01—Abstract
Summary
Summary of the 8-K filed January 24, 2025. Cited figures are marked; the original filing is the authoritative source.
NextEra Energy (NEE) reported fourth-quarter and full-year 2024 results on January 24, 2025.
For full-year 2024, GAAP net income attributable to NextEra was $6.946 billiona ($3.37 per share), down from $7.310 billion ($3.60) in 2023, while adjusted earnings rose to $7.063 billion ($3.43 per share), up about 8.2% from $3.17. Adjusted results strip out items such as non-qualifying hedge gains and losses, XPLR Infrastructure investment gains, and nuclear decommissioning fund mark-to-market changes. Fourth-quarter GAAP EPS was $0.58 versus $0.59 a year earlier, and adjusted EPS was $0.53 versus $0.52.
FPL, the regulated utility, was the steady driver. Full-year 2024 adjusted earnings were $4.543 billionb ($2.21 per share), up from $4.251 billion ($2.09), and capital investment reached about $8.2 billion, with regulatory capital employed growing roughly 10%. FPL filed a test year letter for a nearly year-long rate case covering new base rates from January 2026.
Its proposed four-year plan implies an average annual increase of about 2.5% in typical residential bills from 2025 through 2029. NextEra Energy Resources (NEER) posted GAAP losses in the fourth quarter, largely due to equity-method and XPLR-related items, but adjusted earnings were $446 millionc ($0.22 per share). The segment set a record for origination, adding more than 12 GW to its backlog, which now exceeds 25 GW.
It also began the NRC licensing process to potentially restart the Duane Arnold nuclear plant as early as the end of 2028. Management reaffirmed its long-term outlook: 2025 adjusted EPS of $3.45 to $3.70d, 2026 of $3.63 to $4.00, and 2027 of $3.85 to $4.32. It also expects roughly 10% annual dividend growth through at least 2026, off a 2024 base.
The company said it expects to land at or near the top of its EPS ranges each year through 2027 while maintaining its balance sheet and credit ratings. Investors should weigh the gap between strong adjusted results and weaker GAAP figures, which are sensitive to hedge marks and XPLR-related gains.
02—Key points
Key Highlights
- Full-year 2024 adjusted EPS of $3.43, up about 8.2% from $3.17 in 2023, at the top end of the company's expectations range; GAAP EPS fell to $3.37 from $3.60.
- FPL adjusted full-year 2024 earnings of $4.543 billion ($2.21/share), up from $4.251 billion, with about $8.2 billion of capital investment and roughly 10% growth in regulatory capital employed.
- NEER set a record origination year with more than 12 GW added to backlog, which now totals over 25 GW; it placed roughly 6 GW into service over the last four quarters.
- FPL plans a rate case for base rates effective January 2026, proposing an average annual increase of about 2.5% in typical residential bills from 2025 through 2029.
- Duane Arnold nuclear plant in Iowa: NEER filed an NRC licensing change request, with a potential restart as early as the end of 2028.
- Outlook unchanged: 2025 adjusted EPS of $3.45 to $3.70, 2026 of $3.63 to $4.00, 2027 of $3.85 to $4.32, and dividend growth of roughly 10% per year through at least 2026.
- Fourth-quarter GAAP NEER result was a loss of $442 million ($0.21/share), driven by equity-method losses and non-qualifying hedge effects, while adjusted NEER earnings were $446 million ($0.22/share).
03—Questions
Frequently Asked Questions
Why does GAAP EPS differ from adjusted EPS for NextEra in 2024?
GAAP results include mark-to-market effects from non-qualifying hedges, changes in unrealized gains and losses on nuclear decommissioning fund equity securities, and XPLR Infrastructure investment gains. Management excludes these from adjusted earnings to show underlying earnings power. In 2024, the non-qualifying hedge gains and XPLR-related items were large enough to move the GAAP and adjusted figures in opposite directions.
What drove FPL's earnings growth in 2024?
FPL's growth came mainly from smart capital investment, with about $8.2 billion invested in 2024 and regulatory capital employed up about 10%. Adjusted full-year earnings rose to $4.543 billion from $4.251 billion. Fourth-quarter FPL GAAP and adjusted earnings were both $845 million, a decline from the prior year's GAAP figure, which included a one-time gain on disposal of a business.
What is the outlook for NextEra's earnings and dividends?
NextEra reaffirmed adjusted EPS guidance of $3.45 to $3.70 for 2025, $3.63 to $4.00 for 2026, and $3.85 to $4.32 for 2027. It expects to land at or near the top of these ranges each year through 2027. It also expects dividends per share to grow roughly 10% annually through at least 2026, off a 2024 base.
What does the upcoming FPL rate case mean for customers and investors?
FPL filed a test year letter in December 2024 to start a nearly year-long proceeding for new base rates effective January 2026. Its proposed four-year plan implies an average annual increase of about 2.5% in typical residential bills from January 2025 through 2029. FPL says bills would remain well below the national average and below many other Florida utilities. Investors should watch the approved return on equity and the outcome of the proceeding.
What is the status of NextEra Energy Resources' growth pipeline?
NEER added more than 12 GW of renewables and storage to its backlog in 2024, its best origination year for the third straight year, and its backlog now exceeds 25 GW. Demand is driven by power and commercial and industrial customers seeking least-cost supply. The company also placed roughly 8.7 GW of new renewables and storage into service across the enterprise in 2024.
04—Continue