Iberdrola Surpasses 2026 Strategic Plan Targets with Strong Financial and Operational Performance
Iberdrola has reported exceptional financial results, exceeding expectations outlined in its 2026 Strategic Plan. The company achieved significant growth across all its key financial indicators, driven by increasing global demand for electricity and strategic investments in core markets such as the United States and the United Kingdom.
Outstanding Financial Performance
The company recorded a net profit of €5.612 billion, reflecting a 17% year-over-year increase. Similarly, EBITDA surged to €16.848 billion, also a 17% rise compared to the previous year. The strong financial performance was fueled by record investments, operational efficiencies, and a clear focus on high-growth markets.
Investment in these key markets was a critical component of Iberdrola’s strategy. The company allocated €12 billion toward growth, representing 70% of total capital expenditure. The focus remains on grid expansion and renewable energy development, particularly in the U.S. and the UK.
As part of Iberdrola’s continued push toward cleaner energy, the proceeds from fossil fuel divestments were redirected into strengthening its operations in the renewable sector. A significant portion of this capital was reinvested in Avangrid (U.S.) and ScottishPower (UK), reinforcing the company’s long-term commitment to sustainable energy development.
Additionally, €1.1 billion from capital gains generated through divestments has been allocated to initiatives designed to improve operational efficiency and ensure sustained future growth.
Shareholder Value and Dividend Growth
Iberdrola’s financial success translates directly into value for its shareholders. The company has proposed a dividend of €0.635 per share, marking a 15% increase over the previous year. This includes:
- An interim dividend of €0.231 per share, which was paid on January 31.
- A final dividend of €0.404 per share, which will be proposed for approval at the General Shareholders’ Meeting.
Investment and Expansion Strategy
Iberdrola is accelerating its investments to sustain long-term growth. The company made record investments totaling €17 billion, an increase of 50% compared to the prior year. Of this:
- €12 billion was allocated to organic growth, a 5% increase over the previous year.
- €5 billion was used for corporate transactions, including the acquisition of ENW and Avangrid minority shares.
- 70% of the total investment was concentrated in the UK and U.S., reinforcing Iberdrola’s strategic focus on these high-potential markets.
Investments in grid infrastructure reached a record-breaking €11.2 billion, more than doubling the prior year’s figure. Notably, transmission investments increased by 54%, with major projects concentrated in the U.S. and the UK. This expansion aims to enhance the reliability and efficiency of electricity distribution networks, supporting the growing demand for electrification.
On the renewables front, the company invested nearly €5.5 billion to expand its clean energy portfolio. In 2024 alone, Iberdrola commissioned 2,600 MW of new renewable capacity, bringing its total capacity to over 44,000 MW. Looking ahead, Iberdrola has €9.2 billion in construction projects, with 80% of new capacity expected to be operational by 2025 and 2026. These investments reinforce the company’s position as a global leader in the energy transition.
Enhanced Financial Stability and Liquidity
Iberdrola continues to strengthen its financial position, ensuring robust liquidity and stability. Key highlights include:
- Cash flow growth: Reached €16.769 billion, a 51% increase year-over-year.
- Solid financial ratios: The FFO/net debt ratio improved to 22.9%, demonstrating the company’s strong cash generation and prudent financial management.
- Liquidity reserves of over €20 billion, covering the company’s financing needs for the next 22 months.
These factors highlight Iberdrola’s ability to sustain growth while maintaining financial discipline.
Commitment to Social and Economic Contribution
Beyond financial performance, Iberdrola continues to play a vital role in supporting global economic growth and social development. The company made a record-breaking tax contribution of €10.3 billion worldwide, representing a 7.5% increase over the previous year.
Iberdrola’s procurement strategy also demonstrates its economic impact, with €18 billion spent on goods and services, benefiting thousands of suppliers and supporting 500,000 jobs across the supply chain. The company’s hiring initiatives have further strengthened its workforce, with 6,000 new employees added in 2024, including 2,100 from ENW, bringing the total workforce to 42,200 people globally.
Environmental Leadership and Sustainability Commitment
Iberdrola continues to lead the energy industry in sustainability. The company has achieved remarkably low carbon emissions, with CO2 emissions of only 38 grams per kWh in Europe, which is five times lower than the European industry average. This highlights Iberdrola’s commitment to reducing its carbon footprint and supporting global climate goals.
The company has also allocated €400 million toward research, development, and innovation (R+D+I), solidifying its position as the world’s leading private electricity company in innovation, according to the European Commission.
Industry Recognition and Future Outlook
Iberdrola’s leadership has been recognized globally, ranking as the number one utility in the Dow Jones Best-In-Class Indices. This acknowledgment reflects the company’s dedication to operational excellence, sustainability, and long-term value creation.
Looking ahead, Iberdrola is optimistic about its future growth prospects. The company remains focused on expanding its grid infrastructure and selectively investing in renewable energy projects. With improving market conditions and a stronger business profile, Iberdrola has upgraded its financial outlook for 2025. The company now expects mid- to high-single-digit net profit growth for FY2025, excluding extraordinary items.
Upcoming Events and Future Plans
Iberdrola is committed to maintaining transparency and keeping investors informed. The company has announced its next Capital Markets Day, scheduled for September 24, 2025. This event will provide further insights into Iberdrola’s long-term strategic direction and growth plans.
Statement from the Executive Chairman
Ignacio Galán, Executive Chairman of Iberdrola, commented on the company’s performance:
“With electrification driving growth in demand across all of the countries Iberdrola serves, this strong set of results delivers ahead of our strategic plan.
Iberdrola has been the leader in electrification for 25 years, combining disciplined execution with long-term commitment to deliver increased shareholder value. We are continuing on this path through our focus on network investments in the U.S. and the UK, using the proceeds from fossil fuel divestments to accelerate growth in both markets.
A strengthened business profile and better market fundamentals contribute to a structural improvement in our outlook for 2025 and beyond.”
