How NEE (NextEra Energy) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a utility and renewable energy leader like NEE Income Statement Overview (NEE) makes money is essential for investors and anyone interested in the business of energy generation and distribution. In this post, we break down NEE's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick NEE Overview

NEE Income Statement Overview operates as a leading integrated utility and renewable energy provider. Its core business model centers on regulated electricity generation and distribution through Florida Power & Light (FPL), as well as large-scale renewable energy projects via NextEra Energy Resources (NEER). Revenue comes primarily from electricity sales to residential, commercial, and industrial customers, supplemented by wholesale energy sales and other services.
FPL is the largest segment, serving millions of customers in Florida, while NEER develops, owns, and operates wind, solar, and battery storage assets across North America. Other revenue sources include smaller business lines and miscellaneous income.

Revenue Breakdown

• Total Revenue (Q3 2025): $7.97B (+5.3% YoY)
  • FPL Gross Revenue: $5.29B (66.3% of total, +7.0% YoY)
  • NEER Gross Revenue: $2.57B (32.2% of total, -0.7% YoY)
  • Other Revenue: $115M (1.4% of total, +167.4% YoY)
  • Gulf Power Gross Revenue: $0M (0% of total)
• Growth is powered by regulated rate increases at FPL, strong customer demand, and expansion of renewable energy assets.

Gross Profit and Margins

• Gross Profit: $5.28B (66.2% gross margin)
  • Cost of Revenue: $2.69B (-0.3% YoY)
  • NEE maintains robust margins due to its scalable regulated utility model and efficient renewable energy operations.
• Most costs come from fuel purchases, power plant operations, maintenance, and transmission infrastructure.

Operating Income and Expenses

• Operating Income: $2.53B (-11.5% YoY, 31.7% margin)
• Operating Expenses: $2.75B (+36.6% YoY)
  • R&D: Not separately disclosed for Q3 2025
  • SG&A: Not separately disclosed for Q3 2025
  • NEE continues to invest in grid modernization and renewable expansion while managing costs across its segments.

Net Income

• Pre-Tax Income: $1.89B (+18.1% YoY, 23.7% margin)
• Income Tax: Not disclosed for Q3 2025
• Net Income: $2.44B (+31.6% YoY, 30.6% net margin)
• NEE converts a significant portion of sales into profit due to its regulated pricing, operational scale, and cost discipline.

What Drives NEE's Money Machine?

• FPL Regulated Utility: 66%+ of revenue, driven by electricity sales to Florida customers under regulated rates.
• Renewable Generation Capacity: NEER segment contributes over $2.5B in quarterly revenue, reflecting leadership in wind and solar.
• Strategic Investments: Heavy capital deployment in grid upgrades, battery storage, and new renewable projects.
• Future Growth Areas: Expansion into hydrogen, advanced storage, and new markets, though not yet profitable.

Visualizing NEE's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially infrastructure and expansion costs) taking the largest chunk.
• Even after large investments and significant operating expenses, 30.6% of revenue drops to the bottom line.

Key Takeaways

• NEE's money comes overwhelmingly from regulated electricity sales via FPL
• High gross and net margins illustrate the power of NEE's integrated utility and renewable energy model
• Heavy investment in renewable capacity and grid modernization, balanced by efficiency in operating costs
• Ongoing growth is driven by rate base expansion, customer growth, and renewables leadership

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FAQ About NEE's Income Statement

1. What is the main source of NEE's revenue in 2025?

NEE generates over 66% of its revenue from regulated electricity sales via Florida Power & Light (FPL). The NextEra Energy Resources (NEER) segment contributes about 32% through renewable energy projects, while other sources are minor.

2. How profitable is NEE in Q3 2025?

NEE reported net income of $2.44B in Q3 2025, with a net margin of approximately 30.6%, reflecting strong profitability driven by regulated pricing and efficient operations.

3. What are the largest expense categories for NEE?

The biggest expenses on NEE's income statement are cost of revenue (fuel, operations, maintenance) and operating expenses (infrastructure, expansion, and modernization). R&D and SG&A are not separately disclosed for Q3 2025.

4. Why does NEER operate at a loss?

NEER, despite generating $2.57B in revenue, posted lower operating income due to aggressive investment in new renewable projects and technology, believing these will drive long-term growth—even if the division is less profitable today.

5. How does NEE's effective tax rate compare to previous years?

NEE's effective tax rate for Q3 2025 is not disclosed in the latest filing. Historically, the rate is moderate, primarily due to tax benefits from renewable energy credits and international structuring.