NextEra Energy

Overview

NextEra Energy is the largest electric power and energy infrastructure company in North America, with roughly 80 gigawatts of net generation and storage capacity at the end of 2025. It operates through two principal subsidiaries: Florida Power & Light, the largest rate-regulated electric utility in the United States, and NextEra Energy Resources, the world's largest generator of renewable energy from wind and sun and the largest energy infrastructure development company in the country.

On May 18, 2026, NextEra agreed to acquire Dominion Energyin an all-stock transaction valued at approximately $66.8 billion, the largest power-sector merger on record. Dominion shareholders receive 0.8138 NextEra shares per share plus a pro-rata portion of $360 million in cash, leaving NextEra holders with 74.5% of the combined company. The combination would create the world's largest regulated electric utility, serving roughly 10 million customers across Florida, Virginia, and the Carolinas with about 110 gigawatts of generation. John Ketchum leads the combined company as chairman and CEO, with Dominion's Robert Blue as president and CEO of regulated utilities, dual headquarters in Juno Beach and Richmond, and $2.25 billion of customer bill credits pledged. Closing is targeted for the second half of 2027, pending approvals from the Virginia, North Carolina, and South Carolina commissions, FERC, the NRC, antitrust clearance, and both shareholder bases. Early friction has surfaced: as of late June 2026 the FERC application had not been filed, Senator Angus King publicly urged FERC to reject the deal, and Virginia officials are pressing for an extended state review.

NextEra is led by Chairman, President, and CEO John Ketchum. It is headquartered in Juno Beach, employs more than 17,000 people, and has traded on the NYSE since the early 1980s, originally as FPL Group before the 2010 rebrand.

Business segments

Financial performance

NextEra reported FY2025 revenue of $27.4 billion, up from $24.8 billion. GAAP net income was $6.835 billion, or $3.30 per share, slightly below FY2024 on mark-to-market and other non-operating items, while adjusted earnings rose to $7.683 billion, or $3.71 per share, adjusted EPS growth of about 8.2% that beat the top of the guidance range. Q1 2026 continued the pattern with adjusted earnings of $2.275 billion, up 10%, and GAAP net income of $2.182 billion.

Guidance for 2026 calls for adjusted EPS of $3.92 to $4.02, with the company targeting the high end. The longer-term frame was extended and raised: NextEra expects adjusted EPS to compound at 8% or more annually through 2032, and targets the same rate from 2032 through 2035, all off the 2025 base. Dividends per share are set to grow at roughly 10% a year through 2026 off a 2024 base, then about 6% a year from year-end 2026 through 2028. The yield was roughly 2.8% at the mid-2026 share price of about $88, a market capitalization of approximately $184 billion.

Strategy & outlook

Strategy is anchored in electricity demand growth from data centers, AI, industrial reshoring, and electrification. In December 2025, NextEra and Google Cloud announced a partnership spanning gigawatt-scale data center campuses, with the first three in development, two long-term PPAs adding 600 MW in Oklahoma, and a plan to build 15 GW of new generation for its data center hubs by 2035; more than 3.5 GW is already operating or under contract with Google. In March 2026, the Department of Commerce selected NEER to build 9.5 GW of new gas-fired generation in Texas and Pennsylvania under the U.S.-Japan trade deal, with the two governments owning the projects and NEER developing, building, and operating them; definitive agreements were still being negotiated as of the Q1 2026 call. The data center hub portfolio exceeds 30 sites, with a year-end goal of roughly 40.

NEER's roughly 33 GW backlog provides multi-year growth visibility. NextEra keeps investing heavily in solar, wind, battery storage, and increasingly gas-fired generation through NEER, while FPL focuses on grid modernization, storm hardening, and solar across Florida. Nuclear is moving from exploration to execution with the Duane Arnold restart. The Dominion acquisition, if completed, would extend the model into Virginia and the Carolinas, including Dominion's roughly 48.5 GW of contracted data-center capacity in the world's largest data-center market.

Key considerations

Scale in renewables is a competitive advantage that also concentrates policy risk. The One Big Beautiful Bill Act of July 2025 accelerated the phase-out of federal tax credits for new wind and solar. NextEra says its construction starts cover development expectations through 2029 under the four-year continuity safe harbor, and that projects begun before the end of 2025 avoid the law's foreign-entity restrictions, and the post-2029 economics of new renewables depend on execution and market prices rather than assured credits.

The Dominion transaction adds a second layer of risk: a multi-jurisdiction approval gauntlet running into the second half of 2027, early political opposition at FERC and in Virginia, and the challenge of integrating the two largest utility franchises in the country. Separately, FPL operates in a hurricane-prone region, which brings periodic storm recovery costs and regulatory proceedings, and its newly approved rate settlement faces a threatened appeal to the Florida Supreme Court. Interest rates affect the cost of capital for large-scale development and a heavy ongoing capital program.

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