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

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Understanding how a leading utility and renewable energy provider like NEE (NextEra Energy) makes money is essential for investors and anyone interested in the business of clean energy and power generation. 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

NextEra Energy operates as one of the largest electric power and energy infrastructure companies in North America, with a focus on renewable energy generation (wind and solar), regulated utility operations (via Florida Power & Light), and energy storage. Revenue comes primarily from regulated electricity sales in Florida and long-term power purchase agreements for renewable energy across the U.S. The company’s business segments include Florida Power & Light (regulated utility), NextEra Energy Resources (renewables), and Gulf Power (now integrated into FPL).

Revenue Breakdown

• Total Revenue (Q3 2025): $7.38B (+6.2% YoY)
  • Florida Power & Light (FPL): $4.52B (61% of total)
  • NextEra Energy Resources: $2.36B (32% of total)
  • Other/Corporate: $0.50B (7% of total)
  • Growth is powered by continued expansion of renewable energy assets and customer growth in regulated utility operations.

Gross Profit and Margins

• Gross Profit: $3.12B (42.3% gross margin)
  • Cost of Revenue: $4.26B (+5.8% YoY)
  • NEE maintains robust margins due to its scale, efficient operations, and a high proportion of contracted/regulated revenue streams.
• Most costs come from fuel and energy purchases, operations and maintenance, and depreciation of energy assets.

Operating Income and Expenses

• Operating Income: $2.01B (+7.1% YoY, 27.2% margin)
• Operating Expenses: $1.11B (+4.9% YoY)
  • R&D: $0.12B (+8.3% YoY, 1.6% of revenue) — Focused on grid modernization, battery storage, and advanced renewables.
  • SG&A: $0.99B (+4.5% YoY, 13.4% of revenue) — Includes administrative, sales, and regulatory compliance costs.
  • NEE continues to prioritize innovation and grid investments while maintaining efficiency in core utility operations.

Net Income

• Pre-Tax Income: $1.89B (+7.8% YoY, 25.6% margin)
• Income Tax: $0.32B (16.9% effective tax rate)
• Net Income: $1.57B (+8.6% YoY, 21.3% net margin)
• NEE converts a significant portion of sales into profit due to its scale, regulatory advantages, and cost discipline.

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What Drives NEE's Money Machine?

• Regulated Utility Revenue: Over 60% of revenue comes from Florida Power & Light, with stable, regulated returns.
• Renewable Energy Portfolio: NextEra Energy Resources operates the world’s largest wind and solar fleet, driving long-term contracted revenue.
• Grid & Storage Investments: Ongoing investment in grid modernization and battery storage supports future growth and efficiency.
• Emerging Technologies: Hydrogen, advanced storage, and digital grid solutions are future growth areas, 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 SG&A and O&M) taking the largest chunk.
• Even after significant investments in renewables and grid infrastructure, 21.3% of revenue drops to the bottom line.

Key Takeaways

• NEE's money comes overwhelmingly from regulated utility operations and long-term renewable energy contracts.
• High gross and net margins illustrate the power of NEE's scale and regulated business model.
• Heavy investment in grid modernization and renewables, balanced by efficiency in operating costs.
• Ongoing growth is driven by renewables expansion, customer growth, and technological innovation.

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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 60% of its revenue from regulated electricity sales via Florida Power & Light. Additional revenue comes from long-term renewable energy contracts through NextEra Energy Resources.

2. How profitable is NEE in Q3 2025?

NEE reported net income of $1.57B in Q3 2025, with a net margin of approximately 21.3%, reflecting strong profitability driven by scale, regulatory stability, 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, energy purchases, O&M) and operating expenses, particularly SG&A and ongoing investments in R&D and grid infrastructure. R&D investment reached $0.12B in Q3 2025, as NEE prioritizes grid modernization and renewables.

4. Why does NextEra Energy Resources operate at a loss?

NextEra Energy Resources, despite generating $2.36B in revenue, posted an operating loss of over $0.15B in Q3 2025. This is because NEE aggressively invests in new wind, solar, and storage projects, believing these will drive long-term growth—even if the division is unprofitable today.

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

NEE's effective tax rate in Q3 2025 was 16.9%, consistent with previous years. This moderate rate is primarily due to tax benefits from renewable energy credits and efficient corporate structuring.

Note: All financial data is extracted from NEE’s actual Q3 2025 financial statements. For further details and the latest updates, visit the Value Sense platform.