How NEE (NextEra Energy) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a utility company like NextEra Energy (NEE) makes money is essential for investors and anyone interested in the business of renewable energy and power generation. In this post, we break down NextEra Energy's quarterly income statement (Q4 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick NextEra Energy Overview

NextEra Energy operates as a leading clean energy company with two primary segments: Florida Power & Light (FPL), a regulated utility, and NextEra Energy Resources (NEER), a competitive clean energy business focused on wind, solar, and storage. Revenue comes primarily from electricity sales through FPL and wholesale power generation via NEER. The company is the world's largest generator of wind and solar energy, benefiting from long-term contracts and regulatory support.

Revenue Breakdown

• Total Revenue (Q4 2025): $6.6B (+21.9% YoY)
  • FPL Gross Revenue: $4.3B (65.1% of total)
  • NEER Gross Revenue: $2.1B (32.3% of total)
  • Other Revenue: $0.2B (2.7% of total)
  • Growth is powered by strong NEER expansion (+46.2% YoY) and steady FPL demand (+10.8% YoY).

Gross Profit and Margins

• Gross Profit: $3.8B (57.5% gross margin)
  • Cost of Revenue: $2.8B (+15.8% YoY)
  • NextEra Energy maintains robust margins due to its scalable renewable energy model, long-term power purchase agreements, and regulated utility pricing.
• Most costs come from fuel, operations and maintenance, and purchased power.

Operating Income and Expenses

• Operating Income: $1.6B (+68.5% YoY, 24.2% margin)
• Operating Expenses: $2.2B (+7.5% YoY)
  • NextEra Energy aggregates operating expenses into broad categories focused on utility operations and energy resource development, with no specific R&D or SG&A breakdowns reported.
  • NextEra Energy continues to prioritize innovation while maintaining efficiency through operational leverage in renewables.

Net Income

• Pre-Tax Income: $1.3B (+26.2% YoY, 20.1% margin)
• Income Tax: Not specified
• Net Income: $1.5B (+27.6% YoY, 23.4% net margin)
• NextEra Energy converts a high portion of sales into profit due to scalability of renewable assets, pricing power in regulated markets, and favorable financing.

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What Drives NextEra Energy's Money Machine?

• FPL Regulated Utility: 65.1%+ of revenue — Stable cash flows from serving Florida customers with electricity distribution and transmission.
• NEER Clean Energy: 32.3% of revenue — High-growth segment with 46.2% YoY increase, driven by wind and solar projects under long-term contracts.
• Corporate Investments: Focus on expanding renewable capacity, including battery storage and green hydrogen.
• Future growth areas: Emerging technologies like solar-plus-storage, though some projects require upfront capital before profitability.

Visualizing NextEra Energy'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 utility and generation operations) taking the largest chunk.
• Even after significant interest expenses of $586M, 23.4% of revenue drops to the bottom line.

Key Takeaways

• NextEra Energy's money comes overwhelmingly from FPL and NEER electricity sales
• High gross and net margins illustrate the power of NextEra Energy's asset-light renewable model
• Heavy investment in clean energy expansion, balanced by efficiency in operating costs
• Ongoing growth is driven by renewable demand and regulatory tailwinds

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FAQ About NextEra Energy's Income Statement

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

NextEra Energy generates over 65% of its revenue from FPL Gross Revenue. NEER contributes 32.3%, with other sources at 2.7%.

2. How profitable is NextEra Energy in Q4 2025?

NextEra Energy reported net income of $1.5B in Q4 2025, with a net margin of approximately 23.4%, reflecting strong profitability driven by renewable scalability and regulated returns.

3. What are the largest expense categories for NextEra Energy?

The biggest expenses on NextEra Energy's income statement are operating expenses ($2.2B), particularly those tied to utility operations and energy generation. Net interest expenses reached $586M, as NextEra Energy prioritizes debt financing for growth projects.

4. Why does Other Revenue operate at a minor scale?

Other Revenue, despite generating $174M in Q4 2025, represents just 2.7% of total. This is because NextEra Energy focuses on core FPL and NEER segments, aggressively investing in renewables—even if smaller areas remain supplementary.

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

NextEra Energy's effective tax rate in Q4 2025 was not specified in the filings. This moderate rate is primarily due to tax benefits from renewable energy credits and international structuring.