NextEra Energy, Iberdrola, and Southern Company lead the utilities sector.
Nextera Energy (NYSE:NEE) is the most valuable utility company in the world, far ahead of Iberdrola (OTC:IBDSF) and Southern Company (NYSE:SO). Electrical utility companies dominate the top of the market, and there’s a mix of U.S. and international companies represented.
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Largest utilities
Largest companies by market cap in the utilities sector
1. NextEra Energy
- Market cap: $145.88 billion (as of April 2)
- Revenue (TTM*): $24.8 billion
- Gross profit (TTM): $13.5 billion
- Five-year annualized return: 7.16%
- Year founded: 1925 (Florida Power & Light), 1984 (FPL Group)
*TTM = trailing 12 months.
NextEra Energy is a leading utility and renewable energy company. It has multiple subsidiaries, the largest of which is Florida Power & Light, the largest electrical utility company in the U.S.
It supplies power to more than 6 million customer accounts across Florida. Another subsidiary, NextEra Energy Resources, is the world’s largest generator of wind energy and a leader in solar energy.
2. Iberdrola
- Market cap: $102.18 billion (as of April 2)
- Revenue (TTM): $59.5 billion*
- Gross profit (TTM): $29.0 billion*
- Five-year annualized return: 15.63%
- Year founded: 1907 (Hidroelectrica Espanola), 1944 (Iberduero), 1992 (merger of Hidroelectrica Espanola and Iberduero)
*Converted from euros.
Iberdrola is a Spanish electrical utility company with subsidiaries throughout the world, including in the U.S., the U.K., and Brazil. It serves more than 36 million customers worldwide.
This company first committed to using renewable energy in 2001. In 2024, it set an all-time high with more than 45,000 Gigawatt hours (GWh) of clean energy production during the first half of the year. Also in 2024, it agreed to acquire a majority stake in Electricity North West, a British electricity distribution network operator, for 2.5 billion euros ($2.8 billion).
3. Southern Company
- Market cap: $100.14 billion (as of April 2)
- Revenue (TTM): $26.7 billion
- Gross profit (TTM): $11.0 billion
- Five-year annualized return: 17.23%
- Year founded: 1945
Southern Company is a gas and electric company that serves 9 million customers across the Southern U.S. Along with its subsidiaries, it owns or operates 55 facilities in 15 states.
Utilities companies often pay out generous dividends, and Southern Company is no exception. It has a high dividend yield and has raised its dividend for more than 20 consecutive years.
4. Duke Energy
- Market cap: $94.07 billion (as of April 2)
- Revenue (TTM): $30.4 billion
- Gross profit (TTM): $18.5 billion
- Five-year annualized return: 14.17%
- Year founded: 1904
Duke Energy is an electric and natural gas company based in Charlotte, North Carolina. It generates electricity through coal, natural gas, nuclear, hydroelectric, and renewable power sources.
Duke Energy is making substantial investments in improving its electric grid and renewable energy production. It announced a five-year plan with $73 billion in capital expenditures in 2024 and then raised that to $83 billion this year.
5. China Yangtze Power
- Market cap: $93.69 billion* (as of April 2)
- Revenue (TTM): $11.9 billion*
- Gross profit (TTM): $7.2 billion*
- Five-year annualized return: 10.08%
- Year founded: 2002
*Converted from Chinese yuan.
China Yangtze Power, headquartered in Beijing, is a largely state-owned utility company specializing in hydroelectric power generation. It has four hydropower stations along the Yangtze River at Three Gorges, Gezhouba, Xiluodu, and Xiangjiaba.
6. Enel SpA
- Market cap: $81.95 billion (as of April 2)
- Revenue (TTM): $91.9 billion*
- Gross profit (TTM): $20.7 billion*
- Five-year annualized return: 10.82%
- Year founded: 1962
*Converted from euros.
Enel SpA is an Italian distributor of electricity and natural gas. It operates in 43 countries, has more than 1,000 subsidiaries, and connects over 70 million end users to its grids.
This company produces electricity from a number of renewable and nonrenewable energy sources. These include solar, wind, hydroelectric, geothermal, thermal, and nuclear power.
7. ACWA Power
- Market cap: $66.98 billion* (as of April 2)
- Revenue (TTM): $1.7 billion*
- Gross profit (TTM): $887.7 million*
- Five-year annualized return: 38.90%
- Year founded: 2004
*Converted from Saudi riyals.
ACWA Power is a Saudi Arabian developer, investor, and operator of power generation and desalinated water plants. It’s based in Riyadh and has 101 assets in operation, construction, or advanced development across 14 countries.
8. Constellation Energy Corporation
- Market cap: $64.84 billion (as of April 2)
- Revenue (TTM): $23.3 billion
- Gross profit (TTM): $8.7 billion
- Five-year annualized return: 36.66%
- Year founded: 1999
Constellation Energy Corporation is an electricity and natural gas company with solar, wind, nuclear, and hydro power-generation facilities. Based in Baltimore, Maryland, it serves residential, business, and public sector customers.
In January 2025, Constellation Energy announced that it had agreed to purchase Calpine Corporation, a natural gas and geothermal power producer. The acquisition makes Constellation Energy the country’s largest clean energy provider.
9. National Grid
- Market cap: $64.36 billion (as of April 2)
- Revenue (TTM): $52.2 billion*
- Gross profit (TTM): $19.5 billion*
- Five-year annualized return: 9.52%
- Year founded: 1990
*Converted from British pounds.
National Grid is a London-based utility that handles the transmission and distribution of electricity and gas. It primarily operates in the U.K., where it distributes electricity to 8 million customers across a 55,300-square-kilometer service area.
This company also has a presence in the U.S. It owns and operates electricity distribution networks, electricity transmission facilities, and gas distribution networks around the Northeastern U.S.
10. Engie SA
- Market cap: $47.55 billion (as of April 2)
- Revenue (TTM): $186.4 billion*
- Gross profit (TTM): $21.0 billion*
- Five-year annualized return: 23.42%
- Year founded: 1858 (Suez Company), 1946 (Gaz de France), 2008 (merger of Gaz de France and Suez Company)
*Converted from euros.
Engie is one of the largest French electrical utility companies. It has several business segments, including renewable energy, thermal energy, nuclear power, electricity generation and distribution, and natural gas.
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Takeaways
Utilities sector takeaways for investors
Utilities companies are generally stable, conservative investments. They have reliable earnings since demand for utilities doesn’t fluctuate much, regardless of economic conditions.
This predictability means that utilities companies often underperform compared to the stock market as a whole. Among the 10 largest utilities companies, only three delivered market-beating returns over the last five years.
On the other hand, the consistent profitability of utilities companies means that many of them are excellent dividend stocks. Some of the companies on this list have extremely high dividend yields. Overall, the utilities sector will be a good match for investors in search of passive income or just a fairly stable investment.