NextEra Beats Third-Quarter Profit Estimates on Renewables Strength

Print 🖨

Oct 23 (Reuters) – NextEra Energy’s third-quarter profit beat Wall Street estimates on Wednesday, helped by strength in its renewables unit.

Growing demand from AI-backed data centers, along with homes and businesses using more electricity for heat and transportation, has brightened forecasts for utilities this year.

The S&P index tracking utilities jumped 18.4% in the third quarter, compared to a 5.5% rise in the S&P 500.

A strong push for cleaner energy is also benefiting companies like NextEra, the world’s largest renewables company.

Its renewables business, NextEra Energy Resources, boasted of a project backlog of 24 gigawatts (GW) in the third quarter, up from nearly 22.6 GW in the second quarter.

“We are also pleased to announce incremental framework agreements with two Fortune-50 customers for the potential development of renewables and storage projects, totaling up to 10.5 GW between now and 2030,” said CEO John Ketchum.

The company’s regulated utilities business, Florida Power & Light, reported net income of $1.29 billion, compared with $1.18 billion a year earlier.

ROO.AI Oil and Gas Field Service Software

NextEra’s overall quarterly revenue of $7.57 billion, however, missed estimates of around $8.10 billion, according to analysts’ estimates compiled by LSEG.

The Juno Beach, Florida-based company, which maintained its 2024 adjusted earnings-per-share forecast, said it expects EPS in 2025 to be in a range of $3.45 to $3.70.

On an adjusted basis, NextEra earned $1.03 per share in the quarter, compared with estimate of 98 cents, according to data compiled by LSEG.

NextEra Energy Partners, a unit of the company created to acquire, manage and own contracted energy projects, said it would repower an additional 225 megawatts (MW) of wind facilities, bringing the total backlog of wind re-powerings to around 1.6 GW through 2026.

However, the unit reported a loss of $40 million due to higher interest payments and a loss on some continuing operations, compared to year-ago net income of $53 million. Its shares were down 5.3% in premarket trading.