Form 10-K: Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Fiscal Year Ended December 31, 2024
NextEra Energy, Inc. and its subsidiary, Florida Power & Light Company, filed their annual report for the fiscal year ended December 31, 2024. The report highlights the companies’ financial performance, with NextEra Energy, Inc. reporting net income of $6.3 billion and total assets of $143.4 billion. Florida Power & Light Company reported net income of $2.1 billion and total assets of $44.4 billion. The companies also provided information on their cash flows, capital expenditures, and debt levels. Additionally, the report includes information on the companies’ executive compensation, corporate governance, and risk management practices.
Overview of NextEra Energy’s Financial Performance
NextEra Energy (NEE) is a leading energy company that operates through its subsidiaries Florida Power & Light (FPL) and NextEra Energy Resources (NEER). In 2024, NEE reported net income of $6.95 billion, down from $7.31 billion in 2023. The decrease was primarily due to lower results at FPL and NEER, partially offset by higher results at the corporate level.
FPL, the regulated electric utility, saw its net income decrease by $9 million in 2024. This was driven by the absence of a gain from the sale of its Florida City Gas business in 2023 and a lower earned regulatory return on equity (ROE), partially offset by continued investments in its electric system.
NEER, the competitive energy business, had a $1.26 billion decrease in net income. This was mainly due to unfavorable changes in the fair value of certain hedging contracts compared to 2023, partially offset by higher earnings from new renewable energy projects that came online.
The corporate and other segment saw a $904 million increase in results, primarily due to favorable changes in the fair value of interest rate hedging instruments.
Revenue and Profit Trends
FPL’s operating revenues decreased by $1.35 billion in 2024, mainly due to lower storm cost recovery revenues and lower fuel cost recovery revenues, partially offset by an increase in retail base revenues. Retail base revenues grew by $272 million, driven by a 1.9% increase in customer accounts and new retail base rates, partially offset by a 0.5% decrease in average usage per customer.
Fuel, purchased power and interchange expense at FPL decreased by $573 million in 2024 due to lower fuel and energy prices. Depreciation and amortization expense decreased by $962 million, primarily reflecting lower amortization of deferred storm costs and lower reserve amortization, partially offset by higher plant in service.
At NEER, operating revenues decreased by $2.13 billion, mainly due to the impact of non-qualifying hedges as a result of changes in energy prices, partially offset by increased revenues from new renewable energy projects. Operating expenses increased by $932 million, primarily due to higher depreciation, operations and maintenance, and fuel costs associated with NEER’s business growth.
Strengths and Weaknesses
A key strength of NEE is its diversified business model, with the regulated utility FPL providing stable earnings and the competitive NEER business driving growth through investments in renewable energy projects. FPL continues to benefit from a constructive regulatory environment in Florida and ongoing investments to modernize its electric system.
However, NEE’s results can be impacted by volatility in commodity prices and changes in the fair value of hedging contracts, as seen in NEER’s performance. The company is also exposed to risks associated with the construction and operation of its power generation assets, as well as potential changes in government policies and regulations.
Table 1: NEE’s Key Financial Metrics
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income ($ millions) | 6,946 | 7,310 |
| Earnings per Share | $4.38 | $4.61 |
| Return on Equity | 11.8% | 12.5% |
| Dividend per Share | $2.67 | $2.39 |
Outlook and Future Prospects
Looking ahead, NEE is well-positioned to continue growing its business. FPL is expected to benefit from further investments in its electric infrastructure and the potential for a new base rate proceeding. NEER is poised for continued growth in renewable energy, with a strong project development pipeline and the potential for additional acquisitions and joint ventures.
However, the company will need to navigate challenges such as rising interest rates, potential changes in government policies, and the ongoing transition to a lower-carbon economy. Effective risk management, disciplined capital allocation, and a focus on operational excellence will be critical to NEE’s future success.
Overall, NEE remains a leading energy company with a diversified business model and a strong track record of financial performance. While near-term results may be impacted by external factors, the company’s long-term growth prospects appear favorable as it continues to invest in the clean energy transition.
