NextEra Energy tops quarterly profit estimates, says Dominion deal on track (updated)

Dominion Energy

Wed 12:39

NextEra Energy beats Q3 profit estimates
Dominion deal review progressing, says CEO
Signs 16.5 GW of federal hub projects
Adds detail from conference call in paragraph 6 and analyst comment in paragraph 9,10
By Katha  Kalia
Oct 21 (Reuters) - NextEra Energy NEE.N on Wednesday beat analysts' estimates for third-quarter profit, and said it continued to make progress with its proposed $66.8 billion deal for Dominion Energy D.N amid tough regulatory scrutiny.
The deal, which is expected to close in the second half of 2027, has been approved by shareholders, but regulators and elected officials in several states have raised concerns about electricity affordability and the potential concentration of market power. 
"We also continue to advance our pending combination with Dominion Energy," CEO John Ketchum said in a statement. "Shareholders of both companies approved the transaction in September, and the state and federal regulatory reviews are moving forward." 
US utilities are riding a resurgence in electricity demand after nearly two decades of stagnant growth, fueled by the expansion of energy-intensive data centers to support the AI boom. 
NextEra has signed agreements for three federal hub projects, including two in Texas and one in Pennsylvania, with a combined capacity of about 16.5 gigawatts (GW), and secured $5.7 billion in initial funding so far this year.
The utility expects the projects to become operational as early as 2028 and 2029.
NextEra Energy Resources (NEER), its renewable energy and power generation business, reported net income of $1.49 billion, up 17.3% from a year ago.
It added 3.7 GW of renewable energy and battery storage projects to its backlog, bringing the total to about 36.7 GW at the end of the third quarter.
Jefferies analysts said NextEra's backlog additions exceeded expectations of more than 3 GW and reflected strong demand.
"Storage & solar effectively continuing their 2025 trends, favorable overall. Storage is increasingly the main backlog driver."
NextEra earned $1.24 per share on an adjusted basis, beating analysts' estimate of $1.18, according to data compiled by LSEG.
Florida Power & Light (FPL), NextEra's regulated utility, posted net income of $1.62 billion, up 10.9% from a year earlier, helped by continued capital investments. Regulatory capital employed grew 9.2% from a year earlier.


 (Reporting by Katha Kalia in Bengaluru; Editing by Sriraj Kalluvila)
 ((Katha.Kalia@thomsonreuters.com;))