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Iberdrola: Iberdrola's 2025 Earnings: Strong Growth Across Networks and Power Segments

Iberdrola's 2025 financial performance was marked by a significant increase in adjusted net profit, which rose 10.3% to EUR 6,231 million, while reported net profit reached EUR 6,285 million, up 12%. The company's adjusted EBITDA grew 3% to EUR 15,684 million, driven primarily by a 21% growth in networks. Earnings per share (EPS) came in at EUR 0.1421, in line with analyst estimates. The company's operational performance was robust, with a 12% growth in the regulated asset base to almost EUR 51 billion, supported by total investments of EUR 14.460 billion, with two-thirds allocated to transmission and distribution networks.

IBE.MC

EUR 20.08

-1.33%

A-Score: 6.3/10

Publication date: February 25, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Net Profit Growth: 2025 reported net profit rose 12% to EUR 6,285 million, with adjusted net profit up 10.3% to EUR 6,231 million.
  • Networks-Driven EBITDA: Adjusted EBITDA grew 3% to EUR 15,684 million, driven by a 21% surge in networks' EBITDA to EUR 7,900 million.
  • Regulated Asset Expansion: Transmission/distribution investments of EUR 9 billion boosted regulated asset base by 12% to EUR 51 billion.
  • International Market Cap: Global footprint now covers 65% of operations in the UK, US, Germany, etc., with market cap exceeding EUR 135 billion (12x 2001 levels).
  • 2028 Guidance Increase: Adjusted profit guidance raised to over EUR 7.6 billion, supported by EUR 30 billion UK RAB growth by 2030 and EUR 16.7 billion secured financing.

Segmental Performance

The networks segment was a key driver of growth, with adjusted EBITDA increasing 21%. The Power & Customers segment also saw significant activity, with 2.7 gigawatts of new capacity added and 4.7 gigawatts under construction. The company's international expansion continues to transform its business mix, with 65% of its operations now in the UK, US, Germany, France, Brazil, and Australia.

Guidance and Outlook

Iberdrola has set an adjusted profit guidance of more than EUR 6.6 billion for 2026, driven by continued positive trends and new investments. The company's strong operational performance and attractive returns in countries like the US and UK are expected to support this growth. The guidance for 2028 has also been increased to higher than EUR 7.6 billion, driven by increased investment and asset rotation.

Valuation and Dividend

With a current P/E ratio of 24.21 and an EV/EBITDA ratio of 9.02, Iberdrola's valuation reflects its strong growth prospects. The company's dividend yield stands at 2.87%, with a proposed total dividend of EUR 0.68 per share for 2025, representing a 6.3% year-on-year growth. The adjusted net debt-to-EBITDA ratio is 3.02x, indicating a manageable debt position.

Regulatory Developments and Opportunities

Iberdrola is navigating regulatory developments in Spain and the UK, with a focus on adapting to new circumstances while maintaining financial performance. The UK's RIIO-T3 framework provides a stable and attractive environment for transmission investments, with the RAB of transmission expected to reach EUR 30 billion by 2030. The company is also exploring opportunities in renewables and power in the US, with a significant pipeline of projects.

Iberdrola's A-Score