Renewable Energy Leader NextEra Energy Shines in 2024
NextEra Energy, a pioneer in the renewable energy sector, has wrapped up 2024 with impressive financial results. The company’s strong earnings growth and record-breaking renewable energy development projects have set the stage for continued supercharged growth, outpacing its utility sector peers.
A Year of Excellence
CEO John Ketchum highlighted the company’s exceptional performance, stating, “NextEra Energy had an excellent year of execution in 2024, growing full-year adjusted earnings per share by more than 8% over 2023 and once again achieving the top end of our adjusted earnings per share expectations range.” The company generated $6 billion, or $3.43 per share, of adjusted earnings, an 8.2% increase from 2023’s level.
Beating the Competition
NextEra Energy’s growth rate is unparalleled, with a compound annual growth rate of over 10% since 2021 and approximately 10% over the past 10 years, surpassing its top-10 power company peers. The company’s heavy investment in renewable energy has been a significant differentiator, driving its supercharged growth rate.
Leading the Renewable Energy Charge
NextEra Energy has built an impressive portfolio of renewable energy assets, generating a substantial amount of low-cost power. In 2024, the company placed into service roughly 8.7 gigawatts (GW) of new renewables and storage projects, solidifying its leadership in power generation. This robust portfolio enables the company to produce enhanced returns and earnings growth.
Future Growth Prospects
The company’s energy resource segment delivered its best year for originating new renewable energy projects for the third year in a row, adding over 12 GW of new renewable energy and battery storage projects to its backlog. This strong backlog of projects supports NextEra Energy’s long-term growth outlook, with expectations to grow adjusted earnings per share by 6% to 8% annually from last year’s level through 2027.
A Bright Future Ahead
NextEra Energy is taking steps to secure its growth beyond 2027, including evaluating the recommissioning of the Duane Arnold Energy Center in Iowa and signing framework agreements with large companies to deploy additional renewable energy capacity through 2030. These initiatives provide visibility into the company’s longer-term growth potential, driving expectations of increasing its dividend by about 10% annually through at least 2026.
Investment Opportunities
NextEra Energy’s sector-leading earnings growth, robust backlog, and increasing visibility into its longer-term growth opportunities make it an attractive investment opportunity. The company’s growth catalysts should continue to drive strong total returns in the coming years.
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