Adjusted EPS Growth
Adjusted earnings per share increased ~10% year-over-year for Q1 2026, driven by strong performance at both Florida Power & Light (FPL) and Energy Resources.
NextEra Energy
· NEE
April 23rd, 2026
Summary
- Earnings Call Date:
- 2026-04-23
- Change Since:
- -8.30%
- Next Earnings Date:
- 2026-07-29
Earnings Call Sentiment
PositiveThe call emphasized strong operational and financial momentum: Q1 adjusted EPS rose ~10%, Energy Resources delivered a record quarter and backlog expansion, FPL showed robust customer additions and high reliability, and the company articulated multiple growth avenues (data center hubs, transmission, pipelines, storage). Management highlighted proactive risk mitigation (supply-chain contracts, large interest-rate hedges) and strategic initiatives (Rewire AI, Symmetry acquisition). Headwinds exist—customer supply margin normalization, higher financing costs, labor and permitting constraints for new gas builds, and timing risks for large projects—but these were framed as manageable and being actively addressed. Overall, the positive growth metrics, backlog, and strategic positioning outweigh the operational and execution challenges discussed.
Company Guidance
Management reiterated 2026 adjusted EPS guidance of $3.92–$4.02 (targeting the high end) on a 2025 base of $3.71, and reiterated an 8%+ CAGR in adjusted EPS through 2032 (and the same 2032–2035), with average annual operating cash‑flow growth at or above that rate and dividend growth targeted ~10% per year through 2026 (off a 2024 base) and ~6% per year from year‑end 2026–2028. Key operational and capital metrics: FPL Q1 CapEx ≈ $3.2B and FY CapEx $12–13B, 12‑month ROE ≈ 11.7% (ending Mar‑2026), placed ~600 MW of solar in Q1 (FPL owned solar >8.5 GW), added ~100,000 customers year‑over‑year, retail sales +3.4% y/y (+0.3% weather‑normalized), used ~$306M of the rate stabilization mechanism leaving an after‑tax balance ≈ $1.2B, expects $90–100B of investment through 2032 and CIPLan roughly 4 GW new gas, >12 GW solar and >7 GW storage over 10 years, typical residential bill ~20% lower (inflation‑adjusted) vs 20 years ago and ~30% below national average with ~2% projected annual bill growth through the decade, and reliability ~68% better than the national average. Energy Resources and transmission metrics: Q1 adjusted earnings growth ≈ 14% y/y, contributions from new investments +$0.04/share, NextEra Energy Transmission contribution +$0.05/share, backlog ≈ 33 GW after adding 4 GW in Q1 (including 1.3 GW of batteries) and placing 0.3 GW into service, stand‑alone/co‑located battery pipeline >10 GW, recontracting opportunity of up to ~6 GW renewables and ~1.5 GW nuclear through 2032 (Q1 recontracts >600 MW with average contract length >18 years), ownership interest in >1,000 miles of FERC‑regulated pipelines, target for combined electric & gas transmission capital of $20B by 2032 (≈20% CAGR off 2025), NextEra Energy Transmission has secured >$5B of projects since 2023 (≈$8B regulated/secured capital total), transported ~2.9 Tcf/year (~8 Bcf/day), maintain an interest‑rate hedging program >$43B, and have secured panels and batteries through 2029, wind components through 2027 and transformer capacity through the end of the decade; Duane Arnold reentry remains on track no later than Q1 2029 and the company is advancing 9.5 GW of U.S.‑Japan gas projects under DoC selection.
Energy Resources Strong Quarter and Backlog Expansion
Energy Resources reported adjusted earnings growth of ~14% year-over-year and had a record quarter adding 4.0 GW of long-term contracted renewables and storage to backlog. Total backlog rose to ~33 GW (after ~0.3 GW placed into service since last call).
FPL Customer Growth and Operational Reliability
FPL added nearly 100,000 customers versus the prior year comparable period. First-quarter retail sales increased ~3.4% year-over-year (weather-normalized ~+0.3%). FPL delivers top-decile reliability (~68% better than national average) and has nonfuel O&M more than 71% lower than industry average.
FPL Capital Deployment and ROE
FPL reported Q1 capital expenditures of approximately $3.2 billion and expects full-year CapEx of $12–13 billion. Regulatory capital and growth of ~8.8% significantly contributed to FPL EPS growth. Reported regulatory return on equity for the 12 months ending March 2026 was ~11.7%.
Solar and Storage Build-Out
FPL placed ~600 MW of new owned solar into service in the quarter, bringing FPL's owned solar portfolio to over 8.5 GW. Energy Resources originated 1.3 GW of battery storage in the quarter and has a standalone and co-located battery pipeline >10 GW (excludes expansion opportunities).
Data Center Hub Wins and US-Japan Projects
U.S. Department of Commerce selected Energy Resources to build 9.5 GW of new gas-fired generation to serve large load tied to Japan's investment commitment. Energy Resources now has over 30 data center hubs (year-end goal ~40) and a base case target to secure 15 GW of new generation for large load by 2035 (upside 30+ GW).
Transmission and Pipeline Growth
NextEra Energy Transmission secured >$5 billion in new projects since 2023 and now has regulated and secured capital of ~$8 billion. Energy Resources has ownership interest in 1,000+ miles of FERC-regulated pipelines and expects combined electric and gas transmission to grow to $20 billion of regulated and investment capital by 2032 (implying ~20% CAGR off 2025).
Strategic Acquisition Strengthens Gas Supply
Acquisition of Symmetry Energy Solutions expands customer supply capabilities. NextEra now transports and delivers ~2.9 trillion cubic feet of natural gas annually (~8 Bcf/day), improving ability to serve wholesale, retail and industrial customers and support gas-fired development.
Rewire AI Initiative and Early Product Launches
Launched company-wide Rewire initiative in partnership with Google Cloud. Early AI products (Conduit, Generation Entitlement, Grid Composer) were brought to market in Q1 to improve field efficiency, detect abnormal equipment conditions, and optimize generation/dispatch — aimed at driving cost savings and operational improvements.
Supply Chain and Interest Rate Protections
Proactively secured panels and battery supply through 2029, key wind components through 2027, and sufficient transformer capacity through the end of the decade. Interest rate exposure mitigated by an over $43 billion interest rate hedging program.
Financial Guidance and Long-Term Targets
2026 adjusted EPS guidance maintained at $3.92–$4.02 (targeting the high end). Company targets adjusted EPS CAGR of 8%+ through 2032 (and 2032–2035 off 2025 base of $3.71) and dividend growth of ~10% through 2026 off 2024 base and ~6% per year from year-end 2026 through 2028.
Recontracting and Price Improvement
Recontracting momentum: up to 6 GW of renewables and 1.5 GW of nuclear recontracting opportunities through 2032. In Q1 the company contracted >600 MW of existing projects with average contract terms >18 years. Management noted new contract pricing roughly +$20/MWh versus prior realized pricing.
Operator
Good day, and welcome to the NextEra Energy, Inc. First Quarter 2026 Earnings Call. [Operator Instructions] Please note that today's event is being recorded. At this time, I would now like to turn the conference over to Mark Edelman, Director of Investor Relations. Please go ahead, sir.
Mark Eidelman
Good morning, everyone, and thank you for joining our first quarter 2026 Financial Results conference call for NextEra Energy. With me this morning are John Ketchum, Chairman, President and Chief Executive Officer of NextEra Energy; Mike Dunn, Executive Vice President and Chief Financial Officer of NextEra Energy; Armando Pimentel, Chief Executive Officer of Florida Power & Light Company; Scott Boris, President of Florida Power & Light Company; Brian Bolster, President and Chief Executive Officer of NextEra Energy Resources; and Mark Hickson, Executive Vice President of NextEra Energy. John will start with opening remarks and then Mike will provide an overview of our results. Our executive team will then be available to answer your questions. We will be making forward-looking statements during this call based on current expectations and assumptions, which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect because of other factors discussed in today's earnings news release and the comments made during this conference call in the Risk Factors section of the company presentation or in our latest reports and filings with the Securities and Exchange Commission, each of which can be found o...
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