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NEXTERA ENERGY INC 8-K Report, Financial Results (Jan 25, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 25, 2024
Period End
January 25, 2024
In the record · 2016–202610-K1110-Q338-K225

NEE filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 225 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Jul ’18Jul ’18
  2. Leadership change8-K · May ’22May ’22
  3. Leadership change8-K · May ’26May ’26

01—Abstract

Summary

Summary of the 8-K filed January 25, 2024. Cited figures are marked; the original filing is the authoritative source.

NextEra Energy (NEE) reported fourth-quarter and full-year 2023 results that beat the top end of its adjusted earnings per share expectations, per CEO John Ketchum.

For full-year 2023, GAAP net income attributable to NextEra Energy rose to $7.310 billiona ($3.60 per share) from $4.147 billion ($2.10) in 2022. Adjusted earnings, which exclude non-qualifying hedges, NEP investment gains, and other items, rose to $6.441 billion ($3.17 per share) from $5.742 billion ($2.90), growth of about 9.3%. The GAAP figures are inflated by large non-cash items, so adjusted earnings are the better guide to underlying performance.

Fourth-quarter GAAP EPS was $0.59b versus $0.76 a year earlier, while adjusted EPS was $0.52 versus $0.51. The two segments drove the results. Florida Power & Light (FPL) earned adjusted net income of $4.251 billion ($2.09 per share) for 2023, flat with the prior-year GAAP base and growing from investment, with capital expenditures of roughly $9.4 billion and regulatory capital employed up about 12.5%.

NextEra Energy Resources (NEER) earned adjusted net income of $2.757 billionc ($1.36 per share), up about 12.9%, and originated a record roughly 9,000 MW of new renewables and storage projects, bringing its backlog above 20 GW. Corporate and Other was a drag, with adjusted EPS of -$0.28 for the year. The Q4 GAAP results also include a $406 million pretax gain on the disposal of a business, which is excluded from adjusted earnings.

Management reaffirmed its long-term outlook, with 2024 adjusted EPS guidance of $3.23 to $3.43d, and expects 6% to 8% annual growth in 2025 and 2026 off the 2024 base, implying $3.45 to $3.70 for 2025 and $3.63 to $4.00 for 2026. It also expects dividend growth of roughly 10% per year through at least 2024, measured from a 2022 base. The filing is a Form 8-K furnishing the earnings release under Item 2.02, and the financial data is labeled preliminary and unaudited.

02—Key points

Key Highlights

  1. Full-year 2023 adjusted EPS of $3.17 rose about 9.3% from $2.90 in 2022, and management said results exceeded the high end of its adjusted EPS expectations range.
  2. Full-year 2023 GAAP EPS of $3.60 compares with $2.10 in 2022, but the increase is driven largely by non-qualifying hedge gains, NEP investment gains, and other items that are excluded from adjusted earnings.
  3. FPL delivered 2023 adjusted net income of $4.251 billion ($2.09 per share), with about $9.4 billion of capital investment and regulatory capital employed up roughly 12.5%.
  4. NEER reported 2023 adjusted net income of $2.757 billion ($1.36 per share), up about 12.9%, and added roughly 9,000 MW of new renewables and storage to its backlog, a record for origination.
  5. NEER's backlog now exceeds 20 GW after more than 5,600 MW was placed into service in 2023.
  6. 2024 adjusted EPS guidance of $3.23 to $3.43 was unchanged, with projected 6% to 8% annual growth for 2025 and 2026 implying $3.45 to $3.70 and $3.63 to $4.00.
  7. Dividend growth guidance of roughly 10% per year through at least 2024, off a 2022 base, was reaffirmed.

03—Questions

Frequently Asked Questions

  1. Did NextEra Energy beat its earnings expectations for 2023?

    Yes. Management said 2023 adjusted EPS of $3.17 exceeded the high end of its adjusted EPS expectations range, reflecting strong operational and financial performance at both FPL and NEER.

  2. Why is GAAP EPS so much higher than adjusted EPS for 2023?

    GAAP EPS of $3.60 includes gains from non-qualifying hedges, NEP investment gains, and a $406 million pretax gain on a business disposal, along with unrealized gains on nuclear decommissioning fund equity securities. Adjusted EPS of $3.17 excludes these items, so it better reflects recurring earnings power. Investors should weigh the two measures together.

  3. What is the earnings outlook for 2024 through 2026?

    NextEra expects 2024 adjusted EPS of $3.23 to $3.43. For 2025 and 2026, it expects 6% to 8% annual growth off the 2024 range, which implies $3.45 to $3.70 for 2025 and $3.63 to $4.00 for 2026. Management said it expects to deliver results at or near the top of these ranges.

  4. How are the two main segments performing?

    FPL, the regulated Florida utility, earned $4.251 billion in adjusted 2023 net income on roughly $9.4 billion of capital investment. NEER, the competitive clean energy business, earned $2.757 billion in adjusted net income, up about 12.9%, and built a backlog of more than 20 GW of renewables and storage.

  5. What is the dividend outlook?

    NextEra expects to grow its dividend per share at roughly 10% per year through at least 2024, measured from a 2022 base. The filing notes that dividend amounts and policy are at the discretion of the board and may be lower than shareholders expect.

04—Continue

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