NextEra Energy, Inc. lit up its third quarter with strong profits, as it prepares to expand its nuclear fleet to serve AI data centers and boost power rates in Florida, one of its largest markets.
The Florida-based electric utilities firm reported a 9.71% increase in adjusted earnings to $2.35 billion, or $1.13 per share, from the same period last year. Revenues also grew by 5.27% to $7.97 billion, albeit shy of Wall Street estimates.
The results came just after the announcement of a 25-year power purchase agreement that will fuel Google’s AI data centers in Iowa as NextEra — the country’s largest electric utility by market capitalization — restarts its 615-megawatt Duane Arnold Energy Center. Duane Arnold, the state’s only nuclear facility, is expected to become operational by 2029.
“The restart had been rumored to be out there, but now we have an official announcement,” said James West, head of energy and power at Melius Research. “That’s a key driver for the next leg of the story.”
“The company continues to execute extremely well,” West said, adding that the power demand cycle will continue past the middle of the next decade.
Stock price closed at $83.57 on earnings day — a slight 2.85% dip from the previous day’s 52-week record of $86.03, when investors were amped up by the company’s pact with Google.
The company’s bull run was “warranted but now close to priced in,” Nicholas Campanella, an analyst at Barclays, said in a note.
NextEra chief executive and president John Ketchum said in a call for investors on Tuesday that the U.S. is in “a golden age of power demand” and the company is “uniquely positioned” to lead it. Aside from an expansion of its nuclear fleet, Ketchum said, the company also plans to invest in its solar and battery storage portfolio.
In its latest financial statements, NextEra estimates capital expenditures of $3.3 billion for nuclear from both its subsidiaries, Florida Power & Light (FPL) Company and NextEra Energy Resources, for the remainder of 2025 through 2029. For the same period, capex for solar is projected at $14.5 billion.
FPL has an ongoing proceeding for an increase in base rates, to be implemented in January next year. State regulators will announce a settlement decision by November. West expects a cost of capital of at least 10 percent. “It’ll be a fair deal for both sides, not overly punitive to NextEra or to consumers,” he said.
NextEra forecasts adjusted earnings per share (EPS) to more than triple, reaching the range of $3.45 to $3.70, by the end of the year, with further growth of up to $4.32 by 2027. Based on 2024 figures, the company also expects to grow its dividends per share at roughly 10% annually through at least 2026.
Analysts maintain a buy rating for NextEra, and expect the electric utilities firm to finish the year with up to 8% EPS growth and stock price at $91.