NextEra Energy: Q4 Earnings Snapshot - Strong Performance and Renewable Energy Growth
Friday, Jan 24, 2025 7:54 am ET
4min read NextEra Energy, Inc. (NYSE: NEE) reported its fourth-quarter and full-year 2024 financial results on January 24, 2025, showcasing strong operational and financial performance across both its Florida Power & Light (FPL) and NextEra Energy Resources (NEER) segments. The company's diversified business model and massive scale in renewable energy continue to position it well for long-term growth.
Fourth-Quarter and Full-Year 2024 Financial Results
* NextEra Energy reported net income attributable to NextEra Energy on a GAAP basis of $1.203 billion, or $0.58 per share, for the fourth quarter of 2024, compared to $1.210 billion, or $0.59 per share, for the same period in 2023.
* On an adjusted basis, NextEra Energy's 2024 fourth-quarter earnings were $1.095 billion, or $0.53 per share, compared to $1.067 billion, or $0.52 per share, in the fourth quarter of 2023. Analysts expected EPS of $0.52 for the quarter, so NextEra Energy's adjusted EPS of $0.53 was slightly above expectations.
* For the full year 2024, NextEra Energy reported net income attributable to NextEra Energy on a GAAP basis of $6.946 billion, or $3.37 per share, compared to $7.310 billion, or $3.60 per share, in 2023. On an adjusted basis, NextEra Energy's full-year 2024 earnings were $7.063 billion, or $3.43 per share, compared to $6.441 billion, or $3.17 per share, in 2023, representing year-over-year growth in adjusted earnings per share of approximately 8.2%.
Key Drivers Behind NextEra Energy's Q4 Earnings Performance
1. Strong operational and financial performance at both FPL and NEER: NextEra Energy achieved an adjusted EPS of $3.43, up more than 8% from the prior year, driven by successful execution of the company's capital plan while maintaining a strong balance sheet and credit ratings.
2. Commissioning of new renewables and storage projects: NextEra Energy commissioned approximately 8.7 gigawatts (GW) of new renewables and storage projects across FPL and NEER in 2024, expanding its renewable energy portfolio and contributing to the growth in adjusted EPS.
3. Growth in FPL's contribution to adjusted EPS: FPL's full-year contribution to adjusted EPS increased by 12 cents over the prior year, driven by smart capital investments in low-cost solar generation and battery storage, which reduced overall fuel costs and saved customers nearly $16 billion since 2001.
4. NEER's record year of new renewables and storage origination: NEER added more than 12 GW of new renewables and storage to the backlog in 2024, including approximately 3.3 GW since the fourth-quarter 2023 earnings call. This growth in the backlog contributed to the increase in adjusted EPS.
Capital Expenditure (CapEx) Strategy and Long-Term Returns
NextEra Energy's capital expenditure (CapEx) strategy has significantly contributed to its financial performance, with the company's capital investments focusing on smart grid technology, low-cost solar generation, and battery storage. These investments have helped FPL avoid more than 2.7 million customer outages in 2024 and commission over 2.2 GW of new, cost-effective solar. In addition, NEER had another record year of new renewables and storage origination, adding more than 12 GW to its backlog in 2024.
The long-term returns on these investments are expected to be significant, as NextEra Energy's strategy emphasizes acquiring, managing, and owning contracted clean energy assets with stable, long-term cash flows. The company's focus on renewable energy projects, such as wind, solar, and solar-plus-storage, is aligned with the growing demand for clean energy and the increasing power demand in the U.S. As a result, NextEra Energy is well-positioned to capitalize on the opportunity set that lies ahead and deliver financial results at or near the top of its adjusted earnings per share expectations ranges in each year through 2027, while maintaining its strong balance sheet and credit ratings.
In conclusion, NextEra Energy's strong operational and financial performance in the fourth quarter and full year 2024, driven by its capital expenditure strategy and renewable energy growth, positions the company well for continued success in the long term. With its diversified business model and massive scale in renewable energy, NextEra Energy remains a cornerstone in any clean energy-focused portfolio.
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