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NEE

NextEra Energy (NEE) Reports 2026 Q2 Net Income of $3.144 Billion

NextEra Energy’s second-quarter 2026 results were driven by a sharp jump in non-utility earnings and continued growth at Florida Power & Light, lifting net income attributable to NEE to $3.144 billion, or $1.50 a share, from $2.028 billion, or $0.98, a year earlier.

For the first half of 2026, NEE reported net income attributable to shareholders of $5.326 billion, or $2.54 a share, up from $2.862 billion, or $1.39 a share in the first six months of 2025.

The biggest swing came from NEER, the company’s energy infrastructure arm. NEER posted second-quarter net income of $1.634 billion, up from $983 million a year earlier. For the six-month period, NEER earned $2.653 billion versus $1.155 billion in 2025. Management said the year-over-year increase reflected favorable non-qualifying hedge activity and higher earnings from new investments in the quarter, and for the half-year also the absence of a 2025 impairment charge tied to XPLR.

FPL, the regulated utility serving more than six million customer accounts in Florida, earned $1.412 billion in the second quarter, up from $1.275 billion. Six-month net income rose to $2.874 billion from $2.591 billion. The utility said the increase was driven primarily by continued investment in plant in service and other property.

FPL’s average rate base increased by about $6.8 billion in the second quarter and $6.6 billion in the first half compared with the same periods last year, helped by solar generation additions and ongoing transmission and distribution spending.

Retail base revenues at FPL rose $276 million in the quarter and $561 million for the half. Of that increase, $251 million in the quarter and $451 million in the half came from new retail base rates under the 2025 rate agreement. Customer accounts increased 1.5% in the quarter and 1.6% in the half, while average usage per retail customer fell 1.2% and 0.1%, respectively.

FPL’s operating revenues increased $188 million in the quarter and $462 million in the half. The revenue gain also included higher fuel revenues of $137 million in the quarter and $207 million in the half, plus storm protection plan cost recovery clause revenues of $47 million and $108 million. Those gains were partly offset by declines in storm cost recovery revenues of $309 million in the quarter and $556 million in the half as surcharges tied to Hurricanes Debby, Helene and Milton wound down.

Fuel, purchased power and interchange expense rose $133 million in the quarter and $190 million in the half, driven by higher net recognition of previously deferred fuel costs and, in the six-month period, higher usage.

Depreciation and amortization expense fell $51 million in the quarter, mainly because amortization of deferred storm costs dropped by about $309 million after the storm surcharges ended. That decline was partly offset by the reversal of RSM amortization and by higher plant balances.

FPL said it recorded a reversal of RSM amortization of about $110 million after tax in the quarter and $196 million after tax in the half. In the prior-year periods, it recorded reserve amortization of about $19 million pre-tax in the quarter and $641 million pre-tax in the half.

FPL reported a regulatory ROE of about 11.70% as of June 30, 2026, compared with 11.60% a year earlier.

Corporate and Other swung to income of $98 million in the quarter from a loss of $230 million a year earlier, and to a loss of $201 million for the half from a loss of $884 million. Management said the improvement was mainly due to favorable non-qualifying hedge activity, partly offset by higher interest expense from larger debt balances.

Adjusted earnings were also boosted by mark-to-market items. NEE reported after-tax gains of $640 million from non-qualifying hedge activity in the second quarter, versus a loss of $189 million a year earlier. For the first half, the gain was $596 million versus a loss of $701 million in 2025. NEER also had $134 million of after-tax gains from unrealized changes in equity securities in nuclear decommissioning funds in the quarter, compared with $54 million a year earlier.

The company said its effective income tax rate was about negative 3% in the second quarter of 2026, versus negative 19% a year earlier. For the first half, the rate was negative 15% versus negative 59% in 2025.

NEE also disclosed that in May 2026 it entered into a merger agreement with Dominion Energy.

On the regulatory side, FPL said non-signatories challenged the Florida Public Service Commission’s final order approving the 2025 rate agreement. The FPSC denied substantially all of a motion for reconsideration in April, and the matter is now pending before the Florida Supreme Court. In June, the court consolidated the appeals into a single proceeding. Following these announcements, the company's shares moved -0.42%, and are now trading at a price of $89.41. Check out the company's full 10-Q submission here.

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