NextEra beats profit estimates on rate hikes, robust power demand

NextEra Energy beat Wall Street estimates for first-quarter profit on Wednesday, boosted by rate hikes at its electric utility and increased power demand.

In December, NextEra's unit, Florida Power & Light (FPL), the largest electric utility in the U.S., launched a year-long rate review, proposing a 2.5% annual increase in customer bills from January 2025 through 2029 to support cleaner and more reliable energy.

Coupled with the rising rates, increased electricity demand helped FPL report a 12.28% jump in first-quarter profit.

Power consumption is expected to rise to record highs in 2025 and 2026, climbing nearly 3% this year from 2024's all-time high, the U.S. Energy Information Administration said last month, fueled by demand from data centers powering the artificial intelligence boom.

On an adjusted basis, the Juno Beach, Florida-based company posted a profit of 99 cents per share, beating analysts' average estimate of 97 cents, according to data compiled by LSEG.