Can you provide data on the price increase for the 600 MW of recontracted projects?

The new contracts for recontracted projects reflect an average price increase of approximately $20 per megawatt-hour relative to the prior realized pricing. “Yes, Steve. The pricing on the new contracts is roughly a $20 per megawatt hour on average increase relative to the prior realized pricing.”

How does NextEra plan to expand its linear infrastructure (transmission and pipelines) – through acquisitions or greenfield development?

NextEra primarily focuses on greenfield development for transmission and pipelines, leveraging its existing skill sets in land operations, permitting, and stakeholder engagement. While opportunistic acquisitions of development assets or operating assets are considered, the company has seen significant success partnering with incumbents. “Wallis lean towards greenfield for the reasons I just gave. Buying operating transmission assets, sure. I mean, if we could be opportunistic about that and then they made sense and we're in the right places. That's something that we could continue to look at as well.”

What are the expectations for non-Japanese BTM projects, and how does the 'time to power' dynamic accelerate these solutions?

NextEra is seeing increased interest in behind-the-meter (BTM) solutions for data centers, particularly in areas with long interconnection queues. These islanded solutions provide quick capacity but require a path to grid interconnection within 3-5 years. The company is exploring dispatchable data centers, like its collaboration with NVIDIA, to act as 'giant batteries' during peak demand, improving reliability and affordability. “I truly believe that we need to be as a country looking at data centers as giant batteries that sit behind the grid.”

NEE

NextEra Energy (NEE) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Utilities· Apr 23, 2026

Source: earnings call transcript

Executive summary

NextEra Energy Q1 FY26 — Strong Start with Record Renewables Backlog and Expanding Large Load Strategy

NextEra Energy delivered a strong Q1 FY26, driven by robust performance at both FPL and Energy Resources, marked by accelerating electricity demand. The company is strategically positioned to meet this growth through its diverse energy infrastructure platform, focusing on affordability and reliability. Key initiatives include expanding large load capacity, growing transmission and gas businesses, and leveraging AI through the Rewire initiative to drive efficiency and innovation across the industry.

Highlights

Adjusted earnings per share increased by 10% year-over-year.
FPL added nearly 100,000 customers compared to the prior year comparable period.
Energy Resources added a record 4 gigawatts of new long-term contracted renewables and storage projects to its backlog.
FPL's first quarter retail sales increased by approximately 3.4% year-over-year, with 0.3% weather-normalized growth.
NextEra Energy Transmission has secured more than $5 billion in new projects since 2023, bringing total regulated and secured capital to $8 billion.

Concerns

Customer supply business decreased by $0.04 per share year-over-year, driven by lower production volume in upstream operations and normalization of margins.
Higher financing costs were incurred, primarily related to new borrowings to support new investments.

Guidance & targets

Category	Target	Timeline	Confidence
FPL Capital Investment	$90 billion to $100 billion high materiality	Through 2032 · FY32	High
FPL Customer Bill Growth	approximately 2% annually medium materiality	Through the end of the decade · FY29	High
Energy Resources Transmission Business Capital	$20 billion high materiality	By 2032 · FY32	High
Data Center Hubs	roughly 40 hubs medium materiality	Year-end goal · FY26	High
New Generation for Large Load (Base Case)	15 gigawatts high materiality	By 2035 · FY35	High
New Generation for Large Load (Upside Case)	30 gigawatts or more high materiality	By 2035 · FY35	Medium
Duane Arnold Plant Re-entry	no later than Q1 2029 medium materiality	Q1 · FY29	High
Adjusted EPS	$3.92 to $4.02 high materiality	Full-year 2026 · FY26	High
Adjusted EPS Compound Annual Growth Rate	8% plus high materiality	Through 2032 and 2035 · FY35	High
Operating Cash Flow Growth	at or above adjusted EPS CAGR range medium materiality	2025 to 2032 · FY32	High
Dividend Per Share Growth	roughly 10% per year high materiality	Through 2026 · FY26	High
Dividend Per Share Growth	6% per year high materiality	From year-end 2026 through 2028 · FY28	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Florida Power & Light (FPL) FPL delivered strong Q1 results driven by regulatory capital and growth. Proactive measures to secure solar supply contributed to increased capital expenditures. Customer and retail sales growth remain healthy, supported by underlying population growth. Adjusted EPS increase: $0.06 year-over-yearRegulatory capital and growth: 8.8%Capital expenditures (Q1): ~$3.2 billionFull-year capital investments guidance: $12 billion to $13 billionReturn on equity (regulatory, 12 months ending March 2026): ~11.7%Rate stabilization mechanism utilized (Q1): ~$306 millionRate stabilization mechanism balance (after-tax): ~$1.2 billionNew solar placed into service (Q1): ~600 megawattsOwned and operated solar portfolio: >8.5 gigawattsCustomer growth (YoY): nearly 100,000 customersRetail sales increase (Q1): 3.4% year-over-yearRetail sales increase (weather-normalized Q1): 0.3% from comparable prior year period	—	—	—	—
Energy Resources Energy Resources achieved significant adjusted earnings growth, primarily from new investments and transmission. The customer supply business saw a decrease due to lower production and margin normalization. A record quarter for new origination highlights strong demand for renewables and storage. Adjusted earnings growth: ~14% year-over-yearContributions from new investments: +$0.04 per share year-over-yearContributions from existing clean energy portfolio: +$0.01 per shareContributions from customer supply business: -$0.04 per share year-over-yearContributions from NextEra Energy Transmission: +$0.05 per share year-over-year (net of financing costs)New renewables and storage origination (Q1): 4 gigawattsTotal backlog: ~33 gigawattsNew projects placed into service (since last call): 0.3 gigawattsBacklog additions from hyperscalers: ~30%Backlog additions from power utility customers (co-ops/munis): ~70%	—	—	—	—

NEE operating KPIs by quarter

NEE operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2025 Q4 FY25	This call Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Capital expenditures Florida Power & Light Company	~$2.1B FPL's capital expenditures were approximately $2.1 billion in the fourth quarter, bringing its full year capital investments to a total of roughly $8.9 billion. Source: earnings call transcript	~$3.2B FPL's capital expenditures were approximately $3.2 billion for the quarter, and we expect FPL's full year capital investments to be between $12 billion and $13 billion. Source: earnings call transcript	~$2.8B FPL's capital expenditures were approximately $2.8 billion for the quarter, and we expect FPL's full year capital investments to be between $12 billion and $13 billion. Source: earnings call transcript	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Energy Resources Renewables and Storage Backlog 33 gigawatts Q1 FY26

4 gigawatts added in Q1 FY26

After taking into account 0.3 gigawatts of new projects placed into service since last earnings call.

Deals & partnerships

Symmetry Energy Solutions acquisition

Strategic acquisition of one of the U.S.'s leading natural gas suppliers, operating in 34 states.

U.S. Department of Commerce and Japan customer contract

Selected Energy Resources to build 9.5 GW of new gas-fired generation for large load in Texas and Pennsylvania, as part of Japan's $550 billion investment commitment to the U.S.

Excel partnership

Joint development agreement to jointly plan and rapidly deploy new generation, storage, and transmission to capture accelerating data center demand across Excel's 8-state service territory.

Basin Electric partnership

Plan to work with Basin Electric to develop a 1.5 gigawatt combined cycle plant in North Dakota.

Google collaboration

Collaboration to recommission the Glenora nuclear plant outside Cedar Rapids, Iowa, and partnership on the Rewire initiative for AI transformation and product development.

NVIDIA collaboration

Collaboration on the 'bring your own generation' (BYOD) model, exploring how data centers can be dispatchable resources during times of extreme demand.

Capital programs

FPL 10-year Ciplan underway $90 billion to $100 billion

Benefit:Roughly 4 GW new gas-fired generation, over 12 GW solar, over 7 GW storage solutions

Primarily to support Florida's growing economy and diversify FPL's generation fleet.

US-Japan Gas-Fired Generation Projects underway

Funding: US and Japan governments

Benefit:9.5 gigawatts of new gas-fired generation

Selected by the U.S. Department of Commerce to serve large load in Texas and Pennsylvania. NextEra Energy Resources would develop, build, and operate them.

Duane Arnold Re-entry underway

The plant remains on track to reenter service following license transfer approval and progress on interconnection rights.

Risks & headwinds

Lower production volume in upstream operations Q1 FY26

Decreased customer supply business contribution by $0.04 per share year-over-year

Normalization of margins in full requirements business Q1 FY26

Decreased customer supply business contribution by $0.04 per share year-over-year

Higher financing costs Q1 FY26

Largely offset lower tax costs in 'other impacts'

Mitigation:Over $43 billion interest rate hedging program in place.

EPC contractor and labor constraints for gas plant builds Ongoing

Fewer EPC contractors available (4 today vs. 9-11 previously); squeeze on labor (pipefitters, welders)

Mitigation:NextEra is a builder and has positioned itself to seize opportunities despite these constraints.

Permitting delays Ongoing

Load interconnect process taking 5 to 7 years in some parts of the country

Mitigation:Advocating for permitting reform; offering behind-the-meter solutions for data centers to bypass initial delays.

Q&A highlights

What are the milestones and timeline for the US-Japan projects, is turbine supply secured, and will NextEra participate in building associated pipeline/transmission?

Definitive agreements for the US-Japan projects are expected to be completed in the next 2-3 months, with subsequent milestones tied to payments. Turbine supply is ample, and NextEra will leverage its expertise for gas pipeline access and transmission development, especially given the strategic location of the Texas site.

“Right now, as we negotiate definitive agreements, we're looking to have those completed in the next 2- to 3-month period on both of those projects.”

asked by Steven Fleishman · answered by John Ketchum

4 min read 7 chapters

Detailed narrative

Accelerating Electricity Demand and NextEra's Strategic Position

NextEra Energy is experiencing an accelerating demand for electricity across the country, driven by economic growth and new large loads like hyperscalers. The company emphasizes its unique position to meet this demand by leveraging its common platform, which includes experience across the entire energy value chain, massive scale, a strong balance sheet, and a continuous focus on operational efficiency.

This approach allows NextEra to provide low-cost, highly reliable electricity while building necessary new infrastructure.

FPL's Growth, Affordability, and Large Load Strategy

Florida Power & Light (FPL) continues to demonstrate strong growth, adding nearly 100,000 customers in Q1 FY26 compared to the prior year. FPL plans to invest between $90 billion and $100 billion through 2032, primarily for new power generation and transmission infrastructure, including 4 GW of new gas-fired generation, 12 GW of solar, and 7 GW of storage.

Despite these investments, FPL's residential customer bills are 30% below the national average and projected to grow only 2% annually through the decade. FPL has also developed a large load tariff, attracting 21 GW of interest, with 12 GW in advanced discussions, and expects to sign at least one large load customer by year-end, with each GW potentially equating to $2 billion in CapEx.

Expanding Transmission and Gas Businesses

NextEra Energy Transmission is a leading independent electric transmission company, having secured over $5 billion in new projects since 2023, bringing its total regulated and secured capital to $8 billion. This includes a recent $300 million investment in Texas for ERCOT-approved transmission lines.

The company is also growing its gas transmission business, now owning interests in over 1,000 miles of FERC-regulated pipelines, with a target to grow the combined electric and gas transmission business to $20 billion by 2032, representing a 20% CAGR from a 2025 base.

This expansion is supported by strategic acquisitions like Symmetry Energy Solutions, enhancing market knowledge for pipeline development.

Record Renewables and Storage Backlog & Recontracting Opportunities

Energy Resources achieved a record quarter, adding 4 GW of new long-term contracted renewables and storage projects to its backlog, bringing the total to approximately 33 GW. This includes 1.3 GW of battery storage origination, with a stand-alone and co-located battery storage pipeline exceeding 10 GW.

The company also highlighted significant recontracting opportunities through 2032, including 6 GW of renewables and 1.5 GW of nuclear capacity. In Q1, over 600 MW of existing projects were recontracted for an average of over 18 years, reflecting a strong market with a $20/MWh average price increase.

Data Center Hub Strategy and New Generation Development

NextEra is executing a data center hub strategy, aiming for 40 hubs by year-end, with a base case goal of securing 15 GW and an upside case of 30 GW or more of new generation for large load by 2035.

This includes a significant 9.5 GW gas-fired generation project for large load in Texas and Pennsylvania, selected by the U.S. Department of Commerce as part of the U.S.-Japan trade deal. The strategy involves direct engagement with hyperscalers, partnerships with utilities (e.g., Excel), co-ops (e.g., Basin Electric for 1.5 GW plant), and the federal government, often utilizing a 'bring your own generation' (BYOD) model to ensure affordability for existing customers.

Rewire Initiative and AI Transformation

The company launched its Rewire initiative, a company-wide AI transformation in partnership with Google Cloud, aimed at unlocking top-line growth and cost savings. This initiative serves as an AI product development platform, with initial products like Conduit (upskilling renewables workforce), Generation Entitlement (proactive equipment condition identification), and Grid Composer (optimizing power generation processes).

These tools are expected to reinforce NextEra's position as a low-cost operator and drive significant savings for customers, building on FPL's non-fuel O&M being 71% lower than the industry average.

Nuclear Development and Risk Management

NextEra is progressing with the Duane Arnold nuclear plant, which is on track to reenter service no later than Q1 2029, following the approval of its license transfer. The company is also evaluating advanced nuclear technologies, with 6 GW of SMR colocation opportunities at existing nuclear sites.

Any new nuclear build would require appropriate risk-sharing mechanisms, involving OEMs, developers, hyperscalers, and the federal government, to protect customers and shareholders from cost overruns, with a preference for Gen 3 SMR technology.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.