Item 1. Financial Statements

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Item 1. Financial Statements

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(millions, except per share amounts)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
OPERATING REVENUES	$	7,534	$	6,700	$	14,235	$	12,947
OPERATING EXPENSES
Fuel, purchased power and interchange	1,374		1,184		2,703		2,348
Other operations and maintenance	1,459		1,220		2,881		2,393


Merger-related expenses	32		—		32		—
Depreciation and amortization	1,757		1,773		3,128		2,868
Taxes other than income taxes and other – net	667		630		1,295		1,225
Total operating expenses – net	5,289		4,807		10,039		8,834
GAINS (LOSSES) ON DISPOSAL OF BUSINESSES/ASSETS – NET	(7)		18		250		54
OPERATING INCOME	2,238		1,911		4,446		4,167
OTHER INCOME (DEDUCTIONS)
Interest expense	(487)		(1,060)		(1,774)		(2,834)

Equity in earnings (losses) of equity method investees	333		177		504		(469)
Allowance for equity funds used during construction	59		44		112		82


Gains on disposal of investments and other property – net	103		103		103		101
Change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds – net	190		70		130		2
Other net periodic benefit income	23		67		94		134
Other – net	79		71		121		144
Total other income (deductions) – net	300		(528)		(710)		(2,840)
INCOME BEFORE INCOME TAXES	2,538		1,383		3,736		1,327
INCOME TAX BENEFIT	(84)		(256)		(573)		(777)
NET INCOME	2,622		1,639		4,309		2,104
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	522		389		1,017		758
NET INCOME ATTRIBUTABLE TO NEE	$	3,144	$	2,028	$	5,326	$	2,862
Earnings per share attributable to NEE:
Basic	$	1.51	$	0.99	$	2.56	$	1.39
Assuming dilution	$	1.50	$	0.98	$	2.54	$	1.39

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2025 Form 10-K.

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(millions)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
NET INCOME	$	2,622	$	1,639	$	4,309	$	2,104
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Reclassification of unrealized losses on cash flow hedges from AOCI to net income (net of $0 tax benefit, $0 tax benefit, $0 tax benefit and $0 tax benefit, respectively)	1		1		1		1
Net unrealized gains (losses) on available for sale securities:
Net unrealized gains (losses) on securities still held (net of $2 tax benefit, $3 tax expense, $7 tax benefit and $6 tax expense, respectively)	(5)		9		(23)		18
Reclassification from AOCI to net income (net of $1 tax benefit, $0 tax benefit, $1 tax benefit and $1 tax benefit, respectively)	2		1		3		4



Net unrealized gains (losses) on foreign currency translation	(12)		33		(20)		33

Total other comprehensive income (loss), net of tax	(14)		44		(39)		56
COMPREHENSIVE INCOME	2,608		1,683		4,270		2,160

COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	522		389		1,017		758
COMPREHENSIVE INCOME ATTRIBUTABLE TO NEE	$	3,130	$	2,072	$	5,287	$	2,918

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2025 Form 10-K.

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(millions, except par value)

(unaudited)


	June 30, 2026		December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	2,866	$	2,812
Customer receivables, net of allowances of $88 and $82, respectively	4,708		4,018
Other receivables	2,181		1,733
Materials, supplies and fuel inventory	2,616		2,420
Regulatory assets	349		433
Derivatives	1,352		997

Other	1,395		1,171
Total current assets	15,467		13,584
Other assets:
Property, plant and equipment – net ($28,745 and $28,988 related to VIEs, respectively)	170,452		156,197
Special use funds	11,678		10,954
Investment in equity method investees	5,971		5,528
Prepaid benefit costs	2,902		2,868
Regulatory assets	7,336		5,639
Derivatives	2,045		1,998
Goodwill	5,152		4,849
Other	11,804		11,104
Total other assets	217,340		199,137
TOTAL ASSETS	$	232,807	$	212,721
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities:
Commercial paper	$	1,736	$	1,955
Other short-term debt	4,258		608
Current portion of long-term debt ($6 and $9 related to VIEs, respectively)	5,413		3,500
Accounts payable ($24 and $502 related to VIEs, respectively)	6,558		7,583
Customer deposits	1,181		709
Accrued interest and taxes	1,851		1,185
Derivatives	1,034		1,113
Accrued construction-related expenditures	3,348		2,966
Regulatory liabilities	398		356
Other	3,197		2,842
Total current liabilities	28,974		22,817
Other liabilities and deferred credits:
Long-term debt ($142 and $190 related to VIEs, respectively)	98,790		89,556
Asset retirement obligations	3,794		3,669
Deferred income taxes	13,365		12,359
Regulatory liabilities	13,118		11,474
Derivatives	1,732		2,148
Other	4,875		4,219
Total other liabilities and deferred credits	135,674		123,425
TOTAL LIABILITIES	164,648		146,242
COMMITMENTS AND CONTINGENCIES
REDEEMABLE NONCONTROLLING INTERESTS	64		—
EQUITY
Common stock ($0.01 par value, authorized shares – 3,200; outstanding shares – 2,086 and 2,083, respectively)	21		21
Additional paid-in capital	19,325		19,494
Retained earnings	37,828		35,102
Accumulated other comprehensive loss	(48)		(9)
Total common shareholders' equity	57,126		54,608
Noncontrolling interests ($10,784 and $11,711 related to VIEs, respectively)	10,969		11,871
TOTAL EQUITY	68,095		66,479
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY	$	232,807	$	212,721

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2025 Form 10-K.

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(millions)

(unaudited)


	Six Months Ended June 30,
	2026		2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	4,309	$	2,104
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,128		2,868
Nuclear fuel and other amortization	210		165

Unrealized losses (gains) on marked to market derivative contracts – net	(672)		1,003

Foreign currency transaction losses (gains)	(285)		56
Deferred income taxes	619		(512)
Cost recovery clauses and franchise fees	(7)		(159)


Equity in losses (earnings) of equity method investees	(504)		469
Distributions of earnings from equity method investees	213		181
Gains on disposal of businesses, assets and investments – net	(353)		(155)
Recoverable storm-related costs	(19)		(346)
Other – net	262		230
Changes in operating assets and liabilities:
Current assets	(858)		(501)
Noncurrent assets	(222)		(183)
Current liabilities	1,223		521
Noncurrent liabilities	232		217
Net cash provided by operating activities	7,276		5,958
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures of FPL	(5,780)		(4,285)
Independent power and other investments of NEER	(13,338)		(9,056)
Nuclear fuel purchases	(263)		(279)
Other capital expenditures	(8)		(6)

Sale of independent power and other investments of NEER	448		309
Proceeds from sale or maturity of securities in special use funds and other investments	3,252		2,810
Purchases of securities in special use funds and other investments	(3,482)		(3,060)

Other – net	58		22
Net cash used in investing activities	(19,113)		(13,545)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of long-term debt, including premiums and discounts	15,566		12,996
Retirements of long-term debt	(4,032)		(5,160)


Net change in commercial paper	(219)		2,357
Proceeds from other short-term debt	3,650		1,400
Repayments of other short-term debt	—		(850)
Cash swept from (repayments to) related parties – net	13		(129)
Issuances of common stock/equity units	31		22
Dividends on common stock	(2,599)		(2,332)
Other – net	(353)		(144)
Net cash provided by financing activities	12,057		8,160
Effects of currency translation on cash, cash equivalents and restricted cash	(4)		7
Net increase in cash, cash equivalents and restricted cash	216		580
Cash, cash equivalents and restricted cash at beginning of period	3,006		1,402
Cash, cash equivalents and restricted cash at end of period	$	3,222	$	1,982
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest (net of amount capitalized)	$	1,980	$	1,502
Cash received for income taxes – net	$	(1,188)	$	(353)
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued property additions	$	7,080	$	3,545

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2025 Form 10-K.

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(millions, except per share amounts)

(unaudited)


	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Common Shareholders' Equity		Non- controlling Interests		Total Equity		Redeemable Non-controlling Interests
Three Months Ended June 30, 2026	Shares	Aggregate Par Value
Balances, March 31, 2026	2,085	$	21	$	19,251	$	(34)	$	35,984	$	55,222	$	11,410	$	66,632	$	—
Net income (loss)	—	—		—		—		3,144		3,144		(522)				—

Share-based payment activity	1	—		73		—		—		73		—				—
Dividends on common stock(a)	—	—		—		—		(1,300)		(1,300)		—				—
Other comprehensive loss	—	—		—		(14)		—		(14)		—				—

Other differential membership interests activity	—	—		(1)		—		—		(1)		78				—

Other – net	—	—		2		—		—		2		3				64
Balances, June 30, 2026	2,086	$	21	$	19,325	$	(48)	$	37,828	$	57,126	$	10,969	$	68,095	$	64

———————————————

(a)Dividends per share were $0.6232 for the three months ended June 30, 2026.


	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Common Shareholders' Equity		Non- controlling Interests		Total Equity		Redeemable Non-controlling Interests
Six Months Ended June 30, 2026	Shares	Aggregate Par Value
Balances, December 31, 2025	2,083	$	21	$	19,494	$	(9)	$	35,102	$	54,608	$	11,871	$	66,479	$	—
Net income (loss)	—	—		—		—		5,326		5,326		(1,017)				—
Issuances of common stock/equity units – net	—	—		(236)		—		—		(236)		—				—
Share-based payment activity	3	—		97		—		—		97		—				—
Dividends on common stock(a)	—	—		—		—		(2,599)		(2,599)		—				—
Other comprehensive loss	—	—		—		(39)		—		(39)		—				—

Other differential membership interests activity	—	—		(20)		—		—		(20)		130				—

Other – net	—	—		(10)		—		(1)		(11)		(15)				64
Balances, June 30, 2026	2,086	$	21	$	19,325	$	(48)	$	37,828	$	57,126	$	10,969	$	68,095	$	64

———————————————

(a)Dividends per share were $0.6232 for each of the quarterly periods in 2026.

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2025 Form 10-K.

NEXTERA ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(millions, except per share amounts)

(unaudited)


	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Common Shareholders' Equity		Non- controlling Interests		Total Equity		Redeemable Non-controlling Interests
Three Months Ended June 30, 2025	Shares	Aggregate Par Value
Balances, March 31, 2025	2,059	$	21	$	17,292	$	(114)	$	32,613	$	49,812	$	10,493	$	60,305	$	61
Net income (loss)	—	—		—		—		2,028		2,028		(390)				1

Share-based payment activity	—	—		83		—		—		83		—				—
Dividends on common stock(a)	—	—		—		—		(1,166)		(1,166)		—				—
Other comprehensive income	—	—		—		44		—		44		—				—

Other differential membership interests activity	—	—		(4)		—		—		(4)		(8)				(13)

Other – net	—	—		(1)		—		1		—		(9)				—
Balances, June 30, 2025	2,059	$	21	$	17,370	$	(70)	$	33,476	$	50,797	$	10,086	$	60,883	$	49

(a)Dividends per share were $0.5665 for the three months ended June 30, 2025.


	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Common Shareholders' Equity		Non- controlling Interests		Total Equity		Redeemable Non-controlling Interests
Six Months Ended June 30, 2025	Shares	Aggregate Par Value
Balances, December 31, 2024	2,057	$	21	$	17,260	$	(126)	$	32,946	$	50,101	$	10,359	$	60,460	$	401
Net income (loss)	—	—		—		—		2,862		2,862		(762)				4

Share-based payment activity	2	—		121		—		—		121		—				—
Dividends on common stock(a)	—	—		—		—		(2,332)		(2,332)		—				—
Other comprehensive income	—	—		—		56		—		56		—				—

Other differential membership interests activity	—	—		(11)		—		—		(11)		508				(356)

Other – net	—	—		—		—		—		—		(19)				—
Balances, June 30, 2025	2,059	$	21	$	17,370	$	(70)	$	33,476	$	50,797	$	10,086	$	60,883	$	49

(a)Dividends per share were $0.5665 for each of the quarterly periods in 2025.

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2025 Form 10-K.

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(millions)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
OPERATING REVENUES	$	4,896	$	4,708	$	9,167	$	8,705
OPERATING EXPENSES
Fuel, purchased power and interchange	1,079		946		2,071		1,881
Other operations and maintenance	424		442		803		822

Depreciation and amortization	1,029		1,080		1,694		1,488
Taxes other than income taxes and other – net	542		523		1,047		998
Total operating expenses – net	3,074		2,991		5,615		5,189
OPERATING INCOME	1,822		1,717		3,552		3,516
OTHER INCOME (DEDUCTIONS)
Interest expense	(349)		(326)		(687)		(644)
Allowance for equity funds used during construction	58		40		108		77
Other – net	2		8		4		21
Total other income (deductions) – net	(289)		(278)		(575)		(546)
INCOME BEFORE INCOME TAXES	1,533		1,439		2,977		2,970
INCOME TAXES	121		164		103		379
NET INCOME(a)	$	1,412	$	1,275	$	2,874	$	2,591

(a)FPL's comprehensive income is the same as reported net income.

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2025 Form 10-K.

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(millions, except share amount)

(unaudited)


	June 30, 2026		December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	89	$	42
Customer receivables, net of allowances of $24 and $25, respectively	2,016		1,667
Other receivables	381		413
Materials, supplies and fuel inventory	1,419		1,373
Regulatory assets	324		401

Other	269		255
Total current assets	4,498		4,151
Other assets:
Electric utility plant and other property – net	85,930		81,755
Special use funds	8,150		7,684
Prepaid benefit costs	2,104		2,072
Regulatory assets	7,154		5,405
Goodwill	2,965		2,965
Other	861		1,126
Total other assets	107,164		101,007
TOTAL ASSETS	$	111,662	$	105,158
LIABILITIES AND EQUITY
Current liabilities:
Commercial paper	$	86	$	1,130

Current portion of long-term debt	328		641
Accounts payable	1,150		1,084
Customer deposits	1,137		685
Accrued interest and taxes	1,131		470

Accrued construction-related expenditures	851		1,153
Regulatory liabilities	381		344
Other	652		687
Total current liabilities	5,716		6,194
Other liabilities and deferred credits:
Long-term debt	30,188		28,041
Asset retirement obligations	2,210		2,158
Deferred income taxes	10,461		10,156
Regulatory liabilities	12,951		11,280

Other	376		343
Total other liabilities and deferred credits	56,186		51,978
TOTAL LIABILITIES	61,902		58,172
COMMITMENTS AND CONTINGENCIES
EQUITY
Common stock (no par value, 1,000 shares authorized, issued and outstanding)	1,373		1,373
Additional paid-in capital	26,866		26,866
Retained earnings	21,521		18,747

TOTAL EQUITY	49,760		46,986
TOTAL LIABILITIES AND EQUITY	$	111,662	$	105,158

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2025 Form 10-K.

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(millions)

(unaudited)


	Six Months Ended June 30,
	2026		2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	2,874	$	2,591
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,694		1,488
Nuclear fuel and other amortization	80		74
Deferred income taxes	20		141
Cost recovery clauses and franchise fees	(7)		(159)

Recoverable storm-related costs	(19)		(346)
Other – net	20		16
Changes in operating assets and liabilities:
Current assets	(342)		(461)
Noncurrent assets	(85)		(83)
Current liabilities	1,144		587
Noncurrent liabilities	9		(7)
Net cash provided by operating activities	5,388		3,841
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(5,780)		(4,285)
Nuclear fuel purchases	(152)		(98)
Proceeds from sale or maturity of securities in special use funds	1,955		1,720
Purchases of securities in special use funds	(2,082)		(1,810)
Other – net	39		35
Net cash used in investing activities	(6,020)		(4,438)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of long-term debt, including premiums and discounts	2,502		1,996
Retirements of long-term debt	(648)		(1,122)
Net change in commercial paper	(1,044)		(103)



Dividends to NEE	(100)		(100)
Other – net	(35)		(36)
Net cash provided by financing activities	675		635
Net increase in cash, cash equivalents and restricted cash	43		38
Cash, cash equivalents and restricted cash at beginning of period	88		133
Cash, cash equivalents and restricted cash at end of period	$	131	$	171
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest (net of amount capitalized)	$	631	$	606
Cash paid (received) for income taxes – net	$	(68)	$	115
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued property additions	$	1,231	$	960

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2025 Form 10-K.

FLORIDA POWER & LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDER'S EQUITY

(millions)

(unaudited)


Three Months Ended June 30, 2026	Common Stock		Additional Paid-In Capital		Retained Earnings		Common Shareholder's Equity
Balances, March 31, 2026	$	1,373	$	26,867	$	20,109	$	48,349
Net income	—		—		1,412



Other	—		(1)		—
Balances, June 30, 2026	$	1,373	$	26,866	$	21,521	$	49,760


Six Months Ended June 30, 2026	Common Stock		Additional Paid-In Capital		Retained Earnings		Common Shareholder's Equity
Balances, December 31, 2025	$	1,373	$	26,866	$	18,747	$	46,986
Net income	—		—		2,874

Dividends to NEE	—		—		(100)


Balances, June 30, 2026	$	1,373	$	26,866	$	21,521	$	49,760



Three Months Ended June 30, 2025	Common Stock		Additional Paid-In Capital		Retained Earnings		Common Shareholder's Equity
Balances, March 31, 2025	$	1,373	$	26,868	$	16,051	$	44,292
Net income	—		—		1,275



Other	—		(1)		1
Balances, June 30, 2025	$	1,373	$	26,867	$	17,327	$	45,567


Six Months Ended June 30, 2025	Common Stock		Additional Paid-In Capital		Retained Earnings		Common Shareholder's Equity
Balances, December 31, 2024	$	1,373	$	26,868	$	14,835	$	43,076
Net income	—		—		2,591

Dividends to NEE	—		—		(100)

Other	—		(1)		1
Balances, June 30, 2025	$	1,373	$	26,867	$	17,327	$	45,567

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2025 Form 10-K.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

The accompanying condensed consolidated financial statements should be read in conjunction with the 2025 Form 10-K. In the opinion of NEE and FPL management, all adjustments considered necessary for fair financial statement presentation have been made. All adjustments are normal and recurring unless otherwise noted. Certain amounts included in the prior year's condensed consolidated financial statements have been reclassified to conform to the current year's presentation. The results of operations for an interim period generally will not give a true indication of results for the year.

1. Revenue from Contracts with Customers

FPL and NEER generate substantially all of NEE’s operating revenues, which primarily include revenues from contracts with customers, as well as derivative (see Note 2) and lease transactions at NEER. For the vast majority of contracts with customers, NEE believes that the obligation to deliver energy, capacity or transmission is satisfied over time as the customer simultaneously receives and consumes benefits as NEE performs. NEE’s revenue from contracts with customers was approximately $6.7 billion ($4.9 billion at FPL) and $6.4 billion ($4.7 billion at FPL) for the three months ended June 30, 2026 and 2025, respectively, and $12.8 billion ($9.2 billion at FPL) and $12.3 billion ($8.7 billion at FPL) for the six months ended June 30, 2026 and 2025, respectively. NEE's and FPL's receivables are primarily associated with revenues earned from contracts with customers, as well as derivative and lease transactions at NEER, and consist of both billed and unbilled amounts, which are recorded in customer receivables and other receivables on NEE's and FPL's condensed consolidated balance sheets. Receivables represent unconditional rights to consideration and reflect the differences in timing of revenue recognition and cash collections. For substantially all of NEE's and FPL's receivables, regardless of the type of revenue transaction from which the receivable originated, customer and counterparty credit risk is managed in the same manner and the terms and conditions of payment are similar.

FPL – FPL’s revenues are derived primarily from tariff-based sales that result from providing electricity to retail customers in Florida with no defined contractual term. Electricity sales to retail customers account for approximately 90% of FPL’s operating revenues, the majority of which are to residential customers. FPL's retail customers receive a bill monthly based on the amount of monthly kWh usage with payment due monthly. For these types of sales, FPL recognizes revenue as electricity is delivered and billed to customers, as well as an estimate for electricity delivered and not yet billed. The billed and unbilled amounts represent the value of electricity delivered to the customer. As of June 30, 2026 and December 31, 2025, FPL's unbilled revenues amounted to approximately $872 million and $705 million, respectively, and are included in customer receivables on NEE's and FPL's condensed consolidated balance sheets. Certain contracts with customers contain a fixed price with maturity dates through 2054. As of June 30, 2026, FPL expects to record approximately $1,230 million of revenues related to the fixed price components of such contracts over the remaining terms of the related contracts. Certain of these contracts also contain a variable price component for energy usage which FPL recognizes as revenue as the energy is delivered based on rates stipulated in the respective contracts.

NEER – NEER’s revenue from contracts with customers is derived primarily from the sale of energy commodities, electric capacity and electric transmission. For these types of sales, NEER recognizes revenue as energy commodities are delivered and as electric capacity and electric transmission are made available, consistent with the amounts billed to customers based on rates stipulated in the respective contracts as well as an accrual for amounts earned but not yet billed. The amounts billed and accrued represent the value of energy or transmission delivered and/or the capacity of energy or transmission available to the customer. Revenues yet to be earned under these contracts, which have maturity dates ranging from 2026 to 2056, will vary based on the volume of energy or transmission delivered and/or available. NEER’s customers typically receive bills monthly with payment due within 30 days. Certain contracts with customers contain a fixed price which primarily relate to electric capacity sales through 2038, certain power purchase agreements with maturity dates through 2034 and certain natural gas transportation and storage capacity management agreements with maturity dates through 2031. As of June 30, 2026, NEER expects to record approximately $630 million of revenues related to the fixed price components of such contracts over the remaining terms of the related contracts as the capacity and services are provided. The power purchase agreements also contain a variable price component for energy usage which NEER recognizes as revenue as the energy is delivered based on rates stipulated in the respective contracts.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

2. Derivative Instruments

NEE and FPL use derivative instruments (primarily swaps, options, futures and forwards) to manage the physical and financial risks inherent in the purchase and sale of fuel and electricity, as well as interest rate and foreign currency exchange rate risk associated primarily with outstanding and expected future debt issuances and borrowings, and to optimize the value of NEER's power generation and natural gas and oil production assets. NEE and FPL do not utilize hedge accounting for their cash flow and fair value hedges.

With respect to commodities related to NEE's competitive energy business, NEER employs risk management procedures to conduct its activities related to optimizing the value of its power generation and natural gas and oil production assets, providing full energy and capacity requirements services primarily to distribution utilities, and engaging in power and fuel marketing and trading activities to take advantage of expected future favorable price movements and changes in the expected volatility of prices in the energy markets. These risk management activities involve the use of derivative instruments executed within prescribed limits to manage the risk associated with fluctuating commodity prices. Transactions in derivative instruments are executed on recognized exchanges or via the OTC markets, depending on the most favorable credit terms and market execution factors. For NEER's power generation and natural gas and oil production assets, derivative instruments are used to hedge all or a portion of the expected output of these assets. These hedges are designed to reduce the effect of adverse changes in the wholesale forward commodity markets associated with NEER's power generation and natural gas and oil production assets. With regard to full energy and capacity requirements services, NEER is required to vary the quantity of energy and related services based on the load demands of the customers served. For this type of transaction, derivative instruments are used to hedge the anticipated electricity quantities required to serve these customers and reduce the effect of unfavorable changes in the forward energy markets. Additionally, NEER takes positions in energy markets based on differences between actual forward market levels and management's view of fundamental market conditions, including supply/demand imbalances, changes in traditional flows of energy, changes in short- and long-term weather patterns and anticipated regulatory and legislative outcomes. NEER uses derivative instruments to realize value from these market dislocations, subject to strict risk management limits around market, operational and credit exposure.

Derivative instruments, when required to be marked to market, are recorded on NEE's and FPL's condensed consolidated balance sheets as either an asset or liability measured at fair value. At FPL, substantially all changes in the derivatives' fair value are deferred as a regulatory asset or liability until the contracts are settled, and, upon settlement, any gains or losses are passed through the fuel clause or base rates. For NEE's non-rate regulated operations, predominantly NEER, essentially all changes in the derivatives' fair value for power purchases and sales, fuel sales and trading activities are recognized on a net basis in operating revenues and the equity method investees' related activity is recognized in equity in earnings (losses) of equity method investees in NEE's condensed consolidated statements of income. Settlement gains and losses are included within the line items in the condensed consolidated statements of income to which they relate. Transactions for which physical delivery is deemed not to have occurred are presented on a net basis in the condensed consolidated statements of income. For commodity derivatives, NEE believes that, where offsetting positions exist at the same location for the same time, the transactions are considered to have been netted and therefore physical delivery has been deemed not to have occurred for financial reporting purposes. Settlements related to derivative instruments are substantially all recognized in net cash provided by operating activities in NEE's and FPL's condensed consolidated statements of cash flows.

For interest rate and foreign currency derivative instruments, all changes in the derivatives' fair value, as well as the transaction gain or loss on foreign denominated debt, are recognized in interest expense and the equity method investees' related activity is recognized in equity in earnings (losses) of equity method investees in NEE's condensed consolidated statements of income. As of June 30, 2026, NEE's AOCI included immaterial amounts related to discontinued interest rate cash flow hedges with expiration dates through October 2033 and foreign currency cash flow hedges with expiration dates through September 2030.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Fair Value Measurements of Derivative Instruments – The fair value of assets and liabilities are determined using either unadjusted quoted prices in active markets (Level 1) or other pricing inputs that are observable (Level 2) whenever that information is available and using unobservable inputs (Level 3) to estimate fair value only when relevant observable inputs are not available. NEE and FPL use different valuation techniques to measure the fair value of assets and liabilities, relying primarily on the market approach of using prices and other market information for identical and/or similar assets and liabilities for those assets and liabilities that are measured at fair value on a recurring basis. NEE's and FPL's assessment of the significance of any particular input to the fair value measurement requires judgment and may affect placement within the fair value hierarchy levels. Non-performance risk, including the consideration of a credit valuation adjustment, is also considered in the determination of fair value for all assets and liabilities measured at fair value.

NEE and FPL measure the fair value of commodity contracts using a combination of market and income approaches utilizing prices observed on commodities exchanges and in the non-exchange traded markets, or through the use of industry-standard valuation techniques, such as option modeling or discounted cash flows techniques, incorporating both observable and unobservable valuation inputs. The resulting measurements are the best estimate of fair value as represented by the transfer of the asset or liability through an orderly transaction in the marketplace at the measurement date.

Exchange-traded derivative assets and liabilities are valued using observable settlement prices from the exchanges and are classified as Level 1 or Level 2, depending on whether positions are in active or inactive markets.

NEE, through its subsidiaries, including FPL, also enters into non-exchange traded commodity derivatives. The majority of the valuation inputs are observable using exchange-quoted prices.

NEE, through NEER, also enters into full requirements contracts, which, in most cases, meet the definition of derivatives and are measured at fair value. These contracts typically have one or more inputs that are not observable and are significant to the valuation of the contract. In addition, certain non-exchange traded derivative options at NEE have one or more significant inputs that are not observable, and are valued using industry-standard option models.

In all cases where NEE and FPL use significant unobservable inputs for the valuation of a commodity contract, consideration is given to the assumptions that market participants would use in valuing the asset or liability. The primary input to the valuation models for commodity contracts is the forward commodity curve for the respective instruments. Other inputs include, but are not limited to, assumptions about market liquidity, volatility, correlation and contract duration as more fully described below in Significant Unobservable Inputs Used in Recurring Fair Value Measurements. In instances where the reference markets are deemed to be inactive or do not have transactions for a similar contract, the derivative assets and liabilities may be valued using significant other observable inputs and potentially significant unobservable inputs. In such instances, the valuation for these contracts is established using techniques including extrapolation from or interpolation between actively traded contracts, or estimated basis adjustments from liquid trading points. NEE and FPL regularly evaluate and validate the inputs used to determine fair value by a number of methods, consisting of various market price verification procedures, including the use of pricing services and broker quotes to support the market price of the various commodities. Where there are assumptions and models used to generate inputs for valuing derivative assets and liabilities, the review and verification of the assumptions and models are undertaken by individuals in an independent control function.

NEE uses interest rate contracts and foreign currency contracts to mitigate and adjust interest rate and foreign currency exchange exposure related primarily to certain outstanding and expected future debt issuances and borrowings when deemed appropriate based on market conditions or when required by financing agreements. NEE estimates the fair value of these derivatives using an income approach based on a discounted cash flows valuation technique utilizing the net amount of estimated future cash inflows and outflows related to the agreements.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

The tables below present NEE's and FPL's gross derivative positions as of June 30, 2026 and December 31, 2025, as required by disclosure rules. However, the majority of the underlying contracts are subject to master netting agreements and generally would not be contractually settled on a gross basis. Therefore, the tables below also present the derivative positions on a net basis, which reflect the offsetting of positions of certain transactions within the portfolio, the contractual ability to settle contracts under master netting arrangements and the netting of margin cash collateral, as well as the location of the net derivative position on the condensed consolidated balance sheets.


	June 30, 2026
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	3,583	$	2,972	$	1,933	$	(5,472)	$	3,016
Interest rate contracts	$	—	$	491	$	3	$	(124)	370
Foreign currency contracts	$	—	$	32	$	—	$	(21)	11
Total derivative assets									$	3,397

FPL – commodity contracts	$	—	$	5	$	28	$	(4)	$	29

Liabilities:
NEE:
Commodity contracts	$	3,854	$	2,952	$	1,178	$	(5,534)	$	2,450
Interest rate contracts	$	—	$	215	$	—	$	(124)	91
Foreign currency contracts	$	—	$	246	$	—	$	(21)	225
Total derivative liabilities									$	2,766

FPL – commodity contracts	$	—	$	45	$	29	$	(4)	$	70

Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	1,352
Noncurrent derivative assets(c)									2,045
Total derivative assets									$	3,397
Current derivative liabilities(d)									$	1,034

Noncurrent derivative liabilities(e)									1,732
Total derivative liabilities									$	2,766

Net fair value by FPL balance sheet line item:
Current other assets									$	28
Noncurrent other assets									1
Total derivative assets									$	29
Current other liabilities									$	34
Noncurrent other liabilities									36
Total derivative liabilities									$	70

———————————————

(a)Includes the effect of the contractual ability to settle contracts under master netting arrangements and the netting of margin cash collateral payments and receipts. NEE and FPL also have contract settlement receivable and payable balances that are subject to the master netting arrangements but are not offset within the condensed consolidated balance sheets and are recorded in customer receivables – net and accounts payable, respectively.

(b)Reflects the netting of approximately $39 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $104 million in margin cash collateral received from counterparties.

(d)Reflects the netting of approximately $197 million in margin cash collateral paid to counterparties.

(e)Reflects the netting of approximately $8 million in margin cash collateral paid to counterparties.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)


	December 31, 2025
	Level 1		Level 2		Level 3		Netting(a)		Total
	(millions)
Assets:
NEE:
Commodity contracts	$	1,914	$	2,958	$	1,850	$	(4,007)	$	2,715
Interest rate contracts	$	—	$	311	$	—	$	(77)	234
Foreign currency contracts	$	—	$	34	$	—	$	12	46
Total derivative assets									$	2,995

FPL – commodity contracts	$	—	$	5	$	48	$	(13)	$	40

Liabilities:
NEE:
Commodity contracts	$	2,082	$	3,319	$	1,168	$	(3,921)	$	2,648
Interest rate contracts	$	—	$	563	$	—	$	(77)	486
Foreign currency contracts	$	—	$	115	$	—	$	12	127
Total derivative liabilities									$	3,261

FPL – commodity contracts	$	—	$	13	$	16	$	(13)	$	16

Net fair value by NEE balance sheet line item:
Current derivative assets(b)									$	997
Noncurrent derivative assets(c)									1,998
Total derivative assets									$	2,995
Current derivative liabilities(d)									$	1,113

Noncurrent derivative liabilities									2,148
Total derivative liabilities									$	3,261

Net fair value by FPL balance sheet line item:
Current other assets									$	39
Noncurrent other assets									1
Total derivative assets									$	40
Current other liabilities									$	15
Noncurrent other liabilities									1
Total derivative liabilities									$	16

———————————————

(b)Reflects the netting of approximately $68 million in margin cash collateral received from counterparties.

(c)Reflects the netting of approximately $99 million in margin cash collateral received from counterparties.

(d)Reflects the netting of approximately $81 million in margin cash collateral paid to counterparties.

As of June 30, 2026 and December 31, 2025, NEE had approximately $99 million ($9 million at FPL) and $94 million ($5 million at FPL), respectively, in margin cash collateral received from counterparties that was not offset against derivative assets in the above presentation. These amounts are included in current other liabilities on NEE's condensed consolidated balance sheets. Additionally, as of June 30, 2026 and December 31, 2025, NEE had approximately $211 million (none at FPL) and $70 million (none at FPL), respectively, in margin cash collateral paid to counterparties that was not offset against derivative assets or liabilities in the above presentation. These amounts are included in current other assets on NEE's condensed consolidated balance sheets.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Significant Unobservable Inputs Used in Recurring Fair Value Measurements – The valuation of certain commodity contracts requires the use of significant unobservable inputs. All forward price, implied volatility, implied correlation and interest rate inputs used in the valuation of such contracts are directly based on third-party market data, such as broker quotes and exchange settlements, when that data is available. If third-party market data is not available, then industry standard methodologies are used to develop inputs that maximize the use of relevant observable inputs and minimize the use of unobservable inputs. Observable inputs, including some forward prices, implied volatilities and interest rates used for determining fair value are updated daily to reflect the best available market information. Unobservable inputs which are related to observable inputs, such as illiquid portions of forward price or volatility curves, are updated daily as well, using industry standard techniques such as interpolation and extrapolation, combining observable forward inputs supplemented by historical market and other relevant data. Other unobservable inputs, such as implied correlations, block-to-hourly price shaping, customer migration rates from full requirements contracts and some implied volatility curves, are modeled using proprietary models based on historical data and industry standard techniques.

The significant unobservable inputs used in the valuation of NEE's commodity contracts categorized as Level 3 of the fair value hierarchy as of June 30, 2026 are as follows:


	Fair Value as of				Valuation		Significant						Weighted-
Transaction Type	June 30, 2026				Technique(s)		Unobservable Inputs		Range				average(a)
	Assets		Liabilities
	(millions)
Forward contracts – power	$	474	$	328	Discounted cash flow		Forward price (per MWh)		$—	—	$172		$54
Forward contracts – gas	630		161		Discounted cash flow		Forward price (per MMBtu)		$—	—	$19		$3
Forward contracts – congestion	69		53		Discounted cash flow		Forward price (per MWh)		$(62)	—	$26		$—
Options – power	24		—		Option models		Implied correlations		69%	—	73%		71%
							Implied volatilities		35%	—	325%		92%
Options – primarily gas	58		66		Option models		Implied correlations		69%	—	100%		97%
							Implied volatilities		16%	—	82%		43%
Full requirements and unit contingent contracts	187		316		Discounted cash flow		Forward price (per MWh)		$16	—	$324		$94
						Customer migration rate(b)		—%	—	12%		1%
Forward contracts – other	491		254
Total	$	1,933	$	1,178

———————————————

(a)Unobservable inputs were weighted by volume.

(b)Applies only to full requirements contracts.

The sensitivity of NEE's fair value measurements to increases (decreases) in the significant unobservable inputs is as follows:


Significant Unobservable Input	Position	Impact on Fair Value Measurement
Forward price	Purchase power/gas	Increase (decrease)
	Sell power/gas	Decrease (increase)
Implied correlations	Purchase option	Decrease (increase)
	Sell option	Increase (decrease)
Implied volatilities	Purchase option	Increase (decrease)
	Sell option	Decrease (increase)
Customer migration rate	Sell power(a)	Decrease (increase)

———————————————

(a)Assumes the contract is in a gain position.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

The reconciliation of changes in the fair value of commodity contract derivatives that are based on significant unobservable inputs is as follows:


	Three Months Ended June 30,
	2026				2025
	NEE		FPL		NEE		FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs as of March 31 of prior period	$	923	$	(20)	$	517	$	58
Realized and unrealized gains (losses):
Included in operating revenues	170		—		257		—

Included in regulatory assets and liabilities	20		20		(114)		(114)
Purchases	61		—		34		—

Settlements	(363)		(1)		(119)		20
Issuances	(31)		—		(20)		—

Transfers in(a)	(22)		—		1		—
Transfers out(a)	(3)		—		1		—
Fair value of net derivatives based on significant unobservable inputs as of June 30	$	755	$	(1)	$	557	$	(36)
Gains included in operating revenues attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date	$	111	$	—	$	183	$	—

———————————————

(a)Transfers into Level 3 were a result of decreased observability of market data. Transfers from Level 3 to Level 2 were a result of increased observability of market data.


	Six Months Ended June 30,
	2026				2025
	NEE		FPL		NEE		FPL
	(millions)
Fair value of net derivatives based on significant unobservable inputs as of December 31 of prior period	$	682	$	32	$	387	$	34
Realized and unrealized gains (losses):
Included in operating revenues	(87)		—		366		—

Included in regulatory assets and liabilities	17		17		(85)		(85)
Purchases	325		—		72		—

Settlements	(74)		(50)		(130)		15
Issuances	(91)		—		(36)		—

Transfers in(a)	(21)		—		(16)		—
Transfers out(a)	4		—		(1)		—
Fair value of net derivatives based on significant unobservable inputs as of June 30	$	755	$	(1)	$	557	$	(36)
Gains included in operating revenues attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date	$	64	$	—	$	309	$	—

———————————————

(a)Transfers into Level 3 were a result of decreased observability of market data. Transfers from Level 3 to Level 2 were a result of increased observability of market data.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Income Statement Impact of Derivative Instruments – Gains (losses) related to NEE's derivatives are recorded in NEE's condensed consolidated statements of income as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(millions)

Commodity contracts(a) – operating revenues (including $214 unrealized gains, $76 unrealized losses, $284 unrealized gains and $64 unrealized losses, respectively)	$	340	$	(64)	$	279	$	91

Foreign currency contracts – interest expense (including $98 unrealized gains, $27 unrealized gains, $134 unrealized losses and $24 unrealized gains, respectively)	69		21		(181)		16

Interest rate contracts – interest expense (including $375 unrealized gains, $10 unrealized gains, $522 unrealized gains and $963 unrealized losses, respectively)	424		(26)		445		(802)
Gains (losses) reclassified from AOCI to interest expense:
Interest rate contracts	1		—		1		1
Foreign currency contracts	(1)		(1)		(1)		(1)
Total	$	833	$	(70)	$	543	$	(695)

———————————————

(a)For the three and six months ended June 30, 2026, FPL recorded losses of approximately $18 million and $6 million, respectively, related to commodity contracts as regulatory assets on its condensed consolidated balance sheets. For the three and six months ended June 30, 2025, FPL recorded losses of approximately $137 million and $105 million, respectively, related to commodity contracts as regulatory assets on its condensed consolidated balance sheets.

Notional Volumes of Derivative Instruments – The following table represents net notional volumes associated with derivative instruments that are required to be reported at fair value in NEE's and FPL's condensed consolidated financial statements. The table includes significant volumes of transactions that have minimal exposure to commodity price changes because they are variably priced agreements. These volumes are only an indication of the commodity exposure that is managed through the use of derivatives. They do not represent net physical asset positions or non-derivative positions and the related hedges, nor do they represent NEE’s and FPL’s net economic exposure, but only the net notional derivative positions that fully or partially hedge the related asset positions. NEE and FPL had derivative commodity contracts for the following net notional volumes:


	June 30, 2026				December 31, 2025
Commodity Type	NEE		FPL		NEE		FPL
	(millions)
Power	(243)	MWh	—		(249)	MWh	—
Natural gas	(1,371)	MMBtu	372	MMBtu	(1,087)	MMBtu	378	MMBtu
Oil	(35)	barrels	—		3	barrels	—

As of June 30, 2026 and December 31, 2025, NEE had interest rate contracts with a net notional amount of approximately $55.1 billion and $47.3 billion, respectively, and foreign currency contracts with a notional amount of approximately $9.6 billion and $6.0 billion, respectively.

Credit*-Risk-*Related Contingent Features – Certain derivative instruments contain credit-risk-related contingent features including, among other things, the requirement to maintain an investment grade credit rating from specified credit rating agencies and certain financial ratios, as well as credit-related cross-default and material adverse change triggers. As of June 30, 2026 and December 31, 2025, the aggregate fair value of NEE's derivative instruments with credit-risk-related contingent features that were in a liability position was approximately $4.2 billion ($35 million for FPL) and $4.0 billion ($38 million for FPL), respectively.

If the credit-risk-related contingent features underlying these derivative agreements were triggered, certain subsidiaries of NEE, including FPL, could be required to post collateral or settle contracts according to contractual terms which generally allow netting of contracts in offsetting positions. Certain derivative contracts contain multiple types of credit-related triggers. To the extent these contracts contain a credit ratings downgrade trigger, the maximum exposure is included in the following credit ratings collateral posting requirements. If FPL's and NEECH's credit ratings were downgraded to BBB/Baa2 (a three-level downgrade for FPL and a one level downgrade for NEECH from the current lowest applicable rating), applicable NEE subsidiaries would be required to post collateral such that the total posted collateral would be approximately $700 million ($65 million at FPL) as of June 30, 2026 and $650 million ($30 million at FPL) as of December 31, 2025. If FPL's and NEECH's credit ratings were downgraded to below investment grade, applicable NEE subsidiaries would be required to post additional collateral such that the total posted collateral would be approximately $3.3 billion ($160 million at FPL) as of June 30, 2026 and $3.2 billion ($65 million at FPL) as of December 31, 2025. Some derivative contracts do not contain credit ratings downgrade triggers, but do contain provisions that require certain financial measures be maintained and/or have credit-related cross-default triggers. In the event these provisions were triggered, applicable NEE subsidiaries could be required to post additional collateral of up to approximately $1.7 billion ($555 million at FPL) as of June 30, 2026 and $1.7 billion ($95 million at FPL) as of December 31, 2025.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Collateral related to derivatives, including amounts posted for margin, current exposures and future performance with exchanges and independent system operators, may be posted in the form of cash or credit support in the normal course of business. As of June 30, 2026 and December 31, 2025, applicable NEE subsidiaries have posted approximately $307 million (none at FPL) and $98 million (none at FPL), respectively, in cash, and $1,578 million (none at FPL) and $1,560 million (none at FPL), respectively, in the form of letters of credit and surety bonds, each of which could be applied toward the collateral requirements described above. FPL and NEECH have capacity under their credit facilities generally in excess of the collateral requirements described above that would be available to support, among other things, derivative activities. Under the terms of the credit facilities, maintenance of a specific credit rating is not a condition to drawing on these credit facilities, although there are other conditions to drawing on these credit facilities.

Additionally, some contracts contain certain adequate assurance provisions whereby a counterparty may demand additional collateral based on subjective events and/or conditions. Due to the subjective nature of these provisions, NEE and FPL are unable to determine an exact value for these items and they are not included in any of the quantitative disclosures above.

3. Non-Derivative Fair Value Measurements

Non-derivative fair value measurements consist of NEE’s and FPL’s cash equivalents and restricted cash equivalents, special use funds and other investments. The fair value of these financial assets is determined by using the valuation techniques and inputs as described in Note 2 – Fair Value Measurements of Derivative Instruments as well as below.

Cash Equivalents and Restricted Cash Equivalents – NEE and FPL hold investments primarily in money market funds. The fair value of these funds is estimated using a market approach based on current observable market prices.

Special Use Funds and Other Investments – NEE and FPL hold primarily debt and equity securities directly, as well as indirectly through commingled funds. Substantially all directly held equity securities are valued at their quoted market prices. For directly held debt securities, multiple prices and price types are obtained from pricing vendors whenever possible, which enables cross-provider validations. A primary price source is identified based on asset type, class or issue of each security. Commingled funds, which are similar to mutual funds, are maintained by banks or investment companies and hold certain investments in accordance with a stated set of objectives. The fair value of commingled funds is primarily derived from the quoted prices in active markets of the underlying securities. Because the fund shares are offered to a limited group of investors, they are not considered to be traded in an active market.

Fair Value Measurement Alternative – NEE holds investments in equity securities without readily determinable fair values, which are initially recorded at cost, of approximately $796 million and $647 million as of June 30, 2026 and December 31, 2025, respectively, and are included in noncurrent other assets on NEE's condensed consolidated balance sheets. Adjustments to carrying values are recorded as a result of observable price changes in transactions for identical or similar investments of the same issuer.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Recurring Non-Derivative Fair Value Measurements – NEE's and FPL's financial assets and other fair value measurements made on a recurring basis by fair value hierarchy level are as follows:


	June 30, 2026
	Level 1		Level 2			Level 3		Total
	(millions)
Assets:
Cash equivalents and restricted cash equivalents:(a)
NEE – equity securities	$	1,415	$	—		$	—	$	1,415
FPL – equity securities	$	39	$	—		$	—	$	39
Special use funds:(b)
NEE:
Equity securities	$	3,255	$	4,229	(c)	$	225	$	7,709
U.S. Government and municipal bonds	$	790	$	31		$	—	$	821
Corporate debt securities	$	5	$	714		$	—	$	719
Asset-backed securities	$	—	$	872		$	—	$	872
Other debt securities	$	1	$	22		$	—	$	23
FPL:
Equity securities	$	1,271	$	3,855	(c)	$	200	$	5,326
U.S. Government and municipal bonds	$	640	$	24		$	—	$	664
Corporate debt securities	$	5	$	526		$	—	$	531
Asset-backed securities	$	—	$	672		$	—	$	672
Other debt securities	$	1	$	16		$	—	$	17
Other investments:(d)
NEE:
Equity securities	$	54	$	—		$	60	$	114
U.S. Government and municipal bonds	$	15	$	—		$	—	$	15
Corporate debt securities	$	—	$	1,343		$	4	$	1,347
Other debt securities	$	—	$	395		$	68	$	463
FPL:
Equity securities	$	6	$	—		$	—	$	6

———————————————

(a)Includes restricted cash equivalents of approximately $38 million ($37 million for FPL) in current other assets on the condensed consolidated balance sheets.

(b)Excludes investments accounted for under the equity method and loans not measured at fair value on a recurring basis. See Fair Value of Financial Instruments Recorded at Other than Fair Value below.

(c)Primarily invested in commingled funds whose underlying securities would be Level 1 if those securities were held directly by NEE or FPL.

(d)Included in noncurrent other assets on NEE's and FPL's condensed consolidated balance sheets.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)


	December 31, 2025
	Level 1		Level 2			Level 3		Total
	(millions)
Assets:
Cash equivalents and restricted cash equivalents:(a)
NEE – equity securities	$	1,873	$	—		$	—	$	1,873
FPL – equity securities	$	40	$	—		$	—	$	40
Special use funds:(b)
NEE:
Equity securities	$	2,948	$	3,828	(c)	$	231	$	7,007
U.S. Government and municipal bonds	$	721	$	65		$	—	$	786
Corporate debt securities	$	10	$	722		$	—	$	732
Asset-backed securities	$	—	$	918		$	—	$	918
Other debt securities	$	—	$	17		$	—	$	17
FPL:
Equity securities	$	1,148	$	3,486	(c)	$	206	$	4,840
U.S. Government and municipal bonds	$	588	$	40		$	—	$	628
Corporate debt securities	$	11	$	539		$	—	$	550
Asset-backed securities	$	—	$	697		$	—	$	697
Other debt securities	$	—	$	10		$	—	$	10
Other investments:(d)
NEE:
Equity securities	$	49	$	—		$	82	$	131
U.S. Government and municipal bonds	$	33	$	1		$	—	$	34
Corporate debt securities	$	—	$	1,299		$	120	$	1,419
Other debt securities	$	—	$	264		$	28	$	292
FPL:
Equity securities	$	7	$	—		$	—	$	7

———————————————

(a)Includes restricted cash equivalents of approximately $39 million ($37 million for FPL) in current other assets on the condensed consolidated balance sheets.

(c)Primarily invested in commingled funds whose underlying securities would be Level 1 if those securities were held directly by NEE or FPL.

(d)Included in noncurrent other assets on NEE's and FPL's condensed consolidated balance sheets.

Fair Value of Financial Instruments Recorded at Other than Fair Value – The carrying amounts of commercial paper and other short-term debt approximate their fair values. The carrying amounts and estimated fair values of other financial instruments recorded at other than fair value are as follows:


	June 30, 2026					December 31, 2025
	Carrying Amount		Estimated Fair Value			Carrying Amount		Estimated Fair Value
	(millions)
NEE:
Special use funds(a)	$	1,534	$	1,535		$	1,494	$	1,495
Other receivables, net of allowances(b)	$	460	$	460		$	535	$	535
Long-term debt, including current portion	$	104,203	$	101,870	(c)	$	93,056	$	91,614	(c)
FPL:
Special use funds(a)	$	940	$	940		$	959	$	960
Long-term debt, including current portion	$	30,516	$	28,681	(c)	$	28,682	$	27,354	(c)

———————————————

(a)Primarily represents investments accounted for under the equity method and loans not measured at fair value on a recurring basis (Level 2).

(b)Approximately $316 million and $340 million is included in current other assets and $144 million and $195 million is included in noncurrent other assets on NEE's condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025, respectively (primarily Level 3).

(c)As of June 30, 2026 and December 31, 2025, substantially all is Level 2 for NEE and FPL.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Special Use Funds and Other Investments Carried at Fair Value – The special use funds noted above and those carried at fair value (see Recurring Non-Derivative Fair Value Measurements above) consist primarily of NEE's nuclear decommissioning fund assets of approximately $11,677 million ($8,149 million for FPL) and $10,953 million ($7,683 million for FPL) as of June 30, 2026 and December 31, 2025, respectively. The investments held in the special use funds and other investments consist of equity and available for sale debt securities which are primarily carried at estimated fair value. The amortized cost of debt securities is approximately $4,277 million ($1,928 million for FPL) and $4,181 million ($1,881 million for FPL) as of June 30, 2026 and December 31, 2025, respectively. Debt securities included in the nuclear decommissioning funds have a weighted-average maturity as of June 30, 2026 of approximately eight years at NEE and nine years at FPL. Other investments primarily consist of debt securities with a weighted-average maturity as of June 30, 2026 of approximately ten years. The cost of securities sold is determined using the specific identification method.

For FPL's special use funds, changes in fair value of debt and equity securities, including any estimated credit losses of debt securities, result in a corresponding adjustment to the related regulatory asset or liability accounts, consistent with regulatory treatment. For NEE's non-rate regulated operations, changes in fair value of debt securities result in a corresponding adjustment to OCI, except for estimated credit losses and unrealized losses on debt securities intended or required to be sold prior to recovery of the amortized cost basis, which are recognized in other – net in NEE's condensed consolidated statements of income. Changes in fair value of equity securities are primarily recorded in change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds – net in NEE’s condensed consolidated statements of income.

Unrealized gains recognized on equity securities held as of June 30, 2026 and 2025 are as follows:


	NEE								FPL
	Three Months Ended June 30,				Six Months Ended June 30,				Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025		2026		2025		2026		2025
	(millions)
Unrealized gains	$	906	$	539	$	648	$	297	$	630	$	374	$	434	$	202

Realized gains and losses and proceeds from the sale or maturity of available for sale debt securities are as follows:


	NEE								FPL
	Three Months Ended June 30,				Six Months Ended June 30,				Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025		2026		2025		2026		2025
	(millions)
Realized gains	$	12	$	17	$	30	$	31	$	10	$	15	$	25	$	27
Realized losses	$	20	$	22	$	32	$	40	$	16	$	18	$	24	$	31
Proceeds from sale or maturity of securities	$	803	$	921	$	1,836	$	1,690	$	554	$	706	$	1,180	$	1,241

The unrealized gains and unrealized losses on available for sale debt securities and the fair value of available for sale debt securities in an unrealized loss position are as follows:


	NEE				FPL
	June 30, 2026		December 31, 2025		June 30, 2026		December 31, 2025
	(millions)
Unrealized gains	$	25	$	62	$	14	$	34
Unrealized losses(a)	$	98	$	68	$	59	$	37
Fair value	$	2,481	$	1,344	$	1,165	$	709

———————————————

(a) Unrealized losses on available for sale debt securities in an unrealized loss position for greater than twelve months as of June 30, 2026 and December 31, 2025 were not material to NEE or FPL.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Regulations issued by the FERC and the NRC provide general risk management guidelines to protect nuclear decommissioning funds and to allow such funds to earn a reasonable return. The FERC regulations prohibit, among other investments, investments in any securities of NEE or its subsidiaries, affiliates or associates, excluding investments tied to market indices or mutual funds. Similar restrictions applicable to the decommissioning funds for NEER's nuclear plants are included in the NRC operating licenses for those facilities or in NRC regulations applicable to NRC licensees not in cost-of-service environments. With respect to the decommissioning fund for Seabrook, decommissioning fund contributions and withdrawals are also regulated by the New Hampshire Nuclear Decommissioning Financing Committee pursuant to New Hampshire law.

The nuclear decommissioning reserve funds are managed by investment managers who must comply with the guidelines of NEE and FPL and the rules of the applicable regulatory authorities. The funds' assets are invested giving consideration to taxes, liquidity, risk, diversification and other prudent investment objectives.

Nonrecurring Fair Value Measurements – NEE tests its equity method investments for impairment whenever events or changes in circumstances indicate that the fair value of the investment is less than the carrying value. Indicators of impairment may include, among other things, an observable market price below NEE’s carrying value. Investments that are OTTI are written down to their estimated fair value on the reporting date and an impairment loss is recognized.

NextEra Energy Resources owns a noncontrolling interest in XPLR, primarily through its limited partner interest in XPLR OpCo, and accounts for this ownership interest as an equity method investment. During the preparation of NEE's March 31, 2025 financial statements, it was determined that NextEra Energy Resources' investment in XPLR was OTTI as a result of a significant decline in trading price of XPLR's common units following XPLR's announcement of a strategic repositioning, including suspension of the distribution to common unitholders for an indefinite period. The impairment reflected NEE's fair value analysis using the market approach and the observable trading price of XPLR's common units at March 31, 2025 of $9.50. When making the OTTI determination, NEE considered, among other things, the extent to which the publicly traded unit price was less than cost. Based on the fair value analysis, the equity method investment with a carrying amount of approximately $1.7 billion was written down to its estimated fair value of $1.0 billion, resulting in an impairment charge of $0.7 billion ($0.5 billion after tax), which is reflected in equity in earnings (losses) of equity method investees in NEE’s condensed consolidated statements of income for the six months ended June 30, 2025. Should NEE determine, based on future analysis which includes the current and future trading prices of XPLR's common units, that an additional impairment is other-than-temporary, an impairment loss would be recorded, which would impact NEE's condensed consolidated statements of income.

4. Income Taxes

NEE's effective income tax rate is based on the composition of pretax income or loss. A reconciliation of the income tax expense (benefit) and effective income tax rates based on the statutory U.S. federal income tax rate is as follows:


	NEE
	Three Months Ended June 30,								Six Months Ended June 30,
	2026				2025				2026				2025
	(millions, except for percentages)
Income taxes at U.S. statutory rate of 21%	$	533	21.0	%	$	290	21.0	%	$	785	21.0	%	$	279	21.0	%
Increases (reductions) resulting from:
State income taxes – net of federal income tax benefit	118		4.7		47		3.4		90		2.4		64		4.8
Nontaxable or nondeductible items:
Taxes attributable to noncontrolling interests	109		4.3		82		5.9		213		5.7		159		12.0
Amortization of deferred regulatory credit	(13)		(0.5)		(40)		(2.9)		(37)		(1.0)		(84)		(6.3)
Other – net	(10)		(0.4)		—		—		(26)		(0.7)		(19)		(1.4)
Clean energy tax credits(a)	(827)		(32.6)		(650)		(47.0)		(1,618)		(43.3)		(1,189)		(89.6)
Valuation adjustments	36		1.4		28		2.0		64		1.7		50		3.8


Other adjustments – net	(30)		(1.2)		(13)		(0.9)		(44)		(1.1)		(37)		(2.9)
Income tax benefit and effective tax rate	$	(84)	(3.3)	%	$	(256)	(18.5)	%	$	(573)	(15.3)	%	$	(777)	(58.6)	%

(a)For the six months ended June 30, 2026, includes the impact from ITC amortization utilized as part of FPL's RSM. See Note 11 – Rate Regulation.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)


	FPL
	Three Months Ended June 30,								Six Months Ended June 30,
	2026				2025				2026				2025
	(millions, except for percentages)
Income taxes at U.S. statutory rate of 21%	$	322	21.0	%	$	302	21.0	%	$	625	21.0	%	$	624	21.0	%
Increases (reductions) resulting from:
State income taxes – net of federal income tax benefit	66		4.3		62		4.3		128		4.3		128		4.3



Clean energy tax credits(a)	(254)		(16.6)		(155)		(10.8)		(622)		(20.9)		(279)		(9.4)

Amortization of deferred regulatory credit	(13)		(0.8)		(40)		(2.8)		(25)		(0.8)		(83)		(2.8)



Other adjustments – net	—		—		(5)		(0.3)		(3)		(0.1)		(11)		(0.3)
Income tax expense and effective tax rate	$	121	7.9	%	$	164	11.4	%	$	103	3.5	%	$	379	12.8	%

(a)For the six months ended June 30, 2026, includes the impact from ITC amortization utilized as part of the RSM. See Note 11 – Rate Regulation.

NEE recognizes PTCs as wind and solar energy is generated and sold based on a per kWh rate prescribed in applicable federal and state statutes, which may differ significantly from amounts computed, on a quarterly basis, using an overall effective income tax rate anticipated for the full year. NEE uses this method of recognizing PTCs for specific reasons, including that PTCs are an integral part of the expected value of most wind and some solar projects and a fundamental component of such wind and solar projects' results of operations. PTCs, as well as ITCs, can significantly affect NEE's effective income tax rate depending on the amount of pretax income or loss. The amount of PTCs recognized can be significantly affected by wind and solar generation and by the roll off of PTCs after ten years of production absent a repowering of the wind and solar projects.

5. Business Combinations

Symmetry Acquisition – On January 9, 2026, a wholly owned subsidiary of NextEra Energy Resources acquired 100% of the equity interests of Symmetry Energy Solutions, LLC, a commercial and industrial natural gas business, from Energy Capital Partners, LLC (Symmetry acquisition). The acquired business provides natural gas supply, storage and asset management solutions to a broad range of end users nationwide. Symmetry Energy Solutions supplies natural gas in the U.S. to approximately 5,500 commercial and industrial customers in 34 states. The purchase price included approximately $0.8 billion in cash consideration as well as working capital and other adjustments of $0.3 billion (subject to certain post-closing adjustments).

Under the acquisition method, the purchase price was allocated to the assets acquired and liabilities assumed based on their fair value. NEE recorded identifiable assets of approximately $1.3 billion, primarily relating to accounts receivable, existing gas, storage and transportation contracts, hedging positions, and intangible assets associated with customer relationships and software, and liabilities of $0.6 billion. The excess of the purchase price over the fair value of assets acquired and liabilities assumed resulted in approximately $0.4 billion of goodwill which has been recognized on NEE's condensed consolidated balance sheets, of which $0.1 billion is expected to be deductible for tax purposes. Goodwill associated with the Symmetry acquisition is reflected within NEER and, for impairment testing, is included in the customer supply reporting unit. The goodwill arising from the transaction represents expected benefits of synergies and expansion opportunities for NEE's commercial and industrial gas businesses. The provisional fair value of the acquired net assets, including goodwill, is subject to change as additional information about the assets and liabilities existing as of the acquisition date is obtained during the measurement period.

Caliber Acquisition – On June 30, 2026, a 95% owned subsidiary of NextEra Energy Resources acquired 100% of the equity interests of CRP XII Intermediate, LLC which owns Caliber Resource Partners, LLC (Caliber acquisition), an energy investment firm. The acquired business owns non-operating interests in more than 7,500 producing wells as well as additional drilling locations across multiple U.S. shale basins, supporting NEE's natural gas-related activities. The base purchase price of $1.3 billion included approximately $1.0 billion in cash consideration from NEE and noncontrolling interest owners and the assumption of existing debt of $0.3 billion (subject to certain post-closing adjustments).

Under the acquisition method, the purchase price was allocated to the assets acquired and liabilities assumed based on their fair value. NEE recorded identifiable assets of approximately $1.4 billion, primarily relating to property, plant and equipment – net, and liabilities of approximately $0.4 billion primarily relating to long-term debt. The provisional fair value of the acquired net assets is subject to change as additional information about the assets and liabilities existing as of the acquisition date is obtained during the measurement period.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Proposed Business Combination – On May 15, 2026, NEE and Dominion Energy entered into an Agreement and Plan of Merger (the merger agreement) with certain NEE subsidiaries. Pursuant to the terms and conditions of the merger agreement, the transaction would occur through two successive mergers (the mergers) and Dominion Energy would become a wholly-owned subsidiary of NEE. At closing, each outstanding share of Dominion Energy common stock, other than shares to be cancelled as described in the merger agreement, will be converted into the right to receive (i) a pro rata share of an aggregate amount equal to $360 million in cash, without interest, and (ii) 0.8138 shares of NEE common stock. In addition, NEE and Dominion Energy have proposed $2.25 billion in bill credits for Dominion Energy's utility customers in Virginia, North Carolina and South Carolina spread over two years post-close. NEE and Dominion Energy are working to complete the transaction in the second half of 2027. However, completion of the mergers and the actual closing date depend upon the satisfaction of a number of conditions, including certain approvals by Dominion Energy shareholders and NEE shareholders. The proposed business combination is also subject to the receipt of required regulatory approvals, including approvals by the FERC, the NRC, and the utility commissions in Virginia, North Carolina and South Carolina as well as clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The merger agreement contains certain termination rights and provides that, upon termination of the merger agreement under specified circumstances, NEE would be required to pay to Dominion Energy a termination fee of $4.8 billion or $6.5 billion, depending on the circumstances of the termination, while under other circumstances, Dominion Energy would be required to pay NEE a termination fee of approximately $2.2 billion.

6. Related Party Transactions

Through XPLR OpCo, XPLR owns, or has a partial ownership interest in, a portfolio of contracted clean energy assets consisting of wind, solar and battery storage projects. NEE has an approximately 52.4% noncontrolling interest in XPLR, primarily through its limited partner interest in XPLR OpCo, and accounts for its ownership interest in XPLR as an equity method investment. NextEra Energy Resources operates essentially all of the energy projects owned by XPLR and provides services to XPLR under various related party operations and maintenance, development and construction, administrative and management services agreements (service agreements). Under these service agreements, NextEra Energy Resources incurred costs of approximately $35 million and $214 million during the three months ended June 30, 2026 and 2025, respectively, and $111 million and $577 million during the six months ended June 30, 2026 and 2025, respectively, primarily in connection with wind repowering, which have been or will be reimbursed by XPLR. NextEra Energy Resources is also party to a CSCS agreement with a subsidiary of XPLR. Amounts due from XPLR of approximately $427 million and $498 million are included in other receivables and $171 million and $183 million are included in noncurrent other assets as of June 30, 2026 and December 31, 2025, respectively. NEECH or NextEra Energy Resources guaranteed or provided indemnifications, letters of credit or surety bonds totaling approximately $1.8 billion as of June 30, 2026 primarily related to obligations on behalf of XPLR's subsidiaries with maturity dates ranging from 2026 to 2063, including certain project performance obligations and obligations under financing and interconnection agreements. Payment guarantees and related contracts with respect to unconsolidated entities for which NEE or one of its subsidiaries are the guarantor are recorded on NEE’s condensed consolidated balance sheets at fair value. As of June 30, 2026, approximately $58 million related to the fair value of the credit support provided under the CSCS agreement is recorded as noncurrent other liabilities on NEE's condensed consolidated balance sheet.

During 2026 and 2025, certain services, primarily engineering, construction, transportation, storage and maintenance services, were provided to subsidiaries of NEE by related parties that NEE accounts for under the equity method of accounting. Charges for these services amounted to approximately $297 million and $234 million for the three months ended June 30, 2026 and 2025, respectively, and $576 million and $454 million for the six months ended June 30, 2026 and 2025, respectively.

7. Variable Interest Entities

NEER – As of June 30, 2026, NEE consolidates a number of VIEs within the NEER segment. Subsidiaries within the NEER segment are considered the primary beneficiary of these VIEs since they control the most significant activities of these VIEs, including operations and maintenance, and they have the obligation to absorb expected losses of these VIEs.

Five indirect subsidiaries of NextEra Energy Resources have an ownership interest ranging from approximately 50% to 67% in entities which own and operate solar generation facilities with generating capacity of approximately 280 MW. Each of the subsidiaries is considered a VIE since the non-managing members have no substantive rights over the managing members, and is consolidated by NextEra Energy Resources. These entities sell their electric output to third parties under power sales contracts with expiration dates ranging from 2037 through 2042. These entities have third-party debt which is secured by liens against the assets of the entities. The debt holders have no recourse to the general credit of NextEra Energy Resources for the repayment of debt. The assets and liabilities of these VIEs were approximately $505 million and $99 million, respectively, as of June 30, 2026, and $506 million and $148 million, respectively, as of December 31, 2025. As of June 30, 2026 and December 31, 2025, the assets and liabilities of these VIEs consisted primarily of property, plant and equipment and long-term debt, respectively.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

NextEra Energy Resources consolidates a VIE which has a 10% direct ownership interest in wind and solar generation facilities which have the capability of producing approximately 400 MW and 599 MW, respectively. These entities sell their electric output under power sales contracts to third parties with expiration dates ranging from 2034 through 2040. These entities are also considered a VIE because the holders of differential membership interests in these entities do not have substantive rights over the significant activities of these entities. The assets and liabilities of the VIE were approximately $1,281 million and $75 million, respectively, as of June 30, 2026, and $1,301 million and $71 million, respectively, as of December 31, 2025. As of June 30, 2026 and December 31, 2025, the assets of this VIE consisted primarily of property, plant and equipment.

NextEra Energy Resources consolidates 33 VIEs that primarily relate to certain subsidiaries which have sold differential membership interests in entities which own and operate wind generation, solar generation and battery storage facilities with generating/storage capacity of approximately 11,689 MW, 4,910 MW and 2,924 MW, respectively. These entities sell, or will sell, their electric output either under power sales contracts to third parties with expiration dates ranging from 2027 through 2054 or in the spot market. These entities are considered VIEs because the holders of differential membership interests do not have substantive rights over the significant activities of these entities. NextEra Energy Resources has financing obligations with respect to these entities, including third-party debt which is secured by liens against the generation facilities and the other assets of these entities or by pledges of NextEra Energy Resources' ownership interest in these entities. The debt holders have no recourse to the general credit of NextEra Energy Resources for the repayment of debt. The assets and liabilities of these VIEs totaled approximately $28,634 million and $924 million, respectively, as of June 30, 2026. There were 34 of these consolidated VIEs as of December 31, 2025 and the assets and liabilities of those VIEs at such date totaled approximately $28,768 million and $1,485 million, respectively. As of June 30, 2026 and December 31, 2025, the assets of these VIEs consisted primarily of property, plant and equipment, and as of December 31, 2025, the liabilities of these VIEs consisted primarily of accounts payable.

Other – As of June 30, 2026 and December 31, 2025, several NEE subsidiaries had investments totaling approximately $7,140 million ($5,399 million at FPL) and $6,592 million ($5,075 million at FPL), respectively, which are included in special use funds and noncurrent other assets on NEE's condensed consolidated balance sheets and in special use funds on FPL's condensed consolidated balance sheets. These investments represented primarily commingled funds and asset-backed securities. NEE subsidiaries, including FPL, are not the primary beneficiaries and therefore do not consolidate any of these entities because they do not control any of the ongoing activities of these entities, were not involved in the initial design of these entities and do not have a controlling financial interest in these entities.

Certain subsidiaries of NEE have noncontrolling interests in entities accounted for under the equity method, including NEE's noncontrolling interest in XPLR OpCo (see Note 6). These entities are limited partnerships or similar entity structures in which the limited partners or non-managing members do not have substantive rights over the significant activities of these entities, and therefore are considered VIEs. NEE is not the primary beneficiary because it does not have a controlling financial interest in these entities, and therefore does not consolidate any of these entities. NEE’s investment in these entities totaled approximately $2,500 million and $2,525 million as of June 30, 2026 and December 31, 2025, respectively. As of June 30, 2026, subsidiaries of NEE had guarantees related to certain obligations of one of these entities, as well as commitments to invest an additional approximately $225 million in several of these entities. See further discussion of such guarantees and commitments in Note 12 – Commitments and – Contracts, respectively.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

8. Employee Retirement Benefits

NEE sponsors a qualified noncontributory defined benefit pension plan for substantially all employees of NEE and its subsidiaries and sponsors a contributory postretirement plan for other benefits for retirees of NEE and its subsidiaries meeting certain eligibility requirements.

The components of net periodic cost (income) for the plans are as follows:


	Pension Benefits				Postretirement Benefits				Pension Benefits				Postretirement Benefits
	Three Months Ended June 30,				Three Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025		2026		2025		2026		2025
	(millions)
Service cost	$	19	$	17	$	1	$	1	$	38	$	34	$	1	$	1
Interest cost	32		34		2		2		64		68		4		4
Expected return on plan assets	(105)		(104)		—		—		(211)		(207)		—		—



Special termination benefit(a)	75		—		—		—		75		—		—		—

Net periodic cost (income) at NEE	$	21	$	(53)	$	3	$	3	$	(34)	$	(105)	$	5	$	5
Net periodic cost (income) allocated to FPL	$	(3)	$	(30)	$	1	$	2	$	(33)	$	(60)	$	3	$	4

———————————————

(a)Reflects enhanced early retirement benefit.

9. Debt

Significant long-term debt issuances and borrowings during the six months ended June 30, 2026 were as follows:


	Principal Amount		Interest Rate			Maturity Date
	(millions)
FPL:
First mortgage bonds	$	2,250	5.125%	–	5.900%	2036	–	2066


NEECH:
Debentures – fixed	$	1,300	4.40%	–	5.85%	2031	–	2056
Euro denominated debentures – fixed(a)	$	1,549	2.989%	–	3.624%	2030	–	2034
Debentures, related to NEE's equity units	$	2,300	4.00%			2031	–	2034
Euro denominated junior subordinated debentures – fixed(a)(b)	$	2,067	4.20%	–	4.75%	2056
Junior subordinated debentures – fixed	$	600	6.50%			2086
Junior subordinated debentures – fixed(c)	$	3,750	6.000%	–	6.625%	2056	–	2066







NEER:
Senior secured limited-recourse debt	$	372	6.59%			2033

———————————————

(a)Foreign currency swaps have been entered into with respect to these debt issuances. See Note 2.

(b)Two series of junior subordinated debentures were issued in February 2026. One series will initially bear interest at 4.20% until February 26, 2032 and thereafter will bear interest based on an underlying index plus a specified margin, reset every five years; such margin will increase on February 26, 2037 and February 26, 2052. The second series will initially bear interest at 4.75% until February 26, 2036, and thereafter will bear interest at a rate based on an underlying index plus a specified margin, to be reset every five years.

(c)Three series of junior subordinated debentures were issued in June 2026 and will initially bear interest at 6.000% until October 1, 2031, 6.200% until October 1, 2036 and 6.625% until October 1, 2046, respectively, and thereafter each series will bear interest at a rate based on an underlying index plus a specified margin, to be reset every five years, provided that the interest rates will not reset below the respective initial interest rates.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

In March 2026, NEE sold $2.3 billion of equity units (initially consisting of Corporate Units). Each equity unit has a stated amount of $50 and consists of a contract to purchase NEE common stock (stock purchase contract) and, initially, a 2.5% undivided beneficial ownership interest in a Series P Debenture due February 15, 2031, and, initially, a 2.5% undivided beneficial ownership interest in a Series Q Debenture due February 15, 2034, each issued in the principal amount of $1,000 by NEECH. Each stock purchase contract requires the holder to purchase by no later than February 15, 2029 (the final settlement date) for a price of $50 in cash, a number of shares of NEE common stock (subject to antidilution adjustments), based on a price per share range described in the following sentence. If purchased on the final settlement date, as of June 30, 2026, the number of shares issued per equity unit would (subject to antidilution adjustments) range from 0.5435 shares if the applicable market value of a share of NEE common stock is less than or equal to $91.99 (the reference price) to 0.4348 shares if the applicable market value of a share is equal to or greater than $115.00 (the threshold appreciation price), with the applicable market value to be determined using the average closing prices of NEE common stock over a 20-day trading period ending on February 12, 2029. Total annual distributions on the equity units are at the rate of 7.375%, consisting of interest on the debentures (4.000% per year) and payments under the stock purchase contracts (3.375% per year). The interest rate on the debentures is expected to be reset on or after August 15, 2028. A holder of an equity unit may satisfy its purchase obligation with proceeds raised from remarketing the NEECH debentures that are part of its equity unit. The undivided beneficial ownership interests in the NEECH debentures that are components of each Corporate Unit are pledged to NEE to secure the holder's obligation to purchase NEE common stock under the related stock purchase contract. If a successful remarketing does not occur on or before the third business day prior to the final settlement date, and a holder has not notified NEE of its intention to settle the stock purchase contract with cash, the debentures that are components of the Corporate Units will be used to satisfy in full the holders' obligations to purchase NEE common stock under the related stock purchase contracts on the final settlement date. The debentures are fully and unconditionally guaranteed by NEE.

10. Equity

Earnings Per Share – The reconciliation of NEE's basic and diluted earnings per share attributable to NEE is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(millions, except per share amounts)

Numerator – net income attributable to NEE	$	3,144	$	2,028	$	5,326	$	2,862



Denominator:
Weighted-average number of common shares outstanding – basic	2,083.5		2,056.7		2,083.0		2,056.1
Equity units, stock options, performance share awards, restricted stock and exchangeable notes(a)	9.9		4.6		9.9		4.9
Weighted-average number of common shares outstanding – assuming dilution	2,093.4		2,061.3		2,092.9		2,061.0
Earnings per share attributable to NEE:
Basic	$	1.51	$	0.99	$	2.56	$	1.39
Assuming dilution	$	1.50	$	0.98	$	2.54	$	1.39

———————————————

(a)Calculated primarily using the treasury stock method. Performance share awards are included in diluted weighted-average number of common shares outstanding based upon what would be issued if the end of the reporting period was the end of the term of the award.

Common shares issuable pursuant to equity units, stock options, performance share awards and/or exchangeable notes, as well as restricted stock which were not included in the denominator above due to their antidilutive effect were approximately 39.0 million and 72.9 million for the three months ended June 30, 2026 and 2025, respectively, and 23.6 million and 72.6 million for the six months ended June 30, 2026 and 2025, respectively.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Accumulated Other Comprehensive Income (Loss) – The components of AOCI, net of tax, are as follows:


	Accumulated Other Comprehensive Income (Loss)
	Net Unrealized Gains (Losses) on Cash Flow Hedges			Net Unrealized Gains (Losses) on Available for Sale Securities			Defined Benefit Pension and Other Benefits Plans		Net Unrealized Gains (Losses) on Foreign Currency Translation		Other Comprehensive Income (Loss) Related to Equity Method Investees		Total
	(millions)
Three Months Ended June 30, 2026
Balances, March 31, 2026	$	19		$	(17)		$	33	$	(80)	$	11	$	(34)
Other comprehensive loss before reclassifications	—			(5)			—		(12)		—		(17)
Amounts reclassified from AOCI	1		(a)	2		(b)	—		—		—		3
Net other comprehensive income (loss)	1			(3)			—		(12)		—		(14)

Balances, June 30, 2026	$	20		$	(20)		$	33	$	(92)	$	11	$	(48)

———————————————

(a)Reclassified to interest expense in NEE's condensed consolidated statements of income. See Note 2 – Income Statement Impact of Derivative Instruments.

(b)Reclassified to gains on disposal of investments and other property – net in NEE's condensed consolidated statements of income.


	Accumulated Other Comprehensive Income (Loss)
	Net Unrealized Gains (Losses) on Cash Flow Hedges			Net Unrealized Gains (Losses) on Available for Sale Securities			Defined Benefit Pension and Other Benefits Plans		Net Unrealized Gains (Losses) on Foreign Currency Translation		Other Comprehensive Income (Loss) Related to Equity Method Investees		Total
	(millions)
Six Months Ended June 30, 2026
Balances, December 31, 2025	$	19		$	—		$	33	$	(72)	$	11	$	(9)
Other comprehensive loss before reclassifications	—			(23)			—		(20)		—		(43)
Amounts reclassified from AOCI	1		(a)	3		(b)	—		—		—		4
Net other comprehensive income (loss)	1			(20)			—		(20)		—		(39)

Balances, June 30, 2026	$	20		$	(20)		$	33	$	(92)	$	11	$	(48)

———————————————

(a)Reclassified to interest expense in NEE's condensed consolidated statements of income. See Note 2 – Income Statement Impact of Derivative Instruments.

(b)Reclassified to gains on disposal of investments and other property – net in NEE's condensed consolidated statements of income.


	Accumulated Other Comprehensive Income (Loss)
	Net Unrealized Gains (Losses) on Cash Flow Hedges			Net Unrealized Gains (Losses) on Available for Sale Securities			Defined Benefit Pension and Other Benefits Plans		Net Unrealized Gains (Losses) on Foreign Currency Translation		Other Comprehensive Income (Loss) Related to Equity Method Investees		Total
	(millions)
Three Months Ended June 30, 2025
Balances, March 31, 2025	$	23		$	(25)		$	(19)	$	(101)	$	8	$	(114)
Other comprehensive income before reclassifications	—			9			—		33		—		42
Amounts reclassified from AOCI	1		(a)	1		(b)	—		—		—		2
Net other comprehensive income	1			10			—		33		—		44

Balances, June 30, 2025	$	24		$	(15)		$	(19)	$	(68)	$	8	$	(70)

———————————————

(a)Reclassified to interest expense in NEE's condensed consolidated statements of income. See Note 2 – Income Statement Impact of Derivative Instruments.

(b)Reclassified to gains on disposal of investments and other property – net in NEE's condensed consolidated statements of income.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)


	Accumulated Other Comprehensive Income (Loss)
	Net Unrealized Gains (Losses) on Cash Flow Hedges			Net Unrealized Gains (Losses) on Available for Sale Securities			Defined Benefit Pension and Other Benefits Plans		Net Unrealized Gains (Losses) on Foreign Currency Translation		Other Comprehensive Income (Loss) Related to Equity Method Investees		Total
	(millions)
Six Months Ended June 30, 2025
Balances, December 31, 2024	$	23		$	(37)		$	(19)	$	(101)	$	8	$	(126)
Other comprehensive income before reclassifications	—			18			—		33		—		51
Amounts reclassified from AOCI	1		(a)	4		(b)	—		—		—		5
Net other comprehensive income	1			22			—		33		—		56

Balances, June 30, 2025	$	24		$	(15)		$	(19)	$	(68)	$	8	$	(70)

———————————————

(a)Reclassified to interest expense in NEE's condensed consolidated statements of income. See Note 2 – Income Statement Impact of Derivative Instruments.

(b)Reclassified to gains on disposal of investments and other property – net in NEE's condensed consolidated statements of income.

11. Summary of Significant Accounting and Reporting Policies

Rate Regulation – In February 2026, the Office of Public Counsel, Floridians Against Increased Rates, Inc. and, as a group, Florida Rising, Inc., Environmental Confederation of Southwest Florida, Inc. and League of United Latin American Citizens of Florida (collectively, the non-signatories) filed with the FPSC a joint motion for reconsideration and a joint request for oral argument, and filed notices of appeal with the Florida Supreme Court, in each case challenging the FPSC's final order approving the 2025 rate agreement. In April 2026, the FPSC denied substantially all of the non-signatories' joint motion for reconsideration, granting only a limited correction to expand on the discussion of FPL's performance under the Florida Energy Efficiency and Conservation Act in the final order. In May 2026, notices of appeal were filed with the Florida Supreme Court challenging the FPSC's order denying reconsideration of the FPSC's final order approving the 2025 rate agreement. In June 2026, the Florida Supreme Court consolidated the appeals into a single proceeding. The rate case docket will remain open pending resolution of the consolidated appeal before the Florida Supreme Court.

The use of RSM for the three and six months ended June 30, 2026 is permitted by the 2025 rate agreement, and, for the prior year periods the use of reserve amortization was permitted by the 2021 rate agreement. The RSM reserve, which is authorized up to approximately $1.5 billion, after tax, over the term of the 2025 rate agreement, includes ITC amortization for battery storage projects placed in service in 2025, the remaining balance from FPL's previous reserve amortization mechanism as of January 1, 2026 and certain amounts related to deferred tax liabilities. In accordance with the terms of the 2025 rate agreement, RSM amortization is recorded as either an increase or decrease to noncurrent regulatory assets or liabilities, as applicable, on NEE’s and FPL’s condensed consolidated balance sheets. In accordance with the terms of the 2021 rate agreement, reserve amortization was recorded as either an increase or decrease to noncurrent regulatory assets on NEE's and FPL's condensed consolidated balance sheets. FPL files a twelve-month forecast with the FPSC each year which contains a regulatory ROE intended to be earned based on the best information FPL has at that time, assuming normal weather. This forecast establishes a targeted regulatory ROE.

In order to earn a targeted regulatory ROE in each reporting period, subject to conditions of the effective rate agreement, RSM amortization and reserve amortization, as applicable, are calculated using a trailing thirteen-month average of retail rate base and capital structure in conjunction with the trailing twelve months regulatory retail base net operating income, which primarily includes the retail base portion of base and other revenues, net of O&M, depreciation and amortization, interest and tax expenses. In general, the net impact of these income statement line items is adjusted, in part, by the RSM amortization or reserve amortization, as applicable, to earn the targeted regulatory ROE. In certain periods, the RSM amortization or reserve amortization, as applicable, are reversed so as not to exceed the targeted regulatory ROE. During the three months ended June 30, 2026, FPL recorded the reversal of RSM amortization of approximately $147 million ($110 million after tax) in depreciation and amortization expense in NEE and FPL’s condensed consolidated statements of income. During the six months ended June 30, 2026, FPL recorded RSM amortization of approximately $196 million, after tax, which is reflected as a decrease of $150 million in income taxes and a decrease of $62 million in depreciation and amortization expense ($46 million after tax) in NEE and FPL’s condensed consolidated statements of income. During the three and six months ended June 30, 2025, FPL recorded reserve amortization of approximately $19 million and $641 million, respectively, which are reflected as pre-tax depreciation and amortization expense on NEE and FPL’s condensed consolidated statements of income.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Restricted Cash – As of June 30, 2026 and December 31, 2025, NEE had approximately $356 million ($42 million for FPL) and $194 million ($46 million for FPL), respectively, of restricted cash. Restricted cash accounts are included in current other assets on NEE's and FPL's condensed consolidated balance sheets and primarily relate to debt service payments and margin cash collateral requirements at NEER and bond proceeds held for construction at FPL. In addition, where offsetting positions exist, restricted cash related to margin cash collateral of $43 million is netted against derivative assets and $205 million is netted against derivative liabilities as of June 30, 2026 and $50 million is netted against derivative assets and $81 million is netted against derivative liabilities as of December 31, 2025. See Note 2.

Structured Payables – As of June 30, 2026 and December 31, 2025, NEE's outstanding obligations under its structured payables program were approximately $2.5 billion and $4.2 billion, respectively.

Income Taxes – Clean energy tax credits generated during the taxable year can be transferred to an unrelated purchaser for cash and are accounted for under Accounting Standards Codification 740 – Income Taxes. Proceeds resulting from the sales of clean energy tax credits for the six months ended June 30, 2026 and 2025 of approximately $1,173 million ($169 million at FPL) and $310 million ($0 million at FPL), respectively, are reported in the cash received for income taxes – net within the supplemental disclosures of cash flow information on NEE's and FPL's condensed consolidated statements of cash flows. In connection with entering into the agreements to sell clean energy tax credits, NEECH provides certain indemnifications to the purchasers regarding the existence and qualifications of such credits. NEE has not recorded any material liability related to these indemnifications after considering the nature of the indemnifications and NEE’s experience in generating and utilizing clean energy tax credits. NEE's exposure to refund credits sold generally terminates based on the individual purchaser’s tax return statute of limitations which cannot be estimated.

Noncontrolling Interests – As of June 30, 2026 and December 31, 2025, approximately $9,738 million and $10,654 million, respectively, of noncontrolling interests on NEE's condensed consolidated balance sheets relates to differential membership interests. For the three months ended June 30, 2026 and 2025, NEE recorded earnings of approximately $536 million and $417 million, respectively, and for the six months ended June 30, 2026 and 2025 approximately $1,047 million and $811 million, respectively, associated with differential membership interests, which is reflected as net loss attributable to noncontrolling interests in NEE's condensed consolidated statements of income.

Leases – For the three months ended June 30, 2026 and 2025, operating lease income of approximately $113 million and $57 million, respectively, and for the six months ended June 30, 2026 and 2025, $216 million and $117 million, respectively, was recognized as operating revenue in NEE's condensed consolidated statements of income.

Disposal of a Business – In March 2026, a subsidiary of NEET sold an ownership interest, representing an approximately 50% economic interest, as part of a joint venture (transmission joint venture), consisting of a rate-regulated electric transmission asset located in California, for cash proceeds of approximately $287 million, subject to post-closing adjustments. A NEET subsidiary continues to operate the rate-regulated electric transmission asset included in the sale. In connection with the sale and extinguishment of the related debt, a net gain of approximately $133 million ($107 million after tax) was recorded in NEE's condensed consolidated statements of income for the six months ended June 30, 2026. Approximately $253 million is included in gains on disposal of businesses/assets – net, offset by $120 million recorded as interest expense. Total assets of approximately $831 million, primarily property, plant and equipment and total liabilities of approximately $512 million, primarily long-term debt, were removed from NEE's balance sheet and an equity method investment of approximately $287 million was recorded as a result of the transaction. NEE's remaining interest, an approximately 50% economic interest, in the transmission joint venture is a noncontrolling interest based on the governance structure of the joint venture. The fair value of NEE's retained interest was calculated based on significant estimates and assumptions, including Level 3 (unobservable) inputs. Estimates and assumptions include the projected timing and amount of future cash flows, discount rates reflecting risk inherent in future cash flows and future market prices.

Environmental Credits – In May 2026, the Financial Accounting Standards Board issued an accounting standards update related to environmental credits (such as renewable energy credits) and environmental credit obligations. The update provides recognition, measurement, presentation and disclosure requirements for all entities that generate, purchase or receive environmental credits or have a regulatory compliance obligation that may be settled with environmental credits. The standards update will be effective for NEE and FPL beginning January 1, 2028. The requirements will be applied retrospectively with early adoption permitted. NEE and FPL are currently evaluating the effect of adopting this update on their consolidated financial statements.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Property, Plant and Equipment – Property, plant and equipment consists of the following:


	NEE				FPL
	June 30, 2026		December 31, 2025		June 30, 2026		December 31, 2025
	(millions)
Electric plant in service and other property	$	178,266	$	170,129	$	98,506	$	94,837
Nuclear fuel	2,160		2,026		1,275		1,201
Construction work in progress	32,282		24,556		8,870		7,673
Property, plant and equipment, gross	212,708		196,711		108,651		103,711
Accumulated depreciation and amortization	(42,256)		(40,514)		(22,721)		(21,956)
Property, plant and equipment – net	$	170,452	$	156,197	$	85,930	$	81,755

During the three months ended June 30, 2026 and 2025, FPL recorded AFUDC of approximately $75 million and $52 million, respectively, including AFUDC – equity of $58 million and $40 million, respectively. During the six months ended June 30, 2026 and 2025, FPL recorded AFUDC of approximately $140 million and $100 million, respectively, including AFUDC – equity of $108 million and $77 million, respectively. During the three months ended June 30, 2026 and 2025, NEER capitalized interest on construction projects of approximately $218 million and $159 million, respectively. During the six months ended June 30, 2026 and 2025, NEER capitalized interest on construction projects of approximately $403 million and $298 million, respectively.

12. Commitments and Contingencies

Commitments – NEE and its subsidiaries have made commitments in connection with a portion of their projected capital expenditures. Capital expenditures at FPL include, among other things, the cost for construction of additional facilities and equipment to meet customer demand, as well as capital improvements to and maintenance of existing facilities. At NEER, capital expenditures include, among other things, the cost, including capitalized interest, for development, construction and maintenance of its competitive energy businesses.

As of June 30, 2026, estimated capital expenditures, on an accrual basis, for the remainder of 2026 through 2030 were as follows:


	Remainder of 2026		2027		2028		2029		2030		Total
	(millions)
FPL:
Generation:(a)
New(b)	$	2,170	$	4,330	$	4,010	$	4,820	$	4,225	$	19,555
Existing	330		1,360		1,300		1,300		1,350		5,640
Transmission and distribution(c)	2,195		4,910		4,775		5,900		6,720		24,500
Nuclear fuel	145		345		450		390		380		1,710
General and other	545		755		740		665		620		3,325
Total	$	5,385	$	11,700	$	11,275	$	13,075	$	13,295	$	54,730
NEER:(d)
Wind(e)	$	915	$	1,485	$	3,220	$	190	$	115	$	5,925
Solar(f)	5,810		6,690		3,555		95		450		16,600
Other clean energy(g)	2,655		4,070		1,660		35		10		8,430
Nuclear, including nuclear fuel	470		1,110		875		510		455		3,420

Regulated electric and gas transmission	545		1,025		760		680		905		3,915
Other	320		370		325		345		370		1,730
Total	$	10,715	$	14,750	$	10,395	$	1,855	$	2,305	$	40,020

———————————————

(a)Includes AFUDC of approximately $115 million, $265 million, $245 million, $275 million and $235 million for the remainder of 2026 through 2030, respectively.

(b)Includes land, generation structures, transmission interconnection and integration and licensing.

(c)Includes AFUDC of approximately $45 million, $95 million, $105 million, $165 million and $160 million for the remainder of 2026 through 2030, respectively.

(d)Represents capital expenditures for which applicable internal approvals and also, if required, regulatory approvals have been received.

(e)Consists of capital expenditures for new wind projects and repowering of existing wind projects totaling approximately 3,637 MW, and related transmission.

(f)Includes capital expenditures for new solar projects (including solar plus battery storage projects) totaling approximately 16,245 MW and related transmission.

(g)Includes capital expenditures primarily for battery storage projects totaling approximately 6,115 MW and related transmission, as well as renewable fuels projects.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

The above estimates are subject to continuing review and adjustment and actual capital expenditures may vary significantly from these estimates.

In addition to guarantees noted in Note 6 with regards to XPLR, NEECH has guaranteed or provided indemnifications or letters of credit related to third parties, including certain obligations of investments in joint ventures accounted for under the equity method, totaling approximately $873 million as of June 30, 2026. These obligations primarily relate to guaranteeing the obligations under equity capital contribution and purchased power agreements (PPAs) and the residual value of a financing lease. Payment guarantees and related contracts with respect to unconsolidated entities for which NEE or one of its subsidiaries is the guarantor are recorded at fair value and are included in noncurrent other liabilities on NEE’s condensed consolidated balance sheets. Management believes that the exposure associated with these guarantees is not material.

Contracts – In addition to the commitments made in connection with the estimated capital expenditures included in the table in Commitments above, FPL has firm commitments under long-term contracts primarily for the transportation of natural gas with expiration dates through 2051.

As of June 30, 2026, NEER has entered into contracts primarily for the purchase of wind turbines, wind towers, solar modules, batteries and transmission equipment and related construction and development activities, as well as for the supply of uranium, and the conversion, enrichment and fabrication of nuclear fuel with expiration dates through 2033. Approximately $10.1 billion of related commitments are included in the estimated capital expenditures table in Commitments above. In addition, NEER has contracts primarily for the transportation and storage of natural gas with expiration dates through 2055.

The required capacity and/or minimum payments under contracts, including those discussed above, as of June 30, 2026 were estimated as follows:


	Remainder of 2026		2027		2028		2029		2030		Thereafter
	(millions)
FPL(a)	$	625	$	1,195	$	1,165	$	1,160	$	1,195	$	8,145

NEER(b)(c)	$	5,395	$	4,255	$	720	$	250	$	170	$	490

———————————————

(a)Includes approximately $215 million, $430 million, $430 million, $425 million, $425 million and $4,540 million for the remainder of 2026 through 2030 and thereafter, respectively, of firm commitments related to natural gas transportation agreements with affiliates. The charges associated with these agreements are recoverable through the fuel clause. For the three and six months ended June 30, 2026, the charges associated with these agreements totaled approximately $108 million and $208 million, respectively. For the three and six months ended June 30, 2025, the charges associated with these agreements totaled approximately $104 million and $204 million, respectively.

(b)Includes approximately $150 million of commitments to invest in technology and other investments through 2032. See Note 7 – Other.

(c)Includes approximately $1,585 million and $1,170 million for the remainder of 2026 and 2027, respectively, of joint obligations of NEECH and NEER.

Insurance – Liability for accidents at nuclear power plants is governed by the Price-Anderson Act, which limits the liability of nuclear reactor owners to the amount of insurance available from both private sources and an industry retrospective payment plan. In accordance with this Act, NEE maintains $500 million of private liability insurance per site, which is the maximum obtainable, except at Duane Arnold which obtained an exemption from the NRC and maintains a $100 million private liability insurance limit. Each site, except Duane Arnold, participates in a secondary financial protection system, which provides up to $15.8 billion of liability insurance coverage per incident at any nuclear reactor in the U.S. Under the secondary financial protection system, NEE is subject to retrospective assessments of up to $1,161 million ($664 million for FPL), plus any applicable taxes, per incident at any nuclear reactor in the U.S., payable at a rate not to exceed $173 million ($99 million for FPL) per incident per year. NextEra Energy Resources and FPL are contractually entitled to recover a proportionate share of such assessments from the owners of minority interests in Seabrook and St. Lucie Unit 2, which approximates $20 million and $25 million, plus any applicable taxes, per incident, respectively.

NEE participates in a nuclear insurance mutual company, Nuclear Electric Insurance Limited (NEIL), which provides property damage, nuclear accident decontamination and premature decommissioning insurance for each plant for losses resulting from damage to its nuclear facilities, either due to accidents or acts of terrorism. Additionally, NEIL provides accidental outage coverage for losses in the event of a major accidental outage at an insured nuclear plant. Pursuant to regulations of the NRC, each company’s property damage insurance policies provide that all proceeds from such insurance be applied first to place the plant in a safe and stable condition after a qualifying accident, and second, to decontaminate the plant before any proceeds can be used for decommissioning, plant repair or restoration.

NEE and FPL nuclear facilities each have accident property damage, nuclear accident decontamination and premature decommissioning liability insurance from NEIL with limits of $1.5 billion, except for Duane Arnold which has a limit of $50 million due to being placed in a deferred decommissioning status in 2020. All the nuclear facilities, except for Duane Arnold, also share an additional $1.25 billion nuclear accident insurance limit above their dedicated underlying limit. This shared additional excess limit is not subject to reinstatement in the event of a loss. All coverages are subject to sublimits and deductibles.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

NEE also participates in an insurance program that provides limited coverage for replacement power costs if a nuclear plant is out of service for an extended period of time because of an accident. In the event of an accident at one of NEE's or another participating insured's nuclear plants, NEE could be assessed up to $183 million ($115 million for FPL), plus any applicable taxes, in retrospective premiums in a policy year. NextEra Energy Resources and FPL are contractually entitled to recover a proportionate share of such assessments from the owners of minority interests in Seabrook, Duane Arnold and St. Lucie Unit 2, which approximates $3 million, $3 million and $4 million, plus any applicable taxes, respectively.

Due to the high cost and limited coverage available from third-party insurers, NEE does not have property insurance coverage for a substantial portion of either its transmission and distribution property or natural gas pipeline assets. If FPL's storm restoration costs exceed the storm reserve, such storm restoration costs may be recovered, subject to prudence review by the FPSC, through surcharges approved by the FPSC or through securitization provisions pursuant to Florida law.

In the event of a loss, the amount of insurance available might not be adequate to cover property damage and other expenses incurred. Uninsured losses and other expenses, to the extent not recovered from customers in the case of FPL, would be borne by NEE and FPL and could have a material adverse effect on NEE's and FPL's financial condition, results of operations and liquidity.

Legal Proceedings – NEE, FPL, and certain current and former executives, are the named defendants in a purported shareholder securities class action lawsuit filed in the U.S. District Court for the Southern District of Florida in June 2023 and amended in December 2023 (2023 securities class action lawsuit) that seeks from the defendants unspecified damages allegedly resulting from alleged false or misleading statements regarding NEE's alleged campaign finance and other political activities. The alleged class of plaintiffs are all persons or entities who purchased or otherwise acquired NEE securities between December 2, 2021 and January 30, 2023. In September 2024, the class action lawsuit was dismissed with prejudice by the U.S. District Court for the Southern District of Florida. Following appeal, in November 2025, a panel of the U.S. Court of Appeals for the 11th Circuit reversed the dismissal and remanded the lawsuit for further proceedings. In June 2026, the named defendants and lead plaintiffs entered into a settlement agreement that, upon final court approval, would resolve the 2023 securities class action lawsuit. Under the terms of the settlement agreement, NEE would pay an aggregate of $150 million to settle all claims asserted in the 2023 securities class action lawsuit, inclusive of plaintiffs’ counsel’s fees and costs of administering the settlement. NEE’s payment would be covered by insurance. Both the settlement amount and the offsetting expected insurance recovery amount are reflected on the condensed consolidated balance sheet as of June 30, 2026.

In June 2026, the plaintiffs filed a motion requesting the court to preliminarily approve the settlement agreement, which remains pending. There can be no assurance as to the ultimate outcome of the 2023 securities class action lawsuit, including no assurance that the settlement agreement will be given final approval by the court. If the settlement agreement is not given final approval by the court, the defendants plan to continue to defend the securities class action lawsuit vigorously.

NEE, along with certain current and former executives and directors are the named defendants in purported shareholder derivative actions filed in the 15th Judicial Circuit in Palm Beach County, Florida in July 2023, March 2024 and May 2025, and in the U.S. District Court for the Southern District of Florida in October 2023, November 2023 (which the plaintiff voluntarily dismissed), July 2024 and April 2026 (which the court dismissed without prejudice), seeking unspecified damages allegedly resulting from, among other things, breaches of fiduciary duties and, in the cases filed in the U.S. District Court for the Southern District of Florida, violations of the federal securities laws, all purporting to relate to alleged campaign finance law violations and associated matters. NEE also has received demand letters and books and records requests from counsel representing other purported shareholders and containing similar allegations. These demands seek, among other things, a Board of Directors investigation of, and/or documentation regarding, these allegations. In June 2026, the parties entered into a settlement agreement that, upon final court approval, would resolve the purported shareholder derivative actions and the related shareholder litigation demands and inspection demands. Under the terms of the settlement agreement, insurance carriers, on behalf of the named defendants, would pay to NEE an aggregate of approximately $16 million, less plaintiffs' and shareholders' counsel's fees, to settle all claims asserted in the purported shareholder derivative actions, litigation demands and inspection demands. NEE’s payment would be covered by insurance. In addition, NEE would agree to implement or maintain certain corporate governance modifications or activities. Both the aggregate settlement amount and the offsetting expected insurance recovery amount are reflected on the condensed consolidated balance sheet as of June 30, 2026.

In June 2026, the plaintiffs filed a motion in one of the shareholder derivative actions requesting the 15th Judicial Circuit court in Palm Beach County, Florida to preliminarily approve the settlement agreement, on which the court deferred ruling pending additional submissions. There can be no assurance as to the ultimate outcome of the purported shareholder derivative actions or the related litigation and inspection demands, including no assurance that the settlement agreement will be given final approval by the court. If the settlement agreement is not given final approval by the court, the defendants plan to continue to defend against the claims in these proceedings vigorously.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

In November 2024, NEE was named as defendant in an antitrust lawsuit (Avangrid, Inc. et al. v. NextEra Energy, Inc.) filed in the U.S. District Court for the District of Massachusetts. The original complaint sought damages of $350 million, which would be tripled in the event of a finding of monopolization under the Sherman Act, from the defendants for alleged violations of federal and state antitrust laws, as well as Massachusetts state laws. In September 2025, the U.S. District Court for the District of Massachusetts dismissed the alleged violations of federal and state antitrust laws. In December 2025, the court heard oral argument on NEE's motion to dismiss the remaining Massachusetts state law claims. NEE is vigorously defending against the remaining claims in this proceeding.

XPLR, NEE and certain NEE executives who also serve or served as directors or officers of XPLR are the named defendants in a purported federal securities class action lawsuit filed in the U.S. District Court for the Southern District of California (Southern District of California) in July 2025 that seeks unspecified damages alleging that the defendants made false and misleading statements regarding XPLR's business model, XPLR distributions and arrangements relating to noncontrolling Class B members' interests under certain limited liability company agreements to which XPLR and certain of its subsidiaries are or were a party. The alleged class includes all persons or entities other than the defendants and certain affiliated parties of the defendants as named in the lawsuit who purchased or otherwise acquired XPLR securities between September 27, 2023 and January 27, 2025. In January 2026, the plaintiff filed an amended complaint expanding the putative class period to include all persons or entities other than the defendants and certain affiliated parties of the defendants as named in the lawsuit who purchased or otherwise acquired XPLR securities beginning on May 8, 2023. In March 2026, the defendants filed a motion to dismiss the complaint, which remains pending. The defendants are vigorously defending against the claims in this proceeding.

XPLR, NEE and certain current and former XPLR directors or officers, some of whom are also current and former NEE executives, are the named defendants in a purported unitholder derivative action filed in the Southern District of California in August 2025. The complaint alleges, among other allegations, that defendants breached their fiduciary duties by making, or causing XPLR to make, false and misleading statements regarding XPLR's business model, distributions, financial arrangements and equity needs. The plaintiff seeks declaratory and monetary relief, changes to corporate governance and internal procedures, and attorneys’ fees and costs. In November 2025, the Southern District of California issued an order to stay proceedings pending resolution of the motion to dismiss phase in the purported federal securities class action lawsuit described above.

13. Segment Information

The tables below present information for NEE's two reportable segments, FPL, a rate-regulated utility business, and NEER, which is comprised of competitive energy and rate-regulated transmission businesses. Corporate and Other represents other business activities, includes eliminating entries, and may include the net effect of rounding. FPL has a single reportable segment. See Note 1 for information regarding NEE's and FPL's operating revenues.

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Net income attributable to NEE and significant expenses for NEE's reportable segments and the FPL reportable segment are shown below.


	Three Months Ended June 30, 2026								Three Months Ended June 30, 2025
	FPL			NEER			Total		FPL		NEER			Total
	(millions)
Operating revenues	$	4,896		$	2,532		$	7,428	$	4,708	$	1,914		$	6,622
Corporate and Other							106							78
Total consolidated revenues							$	7,534						$	6,700

Less:
Fuel, purchased power and interchange	1,079			295					946		238
Other operations and maintenance	424			877					442		656
Depreciation and amortization	1,029			712					1,080		677
Taxes other than income taxes and other – net	543		(a)	124					523		106
Interest expense	349			333		(b)			326		413		(b)
Income tax expense (benefit)(c)	121			(253)					164		(352)


Other segment items(d)	61			1,190					48		807
Net income attributable to NEE for reportable segments	1,412			1,634			3,046		1,275		983			2,258

Reconciliation of segment profit/(loss)
Corporate and Other							98							(230)
Net income attributable to NEE	$	1,412		$	1,634		$	3,144	$	1,275	$	983		$	2,028

(a)FPL's income statement line for taxes other than income taxes and other – net includes gains on disposal of businesses/assets – net.

(b)Interest expense allocated from NEECH to NextEra Energy Resources is based on a deemed capital structure of 70% debt and differential membership interests sold by NextEra Energy Resources' subsidiaries. Residual NEECH corporate interest expense is included in Corporate and Other.

(c)Includes amounts that were recognized based on the tax sharing agreement with NEE. See Note 4.

(d)Other segment items for each reportable segment include:

FPL – Allowance for equity funds used during construction and other – net

NEER – Gains (losses) on disposal of businesses/assets – net, equity in earnings (losses) of equity method investees, allowance for equity funds used during construction, gains on disposal of investments and other property – net, change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds – net, other – net and net loss attributable to noncontrolling interests


	Six Months Ended June 30, 2026								Six Months Ended June 30, 2025
	FPL			NEER			Total		FPL			NEER			Total
	(millions)
Operating revenues	$	9,167		$	4,844		$	14,011	$	8,705		$	4,076		$	12,781
Corporate and Other							224								166
Total consolidated revenues							$	14,235							$	12,947

Less:
Fuel, purchased power and interchange	2,071			632					1,881			467
Other operations and maintenance	803			1,747					822			1,315
Depreciation and amortization	1,694			1,403					1,488			1,349
Taxes other than income taxes and other – net	1,048		(a)	244					999		(a)	223
Interest expense	687			834		(b)			644			961		(b)
Income tax expense (benefit)(c)	103			(600)					379			(868)


Other segment items(d)	113			2,069					99			526
Net income attributable to NEE for reportable segments	2,874			2,653			$	5,527	2,591			1,155			$	3,746

Reconciliation of segment profit/(loss)
Corporate and Other							(201)								(884)
Net income attributable to NEE	$	2,874		$	2,653		$	5,326	$	2,591		$	1,155		$	2,862

(a)FPL's income statement line for taxes other than income taxes and other – net includes gains on disposal of businesses/assets – net.

(c)Includes amounts that were recognized based on the tax sharing agreement with NEE. See Note 4.

(d)Other segment items for each reportable segment include:

FPL – Allowance for equity funds used during construction and other – net

NEXTERA ENERGY, INC. AND FLORIDA POWER & LIGHT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Concluded)

(unaudited)

NEE's and FPL's additional segment information is as follows:



	FPL		NEER		Total Reportable Segments		Corporate and Other		Total Consolidated
	(millions)
Three Months Ended June 30, 2026

Equity in earnings of equity method investees	$	—	$	333	$	333	$	—	$	333
Net loss attributable to noncontrolling interests	$	—	$	522	$	522	$	—	$	522

Six Months Ended June 30, 2026
Equity in earnings of equity method investees	$	—	$	503	$	503	$	1	$	504
Net loss attributable to noncontrolling interests	$	—	$	1,017	$	1,017	$	—	$	1,017
Capital expenditures, independent power and other investments and nuclear fuel purchases	$	5,932	$	13,449	$	19,381	$	8	$	19,389

June 30, 2026
Property, plant and equipment – net	$	85,930	$	84,365	$	170,295	$	157	$	170,452
Total assets	$	111,662	$	116,698	$	228,360	$	4,447	$	232,807
Investment in equity method investees	$	—	$	5,951	$	5,951	$	20	$	5,971



	FPL		NEER		Total Reportable Segments		Corporate and Other		Total Consolidated
	(millions)
Three Months Ended June 30, 2025

Equity in earnings of equity method investees	$	—	$	177	$	177	$	—	$	177
Net loss attributable to noncontrolling interests	$	—	$	389	$	389	$	—	$	389

Six Months Ended June 30, 2025
Equity in losses of equity method investees	$	—	$	(469)	$	(469)	$	—	$	(469)
Net loss attributable to noncontrolling interests	$	—	$	758	$	758	$	—	$	758
Capital expenditures, independent power and other investments and nuclear fuel purchases	$	4,383	$	9,237	$	13,620	$	6	$	13,626

December 31, 2025
Property, plant and equipment – net	$	81,755	$	74,287	$	156,042	$	155	$	156,197
Total assets	$	105,158	$	103,528	$	208,686	$	4,035	$	212,721
Investment in equity method investees	$	—	$	5,509	$	5,509	$	19	$	5,528

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