NextEra Energy (NEE +0.78%) is the country's largest electric utility and a leader in developing clean energy infrastructure. That puts it in one of the best positions to capitalize on the surge in energy demand from AI data centers and other catalysts.
Robust energy demand enabled the company to generate strong earnings growth last year, while positioning it to continue delivering high-powered growth in 2026 and beyond.
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The year in review
NextEra Energy recently reported its fourth-quarter and full-year 2025 financial results. The utility "delivered strong operational and financial performance in 2025," commented CEO John Ketchum in the earnings press release. Its adjusted earnings per share rose 8.2% last year, exceeding the top end of its guidance range.
The company's electric utility in Florida (FPL) grew its net income by over 10% to $5 billion. It benefited from investing $8.9 billion into capital projects to maintain and expand its operations in support of the state's fast-growing economy, including the continued development of a leading solar energy portfolio.
NYSE: NEE
Key Data Points
Meanwhile, the company's energy resources segment continues to capitalize on robust power demand. It's rapidly placing new renewable energy projects into service, including 3.6 gigawatts (GW) over the last three months, which helped power 13% earnings growth last year. The company had its best year ever for originating new projects, adding 13.5 GW of new generation and battery storage projects, as it capitalized on robust demand from data center developers.
A look at what's ahead
NextEra Energy expects to grow its earnings to a range of $3.92 to $4.02 per share this year, a more than 8% increase from last year's level at the high end. That supports the company's plan to hike its dividend by another 10% in 2026.
The utility expects to deliver 8%+ annual earnings-per-share growth through at least 2032, with it also aiming to deliver growth within that target range from 2032 through 2035. Meanwhile, it plans to increase its dividend by 6% per year from the end of 2026 through 2028.
Multiple growth catalysts support the company's long-term outlook. NextEra's energy resources segment currently has 30 GW of projects in its backlog, providing meaningful near-term visibility into its growth. Meanwhile, the company plans to expand its natural gas transmission business in the coming years. It recently increased its stake in the Mountain Valley Pipeline, which is pursuing two visible expansion opportunities. It also recently acquired Symmetry Energy Solutions to enhance its gas supply business and is pursuing several gas-fired power plant projects. Additionally, NextEra Energy is pursuing growth projects related to nuclear energy, electricity transmission, and data center development.
Powerful total return potential
NextEra Energy expects to continue growing its earnings by more than 8% annually for the foreseeable future. That should give it the fuel to continue increasing its more than 2.5%-yielding dividend at a healthy yearly pace. This income-and-growth combo could provide the utility with the fuel to generate total annual returns above 10% over the coming decade. That makes it a very compelling investment opportunity these days.
