Duke Energy boosts capex to $87 billion and sells Florida unit stake to provide funds

By Laila Kearney and Sumit Saha

Aug 5 (Reuters) - U.S. power company Duke Energy DUK.N will boost its infrastructure investments to $87 billion to meet soaring electricity demand, and will sell a portion of its Florida business to help provide funds, it said on Tuesday.

Duke, which is raising its five-year capex plan by $4 billion, joins other major U.S. utilities that are investing in power lines and electricity generation to accommodate demand from AI-focused data centers, the electrification of transportation and industries and population growth.

It will sell part of a Florida utility that serves about 2 million customers for $6 billion to Brookfield Asset Management to pay for its capital plan and to reduce holding company debt. Brookfield will acquire the stake in phases, beginning next year.

It will also use funds from the sale of its Piedmont Natural Gas business in Tennessee to Spire for $2.8 billion, in an agreement announced a week ago.

"The transactions... really position the company for the growth ahead with the capital expansion, the generation modernization and grid work in front of us," Duke CFO Brian Savoy told Reuters.

The increase in Duke's infrastructure will be focused on Florida, where demand is growing rapidly from residential and commercial customers, Savoy said.

Duke operates in six U.S. states. Nationwide, the U.S. Energy Information Administration has forecast record power consumption in 2025 and 2026.

Duke also beat second-quarter profit estimates on Tuesday, sending its shares to a record high. They were last up about 2.5%.

The Charlotte, North Carolina-based utility posted adjusted earnings of $1.25 per share, compared with the analysts' average estimate of $1.18, according to LSEG data.

Duke expects rate case hearings in the fourth-quarter, with new rates effective by early 2026, the company said in the post-earnings call.

Revenue rose to $7.5 billion, up from $7.17 billion a year earlier.

On an adjusted basis, earnings from Duke's electric utilities segment climbed to $1.19 billion, from $1.12 billion in the same period last year, helped by higher retail rates.

The company said its gas utilities segment posted flat results of $6 million, pressured by higher operating and maintenance costs.