What Management Said
Read the full Q1 2026 transcript ↗Adjusted earnings per share increased by 10% year-over-year, reflecting strong financial and operational performance at both FPL and Energy Resources. We're able to meet this increased power demand while keeping power prices low, and we're doing it by leveraging our common platform. At Energy Resources, customers choose us because they know we have an unmatched, decades-long track record of building energy infrastructure that delivers cost-effective solutions tailored to their needs. Importantly, our forecasted growth is visible and balanced between our regulated and long-term contracted businesses.
Florida is a prime example of how we reliably serve growth while keeping bills low. Florida is already a $1.8 trillion economy, the 15th largest in the world, and the growth isn't slowing down. FPL supports this growth by building the right new power generation and the right new transmission infrastructure across the state. Yet, even with significant capital investment, bills have actually gone down over time.
Instead, this performance is a direct result of smart, disciplined capital investments, coupled with a relentless focus on operating efficiently. Initially, we expect every gigawatt of large load under FPL's approved tariff to be equivalent to roughly $2 billion of CapEx, and to earn the same return on equity as other FPL investments. Lone Star's investment share of approximately $300 million represents a roughly 40% increase in Lone Star's rate base. In total, NextEra Energy Transmission has regulated and secured capital of $8 billion, almost twice the rate base size of Gulf Power when we bought the company in 2019.
What went well
- NextEra Energy delivered strong Q1 2026 results with adjusted earnings per share up 10% year over year, reflecting strong performance at both FPL and Energy Resources.
- FPL added nearly 100,000 customers versus the prior year period, with Q1 retail sales up 3.4% year over year, and placed roughly 600 MW of new solar into service to bring its owned/operated solar portfolio above 8.5 GW.
- Energy Resources had a record quarter of new renewables and storage origination, adding 4 GW to backlog (including 1.3 GW of battery storage), bringing total backlog to approximately 33 GW.
- FPL reported about 21 GW of large load interest with roughly 12 GW in advanced discussions, and the company continues to expect at least one large load customer to sign under FPL's tariff by year-end.
- NextEra Energy Transmission has secured more than $5 billion in new projects since 2023 and $8 billion of total regulated and secured capital, including ERCOT approval for Lone Star Transmission lines representing about a 40% rate-base increase for Lone Star.
- The company secured supply chain across solar panels (through 2029), batteries (through 2029), wind components (through 2027), and transformers (through end of the decade), positioning it to capitalize on accelerating demand.
What went wrong
- The customer supply business contribution decreased $0.04 per share year over year, primarily from lower production volume in upstream operations and continued normalization of margins in the full requirements business.
- Corporate and other adjusted earnings decreased $0.02 per share year over year.
- Higher financing costs related to new borrowings to support new investments partially offset lower tax costs, leaving other impacts roughly flat.
- Management cited labor and EPC contractor scarcity (down to about four EPC contractors versus nine to eleven historically) plus permitting as constraints slowing the pace of new gas-fired generation.
Guidance Changes
| Metric | Period | Current guidance |
|---|---|---|
| Adjusted EPS | FY2026 | $3.92-$4.02 (targeting the high end) (unchanged) |
| Adjusted EPS CAGR | through 2032 (off 2025 base of $3.71), and 2032-2035 | +8% (reaffirmed) |
| FPL full-year capital expenditures | FY2026 | $12 billion-$13 billion (raised) |
| Dividends per share growth | through 2026 (off 2024 base), and year-end 2026 through 2028 | roughly 10% per year through 2026, then 6% per year 2026-2028 (reaffirmed) |
| Operating cash flow average annual growth | 2025-2032 | at or above adjusted EPS CAGR range (reaffirmed) |
| FPL capital investment | through 2032 | $90 billion-$100 billion (reaffirmed) |
| Energy Resources electric and gas transmission regulated/investment capital | by 2032 | $20 billion (20% CAGR off 2025 base) (reaffirmed) |
Performance Breakdown
| Metric | YoY | Note |
|---|---|---|
| Consolidated adjusted EPS | +10% | strong financial and operational performance at both FPL and Energy Resources |
| FPL EPS | +$0.06 | regulatory capital growth of approximately 8.8% versus the prior year quarter |
| Energy Resources adjusted earnings | +14% | new investment contributions (+$0.04), existing clean energy (+$0.01), and NextEra Energy Transmission (+$0.05 net of financing, including a California transmission equity-interest sale), partly offset by a $0.04 decline in customer supply |
| FPL Q1 retail sales | +3.4% (+0.3% weather normalized) | continued favorable underlying population growth |
| FPL average customers | +nearly 100,000 | Florida population and economic growth, with three of the five fastest-growing U.S. metro areas |
| Corporate and other adjusted earnings | -$0.02 per share | not specified beyond corporate-level impacts |
Earnings Call Themes & Trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Electricity demand growth | — | Demand is accelerating with customers needing power now; speed to power is essential, and NextEra positions itself as a builder of all forms of generation at scale | Accelerating |
| Large load / hyperscaler demand at FPL | — | About 21 GW of interest, ~12 GW in advanced discussions, some serviceable as soon as 2028; each GW under tariff is roughly $2 billion of CapEx at FPL's standard ROE | Growing |
| Battery storage | — | Record 1.3 GW origination in the quarter with four growth avenues and a standalone/co-located pipeline over 110 GW | Strong |
| Linear infrastructure (transmission and pipelines) | — | $8 billion of secured/regulated transmission capital and 1,000+ miles of FERC-regulated pipelines, targeting $20 billion combined by 2032 at a 20% CAGR | Expanding |
| U.S.-Japan / federal hub projects | — | Capital-light development for Texas and Pennsylvania sites with definitive agreements targeted in two-three months; essentially zero capital with fee streams over the asset life | Advancing |
| Gas generation build-out | — | Advancing but constrained by EPC labor scarcity and permitting; renewables and storage remain the fastest route to new capacity until gas can be built | Constrained |
| Nuclear | — | Exploring SMRs (favoring Gen-3) at Turkey Point and other sites with 6 GW of SMR capacity at existing sites; recontracting interest around Point Beach; would not pursue via a consortium | Exploratory |
Q&A Summary
On the U.S.-Japan projects, what are the milestones and timeline, do you have turbines, and could you participate in pipeline and transmission too?
Definitive agreements are targeted within the next two-three months for both projects, after which milestone-tied payments follow; turbine supply is ample, gas access is strong at the Texas (Anderson County) site via Comstock Resources, and transmission access will be obtained as development advances.
Do you have a data point on the price change in the 600 MW of recontracting versus the old contracts?
Pricing on the new contracts is roughly $20 per megawatt hour higher on average than prior realized pricing.
How do you think about expanding the linear infrastructure business — is it acquisitive or greenfield?
It leans greenfield because transmission and pipelines leverage the same land, permitting, and stakeholder skill sets as generation, though opportunistic acquisitions of development or operating assets in the right places are possible; partnering with incumbent utilities, co-ops, and municipalities has driven much of the success.
Does the strong backlog progression reflect acceleration ahead of tax-credit roll-offs or underlying demand?
It reflects underlying fundamental demand rather than acceleration; the acceleration ahead of tax credits is expected to show up in coming quarters, and NextEra's secured supply chain positions it well to capture it.
On large-scale nuclear, are you part of the utility consortium considering new nuclear, and what about Turkey Point?
NextEra would not pursue nuclear via a consortium given its own experience; at Turkey Point it would more likely test an SMR (favoring Gen-3) rather than an AP1000, requiring the four wallets (OEM, developer, hyperscaler, federal government) and proper technical and cost-overrun risk sharing.
Is the increased FPL CapEx of $12 billion-$13 billion tied to the 1 GW of large load you discussed?
No specific large-load gigawatt figure has been given; the CapEx increase reflects pulling in secured solar supply at locked-in prices to remove trade impacts and cost-effectively serve Florida customers.
How do the returns on the capital-light Japan framework support the +8% EPS growth?
Because it is capital-light with essentially zero capital, returns are effectively infinite; NextEra would receive development, construction, and ongoing O&M fee streams over the asset life, with value to be quantified once contracts are finalized.
More on Nextera Energy Inc
Reported 2026-04-23 · figures from the Nextera Energy Inc Q1 2026 earnings call.
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