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Can a Growing Backlog of Renewables Secure NEE's Market Leadership?
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Key Takeaways
NEE added 3.2 GW of wind, solar, and storage to its renewables backlog in Q1 2025.
The company's total renewables and storage backlog now stands at nearly 28 GW.
NEE plans to invest $50B during 2025-2029 via Florida Power & Light and expects to add 25 GW by 2034.
NextEra Energy Inc. (NEE - Free Report) gains value from its backlog of renewable energy and storage projects by securing future revenue streams and solidifying its position as a leader in the clean energy sector.
A large backlog means the company has a predictable stream of future revenues as these projects are being developed and brought online. The expanding backlog, especially in solar and storage, demonstrates NextEra's dominance in the clean energy market and its ability to secure new projects. By adding to its backlog, the company is also positioning itself for continued growth in adjusted earnings per share.
NEE expanded its contracted renewables backlog by adding nearly 3.2 gigawatt (GW) of renewable projects in the first quarter of 2025. Its backlog additions include nearly 200 megawatts (MW) of wind projects, 2 GW of solar projects, 900 MW of battery storage projects and 100 MW of wind repowering. The company’s renewables backlog is now nearly 28 GW.
NextEra's investments in renewable energy are expected to generate long-term value for shareholders through increased power generation and cost savings for customers. A robust backlog allows NextEra to plan and execute large-scale capital investments, further strengthening its infrastructure and market position. NEE’s subsidiary, Florida Power & Light Company, plans to invest nearly $50 billion during 2025-2029 and add more than 25 GW of new generation and storage by 2034.
In conclusion, NextEra's backlog is more than just a pipeline; it is a strategic engine that supports its financial discipline, solidifies its leadership in renewables, and fosters long-term alliances, positioning it for sustained growth and value generation.
Rising Backlogs Boost Growth Prospects for Utilities
Other U.S. utilities benefiting from a growing backlog of renewable energy and energy storage projects have been discussed below.
During the first quarter of 2025, AES Corporation (AES - Free Report) signed 443 MW of power purchase agreements for solar and energy storage. This brought AES’ total backlog to 11.7 GW, including 5.3 GW under construction. AES’ U.S. renewables business has a backlog of 7.6 GW and a 53 GW pipeline that it intends to utilize for its business growth.
Dominion Energy’s (D - Free Report) backlog, particularly with offshore wind projects like Coastal Virginia Offshore Wind, positions the company to meet the growing demand for sustainable energy and contribute to decarbonization goals.
NEE Stock’s Price Performance
In the past month, NEE’s shares have risen 1.1% against the industry’s 0.2% decline.
Image Source: Zacks Investment Research
The Zacks Rundown for NEE
NEE is trading at a premium relative to the industry, with a forward 12-month price-to-earnings ratio of 18.55X compared with the industry average of 14.59X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NEE’s 2025 and 2026 earnings per share indicates an increase of 7.29% and 7.95%, respectively.
Image: Bigstock
Can a Growing Backlog of Renewables Secure NEE's Market Leadership?
Key Takeaways
NextEra Energy Inc. (NEE - Free Report) gains value from its backlog of renewable energy and storage projects by securing future revenue streams and solidifying its position as a leader in the clean energy sector.
A large backlog means the company has a predictable stream of future revenues as these projects are being developed and brought online. The expanding backlog, especially in solar and storage, demonstrates NextEra's dominance in the clean energy market and its ability to secure new projects. By adding to its backlog, the company is also positioning itself for continued growth in adjusted earnings per share.
NEE expanded its contracted renewables backlog by adding nearly 3.2 gigawatt (GW) of renewable projects in the first quarter of 2025. Its backlog additions include nearly 200 megawatts (MW) of wind projects, 2 GW of solar projects, 900 MW of battery storage projects and 100 MW of wind repowering. The company’s renewables backlog is now nearly 28 GW.
NextEra's investments in renewable energy are expected to generate long-term value for shareholders through increased power generation and cost savings for customers. A robust backlog allows NextEra to plan and execute large-scale capital investments, further strengthening its infrastructure and market position. NEE’s subsidiary, Florida Power & Light Company, plans to invest nearly $50 billion during 2025-2029 and add more than 25 GW of new generation and storage by 2034.
In conclusion, NextEra's backlog is more than just a pipeline; it is a strategic engine that supports its financial discipline, solidifies its leadership in renewables, and fosters long-term alliances, positioning it for sustained growth and value generation.
Rising Backlogs Boost Growth Prospects for Utilities
Other U.S. utilities benefiting from a growing backlog of renewable energy and energy storage projects have been discussed below.
During the first quarter of 2025, AES Corporation (AES - Free Report) signed 443 MW of power purchase agreements for solar and energy storage. This brought AES’ total backlog to 11.7 GW, including 5.3 GW under construction. AES’ U.S. renewables business has a backlog of 7.6 GW and a 53 GW pipeline that it intends to utilize for its business growth.
Dominion Energy’s (D - Free Report) backlog, particularly with offshore wind projects like Coastal Virginia Offshore Wind, positions the company to meet the growing demand for sustainable energy and contribute to decarbonization goals.
NEE Stock’s Price Performance
In the past month, NEE’s shares have risen 1.1% against the industry’s 0.2% decline.
Image Source: Zacks Investment Research
The Zacks Rundown for NEE
NEE is trading at a premium relative to the industry, with a forward 12-month price-to-earnings ratio of 18.55X compared with the industry average of 14.59X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NEE’s 2025 and 2026 earnings per share indicates an increase of 7.29% and 7.95%, respectively.
Image Source: Zacks Investment Research
NEE currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.