NextEra Energy (NEE) Q4 2023 earnings summary

Executive summary

• FY2023 adjusted EPS rose 9.3% to $3.17, above the high end of expectations; annual adjusted EPS growth of 6%–8% is targeted through 2026.

• Record renewables and storage origination reached ~9,000 MW, taking backlog above 20 GW after ~5,600 MW entered service; partnership transition progress also shaped the year.

Financial highlights

• FY2023 adjusted earnings were $6.441B vs. $5.742B in 2022, with adjusted diluted EPS of $3.17 vs. $2.90; GAAP net income was $7.310B vs. $4.147B.

• Q4 adjusted earnings were $1.067B, or $0.52/share, vs. $1.011B, or $0.51/share; GAAP net income was $1.210B, or $0.59/share, vs. $1.522B, or $0.76/share.

Outlook and guidance

• Adjusted EPS guidance: $3.23–$3.43 for 2024, $3.45–$3.70 for 2025 and $3.63–$4.00 for 2026; targeted growth is 6%–8% annually through 2026.

• Operating cash flow CAGR from 2021–2026 is expected to meet or exceed adjusted EPS growth; dividend per share growth of ~10% annually is expected through at least 2024, based on a 2022 base.

• Partnership run-rate adjusted EBITDA guidance is $1.9B–$2.1B and CAFD is $730M–$820M for both 12/31/23 and 12/31/24 portfolio bases; 2024 DPU is expected at $3.73 annualized by year-end.

• Partnership DPU growth target is 5%–8% annually, with a 6% target, through at least 2026, based on the Q4 2023 annualized distribution of $3.52.