AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 3/6 · 18/10/2026
Moat69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · FPL's broad franchise coverage, municipal non-entry commitments and disclosed cost advantage establish a strong current structural position. NEER's price-based commodity competition limits the conclusion to a narrow group moat.
durability · 3/4 · Typically 30-year franchises, expirations extending through 2055 and comparable 2023 coverage support long-duration protection. Renewal, regulation and the economics of self-generation remain contingencies.
customer dependency · 3/4 · Few FPL customers self-supply because disclosed service costs are lower for most customers. Franchise coverage and NEER's majority revenue contribution from long-term PPAs support dependence, assessed indirectly rather than from measured switching or renewal rates.
erosion resilience · 2/4 · Persistent franchise coverage and cost advantages provide protection, but retail competition is growing and self-generation remains available. NEER primarily competes on price. These constraints support mixed resilience without treating hypothetical regulatory changes as realized losses.
Pricing power50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Disclosed annualized base-revenue increases of $692 million effective in 2022, $560 million in 2023 and $945 million in January 2026 demonstrate implemented regulated pricing outcomes. Approval requirements and NEER's price competition constrain power; these amounts are annualized rate effects rather than isolated realized revenue collections.
retention · 3/4 · Low disclosed self-generation adoption, repeated disclosure of FPL's economic advantage and NEER's long-term contracted revenues support durable demand. This is indirect operating and contractual evidence, without fabricated churn or renewal statistics.
margin resilience · 2/4 · FPL's regulatory derivative pass-through and conditional stabilization mechanism cushion costs, and second-quarter 2026 segment results show higher FPL earnings. Group resilience is mixed given actual financing and hedge-related earnings pressure; neither authorized returns nor stabilization reserves guarantee earned margins.
contractual freedom · 1/4 · FPL must obtain approval for new base rates and can face review above its authorized return range. NEER faces competition and possible price caps, while long-term PPAs commit a majority of revenues. These are evidenced limits on pricing freedom.
Predictability—
Missing exact annual revenue, free cash flow or FCF margin; operating cash flow and capex must both be reported for all five years.
Financial strength—
Missing required inputs: debtFcfGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- netDebtEbitGrade
- 0.00
- interestCoverageGrade
- 23.33
- currentRatioGrade
- 0.00
- Net debt / operating income (x)
- 11.14
- Current ratio (x)
- 0.60
- cashInterestPaid
- 3501.00
- cashInterestCoverage
- 3.57
Capital allocation—
Missing required inputs: cashConversionGrade. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 6.56
- 3-year average dilution (%)
- 1.53
- 3-year average SBC / revenue (%)
- 0.62
Management56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Project additions demonstrate productive investment, and first-half 2026 operating cash flow rose to $7.276 billion. However, $5.780 billion of FPL capital spending and $13.338 billion of NEER investments substantially exceeded operating cash generation, requiring extensive financing. Repeated XPLR impairments and large conditional merger termination fees temper the assessment; financing dependence alone does not prove waste.
incentive alignment · 2/4 · Actual performance awards incorporate financial and operational measures, and weak relative TSR reduced the 2023 award payout through a 0.80 modifier. Nevertheless, the resulting payout was 158% of target despite below-lower-quartile TSR, and plan-adjusted measures exclude impairments and other losses. Ownership policies and 2026 rigor changes provide safeguards, but actual holdings compliance is unavailable and retirement award modifications add a counterweight.
execution · 3/4 · Completed wind, solar and storage additions in 2024 and 2025, alongside increased contracted backlog, demonstrate repeated delivery. This grade relies on operating achievements rather than management reputation or claimed advantages; the passages do not establish that every project met budget or schedule.
governance · 2/4 · An entirely independent Audit Committee and unrestricted auditor access support functioning oversight structures. Actual compensation-policy changes demonstrate responsiveness. Shareholder litigation and a settlement subject to court approval, including conditional governance modifications, warrant caution without treating allegations as established misconduct or proposed remedies as implemented.
Evidence
During the term of a franchise agreement, which is typically 30 years, the municipality or county agrees not to form its own utility, and FPL has the right to offer electric service to residents.
Business — FPL — Franchise Agreements and Competition · Filed 13/02/2026
As of December 31, 2025, FPL held 226 franchise agreements with various municipalities and counties in Florida with varying expiration dates through 2055.
Business — FPL — Franchise Agreements and Competition · Filed 13/02/2026
These franchise agreements cover the vast majority of FPL's retail customer base in Florida.
Business — FPL — Franchise Agreements and Competition · Filed 13/02/2026
Because any customer may elect to provide its own electric services, FPL effectively must compete for an individual customer's business.
Business — FPL — customer self-generation competition · Filed 13/02/2026
As a practical matter, few customers provide their own service at the present time since FPL's cost of service is lower than the cost of self-generation for a significant majority of customers.
Business — FPL — cost of service versus self-generation · Filed 13/02/2026
Generally, in addition to the natural constraints on pricing freedom presented by competition, NEER may also face specific constraints in the form of price caps, or maximum allowed prices, for certain products.
Business — NEER — pricing constraints · Filed 13/02/2026
A majority of NEER's revenues are derived from sales of energy, capacity, credits and ancillary products under long-term PPAs to customers located in wholesale electricity markets.
Business — NEER — long-term PPAs · Filed 13/02/2026
Wholesale power generation is a capital-intensive, commodity-driven business with numerous industry participants.
Business — NEER — wholesale competition · Filed 13/02/2026
NEER primarily competes on the basis of price, but believes that its track record of completing projects on schedule, creditworthiness, operating scale and ability to offer and manage reliable customized risk solutions to wholesale customers are competitive advantages.
Business — NEER — price competition and management's claimed advantages · Filed 13/02/2026
FPL has limited, but growing, competition in the Florida market for retail electricity customers and is not subject to an RPS.
Risk Factors — Florida retail competition · Filed 13/02/2026
Any changes in Florida law or regulation, whether through new, modified, repealed or overturned legislation, regulation or executive action or through citizen-approved state constitutional ballot initiatives, which increase competition in the Florida retail electricity market, such as government incentives that would further facilitate the installation of solar generation facilities on residential or other rooftops or would permit third-party sales of electricity, could have a material adverse effect on FPL's business, financial condition, results of operations and prospects.
Risk Factors — retail competition and distributed generation · Filed 13/02/2026
This Committee, which is comprised entirely of independent directors, meets regularly with management, the internal auditors and the independent auditors to make inquiries as to the manner in which the responsibilities of each are being discharged.
Management's Report — independent Audit Committee · Filed 13/02/2026
The independent auditors and the internal audit staff have free access to the Committee without management present to discuss auditing, internal accounting control and financial reporting matters.
Management's Report — auditor access to Audit Committee · Filed 13/02/2026
Base rates are determined in rate proceedings or through negotiated settlements of those proceedings.
Business — FPL Regulation — base-rate determination · Filed 13/02/2026
Existing base rates remain in effect until new base rates are approved by the FPSC.
Business — FPL Regulation — approval requirement for new base rates · Filed 13/02/2026
◦$945 million beginning January 1, 2026; and
Business — FPL Regulation — annualized base-revenue increase effective January 2026 · Filed 13/02/2026
If the earned regulatory ROE rises above 11.95%, any party with standing may seek a review of FPL's retail base rates.
Business — FPL Regulation — review above authorized ROE range · Filed 13/02/2026
Subject to certain conditions, FPL could amortize the RSM reserve over the term of the 2025 rate agreement, provided that in any 12-month period of the 2025 rate agreement FPL would be required to amortize at least enough RSM reserve amount to maintain its minimum authorized regulatory ROE and also could not amortize any RSM reserve amount that would result in an earned regulatory ROE in excess of its maximum authorized regulatory ROE.
Business — FPL Regulation — conditional rate stabilization mechanism · Filed 13/02/2026
In 2025, NEER added approximately 1,604 MW of new wind generating capacity, 2,859 MW of solar generating capacity and 1,799 MW of battery storage capacity and increased its backlog of contracted development projects.
MD&A — NEER — 2025 capacity additions and contracted backlog · Filed 13/02/2026
Corporate and Other's results decreased $1,256 million during 2025 primarily due to unfavorable after-tax impacts of approximately $1,002 million, as compared to the prior year, related to non-qualifying hedge activity as a result of changes in the fair value of interest rate derivative instruments used to manage interest rate and foreign currency exchange rate risk associated primarily with outstanding and expected future debt issuances and borrowings (see Note 3) as well as higher average debt balances.
MD&A — Corporate and Other — financing and hedge effects · Filed 13/02/2026
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (millions) (unaudited) Six Months Ended June 30, 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 4,309 $ 2,104 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 3,128 2,868 Nuclear fuel and other amortization 210 165 Unrealized losses (gains) on marked to market derivative contracts – net (672) 1,003 Foreign currency transaction losses (gains) (285) 56 Deferred income taxes 619 (512) Cost recovery clauses and franchise fees (7) (159) Equity in losses (earnings) of equity method investees (504) 469 Distributions of earnings from equity method investees 213 181 Gains on disposal of businesses, assets and investments – net (353) (155) Recoverable storm-related costs (19) (346) Other – net 262 230 Changes in operating assets and liabilities: Current assets (858) (501) Noncurrent assets (222) (183) Current liabilities 1,223 521 Noncurrent liabilities 232 217 Net cash provided by operating activities 7,276 5,958 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures of FPL (5,780) (4,285) Independent power and other investments of NEER (13,338) (9,056) Nuclear fuel purchases (263) (279) Other capital expenditures (8) (6) Sale of independent power and other investments of NEER 448 309 Proceeds from sale or maturity of securities in special use funds and other investments 3,252 2,810 Purchases of securities in special use funds and other investments (3,482) (3,060) Other – net 58 22 Net cash used in investing activities (19,113) (13,545) CASH FLOWS FROM FINANCING ACTIVITIES Issuances of long-term debt, including premiums and discounts 15,566 12,996 Retirements of long-term debt (4,032) (5,160) Net change in commercial paper (219) 2,357 Proceeds from other short-term debt 3,650 1,400 Repayments of other short-term debt — (850) Cash swept from (repayments to) related parties – net 13 (129) Issuances of common stock/equity units 31 22 Dividends on common stock (2,599) (2,332) Other – net (353) (144) Net cash provided by financing activities 12,057 8,160 Effects of currency translation on cash, cash equivalents and restricted cash (4) 7 Net increase in cash, cash equivalents and restricted cash 216 580 Cash, cash equivalents and restricted cash at beginning of period 3,006 1,402 Cash, cash equivalents and restricted cash at end of period $ 3,222 $ 1,982 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid for interest (net of amount capitalized) $ 1,980 $ 1,502 Cash received for income taxes – net $ (1,188) $ (353) SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES Accrued property additions $ 7,080 $ 3,545 This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2025 Form 10-K.
Condensed Consolidated Statements of Cash Flows — six months ended June 30, 2026 · Filed 24/07/2026
At FPL, substantially all changes in the derivatives' fair value are deferred as a regulatory asset or liability until the contracts are settled, and, upon settlement, any gains or losses are passed through the fuel clause or base rates.
Notes — Derivative Instruments — FPL regulatory pass-through · Filed 24/07/2026
The proposed business combination is also subject to the receipt of required regulatory approvals, including approvals by the FERC, the NRC, and the utility commissions in Virginia, North Carolina and South Carolina as well as clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
Notes — proposed business combination — required approvals · Filed 24/07/2026
The merger agreement contains certain termination rights and provides that, upon termination of the merger agreement under specified circumstances, NEE would be required to pay to Dominion Energy a termination fee of $4.8 billion or $6.5 billion, depending on the circumstances of the termination, while under other circumstances, Dominion Energy would be required to pay NEE a termination fee of approximately $2.2 billion.
Notes — merger agreement — conditional termination fees · Filed 24/07/2026
In June 2026, the parties entered into a settlement agreement that, upon final court approval, would resolve the purported shareholder derivative actions and the related shareholder litigation demands and inspection demands.
Notes — shareholder litigation — settlement subject to final court approval · Filed 24/07/2026
In addition, NEE would agree to implement or maintain certain corporate governance modifications or activities.
Notes — shareholder litigation — conditional governance modifications · Filed 24/07/2026
Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 FPL NEER Total FPL NEER Total (millions) Operating revenues $ 4,896 $ 2,532 $ 7,428 $ 4,708 $ 1,914 $ 6,622 Corporate and Other 106 78 Total consolidated revenues $ 7,534 $ 6,700 Less: Fuel, purchased power and interchange 1,079 295 946 238 Other operations and maintenance 424 877 442 656 Depreciation and amortization 1,029 712 1,080 677 Taxes other than income taxes and other – net 543 (a) 124 523 106 Interest expense 349 333 (b) 326 413 (b) Income tax expense (benefit)(c) 121 (253) 164 (352) Other segment items(d) 61 1,190 48 807 Net income attributable to NEE for reportable segments 1,412 1,634 3,046 1,275 983 2,258 Reconciliation of segment profit/(loss) Corporate and Other 98 (230) Net income attributable to NEE $ 1,412 $ 1,634 $ 3,144 $ 1,275 $ 983 $ 2,028 _________________________ (a)FPL's income statement line for taxes other than income taxes and other – net includes gains on disposal of businesses/assets – net.
Note 13 — Segment Information — second-quarter 2026 and 2025 results · Filed 24/07/2026
The change for the six months ended June 30, 2026 also reflects the absence of an impairment charge related to the investment in XPLR recorded in 2025 of approximately $0.7 billion ($0.5 billion after tax) (see Note 3 – Nonrecurring Fair Value Measurements).
MD&A — XPLR investment — 2025 impairment comparison · Filed 24/07/2026
The following explains how the plan-adjusted amounts are calculated from NextEra Energy’s audited consolidated financial statements: (a) FPL O&M costs (plan-adjusted) is a measure that includes most but not all O&M expenses and includes certain expenses that are not classified as O&M expenses under GAAP but are reported for state regulatory purposes as O&M expenses; (b) FPL capital expenditures (plan-adjusted) are presented on an accrual basis, and exclude nuclear fuel payments and certain costs that are not classified as capital expenditures under GAAP in the consolidated statements of cash flows but that are reported for state regulatory purposes as capital expenditures; and (c) NextEra Energy Resources’ earnings (plan-adjusted) exclude: (i) the mark-to-market effect of non-qualifying hedges; (ii) other than temporary impairments on investments; (iii) extraordinary items; (iv) non-recurring charges or gains (e.g., restructuring charges and material litigation losses); (v) discontinued operations; (vi) regulatory and/or legislative changes and/or changes in accounting principles; (vii) labor union disruptions; and (viii) acts of God such as hurricanes.
Executive Compensation — definitions and exclusions for plan-adjusted measures · Filed 01/04/2026
Relative TSR Percentile Ranking for THREE Year Performance Period TSR Results for Three Year Performance Period Modifier Result NextEra Energy 4.34% 0.80 Top Ten Power Companies by Market Capitalization (a subset of the S&P 500 Utilities Index) ≥75th Percentile 29.06% 120% Midpoint 20.88% 100% ≤25th Percentile 12.70% 80% Based on our performance during the performance period, the 2023 performance share award received an overall rating of 1.58, determined as shown below.
Executive Compensation — three-year relative TSR results · Filed 01/04/2026
PERFORMANCE MEASURE(1) WEIGHT RESULT PAYOUT AS A % OF TARGET Adjusted EPS growth and adjusted ROE 80% 2.00 200% Operational measures: 3-year average employee safety 5% 2.00 200% Nuclear WANO-AC Performance Index 5% 1.59 159% 3-year average EFOR 5% 2.00 200% FPL 3-year average service reliability 5% 2.00 200% Operational measures total 20% 1.90 190% Overall rating 1.98 198% Relative TSR modifier ±20% 0.80 80% Overall rating (after applying relative TSR modifier and individual performance factors) (1) 1.58 158% (1) Each NEO’s individual performance factor ranges from ±20% and can only modify the overall rating prior to applying the TSR modifier.
Executive Compensation — 2023 performance share award results and payout calculation · Filed 01/04/2026
NextEra Energy’s NEOs (and all other officers) are subject to a stock ownership policy and a stock retention policy.
Executive Compensation — stock ownership and retention policies · Filed 01/04/2026
Unvested shares of performance-based restricted stock, shares subject to unpaid performance share awards and unexercised options do not count toward the calculation of required holdings.
Executive Compensation — exclusion of unvested performance awards and options from required holdings · Filed 01/04/2026
The incremental fair value attributable to the modification was $16,061,142, which is reflected in the Summary Compensation Table for fiscal year 2025.
Pay Versus Performance — incremental fair value of retirement award modification · Filed 01/04/2026
Maintained industry-leading cost discipline with non-fuel O&M more than 70% below national average, supporting customer affordability
Executive Compensation — reported FPL non-fuel O&M comparison · Filed 01/04/2026
In response to feedback, we increased financial performance target goal rigor from the median to the 55th percentile and removed the individual performance modifier from performance share awards beginning in 2026
Executive Compensation — target rigor and modifier changes beginning in 2026 · Filed 01/04/2026
Since rates are largely cost-based, maintaining low rates requires a strategy focused on developing and maintaining a low-cost position, including the implementation of ideas generated from cost savings initiatives.
Business — FPL — largely cost-based rates · Filed 14/02/2025
◦$692 million beginning January 1, 2022, and
Business — FPL Regulation — January 2022 annualized base-revenue increase · Filed 14/02/2025
◦$560 million beginning January 1, 2023.
Business — FPL Regulation — January 2023 annualized base-revenue increase · Filed 14/02/2025
In 2024, NEER added approximately 1,365 MW of new wind generating capacity, 2,507 MW of solar generating capacity and 755 MW of battery storage capacity and increased its backlog of contracted renewable development projects.
MD&A — NEER — 2024 capacity additions and contracted backlog · Filed 14/02/2025
The difference for 2024 reflects the approximately $0.8 billion impairment charge in 2024 related to NextEra Energy Resources' investment in XPLR.
Notes — equity method investments — 2024 XPLR impairment · Filed 14/02/2025
At December 31, 2023, FPL held 226 franchise agreements with various municipalities and counties in Florida with varying expiration dates through 2053.
Business — FPL — franchise agreements at December 31, 2023 · Filed 16/02/2024
As a practical matter, few customers provide their own service at the present time since FPL's cost of service is lower than the cost of self-generation for a significant majority of customers.
Business — FPL — 2023 self-generation cost comparison · Filed 16/02/2024
