NextEra Energy's latest 10-Q report for the three months ended March 31, 2025, reveals significant changes in its financial performance compared to the prior year period. The net income attributable to NEE decreased by $1,435 million, primarily driven by lower results at NextEra Energy Resources (NEER) and Corporate and Other, partly offset by higher results at Florida Power & Light Company (FPL).
FPL's net income for the three months ended March 31, 2025, increased to $1,316 million from $1,172 million in the prior year period. This growth was primarily driven by continued investments in plant in service and other property, including solar generation additions and ongoing transmission and distribution additions. FPL also earned an approximately 11.60% and 11.80% regulatory return on equity (ROE) on its retail rate base for the periods ending March 31, 2025, and March 31, 2024, respectively.
On the other hand, NEER's results decreased by $794 million for the three months ended March 31, 2025. This decline was primarily attributed to an impairment charge related to the investment in XPLR, unfavorable changes in the fair value of equity securities in NEER's nuclear decommissioning funds, and unfavorable non-qualifying hedge activity compared to 2024, partly offset by higher earnings from new investments.
The report also highlights that NEE prepares its financial statements under Generally Accepted Accounting Principles (GAAP) but also uses adjusted earnings, a non-GAAP financial measure, internally for financial planning, performance analysis, and reporting to the Board of Directors. Adjusted earnings are believed to provide a more meaningful representation of NEE's fundamental earnings power.
Furthermore, the report discusses the impact of various federal and regional activities, including executive orders, proposed rulemakings, and potential federal legislation, which could affect demand for new generation and prices for electricity, as well as impact tax laws and international trade.
As a result of these announcements, the company's shares have moved 0.9% on the market, and are now trading at a price of $67.25. Check out the company's full 10-Q submission here.
