NextEra Energy Q4 profits fall as higher costs impact on the renewables unit
NextEra Energy announced a drop in profit for its fourth quarter on Friday. This was due to weakness in the renewables segment.
NextEra Energy Resources' (NEER) project backlog increased in the third quarter due to an increase in power demand for data centers, a boom in artificial intelligence, and homes and businesses that use more electricity for heating and transportation.
A one-time $845 million loss linked to investments made in a subsidiary, and higher operating costs weighed down the overall performance of the division.
The shares of the Juno Beach-based Florida company fell more than 2% during premarket trading as they also missed revenue estimates for the quarter.
According to data compiled and analyzed by LSEG, NextEra reported revenues of $5.39 Billion for the quarter ending Dec. 31 compared to analysts' average estimates of $7.07 Billion.
Florida Power & Light, the company's regulated utility business, posted a 8% decline.
Durgesh Chopra, Evercore ISI analyst, said that the results would have a "neutral or negative" impact on the shares of the company. He did, however, point out that NEER's renewables origination was strong in the quarter, and progress is being made on the recommissioning Duane-Arnold nuclear plant.
The company hopes to resume operations at its plant in Iowa by the end of 2028.
NextEra has reaffirmed their profit forecasts for 2025, which range from $3.45 per share to $3.70. This is lower than the analysts' estimates of $3.68.
The company claimed that it was "well-positioned" to take advantage of the increasing demand for power in the U.S.
Between 2026 and 2030, the company plans to install solar power plants of nearly 5.4 GW and battery storage of around 3.4 GW.
NextEra reported quarterly earnings of $1.2 billion or 58 cents a share. This compares to $1.21 billion or 59 cents a share a year earlier. Reporting by Seher dareen from Bengaluru, Editing by Shilpimajumdar
(source: Reuters)
