Back to top

Image: Bigstock

Can Carbon-Free Nuclear Power Anchor NextEra's Clean Energy Future?

Read MoreHide Full Article

Key Takeaways

  • NEE's 3,502 MW of nuclear capacity helps stabilize the grid as it adds more solar and wind energy.
  • Nuclear assets enhance NEE's regulatory credibility and support its push toward net-zero emissions.
  • NEE projects 6-8% annual EPS growth through 2027, with 2025 EPS guidance of $3.45-$3.70.

NextEra Energy Inc.’s (NEE - Free Report) nuclear energy assets also contribute to achieving its long-term emission reduction targets. NEE operates nuclear fleets in the United States through its subsidiary, Florida Power & Light (“FPL”). These nuclear plants provide a stable and carbon-free energy source that complements the intermittent nature of wind and solar power. FPL operates four nuclear units in Florida, having a total generating capacity of 3,502 megawatts (MW).

Nuclear energy’s reliability is particularly valuable as NextEra transitions toward a cleaner grid. Unlike solar or wind, nuclear plants can operate 24X7, providing consistent power regardless of weather conditions. This enhances grid stability and ensures NextEra can meet demand while phasing out fossil-fuel-based generation. NEE’s dependable nuclear assets allow it to integrate more renewables into the system without compromising reliability.

NextEra’s investment in nuclear also contributes to its regulatory credibility. By maintaining and upgrading its nuclear fleet, the company demonstrates a commitment to sustainable energy while complying with strict safety and environmental standards. 

NextEra can also benefit from President Trump’s executive order targeting a fourfold increase in U.S. nuclear energy production by 2050. The directive calls for expedited licensing, streamlined regulatory processes and substantial federal investment in nuclear infrastructure.  As policy support broadens, nuclear assets may become increasingly valuable within the company’s portfolio.

NextEra’s nuclear facilities provide vital carbon-free baseload capacity that supports its clean energy growth while ensuring reliability and cost efficiency. These assets are integral to the company’s net-zero ambitions and help sustain its leadership in the U.S. clean energy transition.

Executive Order to Boost the Prospect of Other Utilities

Courtesy of the executive order, the U.S. nuclear capacity is likely to increase from 100 gigawatt (GW) in 2024 to 400 GW by 2050. New nuclear policies will assist in the quick approval and development of new nuclear units. Constellation Energy (CEG - Free Report) and Vistra Corp.(VST - Free Report) , among others, stand to gain from the executive order. 
 
CEG aims to increase its clean power generation from nuclear assets by acquiring new assets and expanding the capacity of existing units. Vistra, with its existing nuclear assets and strong presence in high-growth electricity markets, is well-positioned to capture long-term upside from this aggressive nuclear push.

NEE Stock Returns Better Than Its Industry

NextEra Energy’s trailing 12-month return on equity (“ROE”) is 12.06%, ahead of the industry average of 10.09%. ROE is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.

Zacks Investment Research
Image Source: Zacks Investment Research

NextEra Energy’s Earnings Estimates Moving North

NextEra Energy expects its 2025 earnings per share to be in the range of $3.45-$3.70 compared with $3.43 a year ago. The Zacks Consensus Estimate for NEE’s 2025 and 2026 earnings per share indicates year-over-year growth of 7% and 8%, respectively. NEE expects to increase its earnings per share in the range of 6-8% annually through 2027 from the level of 2024.

Zacks Investment Research
Image Source: Zacks Investment Research

NEE’s Price Performance

NextEra Energy’s shares have gained 2.1% in the past three months compared with the Zacks Utility Electric-Power industry’s rise of 1.6%.

Zacks Investment Research
Image Source: Zacks Investment Research

NEE’s Zacks Rank

NextEra Energy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


NextEra Energy, Inc. (NEE) - free report >>

Constellation Energy Corporation (CEG) - free report >>

Vistra Corp. (VST) - free report >>

Published in