by higher average debt balances and higher average interest rates. The decrease in the nine-month period was primarily due to unfavorable non-qualifying hedge activity, as well as higher average debt balances and higher average interest rates.

Effective Tax Rates

NEE’s effective income tax rates were approximately (13)% and 0% for the three months ended September 30, 2025 and 2024, respectively. For the nine-month periods, the effective tax rates were approximately (32)% and 3%, respectively. The lower effective tax rates were primarily due to higher clean energy tax credits.

Regulatory and Legislative Developments

Several regulatory and legislative developments occurred in 2025 that affected NEE and FPL, including the enactment of the Omnibus Budget and Bipartisan Agreement (OBBBA), which modified tax legislation affecting clean energy tax credits. There has been no material impact on NEE’s or FPL’s operations or financial performance as a result of these developments, and NEE believes its current pipeline of wind and solar facilities will qualify for the clean energy tax credits.

Liquidity and Capital Resources

NEE and its subsidiaries require funds to support and grow their businesses, which are primarily funded through a combination of cash flows from operations, short- and long-term borrowings, and the issuance of debt and equity securities.

At September 30, 2025, NEE’s total net available liquidity was approximately $16.0 billion, consisting of $13.4 billion in syndicated and bilateral revolving credit facilities, $4.3 billion in letter of credit facilities, $2.4 billion in cash and cash equivalents, and $4.4 billion in commercial paper and other short-term borrowings.

NEE’s primary capital requirements are for expanding and enhancing FPL’s electric system and generation facilities, as well as funding NEER’s investments in independent power and other projects. Capital expenditures for the nine months ended September 30, 2025 were $19.3 billion, with $6.9 billion at FPL and $12.5 billion at NEER.

Risk Management

NEE and its subsidiaries are exposed to various risks, including commodity price risk, interest rate risk, and equity price risk. They use derivative instruments and other measures to manage these risks.

For commodity price risk, NEE uses energy contract derivative instruments, such as swaps, options, futures, and forwards, to manage the physical and financial risks inherent in the purchase and sale of fuel and electricity. NEE’s value-at-risk (VaR) for its trading and non-qualifying hedge portfolios was $52 million at September 30, 2025, down from $88 million at December 31, 2024.

For interest rate risk, NEE and FPL use interest rate contracts to mitigate exposure to changes in interest rates. A hypothetical 10% decrease in interest rates would increase the fair value of NEE’s net liabilities by approximately $3.9 billion ($1.3 billion for FPL) at September 30, 2025.

For equity price risk, NEE and FPL are exposed to changes in prices for equity securities, particularly in their nuclear decommissioning reserve funds. A hypothetical 10% decrease in equity prices would result in an approximately $644 million ($438 million for FPL) reduction in fair value of these investments.

NEE also manages counterparty credit risk through established policies, including counterparty credit limits and credit enhancements, such as cash prepayments, letters of credit, and guarantees. At September 30, 2025, NEE’s credit risk exposure associated with its energy marketing and trading operations, taking into account collateral and contractual netting rights, totaled approximately $3.0 billion ($88 million for FPL), of which approximately 92% (100% for FPL) was with companies that have investment-grade credit ratings.

Outlook

Overall, NEE’s financial performance for the three and nine months ended September 30, 2025 was mixed, with higher results at FPL offset by lower results at NEER and Corporate and Other. The company continues to invest in its electric system and generation facilities, as well as in new independent power and other projects, to support future growth.

NEE’s liquidity position remains strong, with ample access to credit and capital markets to fund its capital requirements and other operations. The company’s risk management practices, including the use of derivative instruments and other measures, help mitigate exposure to commodity price, interest rate, and equity price risks.

While regulatory and legislative developments in 2025 had no material impact on NEE’s or FPL’s operations or financial performance, the company will continue to monitor any further changes for potential impacts in future periods. Overall, NEE appears well-positioned to navigate the challenges and opportunities in the energy industry and deliver value to its shareholders.