NextEra Energy Begins Construction of New Wind, Solar Projects to Qualify for Tax Credits

NextEra Energy reported Q2 net profit of $2.03B, a 25% increase YoY, and revenue of $6.7B, a 10% increase YoY. However, the company's earnings guidance through 2027 failed to impress investors, leading to a 6.2% drop in share price on Wednesday. The company is starting new wind and solar project construction in an effort to qualify for tax credits.

NextEra Energy Inc. (NEE) reported its second-quarter 2025 earnings on Wednesday, with a net profit of $2.03 billion, representing a 25% increase year-over-year (YoY). The company's revenue climbed to $6.7 billion, up 10% from the same period last year. However, the company's earnings guidance for the next three years failed to impress investors, leading to a 6.2% drop in share price on Wednesday.

NextEra's performance was driven by robust growth in its renewables division, which added about 3.2 gigawatts of new renewables and storage to its backlog during the quarter, including over 1 gigawatt serving hyperscalers [2]. The company's regulated utility, Florida Power & Light (FPL), reported a net income of $1.28 billion, up 4% from a year earlier.

Despite the strong Q2 performance, investors were disappointed by the company's guidance. NextEra expects its adjusted earnings per share to range between $3.45 and $3.70 for 2025, $3.63 and $4.00 for 2026, and $3.85 and $4.32 for 2027. Analysts had been expecting higher earnings, leading to a sell-off in the company's shares.

The company is also starting new wind and solar project construction to qualify for tax credits that are being phased out under President Donald Trump's new tax-and-spending bill [3]. NextEra expects these projects to cover its development expectations through 2029.

NextEra's Chief Executive John Ketchum acknowledged the challenges posed by the executive order, stating, "Let's just see how it's actually applied in practice" [1].

References:
[1] https://www.reuters.com/business/energy/nextera-beats-quarterly-profit-estimates-massive-power-demand-2025-07-23/
[2] https://www.gurufocus.com/news/2996792/nextera-energy-q2-2025-earnings-eps-surpasses-estimates-at-105-revenue-falls-short-at-67-billion
[3] https://www.bloomberg.com/news/articles/2025-07-23/nextera-s-new-wind-solar-project-starts-gird-against-trump-tax-rollback