NextEra Energy's 10-K report for the year ended December 31, 2024, reveals key financial insights. The company's net income attributable to NEE for 2024 was $6.95 billion, a decrease of $364 million from 2023. This translated to a lower earnings per share of $3.37 in 2024 compared to $3.60 in 2023.
The report highlights the performance of NEE's principal businesses, FPL and NEER. FPL's net income decreased by $9 million in 2024, primarily due to the absence of a gain on the sale of FPL's ownership interest in the FCG business in 2023 and a lower earned regulatory ROE in 2024. NEER's results decreased in 2024 due to unfavorable non-qualifying hedge activity compared to 2023, partly offset by higher earnings from new investments. NEER added approximately 1,365 MW of new wind generating capacity, 2,507 MW of solar generating capacity, and 755 MW of battery storage capacity in 2024.
The report also discusses adjusted earnings, a non-GAAP financial measure used by management for financial planning and analysis. For instance, the after-tax adjustments to net income considered in computing NEE's adjusted earnings in 2024 included net gains and losses associated with non-qualifying hedge activity, differential membership interests-related to NEER, XPLR investment gains, gain on disposal of a business, and impairment charges related to investment in Mountain Valley Pipeline.
Furthermore, the report provides insights into the company's effective income tax rate, which was approximately 6% in 2024 and 14% in 2023, reflecting the impact of renewable energy tax credits.
FPL's operating revenues decreased in 2024, primarily due to lower storm cost recovery revenues and lower fuel cost recovery revenues. The report also details FPL's retail base revenues, cost recovery clauses, and other items impacting FPL's consolidated statements of income, such as fuel, purchase power, and interchange expense, and depreciation and amortization expense.
In addition to financial performance, the report discusses the company's capital structure, the sources of funds to support and grow their businesses, and regulatory matters, such as the FPSC's approval of FPL's request to begin a surcharge to recover eligible storm costs and replenish the storm reserve.
The market has reacted to these announcements by moving the company's shares -0.7% to a price of $68.11. For the full picture, make sure to review NextEra Energy's 10-K report.
