What's Going on With NextEra Energy's Profitability?

NextEra Energy (NEE 0.95%) has rewarded investors with market-beating returns over the last ten year.

All while growing its adjusted earnings and dividend. Wall Street reacted favorably to NextEra's Q2 2022 earnings, as NextEra stock gained 1.75% on 7/22.

But if we dig deeper into NextEra's results, it quickly becomes clear that the company is facing degrading profitability.

Four years ago, NextEra Energy was not only growing quickly, but it was also using capital, equity, and its assets incredibly effectively.

NextEra's energy development pipeline is growing at its fastest pace ever, with more renewable electric generating capacity coming online in the next four years

Capacity additions have resulted in a spending spree as it builds out its renewable portfolio and transitions further away from natural gas and toward solar.

The spending has come at the expense of its profitability, and has boosted debt on its balance sheet.