NextEra Energy Reports Mixed Q4 Results, Enters Partnership With GE Vernova For Grid Solutions

NextEra Energy Inc NEE shares are trading higher after it reported fourth-quarter FY24 results.

Revenue of $5.385 billion missed the estimate of $7.525 billion and adjusted EPS of $0.53 was in line with the consensus.

Operating income declined to $941 million from $2.660 billion in the year-ago quarter.

Florida Power & Light Company (FPL) segment adjusted net income declined slightly to $845 million from $846 million in the third quarter of 2023.

Meanwhile, Next Energy Resources’ adjusted earnings rose to $446 million from $361 million in the fourth quarter of 2023.

Cash flows from operating activities for the year totaled $13.260 billion, compared to $11.301 billion a year ago. As of December 31, 2024, cash and cash equivalents stood at $1.487 billion.

Outlook: For FY25, NextEra Energy continues to expect adjusted EPS of $3.45-$3.70. vs. consensus of $3.68.

Also, NextEra Energy expects adjusted EPS of $3.63-$4.00 in 2026 and $3.85-$4.32 in 2027.

The company also expects to grow its dividends per share by approximately 10% annually through at least 2026, based on a 2024 baseline. In addition, NextEra Energy’s long-term financial expectations remain unchanged.

John Ketchum, chairman, president and chief executive officer, said, “Continuing our track record of providing long-term value for shareholders, we have delivered compound annual growth in adjusted earnings per share of more than 10% since 2021 and of approximately 10% over the past 10 years, both of which are the highest among all top-10 power companies.”

”Given the strength of both of our businesses, we will be disappointed if we are not able to deliver financial results at or near the top of our adjusted earnings per share expectations ranges in each year through 2027, while maintaining our strong balance sheet and credit ratings.”

Read: NextEra Energy: Charging Into Q4 Earnings — Will Clean Energy’s Powerhouse Keep Its Momentum?

During the earnings call, the company stated that it inked a framework agreement with GE Vernova Inc. GEV to develop natural gas-powered generation solutions.

This partnership is expected to support multiple gigawatts of capacity for data centers, manufacturing reshoring, industrial electrification, and various energy customers, including utilities and commercial sectors.

Over the next four years, both companies plan to collaborate to identify key grid locations for new generation.

GE Vernova will provide advanced natural gas technologies and electrification solutions, while NextEra Energy will integrate renewable, storage, and gas-fired generation solutions for large energy loads.

Also, NextEra requested U.S. regulators for a licensing change for the Duane Arnold nuclear plant to potentially restart the Iowa facility and aims to revive the reactor by the end of 2028.

Investors can gain exposure to the stock via SPDR Select Sector Fund – Utilities XLU and Vanguard Utilities ETF VPU.

Price Action: NEE shares are up 4.66% at $72.46 at last check Friday.

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