NEE
NextEra Energy
Summary
What they do:
NextEra Energy is the world's largest generator of wind and solar energy, operating both a regulated Florida utility (FPL, ~13.5M customers) and an independent power producer (NEER, ~45 GW of renewables and storage), sitting at L21 in the AI infrastructure stack as the primary clean power supplier to hyperscaler data centers.
Why they matter:
Hyperscalers need 15-25-year Power Purchase Agreements to meet carbon-neutral commitments, and NextEra's 30 GW backlog, unmatched project development pipeline, and decades of execution track record make them the default counterparty for these deals — a structural bottleneck that scales with every new data center campus.
Recent performance:
Q4 2025 adjusted EPS of $0.54 beat the Zacks consensus of $0.53 by ~1.7%; full-year 2025 adjusted EPS of $3.71 grew 8.2% YoY; stock trading around $93 near 52-week highs, up ~46% from the 52-week low of $63.64.
Our Verdict
The default PPA counterparty for every hyperscaler building data centers — a compounder, not a speculation.
Structural trends
Structural
73
/ 100
Moat
6/10
Renewables leader
AI Exp.AI Exposure
Embedded~15% AI
Play Type
EstablishedAI Growth
~20-25%
Rel. Value
53
ATTRACTIVEPriceLIVE
$91.31
-1.07%
Live via Yahoo Finance · refreshes every 5 min
Market Cap
$190.4B
P/E Ratio
27.7
P/S Ratio
6.9x
52W High
$96.21
52W Low
$63.64
52W Chg
43.5%
Beta
0.73
NextEra operates a bifurcated business model that pairs predictable regulated utility cash flows with high-growth renewable power generation.
Florida Power & Light (FPL) serves ~13.5 million people across Florida. Revenue follows cost-plus regulation with an approved return on invested capital of 8-10%. FPL operates ~65 GW of generation capacity across nuclear, natural gas, and rapidly growing solar. It delivers roughly 50% of NextEra's operating profit with recession-resistant, rate-base-driven growth tied to Florida population expansion and air conditioning demand.
NextEra Energy Resources (NEER) is one of the largest independent power producers globally, operating ~45 GW of wind, solar, geothermal, and battery storage. Approximately 70% of capacity is locked into long-term PPAs at fixed or inflation-indexed rates lasting 15-25 years. The remaining 30% sells into merchant power markets. NEER's battery storage portfolio (10+ GW operational or underway) is expanding rapidly as utilities and hyperscalers pair renewables with storage for reliability. NEER delivers ~50% of operating profit but commands the higher growth trajectory.
Consolidated financials: ~$60B annual revenue (FY 2024 basis), ~$18B operating profit, ~30% operating margins, ~$12-14B annual free cash flow. The company has raised its dividend annually for 20+ years with a ~65% payout ratio. Capital allocation targets $15-20B annually in renewable generation, storage, and grid modernization capex. Investment-grade credit (Moody's Aa2, S&P AA-) with Debt/EBITDA of 2.5-3.0x.
The model is recession-resistant by design. FPL's regulated returns are insulated from economic cycles. NEER's long-term PPAs lock in revenue regardless of spot electricity prices. Both divisions have pricing power: FPL through rate cases, NEER through inflation-indexed contracts and tightening PPA markets.
Supply Chain Dependencies
Upstream Suppliers
Downstream Customers
The Catch
The market already knows this story. NextEra is not a hidden gem — institutional ownership is ~60%, with BlackRock, Vanguard, State Street, and Berkshire Hathaway among major holders. The stock trades at 28.5x earnings, a substantial premium to the broader market (18-20x) and the utility sector (15-18x). The premium reflects quality and predictability, but it also means that any disappointment — slower backlog conversion, regulatory headwinds, PPA pricing compression — gets punished disproportionately.
If They Win
If NextEra fully converts its 30 GW backlog and demand continues to accelerate, the company becomes the dominant clean power platform for the AI era. NEER grows to 60-70 GW of operational capacity by 2030. PPA revenue becomes a predictable annuity stream stretching to 2050+. The nuclear restart with Google opens a new category of 24/7 carbon-free power that commands premium pricing. FPL's rate base compounds with Florida growth. Earnings reach $5+ per share by 2030. The stock becomes a core infrastructure holding in every institutional portfolio — a utility that grows like a growth stock. At 30x $5 EPS, the stock trades at $150+.
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Not financial advice. All scores generated via AI algorithms using public data.