NextEra Energy on Wednesday reported third-quarter profit that beat Wall Street expectations, driven by strong performance in its renewable energy division. Known as the world’s largest renewable energy company, the company has benefited not only from data centers supported by artificial intelligence, but also from increased electricity demand for residential and commercial customers’ heating and transportation needs.
The S&P Utilities Index, which includes NextEra Energy, posted a notable 18.4% gain during the quarter, outpacing a broader 5.5% gain. This recovery reflects a positive outlook for utilities as the movement towards cleaner energy sources increases.
NextEra Energy Resources, the company’s renewable energy division, reported a project pipeline of 24 gigawatts, up from about 22.6 gigawatts in the previous quarter. CEO John Ketchum highlighted new agreements with two Fortune 50 companies to potentially develop renewable energy and storage projects that could add up to 10.5 gigawatts of electricity generation by 2030.
NextEra’s regulated utility, Florida Power & Light, also posted strong results, with net income of $1.29 billion, up from $1.18 billion in the year-ago period.
Despite the strong results, NextEra’s total revenue for the quarter was $7.57 billion, below analysts’ expectations of about $8.1 billion. However, the company maintained its adjusted earnings per share guidance for 2024 and predicted 2025 EPS to be between $3.45 and $3.70.
On an adjusted basis, the company earned $1.03 per share in the quarter, beating estimates of 98 cents.
NextEra Energy Partners, which acquires and manages contract energy projects, announced plans to power an additional 225 megawatts of wind facilities. This upgrade will bring the total wind power portfolio by 2026 to approximately 1.6 gigawatts. Despite these expansions, the segment reported a loss of $40 million due to higher interest payments and losses from certain continuing operations, compared to a net income of $53. Last year it was 1 million. NextEra Energy Partners stock fell 5.3% in pre-market trading on the news.
Reuters contributed to this article.
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