Executive Summary

Adjusted EPS of $0.99 grew ~9% YoY and modestly beat consensus, while GAAP EPS fell to $0.40 on hedging and investment effects; revenue of $6.25B missed consensus, with strong FPL offset by Corporate & Other . EPS estimate: $0.9784* vs actual $0.99; revenue estimate: $6.631B* vs actual $6.247B. Values retrieved from S&P Global.
FPL delivered robust results: net income $1.316B (+12% YoY), 894 MW solar placed in service (owned/operated solar now >7.9 GW), regulatory capital employed +8.1% YoY; NEER added ~3.2 GW to backlog (~28 GW total) and adjusted earnings rose to $908M .
Guidance unchanged: 2025 adjusted EPS $3.45–$3.70, 2026: $3.63–$4.00, 2027: $3.85–$4.32; dividend growth targeted ~10% annually through at least 2026. Quarterly dividend set at $0.5665 (10% YoY increase) .
Tariff risk management and supply chain positioning are key narratives: tariff exposure ~$150M on ~$75B expected capex (<0.2%) with contractual protections and potential pass-through to customers; domestic battery sourcing reduces exposure; ~$37B interest rate hedges in place, with hedged risk-free rate ~3.9% .

What Went Well and What Went Wrong

What Went Well

FPL growth and execution: net income $1.316B (+12% YoY), regulatory capital employed +8.1% YoY, placed 894 MW of new cost-effective solar (owned/operated solar now >7.9 GW) .
NEER origination strength: ~3.2 GW of renewables and storage added to backlog (~28 GW total), adjusted earnings up to $908M .
Management confidence and positioning: “We will be disappointed if we are not able to deliver financial results at or near the top of our adjusted EPS expectations ranges in each year through 2027” — John Ketchum . Strong hedging program (~$37B) and domestic battery contracting to mitigate tariffs .

What Went Wrong

Revenue miss vs Street and GAAP EPS compression: revenue $6.25B vs $6.63B* est.; GAAP EPS fell to $0.40 (from $1.10 YoY) on non-qualifying hedges and investment impacts, despite adjusted EPS $0.99 . Values retrieved from S&P Global.
Corporate & Other drag: GAAP loss of $(0.32) per share and adjusted loss $(0.09) per share, driven by hedges and interest expense allocation .
Ongoing regulatory process risk: FPL’s four-year rate plan proposal (2026–2029) requires PSC approval; typical residential bills projected to rise ~2.5% annually through 2029 (still below national average), adding execution and timing risk .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Operating Revenues ($USD Billions)	$7.567	$5.385	$6.247
GAAP EPS ($USD)	$0.90	$0.58	$0.40
Adjusted EPS ($USD)	$1.03	$0.53	$0.99
EBIT ($USD Billions)*	$2.690*	$0.944*	$2.287*
EBIT Margin %*	35.55%*	17.53%*	36.61%*
EBITDA ($USD Billions)*	$4.410*	$2.526*	$3.463*
EBITDA Margin %*	58.28%*	46.91%*	55.43%*
Net Income ($USD Billions)	$1.852	$1.203	$0.833
Net Income Margin %*	24.47%*	22.34%*	13.33%*

Note: Asterisked values retrieved from S&P Global.

Segment breakdown

Segment	Operating Revenues Q1 2025 ($USD Billions)	GAAP Net Income Q1 2025 ($USD Billions)	Adjusted EPS Contribution Q1 2025 ($USD)
FPL	$3.997	$1.316	$0.64
NEER	$2.163	$0.172	$0.44
Corporate & Other	$0.087	$(0.655)	$(0.09)
Total NEE	$6.247	$0.833	$0.99

Selected KPIs

KPI	Q3 2024	Q4 2024	Q1 2025
NEER Backlog Additions (GW)	~3	~3.3 added since Q3 call; >25 total	~3.2 added; ~28 total
FPL New Solar Placed (MW)	—	~2.2 GW in 2024 placed	894 MW; owned/operated solar >7.9 GW
FPL Regulatory Capital Employed YoY	+9.5%	+10% (2024)	+8.1%
Interest Rate Hedges Outstanding	—	—	~$37B; hedged risk-free ~3.9%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EPS ($USD)	FY 2025	$3.45–$3.70	$3.45–$3.70	Maintained
Adjusted EPS ($USD)	FY 2026	$3.63–$4.00	$3.63–$4.00	Maintained
Adjusted EPS ($USD)	FY 2027	$3.85–$4.32	$3.85–$4.32	Maintained
Dividend Growth	Through at least 2026	~10% per year off 2024 base	~10% per year off 2024 base	Maintained
Quarterly Dividend ($/share)	Q1 2025	Prior quarterly dividend (2024 base)	$0.5665; ~10% YoY increase	Raised
FPL Base Rate Adjustment ($USD)	Jan 2026	—	~$1.545B filed with PSC	New proposal
FPL Base Rate Adjustment ($USD)	Jan 2027	—	~$927M filed with PSC	New proposal
FPL Solar & Battery BRA	2028–2029	—	Mechanism to recover revenue reqs (solar/storage)	New mechanism
FPL Typical Residential Bill Trajectory	2025–2029	—	~2.5% avg annual increase; remains well below national avg	New outlook

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Tariffs / Supply Chain	Cautionary risk factor language; origination strong despite macro	Continued strong origination; risk language maintained	Detailed tariff exposure (~$150M on ~$75B capex) and pass-through protections; domestic batteries; supplier commitment confidence	Increasing specificity; mitigated exposure
AI/Data Center Load	—	Higher power demand narrative building	Hyperscalers prefer front-of-meter solutions; combined gas + renewables offerings to offset emissions	Emerging commercial opportunity
Regulatory/Legal (FPL Rate Case)	—	Test year letter filed; 4-year plan preview	Formal PSC filing (Feb 28): base rate plan details and bill impact trajectory	Advancing through process
NEER Origination/Backlog	~3 GW added; backlog >24 GW	Record year >12 GW added; backlog >25 GW	~3.2 GW added; backlog ~28 GW	Sustained momentum
Nuclear (Duane Arnold)	—	NRC licensing change notice; potential restart by end of 2028	No showstoppers; continued progress	Progressing
Interest Rate Management	—	—	~$37B hedges; hedged risk-free ~3.9%	Active hedging posture

Management Commentary

“Adjusted earnings per share increased by nearly 9% year-over year – the direct result of continued solid financial and operational performance at both our businesses... we will be disappointed if we are not able to deliver financial results at or near the top of our adjusted EPS expectations ranges in each year through 2027” — John Ketchum .
“We should be thinking about renewables and battery storage as a critical bridge... Today, renewables and battery storage are the lowest cost form of power generation... and we can build these projects and get new electrons on the grid in 12 to 18 months.” — John Ketchum .
“Our tariff exposure on batteries is expected to be negligible... we entered into a domestic contract... substantial credit backstops.” — John Ketchum .
“We think tariff exposure is ~$150 million on ~$75 billion of expected capex... less than 0.2%... and we have trade measure protection provisions in our customer contracts to reduce it potentially to zero.” — John Ketchum .

Q&A Highlights

Tariffs and supplier health: Management emphasized strong supplier incentives, contractual credit protections, and buying power ensuring commitments; battery sourcing domestically minimizes exposure .
Transferability of tax credits: Discussed legislative drafting nuances and contingency to utilize tax equity; reinforced that credits and transferability are “hand in glove” for project economics .
Returns/competitiveness post-tariffs: Positioning viewed as a competitive advantage versus smaller developers lacking risk-shifting leverage, potentially driving incremental demand to NEER .
Duane Arnold (nuclear restart): Engineering and contracting opportunities progressing; no showstoppers identified .
FPL rate case process: Settlement possible, typically occurs near technical hearings; expected ROE ~11.6% for the year under normal weather .

Estimates Context

Metric	Consensus (Q3 2024)	Actual (Q3 2024)	Consensus (Q4 2024)	Actual (Q4 2024)	Consensus (Q1 2025)	Actual (Q1 2025)
EPS ($USD)	$0.9725*	$1.03	$0.5258*	$0.53	$0.9784* (13 est.)	$0.99
Revenue ($USD Billions)	$8.007*	$7.567	$7.913*	$5.385	$6.631* (6 est.)	$6.247

Note: Asterisked consensus values retrieved from S&P Global. EPS/revenue actuals from company filings.

Implications:

Q1 2025 EPS modest beat; revenue miss suggests mix effects and hedging/investment items impacting GAAP figures. Adjusted EPS growth supports unchanged multi-year guidance .
Street likely to modestly lift EPS near term for FPL strength but may trim revenue assumptions or Corporate drag given hedging/investment impacts .

Key Takeaways for Investors

FPL’s execution is a core earnings driver: sustained capex, solar deployment, and superior cost position underpin multi-year EPS guidance and prospective rate plan approval .
NEER origination momentum remains intact with backlog growth and diversified supply chain; tariff exposure appears immaterial and potentially fully mitigated via contracts .
Hedging and capital markets readiness (~$37B interest rate hedges; 3.9% hedged risk-free rate) reduce financing volatility, supportive for large capex programs .
Dividend growth visibility (~10% through at least 2026) and recent $0.5665 quarterly dividend reinforce income profile amid growth investments .
Watch PSC rate case milestones (hearings, potential settlement window around August) as catalysts for bill trajectory certainty and allowed returns .
Hyperscaler/front-of-meter solutions with paired renewables + gas offer incremental growth optionality; multi-technology positioning helps address AI/data center load .
Near-term trading: focus on rate case headlines, tariff policy developments, and origination updates as narrative drivers; medium-term thesis hinges on FPL rate construct, NEER backlog conversion, and execution against unchanged EPS guidance ranges .

Non-GAAP note: Adjusted earnings exclude effects of non-qualifying hedges; XPLR Infrastructure net investment gains; unrealized gains/losses on equity securities in NEER nuclear decommissioning funds; and OTTI, among others, per company definition and reconciliations attached to news releases .

NEXTERA ENERGY INC (NEE)·Q1 2025 Earnings Summary