Iberdrola forecasts profit growth, with the power grid business driving a 12% increase in profits

Investing.com - Iberdrola announced on Wednesday that, driven by its electricity grid businesses in the UK and the US, profits are expected to grow in 2025, with continued growth forecasted for 2026. The Spanish utility company is steadily shifting toward regulated grid assets.

Get key analyst insights on breaking news with InvestingPro.

Net profit for 2025 is projected to increase by 12%, reaching €6.29 billion, while adjusted net profit excluding one-time items is €6.23 billion, up over 10% year-over-year, in line with the company’s previous guidance.

Adjusted EBITDA is €15.7 billion, up 3.1% year-over-year.

The company’s performance reflects the growing contribution of its regulated power network business, which has been a strategic focus for Iberdrola in recent years. The group has plans to invest over €100 billion by 2031 to further expand its grid infrastructure.

Looking ahead, Iberdrola states that its performance is ahead of schedule and expects adjusted net profit to exceed €6.6 billion in 2026. The company also reaffirmed its long-term target of over €7.6 billion by 2028, consistent with previous outlooks.

“We expect the stock price to remain relatively stable after this solid earnings release,” said JPMorgan analyst Javier Garrido in a report.

He emphasized that the adjusted net profit is 0.1% higher than JPMorgan’s estimates, and the company’s guidance of over €6.6 billion in adjusted net profit for 2026 aligns with Bloomberg consensus expectations. Given Iberdrola’s historical track record, investors may view this as a conservative outlook rather than a baseline scenario.

Iberdrola proposed a dividend of €0.68 per share for 2025, a 6.3% increase from the previous year.

Additionally, UBS analysts consider this performance a “mild positive.”

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.