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By Brian Nelson, CFA
NextEra Energy (NEE) announced on April 23 mixed first quarter results that showed a beat on the bottom line, but a miss on the top line relative to expectations. The results would soon be overshadowed by its deal with Dominion Energy (D), announced a few weeks later. Still, on an adjusted basis, NextEra Energy’s first quarter earnings were solid, coming in at $2.275 billion, or $1.09 per share, compared to $2.038 billion or $0.99 per share in the first quarter of 2025. Management had the following to say about the first quarter results:
NextEra Energy is off to a terrific start for the year, delivering strong first-quarter results, with adjusted earnings per share increasing by 10% year-over-year. These results reflect continued strong financial and operational performance across FPL and NextEra Energy Resources as America’s electricity demand continues to increase. NextEra Energy builds all forms of energy infrastructure and has experience across the entire energy value chain at massive scale with a balance sheet to back it up. Our customers turn to us because they know we have an unmatched track record of building affordable and reliable energy infrastructure decade after decade. With a service area that spans 49 states and with more than 12 ways to grow, NextEra Energy was built for this seminal moment. Importantly, our forecasted growth is visible and balanced between our regulated and long-term contracted businesses…
On May 18, NextEra announced that it and Dominion Energy would combine in a stock-for-stock transaction, creating the world’s largest regulated electric utility business by market capitalization. NextEra is in a great position for continued growth. The company expects the deal to be immediately accretive to adjusted earnings per share, with approximately 9%+ adjusted earnings per share growth expected through 2035, off of NextEra Energy’s 2025 base expectations. In addition, management expects to grow its dividend 6% annually through 2028, resulting in an expected dividend payout ratio below 55% by 2030. We liked the first-quarter results and the deal for Dominion, and we continue to include NextEra Energy in the ESG Newsletter portfolio.
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Brian Nelson owns shares in SPY, SCHG, QQQ, QQQM, DIA, VOT, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, QQQM, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, RSP, SCHG, QQQ, QQQM, and VOO. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
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