NEE Financial Analysis

Analysis Date: 1/25/2025

Business Model

NextEra Energy generates revenue primarily through its two main subsidiaries - Florida Power & Light (FPL) and NextEra Energy Resources (NEER)

Revenue Sources

• FPL - Regulated electric utility serving over 6 million customer accounts in Florida
• NextEra Energy Resources - Clean energy business focused on renewables, storage and gas infrastructure

Revenue Distribution by Channel

• FPL: Regulated utility revenue from retail electric sales
• NEER: Power generation sales and renewable energy contracts

Income Statement Analysis

• Q4 revenues decreased 21.7% year-over-year to $5.4B
• Operating expenses decreased 2.9% to $4.5B
• Operating income declined 64.6% to $941M

Balance Sheet Analysis

• Total assets increased 7.1% year-over-year to $190.1B
• Total liabilities increased 9.1% to $129.3B
• Total equity grew 4.7% to $60.5B

Cash Flow Analysis

• Operating cash flow increased 17.3% to $13.3B
• Investing cash outflows decreased 5.1% to $22.3B
• Financing cash inflows decreased 42.4% to $7.0B

Capital Allocation

NextEra Energy continues to invest heavily in renewable energy and grid infrastructure through both FPL and Energy Resources. The company placed into service approximately 8.7 GW of new renewables and storage projects in 2024. Capital expenditures at FPL were $8.2B for the full year 2024.

Management Commentary

NextEra Energy had an excellent year of execution in 2024, growing full-year adjusted earnings per share by more than 8%

Added more than 12 GW of new renewables and storage to backlog

Will be disappointed if not able to deliver financial results at or near the top end of adjusted EPS ranges through 2027

Overall Sentiment: Highly confident in continued strong execution and growth potential

Recommendation

Rating: Buy

Reason for Rating: Strong operational execution, leadership in renewables transition, and clear growth visibility support continued outperformance

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/25/2025, 2:58:41 AM