Financial Performance Overview

NextEra Energy (NEE) reported mixed financial results for the three and nine months ended September 30, 2025. Net income attributable to NEE increased by $586 million for the three-month period but decreased by $443 million for the nine-month period.

The increase in net income for the three-month period was driven by higher results at Florida Power & Light (FPL), NextEra Energy Resources (NEER), and the Corporate and Other segment. The decrease for the nine-month period was due to lower results at NEER and Corporate and Other, partially offset by higher results at FPL.

FPL Performance

FPL’s net income increased by $170 million and $356 million for the three and nine months ended September 30, 2025, respectively. This was primarily driven by continued investments in plant and other property, which grew FPL’s average rate base by approximately $5.4 billion for both periods compared to the prior year.

FPL earned regulatory returns on equity of around 11.7-11.8% during this time. The company also began recovering eligible storm costs and replenishing its storm reserve through a surcharge totaling $1.2 billion related to recent hurricanes.

In February 2025, FPL filed a petition with the Florida Public Service Commission (FPSC) requesting approval of a new four-year base rate plan starting in January 2026. In August 2025, FPL and several intervenor groups filed a joint motion for the FPSC to approve a settlement agreement on the rate plan.

NEER Performance

NEER’s results increased by $52 million for the three-month period but decreased by $311 million for the nine-month period. The key drivers were:

• New investments, such as solar and battery storage facilities, contributed higher earnings.
• The customer supply business saw increased revenues and margins.
• Existing clean energy projects and the NEET transmission business had mixed results.
• There were lower gains from asset recycling and higher financing costs.
• An impairment charge of $0.7 billion ($0.5 billion after-tax) was recognized related to the investment in XPLR.

NEER’s effective income tax rate was lower due to an increase in clean energy tax credits reflecting business growth.

Corporate and Other Performance

The Corporate and Other segment’s results increased by $364 million for the three-month period but decreased by $488 million for the nine-month period. The changes were primarily driven by the impact of non-qualifying hedge activity related to changes in the fair value of interest rate derivatives, as well as higher average debt balances and interest rates.

Liquidity and Capital Resources

NEE and its subsidiaries require significant funds to support and grow their businesses through capital expenditures, investments, debt repayment, and other activities. They rely on a combination of cash flows from operations, borrowings, and the issuance of securities to meet these needs.

As of September 30, 2025, NEE had total net available liquidity of approximately $16.0 billion, consisting of available credit facilities, cash, and other sources. FPL and NEECH, NEE’s main subsidiaries, had $5.1 billion and $10.9 billion in net available liquidity, respectively.

NEE and its subsidiaries also use various forms of credit support, such as guarantees, letters of credit, and surety bonds, to facilitate commercial transactions and financings. At September 30, 2025, these credit support arrangements totaled approximately $16.4 billion.

Regulatory and Legislative Developments

Several regulatory and legislative activities occurred in 2025 that could impact NEE and FPL, including:

• The enactment of the Omnibus Budget and Bipartisan Agreement (OBBBA), which modified tax legislation affecting clean energy tax credits.
• The issuance of federal executive orders and actions.
• The imposition of tariffs on certain imports.
• The issuance of guidance by federal agencies.

NEE believes its current pipeline of wind and solar projects will qualify for clean energy tax credits, and there has been no material impact on its operations or financial performance so far. The company will continue to assess any further developments.

Market Risk Sensitivity

NEE and FPL are exposed to various market risks, including commodity price, interest rate, and equity price risks. They use derivative instruments and other strategies to manage these risks.

• Commodity price risk is measured using a value-at-risk (VaR) model. NEE’s total VaR was $52 million as of September 30, 2025, down from $88 million at the end of 2024, reflecting lower exposure in the non-qualifying hedges and FPL cost recovery clauses categories.
• A hypothetical 10% decrease in interest rates would increase the fair value of NEE’s net liabilities by approximately $3.9 billion ($1.3 billion for FPL).
• A hypothetical 10% decrease in equity prices would reduce the fair value of NEE’s nuclear decommissioning reserve funds by approximately $644 million ($438 million for FPL).
• NEE manages counterparty credit risk in its energy marketing and trading operations through established policies and credit enhancements. At September 30, 2025, approximately 92% (100% for FPL) of the credit exposure was with investment-grade counterparties.

Outlook

Overall, NEE’s financial performance for the three and nine months ended September 30, 2025 was mixed, with higher results at FPL offset by lower results at NEER and Corporate and Other. The company continues to make significant investments in its regulated and competitive energy businesses, which are supported by a strong liquidity position.

While there have been various regulatory and legislative developments, NEE believes its current project pipeline will continue to qualify for clean energy tax credits, and it has not seen a material impact on its operations or financial performance so far. The company will remain vigilant in monitoring and assessing any further changes that could affect its businesses in the future.