AddedRisk Factors
minor, and could in the future cause material, disruptions in the ability of NEE and FPL to acquire certain generation equipment and batteries on time and at acceptable costs.
The 10-K against last year's
136 changes: 14 added, 6 removed, 114 reworded, 2 quiet changes
10-K 0000753308-26-000015 (2026-02-13) vs 10-K 0000753308-25-000011 (2025-02-14)
The redline
The paragraph that changed most in each section
Marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Accounting Policies 151 words changed in this paragraph; it is 68% similar to last year's version.
Production tax credits (PTCs) are recognized as wind and solar energy is generated and sold based on a per kWh rate prescribed in applicable federal and state statutes and are recorded as a reduction of current income taxes payable, unless limited by tax law in which instance they are recorded as deferred tax assets. NEER recognizes and FPL recognize ITCs as a reduction to income tax expense when the related energy property is placed into service. Prior to 2025, FPL recognizes recognized ITCs as a reduction to income tax expense over the depreciable life of the related energy property. At As of December 31, 2024 2025 and 2023, 2024, FPL’s accumulated deferred ITCs were approximately $966 $1,079 million and $997 $966 million, respectively, and are included in noncurrent regulatory liabilities on NEE's and FPL's consolidated balance sheets. For taxable years beginning after 2022, renewable 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 renewable clean energy tax credits for the years ended December 31, 2025 and 2024 and 2023 of approximately $1,527 million ($180 million for FPL) and $1,304 million and $370 million, ($0 million for FPL), respectively, are reported in the cash paid (received) for income taxes – net within the supplemental disclosures of cash flow information on NEE’s 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.
Source: Item 8, Note 1 – Summary of Significant Accounting and Reporting Policies, 10-K 0000753308-26-000015 vs Item 8, Note 1 – Summary of Significant Accounting and Reporting Policies, 10-K 0000753308-25-000011
MD&A 118 words changed in this paragraph; it is 64% similar to last year's version.
Hedges on Owned Assets Trading Non- FPL Cost NEE Total Qualifying Recovery Clauses (millions) Fair value of contracts outstanding at December 31, 2022 $ 1,177 $ (3,921) $ 16 $ (2,728) Reclassification to realized at settlement as of contracts (369) 154 (9) (224) Value of contracts acquired 6 95 — 101 Net option premium purchases (issuances) 183 17 — 200 Changes in fair value excluding reclassification to realized 340 2,178 5 2,523 Fair value of contracts outstanding at December 31, 2023 $ 1,337 $ (1,477) $ 12 $ (128) Reclassification to realized at settlement of contracts (373) 190 (24) (207) Value of contracts acquired 2 24 — 26 Net option premium purchases (issuances) (2) 23 — 21 Changes in fair value excluding reclassification to realized 380 (284) 50 146 Fair value of contracts outstanding at as of December 31, 2024 1,344 (1,524) 38 (142) Reclassification to realized at settlement of contracts (766) 516 35 (215) Value of contracts acquired 46 (7) — 39 Net option premium purchases (issuances) 29 20 — 49 Changes in fair value excluding reclassification to realized 680 (209) (49) 422 Fair value of contracts outstanding as of December 31, 2025 1,333 (1,204) 24 153 Net margin cash collateral paid (received) (475) (86) Total mark-to-market energy contract net assets (liabilities) at as of December 31, 2024 2025 $ 1,344 1,333 $ (1,524) (1,204) $ 38 24 $ (617) 67
Source: Item 7, 10-K 0000753308-26-000015 vs Item 7, 10-K 0000753308-25-000011
Legal Proceedings 75 words changed in this paragraph; it is 67% similar to last year's version.
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. This lawsuit seeks The original complaint sought damages of $350 million, which are 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 January September 2025, NEE filed a 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 and a motion to transfer venue. the remaining Massachusetts state law claims. NEE does not believe that it should have any liability with respect to is vigorously defending against the remaining claims in this matter. proceeding.
Source: Item 3, via Note 15 – Commitments and Contingencies, 10-K 0000753308-26-000015 vs Item 3, via Note 15 – Commitments and Contingencies, 10-K 0000753308-25-000011
Risk Factors 71 words changed in this paragraph; it is 37% similar to last year's version.
Source: Item 1A, 10-K 0000753308-26-000015 vs Item 1A, 10-K 0000753308-25-000011
Every change, by type
Sentences and paragraphs added, removed or reworded
Sentences and paragraphs of NEE's Risk Factors and MD&A, 10-K 2026-02-13 against 10-K 2025-02-14. Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier (may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, wouldAddedRisk Factors
Additionally, NEER is actively pursuing the restart of the Duane Arnold nuclear generation facility. The restart is subject to certain regulatory approvals, including NRC safety and environmental reviews, as well as permits from relevant state and local agencies. NEER has applied to the NRC to reinstate the operating license and to MISO for an interconnection agreement. Failure to obtain the necessary approvals could result in the impairment of amounts capitalized. Further, NEE could encounter difficulty in procuring or restoring specialized components which could impact the restart timeline. NEE could incur costs greater than expected or encounter unforeseen issues.
AddedRisk Factors
The productivity increases and competitive advantages NEE and FPL plan to achieve through the use of artificial intelligence (AI) technologies may not be realized and the use of and reliance on AI may present certain risks, both of which could materially adversely affect their business, financial condition, results of operations and prospects.
AddedRisk Factors
NEE and FPL use AI technologies in various aspects of their operations, including, without limitation, financial analysis, strategic planning, field work intelligence, work scheduling, grid optimization, energy forecasting, customer service and operations management. The use of and reliance on AI may present certain risks such as, but not limited to, AI tools may malfunction, produce inaccurate or biased outputs, or behave unpredictably, and introduce NEE and FPL to additional cybersecurity threats and data privacy risks. In addition, as NEE and FPL rely on third-party vendors for certain AI tools, platforms and collaborations, NEE and FPL could experience third-party vendor issues such as disruptions in vendor relationships, performance issues, cybersecurity threats or disputes over intellectual property rights. Further, the regulatory environment governing AI is also evolving, and future legislation or agency rulemaking may impose new compliance obligations or restrict certain AI applications, increasing costs to comply with such requirements and failure to do so could result in regulatory enforcement, penalties or reputational harm. While AI technologies offer the potential to enhance operational efficiency, accelerate growth and lower costs, these benefits may not be realized and the use of and reliance on AI may present certain risks, both of which could materially adversely affect NEE’s and FPL’s business, financial condition, results of operations and prospects.
RemovedRisk Factors
RemovedRisk Factors
RewordedRisk Factors
Any reductions or modifications to, or the elimination of, governmental incentives or policies that support clean energy, such as PTCs energy or ITCs, changes in or the imposition of additional taxes, tariffs, duties or other costs or assessments on clean energy or the equipment necessary to generate, store or deliver it, such as policies in place that limit certain imports from China and other Southeast Asian countries, could result in, among other items, higher equipment costs, scarcity of equipment, the lack of a satisfactory market for the development and/or financing of new clean energy projects, NEE and FPL abandoning the development of clean energy projects, a loss of investments in the projects and reduced project returns, any of which could have a material adverse effect on NEE's and FPL's business, financial condition, results of operations and prospects.
RewordedRisk Factors
The inability of NEE, NEECH and FPL to maintain their current credit ratings could materially adversely affect their ability to raise capital or obtain credit on favorable terms, which, in turn, would likely increase their interest costs and could impact NEE's and FPL's ability to raise capital to grow and otherwise fund their businesses and businesses, including, without limitation, to service indebtedness and refinance or repay borrowings, and would likely increase their interest costs. borrowings.
Show the other 38
RewordedRisk Factors
Prolonged periods of low oil and gas prices or low production, including from unsuccessful drilling efforts, could also result in the delay or cancellation of natural gas and oil production projects, could cause projects to experience lower returns, and could result in certain assets becoming impaired, which could materially adversely affect NEE's business, financial condition, results of operations and prospects.
RewordedRisk Factors
Any disruptions or deficiencies in existing information systems, or disruptions, delays or deficiencies in the modification or implementation of new information systems, could result in increased costs, the inability to track or collect revenues and the diversion of management's and employees' attention and resources, and could negatively impact the effectiveness of the companies' NEE's and FPL's control environment, and/or the companies' their ability to timely file required regulatory reports. reports which could materially adversely affect their business, financial condition, results of operations and prospects.
RewordedRisk Factors
If any of these factors materialize, NEER costs to supply services may not exceed revenues generated or be able to recover all of its increased supply costs, below expected return levels, which could have a material adverse effect on NEE's business, financial condition, results of operations and prospects.
RewordedRisk Factors
If NEE or FPL is unable to access regularly the capital and credit markets on terms that are reasonable, as expected, it may have to delay raising capital, issue shorter-term securities and securities, incur an unfavorable cost of capital, capital or reduce or eliminate planned investments, which, in turn, could adversely affect its ability to maintain and grow its business, could contribute to lower earnings and or result in losses or reduced financial flexibility, flexibility and could have a material adverse effect on its business, financial condition, liquidity, results of operations and prospects.
RewordedRisk Factors
Any changes in Florida law or regulation, whether through new new, modified, repealed or modified overturned legislation, regulation or executive action or through citizen-approved state constitutional ballot initiatives, which increase competition in the Florida retail electricity market, such as government incentives that would further facilitate the installation of solar generation facilities on residential or other rooftops, rooftops or would permit third-party sales of electricity or would mandate the transition to renewable energy at FPL, electricity, could have a material adverse effect on FPL's business, financial condition, results of operations and prospects.
RewordedRisk Factors
Occurrences affecting these operations that may or may not be beyond the control of subsidiaries of NEE, including FPL, (such as geopolitical factors, cyber incidents, physical attacks, severe weather or a generation or transmission facility asset outage, pipeline rupture, or sudden and significant increase or decrease in wind or solar generation) may limit or halt their ability to sell and deliver power and natural gas, or to purchase necessary fuels and other commodities, which could materially adversely impact NEE's and FPL's business, financial condition, results of operations and prospects.
RewordedRisk Factors
NEE cannot predict the impact of changing FERC rules or policies of the RTOs and ISOs, such as existing or potential future rules governing economic dispatch, generator and load interconnection procedures and procedures, transmission planning requirements requirements, cost allocation methodologies and cost allocation methodologies, recovery policies, or the effect of changes in levels of wholesale supply and demand, which are typically driven by factors beyond NEE's control.
RewordedRisk Factors
NEE expects the laws and regulation regulations applicable to its business and the energy industry, including laws and regulations generally supportive of clean energy project development, generally to be in a state of transition for the foreseeable future.
RewordedRisk Factors
Disruptions, uncertainty or volatility in those capital and credit markets related to, among others, to or caused by inflation, rising or sustained higher interest rates and rates, political, regulatory and geopolitical events, events or other factors could increase NEE's and FPL's cost of capital and affect limit or eliminate their ability to fund their liquidity and capital needs, to refinance existing indebtedness and to meet their growth objectives.
RewordedRisk Factors
NEE and FPL are subject to domestic environmental laws, regulations and other standards, including, but not limited to, extensive federal, state and local environmental statutes, rules and regulations relating to air quality, water quality and usage, soil quality, climate change, greenhouse gas emissions, waste management, hazardous wastes, marine, avian, bat and other wildlife mortality and habitat protection, historical artifact preservation, natural resources, health (including, but not limited to, electric and magnetic fields from power lines and substations), safety safety, fire prevention and RPS, that could, among other things, prevent or delay the development of power electric generation, storage storage, transmission and transmission, distribution facilities, gas transportation, or other development projects, restrict or enjoin the output of some existing facilities, limit the availability and use of some fuels required for the production of electricity, require additional pollution control and fire prevention equipment, and otherwise increase costs, increase capital expenditures and limit or eliminate certain operations.
Quiet changesRisk Factors
NEE's and FPL's business, financial condition, results of operations and prospects may be materially adversely affected due to adverse results of litigation.
AddedMD&A
A number of legislative, executive and administrative activities occurred in 2025 that affect NEE and FPL including 1) the enactment of the OBBBA which, among other things, modified tax legislation affecting clean energy tax credits, 2) the issuance of a number of federal executive orders and presidential actions, 3) the imposition of tariffs on a variety of imports and 4) the issuance of guidance by various federal agencies. A number of similar activities remain pending or are in various phases of implementation, such as certain Treasury Department rulemaking authorized by the OBBBA, trade investigations that may lead to additional tariffs or place limitations on imports of certain materials, ordered reviews of, or process or policy changes with respect to, federal permitting and approvals for wind and solar projects and proposals by regional transmission operators regarding the process for interconnecting new generation projects to certain regional transmission grids that have been approved by FERC. There has been no material impact on NEE's or FPL's operations or financial performance as a result of these developments and NEE believes that its current pipeline of wind and solar facilities to be placed in service through 2030 will qualify for clean energy tax credits. NEE will assess any further developments for potential impacts in future periods.
AddedMD&A
In January 2026, the FPSC issued a final order approving a stipulation and settlement agreement between FPL and several intervenors in FPL's 2025 base rate proceeding. In February 2026, certain intervenors filed a joint motion for reconsideration and a joint request for oral argument challenging the FPSC's final order. See Note 1 – Rate Regulation – Base Rates Effective January 2026 through December 2029.
AddedMD&A
FPL’s income taxes decreased $251 million during 2025 primarily related to higher clean energy tax credits as compared to the prior year.
AddedMD&A
NEER’s interest expense for 2025 increased $569 million primarily reflecting approximately $351 million of unfavorable impacts related to changes in the fair value of interest rate derivative instruments as well as higher average debt balances driven by growth in the business.
AddedMD&A
The change in net loss attributable to noncontrolling interests primarily reflects an increase in additional differential membership interests. See Note 1 – Noncontrolling Interests.
AddedMD&A
On January 9, 2026, a wholly owned subsidiary of NextEra Energy Resources acquired a commercial and industrial natural gas business. See Note 6 – Symmetry Acquisition.
AddedMD&A
(b) In February 2026, FPL and NEECH updated the capacity and extended the maturity date for a portion of their syndicated revolving credit facilities resulting in total capacity under their syndicated revolving credit facilities of $4,500 million and $10,500 million, respectively, with maturity dates ranging from 2028 – 2031 and 2027 – 2031, respectively. Letters of credit up to $1,450 million ($450 million for FPL and $1,000 million for NEECH) may be funded by the syndicated revolving credit facilities.
AddedMD&A
(d) In January 2026, NEECH borrowed a total of $850 million under bilateral revolving credit facilities.
AddedMD&A
On December 31, 2025, NEE established an at-the-market equity issuance program (ATM program) pursuant to which NEE may offer and sell, from time to time, NEE common stock having an aggregate gross sales price of up to $4 billion.
AddedMD&A
Trading(a) Non-Qualifying Hedges Total and Hedges in FPL Cost Recovery Clauses(b) FPL NEE FPL NEE FPL NEE December 31, 2024 $ $6 $3 $98 $3 $88 December 31, 2025 $ $14 $9 $92 $9 $83 Average for the year ended December 31, 2025 $ $12 $10 $90 $10 $89
RemovedMD&A
RemovedMD&A
RemovedMD&A
RemovedMD&A
RewordedMD&A
Hedges on Owned Assets Trading Non- FPL Cost NEE Total Qualifying Recovery Clauses (millions) Fair value of contracts outstanding at December 31, 2022 $ 1,177 $ (3,921) $ 16 $ (2,728) Reclassification to realized at settlement as of contracts (369) 154 (9) (224) Value of contracts acquired 6 95 — 101 Net option premium purchases (issuances) 183 17 — 200 Changes in fair value excluding reclassification to realized 340 2,178 5 2,523 Fair value of contracts outstanding at December 31, 2023 $ 1,337 $ (1,477) $ 12 $ (128) Reclassification to realized at settlement of contracts (373) 190 (24) (207) Value of contracts acquired 2 24 — 26 Net option premium purchases (issuances) (2) 23 — 21 Changes in fair value excluding reclassification to realized 380 (284) 50 146 Fair value of contracts outstanding at as of December 31, 2024 1,344 (1,524) 38 (142) Reclassification to realized at settlement of contracts (766) 516 35 (215) Value of contracts acquired 46 (7) — 39 Net option premium purchases (issuances) 29 20 — 49 Changes in fair value excluding reclassification to realized 680 (209) (49) 422 Fair value of contracts outstanding as of December 31, 2025 1,333 (1,204) 24 153 Net margin cash collateral paid (received) (475) (86) Total mark-to-market energy contract net assets (liabilities) at as of December 31, 2024 2025 $ 1,344 1,333 $ (1,524) (1,204) $ 38 24 $ (617) 67
RewordedMD&A
December 31, 2024 2025 Issuer/Guarantor Combined(a) NEECH Consolidated(b) NEE Consolidated(b) (millions) Total current assets $ 557 $7,166 $11,951 $1,530 $9,422 $13,584 Total noncurrent assets $ 2,625 $85,583 $178,193 $2,546 $98,902 $199,137 Total current liabilities $ 6,563 $18,080 $25,355 $3,887 $17,135 $22,817 Total noncurrent liabilities $ 33,793 $58,074 $103,928 Redeemable noncontrolling interests $ — $401 $401 $44,680 $73,236 $123,425 Noncontrolling interests $ — $10,359 $10,359 $— $11,871 $11,871
RewordedMD&A
RewordedMD&A
Increase (Decrease) From Prior Period Year Ended December 31, 2024 2025 (millions) New investments(a) $ 983 967 Existing clean energy(a) 31 (81) Customer supply(b) (230) NEET(a) 10 89 NEET 39 Other, including interest expense, financing costs, corporate general and administrative expenses expenses, asset recycling, state taxes and other investment income (395) (604) Change in non-qualifying hedge activity(c) (1,765) 64 Change in unrealized gains/losses on equity securities held in nuclear decommissioning funds and OTTI, net(c) (42) 6 XPLR investment gains, net(c) 111 Impairment charges related to investment in Mountain Valley Pipeline(c) 38 196 Change in net income less net loss attributable to noncontrolling interests $ (1,259) 676
RewordedMD&A
The decrease increase in operating revenues in 2024 2025 reflects lower higher storm cost recovery revenues of approximately $1,090 $1,091 million primarily associated with the completion of surcharges for Hurricanes Ian Debby, Helene and Nicole, Milton, as discussed above. above, as well as an increase of $217 million in revenues from the storm protection plan cost recovery clause as a result of increased investments.
RewordedMD&A
NEE’s operating performance is driven primarily by the operations of its two principal businesses, FPL, which serves more than six million customer accounts in Florida and is one of the largest electric utilities utility in the U.S., and NEER, which together with affiliated entities is one of the world's largest generator of renewable energy from infrastructure developers in the wind and sun based on 2024 MWh produced on a net generation basis, as well as a world leader in battery storage capacity. U.S.
RewordedMD&A
RewordedMD&A
Wind 3,325 4,355 4,793 3,481 Solar (includes solar plus battery storage projects) 6,975 7,327 5,448 2,880 Other clean energy 2,213 2,837 1,052 3,295 1,686 2,313 Nuclear (includes nuclear fuel) 577 344 228 214 Customer supply – natural gas and oil production 257 1,167 1,575 1,215 Rate-regulated Regulated electric and gas transmission 650 317 431 755 1,177 841 Other 485 336 454 372 Total 15,669 16,392 15,652 9,645 Corporate and Other 2 123 61 453 Total capital expenditures, independent power and other investments and nuclear fuel purchases $ 24,606 $ 24,729 $ 25,113 $ 19,283
RewordedMD&A
Depreciation and amortization expense decreased $962 increased $951 million during 2024 2025 primarily reflecting lower higher amortization of deferred storm costs, primarily associated with Hurricanes Ian Debby, Helene and Nicole Milton, as discussed above, of approximately $1,089 $1,090 million and lower reserve amortization, partly offset by increased depreciation related to higher plant in service balances. balances, partly offset by the impact of reserve amortization.
RewordedMD&A
The change in 2024 2025 primarily reflects the impact of an impairment charge of approximately $0.7 billion ($0.5 billion after tax) compared to a 2024 impairment charge of approximately $0.8 billion ($0.6 billion after tax) compared related to the investment in XPLR (see Note 4 – Nonrecurring Fair Value Measurements).
RewordedMD&A
In 2024, 2025, the change in gains on disposal of businesses/assets – net primarily reflect is the September 2024 sales result of ownership interests lower disposal gains in connection with the pipeline joint venture and current year as compared to the renewable assets joint venture. prior year.
RewordedMD&A
The decrease increase was primarily driven by the absence of the gain on sale of FPL's ownership interest in the FCG business in 2023 and a lower earned regulatory ROE in 2024, partly offset by higher earnings from investments in plant in service and other property.
Quiet changesMD&A
Such revenues also include a return on investment allowed to be recovered through the cost recovery clauses on certain assets, primarily related to certain solar, environmental projects, storm protection plan investments and the unamortized balance of the regulatory asset associated with FPL's acquisition of certain a generation facilities. facility.