NextEra Energy, Inc. – Leading US Renewable Energy Company

Brief Investor Summary: NextEra Energy is a major regulated US electric utility in Florida and one of the world's largest developers of wind and solar power. The company benefits from two business models: a stable regulated utility business and a high-growth unregulated renewable energy business.

Performance The share price showed strong growth from 2020 to the end of 2022, driven by the US trend toward clean energy and above-average earnings performance. Starting in 2023, the share price corrected significantly, driven by rising interest rates (higher financing costs for capital projects) and a repricing of growth stocks. The recent volatility reflects uncertainties regarding interest rate developments and the macroeconomic environment. Financial performance was volatile, with highly fluctuating quarterly results (e.g., negative EBITDA in Q1 2025), which is typical for the project business. Long-term, the annual key figures show clear growth in revenue, EBITDA, and profit from 2020 to 2023.

Opportunities:

• Energy Transition: NextEra is optimally positioned to benefit from the global transformation toward renewable energies and government incentive programs (e.g., the Inflation Reduction Act).
• Growth Driver: The unregulated business of developing and operating wind, solar, and storage projects offers significant long-term growth potential.
• Stable Foundation: The regulated utility business in Florida provides a reliable revenue and cash flow base.

Risks:

• Interest Rate Sensitivity: The company's high debt (debt-to-equity ratio of 2.26) and capital-intensive projects make it vulnerable to rising interest rates.
• Regulatory Changes: Changes in energy or tax policy could impact the profitability of the renewable energy business.
• Macroeconomics: An economic slowdown could impact energy demand and financing options.
• Liquidity: The low current and quick ratios indicate a tight short-term liquidity situation.

Additional Notes: Political transactions do not show a clear pattern, with both purchases and sales occurring in medium-sized amounts, which does not indicate a clear sentiment direction.

Conclusion: NextEra Energy combines a stable utility business with a strong growth profile in the renewable energy sector. Short-term performance is highly dependent on interest rate developments. For long-term investors who are counting on the continuation of the energy transition, the company remains a leading, but also risky, position in the utilities sector due to its debt and interest rate sensitivity.

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