NextEra exceeds profit expectations as the power company avoids trade risks
NextEra Energy's CEO stated that the company beat Wall Street expectations on Wednesday regarding rising electricity demand, as it works to navigate around increasing global trade risks.
The rising costs brought on by President Donald Trump’s tariff war threaten to slow down a recent surge of electricity demand, and dent plans for expansion by the country’s power companies.
NextEra, one of the largest renewable energy firms in the world, has said that it reduced its trade risk by $150 million, on $75 billion of capital expenditures. This is less than 0.2%.
NextEra CEO John Ketchum said, "We feel we can get that down to zero."
In morning trading, the company's shares rose 2.7% to $68.46.
NextEra purchased U.S. made batteries last year for its entire backlog of projects. Ketchum reported that NextEra Energy Resources, NextEra’s renewable arm (NEER), added 3.2 gigawatts of new renewables to its backlog. The total backlog of the unit now amounts to approximately 28 GW.
The Energy Information Administration reported last month that the U.S. electricity consumption will reach record levels in 2025 and beyond. This year, it is up nearly 3% from the all-time 2024 high. This increase is fueled by the demand for data centers, which are driving the artificial intelligence boom.
Ketchum stated that the United States will require more than 450GW to meet its rising electricity demand by the end decade. He added that renewable energy sources such as wind and solar would be required to meet this demand.
Ketchum said that the United States will need to use all types of energy in order to meet its enormous energy demand. NextEra is working with Washington to determine energy policy, which could affect renewable energy subsidies.
According to LSEG, NextEra, based in Juno Beach, Florida, posted a profit per share of 99 cents on an adjusted basis for the first three months, exceeding the average analyst estimate of 97.
FPL SHINES
Florida Power & Light, the company's regulated electric utility, reported strong results for its third quarter, with a net income that increased 12.3% compared to a year ago.
Infrastructure investments and the expansion of customer base supported the utility's growth.
Capital expenditures for FPL totaled $2.4 Billion in the third quarter. The company plans to invest between $8.8 and $9.8 billion for the entire year.
FPL proposed in December a rate review that would see the average residential bill grow by 2.5% per year from January 2025 to the end of 2029. Reporting by Arunima Kumar in Bengaluru, and Laila Kearney in New York. Editing by Sriraj Kauluvila and Marguerita Chy.
(source: Reuters)
