NEE

NextEra is the highest-quality name in US electric utilities, and the segment detail in the 10-K MD&A confirms why: FPL — the largest US electric utility, serving 6M+ accounts — grew net income to $5,012M from $4,543M (+10%, $2.42/sh), and NEER, one of the largest US energy-infrastructure developers, jumped to $2,975M from $2,299M (+29%, $1.44/sh). Operating income rose 10.7% to $8.28B on 9.8% revenue growth to $25.8B, with a fat 32.1% operating margin and 26.5% net margin. This is a durable, rate-regulated cash machine (operating cash flow $12.5B) whose two core engines are firing.

The problem is everything below the operating line. Consolidated net income actually FELL 1.6% to $6.83B and diluted EPS slipped to $3.30 (from $3.37 and a 2023 peak of $3.60) because Corporate & Other swung from +$104M in 2024 to a -$1,152M drag in 2025. That swing is driven by interest expense and mark-to-market noise the MD&A flags explicitly: a -$272M non-qualifying hedge result (vs +$666M in 2024) and -$656M of XPLR investment losses. Long-term debt ballooned 23.7% to $89.6B, pushing liabilities/equity to 2.68x — a heavy, rate-sensitive balance sheet funding the renewables build-out, and the reason interest is eating into headline earnings even as the segments grow.