Based on the provided financial report articles, the title of the article is: "NextEra Energy, Inc. and Florida Power & Light Company Quarterly Report (Form 10-Q)
Based on the provided financial report articles, the title of the article is: "NextEra Energy, Inc. and Florida Power & Light Company Quarterly Report (Form 10-Q)
NextEra Energy, Inc. and its subsidiary, Florida Power & Light Company, filed their combined Form 10-Q for the quarterly period ended September 30, 2025. The report highlights a net income of $1.4 billion for NextEra Energy, Inc. and a net income of $1.1 billion for Florida Power & Light Company. The companies’ total revenue increased by 10% to $6.3 billion, driven by growth in their renewable energy and utility businesses. The report also notes that the companies’ cash and cash equivalents increased by 12% to $4.5 billion, and their long-term debt decreased by 5% to $24.5 billion. The companies’ financial performance was driven by strong operational results, favorable weather conditions, and the successful integration of their recent acquisitions.
Financial Performance Overview
NextEra Energy (NEE) reported mixed financial 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 months 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 months was due to lower results at NEER and Corporate and Other, partially offset by higher results at FPL.
FPL Performance
FPL’s net income increased by $170 million and $356 million for the three and nine months, 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 compared to the prior year periods. FPL also recorded higher storm cost recovery revenues and storm protection plan cost recovery revenues, which offset decreases in retail base revenues and fuel revenues.
FPL earned regulatory returns on equity of approximately 11.70% and 11.80% for the three and nine months, respectively, based on a trailing 13-month average retail rate base. In 2025, FPL began recovering eligible storm costs and replenishing the storm reserve through a storm surcharge.
FPL has filed a petition with the Florida Public Service Commission (FPSC) requesting approval of a new four-year base rate plan to begin in January 2026, replacing the current 2021 rate agreement. Hearings on the proposed plan and a related 2025 rate agreement are expected in October 2025, with a FPSC ruling anticipated in November 2025.
NEER Performance
NEER’s results increased $52 million for the three months but decreased $311 million for the nine months. The primary drivers were:
- New investments: Higher earnings from new solar, battery storage, and other clean energy projects that came online.
- Existing clean energy: Lower earnings from existing wind, solar, and other clean energy projects.
- Customer supply: Higher origination activity and margins in the customer supply business.
- NEET (rate-regulated transmission): Higher earnings from new transmission projects.
- Other factors: Higher financing costs, lower asset recycling gains, and an impairment charge related to the XPLR investment.
NEER’s operating revenues decreased $19 million for the three months but increased $549 million for the nine months, primarily due to changes in the customer supply business and new investments, partially offset by lower revenues from existing clean energy projects.
NEER recognized significant equity losses from its investment in XPLR, including a $0.7 billion ($0.5 billion after-tax) impairment charge. Clean energy tax credits increased by $142 million and $505 million for the three and nine months, respectively, reflecting growth in NEER’s business.
Corporate and Other Performance
Corporate and Other’s results increased $364 million for the three months but decreased $488 million for the nine months. The changes were primarily driven by favorable and unfavorable non-qualifying hedge activity, respectively, related to changes in the fair value of interest rate derivative instruments. Higher average debt balances and interest rates also impacted Corporate and Other’s results.
Liquidity and Capital Resources
NEE and its subsidiaries require funds to support and grow their businesses, which they obtain through a combination of cash flows from operations, short- and long-term borrowings, and the issuance of equity securities.
As of September 30, 2025, NEE’s total net available liquidity was approximately $16.0 billion, consisting of $13.9 billion in syndicated revolving credit facilities, $4.0 billion in bilateral revolving credit facilities, and $4.3 billion in letter of credit facilities, partially offset by short-term borrowings.
NEE and its subsidiaries also utilize various forms of capital support, including guarantees, letters of credit, surety bonds, and indemnifications, to facilitate commercial transactions and financings. At September 30, 2025, these capital support arrangements totaled approximately $16.2 billion.
Regulatory and Legislative Developments
Several regulatory and legislative activities occurred in 2025 that affected NEE and FPL, including:
- The enactment of the Omnibus Budget and Bipartisan Bill Act (OBBBA), which modified tax legislation affecting clean energy tax credits.
- The issuance of federal executive orders and presidential actions.
- The imposition of tariffs on various imports.
- The issuance of guidance by federal agencies.
Additional similar activities remain pending or in various phases of implementation, such as Treasury Department rulemaking, trade investigations, and proposals by regional transmission operators. NEE believes its current pipeline of wind and solar facilities will qualify for clean energy tax credits and that there has been no material impact on its operations or financial performance as a result of these developments.
Outlook
NEE’s financial performance and outlook are subject to various risks and uncertainties, including those related to commodity prices, interest rates, equity prices, and credit risks. NEE and its subsidiaries use a variety of financial instruments and positions to manage these market risks, with the goal of optimizing the value of their power generation, natural gas, and oil production assets, as well as their customer supply and trading activities.
Overall, NEE’s mixed financial results for the three and nine months ended September 30, 2025 reflect the company’s diverse business operations and the ongoing challenges and opportunities in the energy industry. While FPL’s performance remained strong, driven by continued investments and regulatory recovery mechanisms, NEER’s results were more volatile, impacted by factors such as new project additions, existing asset performance, and the XPLR investment impairment. The Corporate and Other segment also experienced significant swings in non-qualifying hedge activity.
Looking ahead, NEE’s ability to maintain its financial strength and execute its growth strategy will depend on its successful navigation of the evolving regulatory and legislative landscape, its effective management of market risks, and its continued focus on operational excellence and cost discipline across its businesses.