Ausbil Investment Management’s Strategic Acquisition in NextEra Energy
What Happened
Recent filings with the Securities and Exchange Commission reveal that Ausbil Investment Management Ltd has made a significant investment in NextEra Energy (NEE). As of October 8, 2025, Ausbil disclosed a purchase worth approximately $4.31 million, acquiring 58,977 shares during the quarter ended September 30, 2025. This move brought Ausbil’s total stake in NextEra to 140,270 shares, valued at about $11.04 million at the quarter’s end, representing 5.9% of the firm’s reportable Assets Under Management (AUM).
What Else to Know
This acquisition positions NextEra Energy as Ausbil’s largest single investment, showcasing the fund’s confidence in the company’s future potential. At the end of the quarter, here are Ausbil’s top holdings:
- NextEra Energy (NEE): $11.04 million (5.9% of AUM)
- Norfolk Southern Corp. (NSC): $10.08 million (5.4% of AUM)
- CSX Corp. (CSX): $10.06 million (5.4% of AUM)
- Cheniere Energy (LNG): $7.71 million (4.1% of AUM)
- Eversource Energy (ES): $7.32 million (3.9% of AUM)
As of early October 2025, shares of NextEra Energy were priced at $84.04, reflecting a 4.4% increase over the past year, although they have notably underperformed compared to the S&P 500 by 10.65 percentage points during the same timeframe.
Company Overview
NextEra Energy operates as a leading North American utility and renewable energy provider, boasting a diverse portfolio that includes wind, solar, nuclear, coal, and natural gas facilities. The company is recognized not only for its regulated utility business but also for its rapid expansion in renewable energy and battery storage projects.
With a TTM (Trailing Twelve Months) revenue of $25.90 billion and net income of $5.92 billion, NextEra serves approximately 11 million customers through about 5.7 million customer accounts spanning the eastern and lower western coasts of Florida.
Foolish Take
Ausbil’s decision to invest heavily in NextEra Energy signals a bullish outlook on a stock that has struggled relative to the broader market. With a three-year total return of only 18%, or a compound annual growth rate (CAGR) of 5.8%, NextEra has notably lagged behind the S&P 500, which has achieved a total return of 90% and a CAGR of 23.8% in the same period.
This raises intriguing questions about the rationale behind Ausbil’s notable investment: is this a strategic play based on the company’s key role in the evolving utility landscape or a calculated risk in anticipation of market recovery? It’s clear that despite past underperformance, Ausbil sees significant potential in NextEra, especially as the company continues to pivot towards renewable energy and grid modernization.
Glossary of Terms
- AUM (Assets Under Management): The total market value of investments that a financial institution manages on behalf of clients.
- Dividend Yield: The dividend expressed as a percentage of the share price.
- Regulated Utility: Utility companies governed by government regulations to ensure fair consumer pricing.
- Long-term Contracted Clean Energy Assets: Renewable projects with fixed-price agreements to supply electricity for an extended period.
- Stake: The ownership interest or percentage of shares held in a company.
- TTM (Trailing Twelve Months): A measurement of a company’s financial performance over the last 12 months.
- Quarter-end: The final day of a financial quarter used for reporting purposes.
- Contracted Revenue: Income assured by signed contracts, often spanning multiple years.
Disclosure
Jake Lerch has positions in Norfolk Southern. The Motley Fool has positions in and recommends Cheniere Energy and NextEra Energy. The Motley Fool has a disclosure policy.
This structured exploration of Ausbil’s investment sheds light on the complexities of the market and the often unpredictable nature of stock performance against institutional fund strategies.
