NextEra Energy Q2 revenue misses estimates; maintains FY adjusted EPS outlook

Overview

• US electric utility's Q2 revenue fell and missed analyst expectations

• Adjusted EPS for Q2 rose 9.5% yr/yr

• Company advanced Dominion Energy merger by filing for regulatory approvals

Outlook

• NextEra Energy expects 2026 adjusted EPS of $3.92 to $4.02, targeting the high end

• Company maintains 8%+ annual adjusted EPS growth target through 2032, same target through 2035

• Company expects to grow dividends per share by about 10% per year through 2026, then 6% annually through 2028

Result Drivers

• CAPITAL INVESTMENT - FPL's Q2 growth was driven by disciplined capital investments, with regulatory capital employed up 9.3% yr/yr

• RENEWABLES ORIGINATION - NextEra Energy Resources added 3.6 GW of new renewables and storage to its backlog, including 2 GW of battery storage

• CUSTOMER GROWTH - FPL added more than 90,000 customers in Q2 and continues to see strong interest from large-load customers such as hyperscalers

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy"

• Wall Street's median 12-month price target for Nextera Energy Inc is $96.00, about 6.9% above its July 23 closing price of $89.79

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 23 three months ago

Reuters Recommended Reads

• July 23 - Utility PG&E beats quarterly profit estimates on higher rates

• July 22 - Brookfield to buy battery storage firm Aypa Power in $3 billion equity deal

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)