U.S.-based power producer NextEra Energy reported operating revenue of $6.25 billion for the first quarter (Q1) of 2025, a 9% year-over-year (YoY) increase from $5.73 billion in Q1 2024. The revenue, however, missed analysts’ expectations by $384.23 million.

Net income attributable to NextEra Energy on a GAAP basis was $833 million, or $0.40 per share, down from $2.27 billion, or $1.10 per share, in Q1 2024. The decline reflected unfavorable mark-to-market impacts and other non-cash adjustments.

On an adjusted basis, NextEra Energy’s earnings grew 8.8% YoY, reaching $2.04 billion, or $0.99 per share, compared to $1.87 billion, or $0.91 per share, in the same period last year. The adjusted EPS figures beat analysts’ expectations by $0.01.

“We’re off to a strong start in 2025,” said John Ketchum, Chairman, President, and CEO. “This nearly 9% growth in adjusted EPS reflects solid financial and operational execution across both our utility and renewables platforms.”

Florida Power & Light (FPL)

The company’s regulated retail utility, FPL, reported revenue of $3.99 billion, up from $3.83 billion in Q1 2024. Net income rose to $1.32 billion, or $0.64 per share, from $1.17 billion, or $0.57 per share, in the same period last year. The growth was fueled by continued capital investment, with $2.4 billion spent in the quarter and an 8.1% increase in regulatory capital employed.

FPL also installed 894 MW of new solar capacity, bringing its total solar portfolio to more than 7.9 GW.

NextEra Energy Resources (NEER)

The company’s renewable business, NEER, reported revenue of $2.16 billion, up from $1.86 billion in Q1 2024. However, net income declined sharply to $172 million, or $0.08 per share, from $966 million, or $0.47 per share, a year earlier. The decline was largely due to mark-to-market hedge losses and investment revaluations.

On an adjusted basis, NEER earned $908 million, or $0.44 per share, compared to $828 million, or $0.40 per share, in the prior year. The renewables unit had a robust quarter, adding approximately 3.2 GW of new clean energy and storage projects to its backlog, pushing the total to around 28 GW.

Ketchum emphasized that renewables and battery storage are currently the lowest-cost form of power generation and can be deployed in just 12 to 18 months and serve as a “critical bridge” until other large-scale technologies, like new gas-fired plants, become viable.

The corporate and other segments recorded a loss of $655 million, or -$0.32 per share, compared to a gain of $130 million, or $0.06 per share, in Q1 2024. Adjusted losses for the segment were $186 million, or -$0.09 per share, versus -$127 million, or -$0.06, a year ago.

Outlook

NextEra reaffirmed its guidance for 2025, projecting adjusted earnings per share between $3.45 and $3.70. For 2026 and 2027, the company expects adjusted EPS to be in the ranges of $3.63 to $4.00 and $3.85 to $4.32, respectively. The company also plans to grow its dividend at a roughly 10% annual rate through at least 2026.

Ketchum also addressed current trade tensions and tariff-related disruptions. Unlike many smaller developers, NextEra said it has spent the last three years diversifying and domesticating its supply chain, ensuring solar panels are not sourced from countries affected by recent antidumping and countervailing duties.

“Because of our buying power, we’ve shifted most tariff risk to suppliers,” Ketchum noted. “Our $150 million tariff exposure is expected to be significantly reduced—possibly to zero—after customer discussions.”

Furthermore, NextEra has already secured U.S.-made batteries for a significant portion of its backlog, and the remaining battery supply comes from outside China, with tariff liability contractually assigned to suppliers.

Ketchum also revealed that it has nearly $37 billion in interest rate hedges, covering 100% of its backlog and a large portion of upcoming debt maturities. The programmatic hedging strategy includes swaps entered in early April, setting a hedged risk-free rate at approximately 3.9%.

The company expects to operate an over 70 GW renewables and storage portfolio by the end of 2027.

NextEra Energy reported a 21.69% YoY drop in consolidated revenue to $5.38 billion in the fourth quarter of 2024 from $6.88 billion.