(Reuters) -NextEra Energy beat Wall Street estimates for second-quarter adjusted profit on Wednesday, boosted by robust growth in its renewables division amid soaring power demand from AI data centers and hyperscalers.
Power consumption in the U.S. is expected to reach record highs in 2025 and 2026, according to the U.S. Energy Information Administration.
This surge is fueled by growing electricity needs from AI and cryptocurrency data centers, as well as increasing electrification of homes and businesses.
The S&P index tracking utilities also rose 3.5% in the quarter ended June 30.
Florida Power & Light, the company’s regulated utility, reported net income of $1.28 billion, up 4% from a year earlier.
NextEra Energy Resources (NEER), the renewables arm, added about 3.2 gigawatts of new renewables and storage to its backlog during the quarter, including more than 1 gigawatt serving hyperscalers. The unit’s backlog now totals about 30 gigawatts.
NextEra, which operates solar, wind, natural gas, and nuclear energy centers, said in June that renewable energy is critical to meeting rapidly growing U.S. power demand, citing challenges in expanding natural gas capacity.
NEER reported a net income of $983 million in the second-quarter, compared with $552 million a year ago.
The company, which is the largest electric utility holding company by market capitalization, reported operating revenue of $6.70 billion, missing analysts' average estimate of $7.38 billion, according to data compiled by LSEG.
NextEra also said it expects to grow its dividends per share at a roughly 10% rate per year through at least 2026.
The Florida-based company earned $1.05 per share on an adjusted basis, compared with analysts' average estimate of $1.01 per share, according to data compiled by LSEG.
(Reporting by Katha Kalia and Pooja Menon in Bengaluru; Editing by Tasim Zahid)
