NextEra Energy
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Item 1. Business
OVERVIEW
NEE is one of the largest electric power and energy infrastructure companies in North America. As of December 31, 2025, NEE had approximately 80 gigawatts of net generation and storage capacity from a diverse portfolio of assets, primarily including natural gas, wind, solar and nuclear generation facilities and battery storage facilities. NEE has two principal businesses, FPL and NEER. FPL is the largest electric utility in Florida and the U.S. FPL’s strategic focus is centered on investing in generation, storage, transmission and distribution facilities to deliver on its value proposition of keeping customer bills low and delivering high reliability, outstanding customer service and energy from diverse generation sources for the benefit of its more than six million customer accounts. NEER is one of the largest energy infrastructure developers in the U.S. NEER’s strategic focus is centered on the development, construction and operation of long-term contracted generation facilities, including renewables, nuclear and natural gas, as well as battery storage facilities. NEER also builds and owns regulated electric and gas transmission assets, is a leading gas and power supplier, and delivers integrated energy and technology solutions to utilities and businesses across the U.S.
NEE seeks to create value in its two principal businesses by meeting customer needs more economically and reliably than its competitors. NEE's strategy has resulted in profitable growth over sustained periods at both FPL and NEER. Management seeks to grow each business (see Note 15 – Commitments) in a manner consistent with the varying opportunities available to it; however, management believes that the diversification and balance represented by FPL and NEER is a valuable characteristic of the enterprise and recognizes that each business contributes to NEE's financial strength in different ways. FPL and NEER share a common platform with the objective of lowering costs, creating efficiencies and encouraging innovative ideas for their businesses. NEE and its subsidiaries, with employees totaling approximately 17,400 as of December 31, 2025, continue to develop and implement enterprise-wide initiatives, including deploying advanced technologies such as artificial intelligence and proprietary tools, focused on improving processes, lowering costs and driving growth.
NEE's reportable segments for financial reporting purposes are FPL and NEER (see Note 16). NEECH, a wholly owned subsidiary of NEE, owns and provides funding for NEE's operating subsidiaries, other than FPL and its subsidiaries. The following diagram depicts NEE's simplified ownership structure:
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FPL
FPL is a rate-regulated electric utility engaged primarily in the generation, storage, transmission, distribution and sale of electric energy in Florida. FPL is the largest electric utility in Florida and the U.S. As of December 31, 2025, FPL had 35,963 MW of net generating capacity, approximately 93,000 circuit miles of transmission and distribution lines and 932 substations. FPL provides electric service through an integrated transmission and distribution system that links its generation facilities to its customers.
FPL serves approximately 12 million people through more than 6 million customer accounts. The following map shows FPL's service areas and plant locations as of February 13, 2026, which cover most of the east and lower west coasts of Florida and are in ten counties throughout northwest Florida (see FPL Sources of Generation below).
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CUSTOMERS AND REVENUE
FPL's primary source of operating revenues is from its retail customer base; it also serves a limited number of wholesale customers within Florida. The percentage of FPL's operating revenues and customer accounts by customer class were as follows:
For both retail and wholesale customers, the prices (or rates) that FPL may charge are approved by regulatory bodies, by the FPSC in the case of retail customers and by the FERC in the case of wholesale customers. In general, under U.S. and Florida law, regulated rates are intended to cover the cost of providing service, including a reasonable rate of return on invested capital. Since the regulatory bodies have authority to determine the relevant cost of providing service and the appropriate rate of return on capital employed, there can be no guarantee that FPL will be able to earn any particular rate of return or recover all of its costs through regulated rates. See FPL Regulation below.
FPL seeks to maintain low rates for its customers, while continuing to deliver reliable service. Since rates are largely cost-based, maintaining low rates requires a strategy focused on developing and maintaining a low-cost position, including the implementation of ideas generated from cost savings initiatives and the use of advanced technologies such as artificial intelligence. FPL also seeks to serve large-load customers, such as data centers, through the tariff established in the 2025 rate agreement (as defined in FPL Regulation – FPL Electric Rate Regulation – Base Rates – Base Rates Effective January 2026 through December 2029 below).
FRANCHISE AGREEMENTS AND COMPETITION
FPL's service to its electric retail customers is provided primarily under franchise agreements negotiated with municipalities or counties. During the term of a franchise agreement, which is typically 30 years, the municipality or county agrees not to form its own utility, and FPL has the right to offer electric service to residents. As of December 31, 2025, FPL held 226 franchise agreements with various municipalities and counties in Florida with varying expiration dates through 2055. These franchise agreements cover the vast majority of FPL's retail customer base in Florida. As of December 31, 2025, FPL also provided service to customers in 10 other municipalities and to 27 unincorporated areas within its service area without franchise agreements, pursuant to the general obligation to serve as a public utility. FPL relies upon Florida law for access to public rights-of-way.
Because any customer may elect to provide its own electric services, FPL effectively must compete for an individual customer's business. As a practical matter, few customers provide their own service at the present time since FPL's cost of service is lower than the cost of self-generation for a significant majority of customers. Changing technology (particularly the increasing efficiency of solar power generation), tax incentives, economic conditions, regulatory changes and other factors could alter the favorable relative cost position that FPL currently enjoys; however, FPL seeks as a matter of strategy to ensure that it delivers superior value in the form of low customer bills, high reliability, outstanding customer service and energy from diverse generation sources.
In addition to self-generation by residential, commercial and industrial customers, FPL also faces competition from other suppliers of electrical energy to wholesale and industrial customers and from alternative energy sources. In 2025, 2024 and 2023, annual operating revenues from wholesale and industrial electric customers combined represented approximately 5% of FPL's total operating revenues.
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For the building of new steam and solar generating capacity of 75 MW or greater, the FPSC requires investor-owned electric utilities, including FPL, to issue a request for proposal (RFP) except when the FPSC determines that an exception from the RFP process is in the public interest. The RFP process allows independent power producers and others to bid to supply the new generating capacity. If a bidder has the most cost-effective alternative, meets other criteria such as financial viability and demonstrates adequate expertise and experience in building and/or operating generating capacity of the type proposed, the investor-owned electric utility would seek to negotiate a PPA with the selected bidder and request that the FPSC approve the terms of the PPA and, if appropriate, provide the required authorization for the construction of the bidder's generating capacity.
FPL SOURCES OF GENERATION
As of December 31, 2025, FPL's resources for serving load consisted of approximately 36,616 MW of net generating capacity, of which 36,372 MW were from FPL-owned facilities and 244 MW were available through PPAs. FPL owned and operated 44 units with generating capacity of 24,314 MW that primarily use natural gas and 108 solar generation facilities with generating capacity totaling 7,932 MW. In addition, FPL owned, or had undivided interests in, and operated four nuclear units with net generating capacity totaling 3,502 MW (see Nuclear Operations below) and had a joint ownership interest in a coal unit located in Georgia, which is operated by the joint owner, with a net generating capacity of 215 MW (see Note 7 – Jointly-Owned Electric Plants). FPL also develops and constructs battery storage projects, which, when combined with its solar projects, serve to enhance its ability to meet customer needs for a nearly firm generation source. As of December 31, 2025, FPL had 991 MW of battery storage capacity that delivers energy to the transmission system. FPL customer usage and operating revenues are typically higher during the summer months, largely due to the prevalent use of air conditioning in its service area. Occasionally, unusually cold temperatures during the winter months result in significant increases in electricity usage for short periods of time.
In 2025, FPL added new solar generation with capacity totaling 894 MW and battery storage capacity totaling 522 MW. In January 2026, FPL placed 596 MW of solar generating capacity in service and expects to place an additional 298 MW of solar capacity and approximately 1,420 MW of additional battery storage capacity in service over the remainder of 2026.
In 2025, FPL received FERC approval for the acquisition of a 660 MW gas-fired peaking facility with dual fuel capability. The acquisition is expected to close in 2027.
Fuel Sources
FPL relies upon a mix of fuel sources for its generation facilities, the ability of some of its generation facilities to operate on both natural gas and low sulfur diesel, the use of battery storage at certain generation facilities and on purchased power to maintain the flexibility to achieve a more economical fuel mix in order to respond to market and industry developments.
| *approximately 66% has dual fuel capability | ||||
**certain solar facilities have approximately 582 MW of co-located batteries | ||||
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Significant Fuel and Transportation Contracts. As of December 31, 2025, FPL had the following significant fuel and transportation contracts in place:
•firm transportation contracts with ten different transportation suppliers for natural gas pipeline capacity for an aggregate maximum delivery quantity of 2,836,000 MMBtu/day with expiration dates through 2042 (see Note 15 – Contracts);
•several contracts for the supply of uranium and the conversion, enrichment and fabrication of nuclear fuel with expiration dates through 2039; and
•short- and medium-term natural gas supply contracts, with expiration dates through 2028, to provide a portion of FPL's anticipated needs for natural gas, with the remainder of FPL's natural gas requirements being purchased in the spot market.
Nuclear Operations
As of December 31, 2025, FPL owned, or had undivided interests in, and operated the four nuclear units in Florida discussed below. FPL's nuclear units are periodically removed from service to accommodate planned refueling and maintenance outages, including inspections, repairs and certain other modifications. Scheduled nuclear refueling outages require the unit to be removed from service for variable lengths of time.
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
OVERVIEW
NEE’s operating performance is driven primarily by the operations of its two principal businesses, FPL, which serves more than six million customer accounts in Florida and is the largest electric utility in the U.S., and NEER, which together with affiliated entities is one of the largest energy infrastructure developers in the U.S. The table below presents net income (loss) attributable to NEE and earnings (loss) per share attributable to NEE, assuming dilution, by reportable segment, FPL and NEER. Corporate and Other is primarily comprised of the operating results of other business activities, as well as other income and expense items, including interest expense, and eliminating entries, and may include the net effect of rounding. See Note 13 for additional segment information. The following discussions should be read in conjunction with the Notes to Condensed Consolidated Financial Statements contained herein and Management's Discussion and Analysis of Financial Condition and Results of Operations appearing in the 2025 Form 10‑K. The results of operations for an interim period generally will not give a true indication of results for the year. In the following discussions, all comparisons are with the corresponding items in the prior year periods.
Net Income (Loss) Attributable to NEE | Earnings (Loss) Per Share Attributable to NEE, Assuming Dilution | Net Income (Loss) Attributable to NEE | Earnings (Loss) Per Share Attributable to NEE, Assuming Dilution | |||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||
| (millions) | (millions) | |||||||||||||||||||||||||||||||||||||||||||||
| FPL | $ | 1,620 | $ | 1,463 | $ | 0.77 | $ | 0.71 | $ | 4,493 | $ | 4,054 | $ | 2.15 | $ | 1.96 | ||||||||||||||||||||||||||||||
NEER(a) | 1,491 | 1,275 | 0.71 | 0.62 | 4,143 | 2,430 | 1.98 | 1.18 | ||||||||||||||||||||||||||||||||||||||
| Corporate and Other | 1,664 | (300) | 0.80 | (0.15) | 1,466 | (1,184) | 0.69 | (0.57) | ||||||||||||||||||||||||||||||||||||||
| NEE | $ | 4,775 | $ | 2,438 | $ | 2.28 | $ | 1.18 | $ | 10,102 | $ | 5,300 | $ | 4.82 | $ | 2.57 | ||||||||||||||||||||||||||||||
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(a) NEER’s results reflect an allocation of interest expense from NEECH to NextEra Energy Resources based on a deemed capital structure of 70% debt and differential membership interests sold by NextEra Energy Resources' subsidiaries.
Adjusted Earnings
NEE prepares its financial statements under GAAP. However, management also uses earnings adjusted for certain items (adjusted earnings), a non-GAAP financial measure, internally for financial planning, analysis of performance, reporting of results to the Board of Directors and as an input in determining performance-based compensation under NEE’s employee incentive compensation plans. NEE also uses adjusted earnings when communicating its financial results and earnings outlook to analysts and investors. NEE’s management believes that adjusted earnings provide a more meaningful representation of NEE's fundamental earnings power. Although these amounts are properly reflected in the determination of net income under GAAP, management believes that the amount and/or nature of such items make period to period comparisons of operations difficult and potentially confusing. Adjusted earnings do not represent a substitute for net income, as prepared under GAAP.
The following table provides details of the after-tax adjustments to net income considered in computing NEE's adjusted earnings discussed above.
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| (millions) | |||||||||||||||||||||||||
Net gains (losses) associated with non-qualifying hedge activity(a) | $ | 2,246 | $ | 52 | $ | 2,843 | $ | (649) | |||||||||||||||||
XPLR investment gains, net – NEER(b) | $ | (6) | $ | (7) | $ | (19) | $ | (650) | |||||||||||||||||
| Change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds and OTTI, net – NEER | $ | (38) | $ | 45 | $ | 54 | $ | 50 | |||||||||||||||||
Merger-related expenses – Corporate and Other(c) | $ | (19) | $ | — | $ | (50) | $ | — | |||||||||||||||||
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(a) For the three months ended September 30, 2026 and 2025, approximately $288 million and $135 million of gains, respectively, and for the nine months ended September 30, 2026 and 2025, approximately $532 million of gains and $71 million of losses, respectively, are included in NEER's net income; the remaining balance is included in Corporate and Other. The change in non-qualifying hedge activity is primarily attributable to changes in forward power and natural gas prices, interest rates and foreign currency exchange rates, as well as the reversal of previously recognized unrealized mark-to-market gains or losses as the underlying transactions were realized.
(b) The nine months ended September 30, 2025 includes an impairment charge related to the investment in XPLR. See Note 3 – Nonrecurring Fair Value Measurements.
(c) See Note 5 – Pending Business Combination.
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NEE segregates into two categories unrealized mark-to-market gains and losses and timing impacts related to derivative transactions. The first category, referred to as non-qualifying hedges, represents certain energy derivative, interest rate derivative and foreign currency transactions entered into as economic hedges, which do not meet the requirements for hedge accounting, or for which hedge accounting treatment is not elected or has been discontinued. Changes in the fair value of those transactions are marked to market and reported in the condensed consolidated statements of income, resulting in earnings volatility because the economic offset to certain of the positions are generally not marked to market. As a consequence, NEE's net income reflects only the movement in one part of economically-linked transactions. For example, a gain (loss) in the non-qualifying hedge category for certain energy derivatives is offset by decreases (increases) in the fair value of related physical asset positions in the portfolio or contracts, which are not marked to market under GAAP. For this reason, NEE's management views results expressed excluding the impact of the non-qualifying hedges as a meaningful measure of current period performance. The second category, referred to as trading activities, which is included in adjusted earnings, represents the net unrealized effect of actively traded positions entered into to take advantage of expected market price movements and all other commodity hedging activities. At FPL, changes in the fair value of energy derivative transactions are deferred as a regulatory asset or liability until the contracts are settled, and, upon settlement, any gains or losses are passed through the fuel clause or base rates. See Note 2.
RESULTS OF OPERATIONS
Summary
Net income attributable to NEE increased $2,337 million and $4,802 million for the three and nine months ended September 30, 2026, respectively, reflecting higher results at FPL, NEER and Corporate and Other.
FPL's increase in net income for the three and nine months ended September 30, 2026 was primarily driven by continued investments in plant in service and other property.
NEER's results increased for the three months ended September 30, 2026 primarily reflecting higher earnings from new investments and existing energy assets as well as favorable non-qualifying hedge activity compared to 2025. NEER's results increased for the nine months ended September 30, 2026 primarily reflecting the absence of an impairment charge related to the investment in XPLR recorded in 2025, favorable non-qualifying hedge activity compared to 2025 and higher earnings from new investments.
Corporate and Other's results increased for the three and nine months ended September 30, 2026 primarily due to favorable non-qualifying hedge activity compared to 2025, partly offset by higher interest expense driven by higher average debt balances.
NEE's effective income tax rates for the three months ended September 30, 2026 and 2025 were approximately 13% and (13)%, respectively, and for the nine months ended September 30, 2026 and 2025 were 1% and (32)%, respectively. See Note 4 for a discussion of NEE's and FPL's effective income tax rates.
A number of legislative, executive and administrative activities occurred in 2025 and 2026 that affect NEE and FPL including 1) the enactment of the One Big Beautiful Bill Act (OBBBA) which, among other things, modified tax legislation affecting clean energy tax credits, 2) the issuance of a number of federal executive orders and presidential actions, 3) the imposition of tariffs on a variety of imports and 4) the issuance of guidance by various federal agencies. A number of similar activities remain pending or are in various phases of implementation, such as certain Treasury Department rulemaking authorized by the OBBBA, trade investigations that may lead to additional tariffs or place limitations on imports of certain materials, ordered reviews of, or process or policy changes with respect to, federal permitting and approvals for wind and solar projects and proposals by regional transmission operators regarding the process for interconnecting new generation projects to certain regional transmission grids that have been approved by FERC. There has been no material impact on NEE's or FPL's operations or financial performance as a result of these developments and NEE believes that its current pipeline of wind and solar facilities to be placed in service through 2030 will qualify for clean energy tax credits. NEE will assess any further developments for potential impacts in future periods.
In May 2026, NEE and Dominion Energy entered into a merger agreement. See Note 5 – Pending Business Combination.
FPL: Results of Operations
FPL's net income increased $157 million and $439 million for the three and nine months ended September 30, 2026, respectively. Investments in plant in service and other property grew FPL's average rate base by approximately $6.8 billion and $6.6 billion for the three and nine months ended September 30, 2026, respectively, when compared to the same periods in the prior year, reflecting, among other things, solar generation additions and ongoing transmission and distribution additions.
The use of RSM for the three and nine months ended September 30, 2026 is permitted by the 2025 rate agreement, and, for the prior year periods, the use of reserve amortization was permitted by the 2021 rate agreement. The RSM reserve, which is authorized up to approximately $1.5 billion, after tax, over the term of the 2025 rate agreement, includes ITC amortization for battery storage projects placed in service in 2025, the remaining balance from FPL's previous reserve amortization mechanism as of January 1, 2026 and certain amounts related to deferred tax liabilities.
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In order to earn a targeted regulatory ROE in each reporting period, subject to conditions of the effective rate agreement, RSM amortization and reserve amortization, as applicable, are calculated using a trailing thirteen-month average of retail rate base and capital structure in conjunction with the trailing twelve months regulatory retail base net operating income, which primarily includes the retail base portion of base and other revenues, net of O&M, depreciation and amortization, interest and tax expenses. In general, the net impact of these income statement line items is adjusted, in part, by the RSM amortization or reserve amortization, as applicable, to earn the targeted regulatory ROE. In certain periods, the RSM amortization or reserve amortization, as applicable, are reversed so as not to exceed the targeted regulatory ROE. The drivers of FPL's net income not reflected in the RSM amortization and reserve amortization calculation typically include wholesale and transmission service revenues and expenses, cost recovery clause revenues and expenses, AFUDC – equity and revenue and costs not recoverable from retail customers.
During the three months ended September 30, 2026, FPL recorded the reversal of RSM amortization of approximately $172 million, after tax, reflecting the reversals of ITC and reserve amortization in accordance with the 2025 rate agreement. During the nine months ended September 30, 2026, FPL recorded RSM amortization of approximately $24 million, after tax, reflecting ITC amortization in accordance with the 2025 rate agreement. During the three and nine months ended September 30, 2025, FPL recorded the reversal of pre-tax reserve amortization of approximately $218 million and pre-tax reserve amortization of $423 million, respectively. See Depreciation and Amortization Expense and Income Taxes below. FPL earned a regulatory ROE of approximately 11.80% and 11.70% on its retail rate base, based on a trailing thirteen-month average retail rate base as of September 30, 2026 and September 30, 2025, respectively.
FPL completed a twelve-month storm restoration charge that began in January 2025 for eligible storm restoration costs of approximately $1.2 billion, primarily related to surcharges for Hurricanes Debby, Helene and Milton which impacted FPL's service area in 2024.
In February 2026, the non‑signatories challenged the FPSC’s final order approving the 2025 rate agreement through a motion for reconsideration with the FPSC and appeals with the Florida Supreme Court. In April 2026, the FPSC denied substantially all of the motion for reconsideration, and the matter remains pending before the Florida Supreme Court. In May 2026, notices of appeal were filed with the Florida Supreme Court challenging the FPSC's order denying reconsideration of the FPSC's final order approving the 2025 rate agreement. In June 2026, the Florida Supreme Court consolidated the appeals into a single proceeding. See Note 11 – Rate Regulation.
In October 2026, Hurricane Isaias made landfall near the Florida panhandle causing damage to FPL's service territory. See Note 11 – Storm Cost Recovery.
Operating Revenues
During the three and nine months ended September 30, 2026, operating revenues increased $136 million and $599 million, respectively.
Retail base revenues during the three and nine months ended September 30, 2026 increased by approximately $368 million and $928 million, respectively, reflecting additional revenues of $281 million and $732 million, respectively, related to new retail base rates under the 2025 rate agreement. Retail base revenues for the three and nine months ended September 30, 2026 were also impacted by increases of approximately 1.4% and 1.5%, respectively, in the average number of customer accounts, and by increases of 1.4% and 0.6%, respectively, in the average usage per retail customer driven by favorable weather when compared to the prior year periods.
The increase in operating revenues for the three and nine months ended September 30, 2026 also reflects increases in fuel revenues of approximately $155 million and $361 million, respectively, and for the nine months ended September 30, 2026, an increase in storm protection plan cost recovery clause revenues of $153 million. The increase in operating revenues for the three and nine months ended September 30, 2026 was partly offset by decreases in storm cost recovery revenues of approximately $452 million and $1,009 million, respectively, primarily associated with the completion of surcharges for Hurricanes Debby, Helene and Milton, as discussed above.
Fuel, Purchased Power and Interchange
Fuel, purchased power and interchange expense increased $153 million during the three months ended September 30, 2026 primarily reflecting higher usage and higher net recognition of previously deferred fuel costs as compared to the prior year period. Fuel, purchased power and interchange expense increased $343 million during the nine months ended September 30, 2026 primarily reflecting higher usage and higher net recognition of previously deferred fuel costs as compared to the prior year period.
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Depreciation and Amortization Expense
Depreciation and amortization expense decreased $510 million during the three months ended September 30, 2026 primarily driven by lower amortization of deferred storm costs of approximately $452 million primarily associated with the completion of the surcharges related to Hurricanes Debby, Helene and Milton, as discussed above, as well as by the impact of the reversal of RSM amortization (reserve amortization in 2025). During the three months ended September 30, 2026, FPL recorded the reversal of pre-tax RSM amortization of approximately $62 million compared to reversal of reserve amortization of $218 million during the three months ended September 30, 2025. The decrease in depreciation and amortization expense during the three months ended September 30, 2026 was partly offset by higher plant in service balances.
Depreciation and amortization expense decreased $305 million during the nine months ended September 30, 2026 primarily driven by lower amortization of deferred storm costs of approximately $1,009 million primarily associated with the completion of the surcharges related to Hurricanes Debby, Helene and Milton, as discussed above. The decrease was partly offset by the impact of RSM amortization (reserve amortization in 2025) as well as higher plant in service balances. During the nine months ended September 30, 2026 and 2025, FPL recorded no pre-tax RSM amortization and reserve amortization of approximately $423 million, respectively.
For the three and nine months ended September 30, 2026, in order to achieve the targeted regulatory ROE, the use or reversal of RSM amortization is permitted by the 2025 rate agreement, and in the prior-year periods, the use or reversal of reserve amortization was permitted by the 2021 rate agreement. See Note 11 – Rate Regulation.
Income Taxes
During the three months ended September 30, 2026, FPL’s income taxes increased $277 million primarily related to the reversal of approximately $126 million of ITC amortization, reversed as part of the RSM, as well as higher pretax income. As of September 30, 2026, approximately $1.5 billion, after tax, of total RSM reserve remains available under the 2025 rate agreement. See Note 11 – Rate Regulation and Note 4.
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NEER: Results of Operations
NEER’s results increased $216 million and $1,713 million for the three and nine months ended September 30, 2026, respectively. The primary drivers, on an after-tax basis, of the changes are in the following table.
| Increase (Decrease) From Prior Year Period | |||||||||||||
| Three Months Ended September 30, 2026 | Nine Months Ended September 30, 2026 | ||||||||||||
| (millions) | |||||||||||||
New investments(a) | $ | 186 | $ | 457 | |||||||||
Existing energy assets(a) | 108 | 135 | |||||||||||
Customer supply(b) | (75) | (221) | |||||||||||
Regulated operations(c) | (7) | 106 | |||||||||||
Other, including financing costs, corporate general and administrative expenses, asset recycling, state taxes and other investment income | (67) | (2) | |||||||||||
Change in non-qualifying hedge activity(d) | 153 | 603 | |||||||||||
Change in unrealized gains/losses on equity securities held in nuclear decommissioning funds and OTTI, net(d) | (83) | 4 | |||||||||||
XPLR investment gains, net(d) | 1 | 631 | |||||||||||
Change in NEER's results | $ | 216 | $ | 1,713 | |||||||||
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(a) Reflects after-tax project contributions, including the net effect of deferred income taxes and other benefits associated with clean energy tax credits, as applicable, and fees earned from MCOAs but excludes allocation of financing costs and corporate general and administrative expenses, except for an allocated credit support charge related to guarantees issued to conduct business activities. Results from projects are included in new investments during the first twelve months of operation or ownership and fees from MCOAs are included in new investments during the first twelve months such fees are earned. Project results, including repowered wind projects, and fees from MCOAs are included in existing energy assets beginning with the thirteenth month of operation or ownership and of fees earned, respectively.
(b) Excludes allocation of financing costs and corporate general and administrative expenses, except for an allocated credit support charge related to guarantees issued to conduct business activities and includes natural gas, natural gas liquids and oil production results.
(c) Includes results from NEET and regulated natural gas transmission assets. Excludes allocation of financing costs and corporate general and administrative expenses, except for an allocated credit support charge related to guarantees issued to conduct business activities.
(d) See Overview – Adjusted Earnings for additional information.
New Investments
Results from new investments for the three and nine months ended September 30, 2026 increased primarily due to higher earnings related to new wind and solar generation, as well as fees earned from MCOAs.
Existing Energy Assets
Results from existing energy assets for the three months ended September 30, 2026 increased primarily due to higher wind resource as compared to the prior year period.
Other Factors
Supplemental to the primary drivers of the changes in NEER's results discussed above, the discussion below describes changes in certain line items set forth in NEE's condensed consolidated statements of income as they relate to NEER.
Operating Revenues
Operating revenues for the three months ended September 30, 2026 decreased $50 million primarily due to:
•the impact of non-qualifying commodity hedges due primarily to changes in energy prices (approximately $121 million of losses for the three months ended September 30, 2026 compared to $259 million of gains for the comparable period in 2025);
partly offset by,
•revenues from new investments of $296 million.
Operating revenues for the nine months ended September 30, 2026 increased $717 million primarily due to:
•revenues from new investments of approximately $695 million; and
•higher revenues from existing energy assets of $190 million primarily related to higher generation at certain peak generation facilities driven by favorable weather;
partly offset by,
•the impact of non-qualifying commodity hedges due primarily to changes in energy prices (approximately $77 million of gains for the nine months ended September 30, 2026 compared to $272 million of gains for the comparable period in 2025).
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Operating Expenses – net
Operating expenses – net for the three months ended September 30, 2026 increased $200 million primarily due to an increase of $123 million in fuel, purchased power and interchange expense. Operating expenses – net for the nine months ended September 30, 2026 increased $870 million primarily due to increases of $431 million in O&M expense and $288 million in fuel, purchased power and interchange expense. The increases for both periods were primarily associated with growth across the NEER businesses.
Gains on Disposal of Businesses/Assets – net
Gains on disposal of businesses/assets – net for the nine months ended September 30, 2026 primarily reflect the sale of ownership interests in a transmission asset. See Note 11 – Disposal of a Business.
Interest Expense
NEER’s interest expense for the three months ended September 30, 2026 decreased $454 million primarily reflecting approximately $497 million of favorable impacts related to changes in the fair value of interest rate derivative instruments, partly offset by higher interest expense driven by higher average debt balances. NEER’s interest expense for the nine months ended September 30, 2026 decreased $582 million primarily reflecting approximately $818 million of favorable impacts related to changes in the fair value of interest rate derivative instruments, partly offset by higher interest expense driven by higher average debt balances as well as a loss on extinguishment of debt as a result of the sale of ownership interests in a transmission asset (see Note 11 – Disposal of a Business).
Equity in Earnings (Losses) of Equity Method Investees
NEER recognized $293 million and $195 million of equity in earnings of equity method investees for the three months ended September 30, 2026 and 2025, respectively. The three months ended September 30, 2026 reflects a gain of approximately $139 million related to the sale of a partial interest in an equity method investment.
NEER recognized $795 million of equity in earnings of equity method investees for the nine months ended September 30, 2026 compared to $275 million of equity in losses of equity method investees for the nine months ended September 30, 2025. The change for the nine months ended September 30, 2026 primarily reflects the absence of an impairment charge related to the investment in XPLR recorded in 2025 of approximately $0.7 billion ($0.5 billion after tax) (see Note 3 – Nonrecurring Fair Value Measurements). The change for the nine months ended September 30, 2026 also reflects higher earnings from equity method investees, as well as gains totaling approximately $258 million related to the sales of partial interests in equity method investments.
Change in Unrealized Gains (Losses) on Equity Securities Held in NEER's Nuclear Decommissioning Funds - net
For the three months ended September 30, 2026, changes in the fair value of equity securities in NEER's nuclear decommissioning funds primarily reflect unfavorable market conditions in 2026 compared to the prior year period.
Income Taxes
PTCs from wind and solar projects and ITCs from solar, battery storage and certain wind projects are included in NEER’s earnings. PTCs are recognized as wind and solar energy is generated and sold based on a per kWh rate prescribed in applicable federal and state statutes. NEER's effective income tax rate is primarily based on the composition of pretax income in the period presented. See Note 4.
Net Loss Attributable to Noncontrolling Interests
The change in net loss attributable to noncontrolling interests for the three and nine months ended September 30, 2026 primarily reflects higher earnings associated with existing differential membership interest investors, as well as an increase in additional differential membership interests. See Note 11 – Differential Membership Interests.
Symmetry Acquisition
On January 9, 2026, a wholly owned subsidiary of NextEra Energy Resources acquired a commercial and industrial natural gas business. See Note 5 – Symmetry Acquisition.
Caliber Acquisition
On June 30, 2026, a 95% owned subsidiary of NextEra Energy Resources completed the Caliber acquisition. See Note 5 – Caliber Acquisition.
Duane Arnold
In July 2026, NextEra Energy Resources obtained 100% ownership of Duane Arnold through the acquisition of the remaining ownership interest. Additionally, in September 2026, a NEER subsidiary entered into a federal loan arrangement providing for up to $1.9 billion of financing, guaranteed by the U.S. Department of Energy, to support the restart of Duane Arnold.
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Corporate and Other: Results of Operations
Corporate and Other is primarily comprised of the operating results of other business activities, as well as corporate interest income and expenses. Corporate and Other allocates a portion of NEECH's corporate interest expense to NextEra Energy Resources. Interest expense is allocated based on a deemed capital structure of 70% debt and differential membership interests sold by NextEra Energy Resources' subsidiaries.
Corporate and Other's results increased $1,964 million during the three months ended September 30, 2026 primarily due to favorable after-tax impacts of approximately $2,041 million, as compared to the prior year period, related to non-qualifying hedge activity as a result of changes in the fair value of interest rate derivative instruments (see Note 2), partly offset by higher interest expense driven by higher average debt balances.
Corporate and Other's results increased $2,650 million during the nine months ended September 30, 2026 primarily due to favorable after-tax impacts of approximately $2,889 million, as compared to the prior year period, related to non-qualifying hedge activity as a result of changes in the fair value of interest rate derivative instruments (see Note 2), partly offset by higher interest expense driven by higher average debt balances.
LIQUIDITY AND CAPITAL RESOURCES
NEE and its subsidiaries require funds to support and grow their businesses. These funds are used for, among other things, working capital, capital expenditures (see Note 12 – Commitments), investments in or acquisitions of assets and businesses (see Note 5), payment of maturing debt and related derivative obligations (see Note 9 and Note 2) and, from time to time, redemption or repurchase of outstanding debt or equity securities. It is anticipated that these requirements will be satisfied through a combination of cash flows from operations, short- and long-term borrowings, the issuance of short- and long-term debt (see Note 9) and, from time to time, equity securities (see Note 10 – ATM Program), proceeds from differential membership and project minority interest investors (see Note 11 – Differential Membership Interests and – Project Minority Interests), sales of clean energy tax credits (see Note 11 – Income Taxes) and sales of ownership interests in assets/businesses (see Note 11 – Disposal of a Business), consistent with NEE’s and FPL’s objective of maintaining, on a long-term basis, a capital structure that will support a strong investment grade credit rating. NEE, FPL and NEECH rely on access to credit and capital markets as significant sources of liquidity for capital requirements and other operations that are not satisfied by operating cash flows. The inability of NEE, FPL and NEECH to maintain their current credit ratings could affect their ability to raise short- and long-term capital, their cost of capital and the execution of their respective financing strategies, and could require the posting of additional collateral under certain agreements.
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Cash Flows
NEE's sources and uses of cash for the nine months ended September 30, 2026 and 2025 were as follows:
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (millions) | |||||||||||
Sources of cash: | |||||||||||
Cash flows from operating activities | $ | 12,322 | $ | 9,986 | |||||||
Issuances of long-term debt, including premiums and discounts | 18,232 | 15,246 | |||||||||
| Proceeds from differential membership investors | 1,334 | 1,065 | |||||||||
Sale of independent power and other investments of NEER | 665 | 999 | |||||||||
| Cash swept from related parties – net | 25 | — | |||||||||
Issuances of common stock/equity units | 969 | 2,028 | |||||||||
Net increase in commercial paper and other short-term debt | 5,411 | 3,475 | |||||||||
| Proceeds from sale of project minority interests | 1,559 | — | |||||||||
Other sources – net | 75 | 49 | |||||||||
Total sources of cash | 40,592 | 32,848 | |||||||||
Uses of cash: | |||||||||||
| Capital expenditures, independent power and other investments and nuclear fuel purchases | (27,554) | (19,328) | |||||||||
Retirements of long-term debt | (4,912) | (7,546) | |||||||||
Repayments of cash swept to related parties – net | — | (128) | |||||||||
| Dividends on common stock | (3,907) | (3,499) | |||||||||
Payments to differential membership investors | (597) | (166) | |||||||||
Other uses – net | (764) | (872) | |||||||||
Total uses of cash | (37,734) | (31,539) | |||||||||
Effects of currency translation on cash, cash equivalents and restricted cash | (2) | 3 | |||||||||
| Net increase in cash, cash equivalents and restricted cash | $ | 2,856 | $ | 1,312 | |||||||
NEE's primary capital requirements are for expanding and enhancing FPL's electric system and generation facilities to continue to provide reliable service to meet customer electricity demands and for funding NEER's investments in independent power and other projects. See Note 12 – Commitments for estimated capital expenditures for the remainder of 2026 through 2030.
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The following table provides a summary of capital investments for the nine months ended September 30, 2026 and 2025.
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (millions) | |||||||||||
| FPL: | |||||||||||
| Generation: | |||||||||||
New | $ | 3,010 | $ | 2,411 | |||||||
Existing | 1,036 | 669 | |||||||||
| Transmission and distribution | 3,556 | 3,333 | |||||||||
| Nuclear fuel | 162 | 123 | |||||||||
| General and other | 504 | 492 | |||||||||
Other, primarily change in accrued property additions and the exclusion of AFUDC – equity | 54 | (169) | |||||||||
Total | 8,322 | 6,859 | |||||||||
| NEER: | |||||||||||
| Wind | 2,885 | 2,955 | |||||||||
| Solar (includes solar plus battery storage projects) | 10,373 | 5,222 | |||||||||
| Other clean energy | 2,128 | 2,936 | |||||||||
| Nuclear (includes nuclear fuel) | 527 | 334 | |||||||||
Customer supply – natural gas and oil production | 1,175 | 280 | |||||||||
Regulated electric and gas transmission | 628 | 393 | |||||||||
Other | 1,507 | 344 | |||||||||
Total | 19,223 | 12,464 | |||||||||
| Corporate and Other | 9 | 5 | |||||||||
| Total capital expenditures, independent power and other investments and nuclear fuel purchases | $ | 27,554 | $ | 19,328 | |||||||
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Liquidity
As of September 30, 2026, NEE's total net available liquidity was approximately $19.3 billion. The table below provides the components of FPL's and NEECH's net available liquidity as of September 30, 2026.
| Maturity Date | ||||||||||||||||||||||||||||||||||||||
| FPL | NEECH | Total | FPL | NEECH | ||||||||||||||||||||||||||||||||||
| (millions) | ||||||||||||||||||||||||||||||||||||||
Syndicated revolving credit facilities(a) | $ | 4,500 | $ | 10,500 | $ | 15,000 | 2028 – 2031 | 2027 – 2031 | ||||||||||||||||||||||||||||||
| Issued letters of credit | — | (421) | (421) | |||||||||||||||||||||||||||||||||||
| 4,500 | 10,079 | 14,579 | ||||||||||||||||||||||||||||||||||||
Bilateral revolving credit facilities(b) | 2,580 | 3,850 | 6,430 | 2026 – 2029 | 2026 – 2029 | |||||||||||||||||||||||||||||||||
Borrowings | — | (750) | (750) | |||||||||||||||||||||||||||||||||||
| 2,580 | 3,100 | 5,680 | ||||||||||||||||||||||||||||||||||||
Letter of credit facilities(c) | — | 4,935 | 4,935 | 2027 – 2029 | ||||||||||||||||||||||||||||||||||
| Issued letters of credit | — | (4,048) | (4,048) | |||||||||||||||||||||||||||||||||||
| — | 887 | 887 | ||||||||||||||||||||||||||||||||||||
Next expected filings
- ~2027-02-12 10-K expected by 2027-02-28 (in 107 days)
- ~2027-04-22 10-Q expected by 2027-05-09 (in 176 days)
- ~2027-07-23 10-Q expected by 2027-08-09 (in 268 days)
- ~2027-10-20 10-Q expected by 2027-11-06 (in 357 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-10-21 8-K Earnings Release; Financial Statements and Exhibits
- 2026-10-21 10-Q Quarterly Report
- 2026-10-06 8-K Other Events; Financial Statements and Exhibits
- 2026-08-25 8-K Other Events
- 2026-08-11 8-K Other Events; Financial Statements and Exhibits
- 2026-07-24 8-K Earnings Release; Financial Statements and Exhibits
- 2026-07-24 10-Q Quarterly Report
- 2026-07-09 S-4 Registration (Merger)
- 2026-06-22 8-K Other Events; Financial Statements and Exhibits
- 2026-06-15 8-K Other Events; Financial Statements and Exhibits
- 2026-06-01 8-K Other Events; Financial Statements and Exhibits
- 2026-05-26 8-K Other Events; Financial Statements and Exhibits
- 2026-05-18 8-K Officer/Director Change; Other Events
- 2026-05-18 8-K Material Agreement Entered; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-04-23 8-K Earnings Release; Financial Statements and Exhibits