(Reuters) -U.S. utility NextEra Energy beat Wall Street estimates for first-quarter profit on Wednesday, boosted by increased electricity demand and strong momentum in its renewable energy business.
The company’s shares rose 2.5% to $68.32 in premarket trade.
Power consumption is expected to rise to record highs in 2025 and 2026, climbing nearly 3% this year from 2024’s all-time high, the U.S. Energy Information Administration said last month, fueled by demand from data centers powering the artificial intelligence boom.
“Amid strong demand across all sectors of the U.S. economy, NextEra Energy Resources (NEER) had a strong origination quarter, adding approximately 3.2 gigawatts (GW) of new renewables and storage to its backlog,” CEO John Ketchum said in a statement, referring to the clean energy infrastructure unit.
The unit’s backlog now totals roughly 28 GW.
However, the company faces uncertainty over its reliance on Asian supply chains — particularly China — for key components such as batteries, exposing it to risks from escalating U.S.-China trade tensions and potential tariff changes.
FPL SHINES
Florida Power & Light (FPL), the company’s utility arm and the largest electric utility in the U.S, posted strong quarterly results, with net income rising 12.3% from a year earlier.
The utility’s growth was supported by continued infrastructure investments and customer base expansion.
FPL’s capital expenditures totaled $2.4 billion in the quarter. For the full year, the company expects to invest between $8 billion and $8.8 billion.
In December, FPL also proposed a year-long rate review, which could see residential customer bill growing at an average annual rate of about 2.5% from January 2025 through the end of 2029.
On an adjusted basis, the Juno Beach, Florida-based company posted a profit of 99 cents per share, beating analysts’ average estimate of 97 cents, according to data compiled by LSEG.
(Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila)
