Iberdrola boosts profits to over 2 billion euros in the first quarter after record investment last year

Iberdrola presented its quarterly results this Wednesday , highlighting its record investments of €17.3 billion over the past 12 months, a 44% increase compared to the same period last year. This has allowed the group to achieve a  net profit of €2.004 billion in the first quarter of 2025, a 26% increase compared to the adjusted result for the first quarter of 2024. 

During the first three months of the year, the company invested a total of €2.72 billion, representing a 14% increase compared to the same period last year. The United States and the United Kingdom were the main destinations, accounting for 65% of the total. 

By business, electricity grids accounted for 53% of total investment, reaching €1.432 billion in the first quarter—18% more than the same period last year. This has led to a 14% increase in regulated assets, reaching €49 billion after integrating ENW, and an increase in the year-end forecast to €51 billion.  

Investments in renewable energy were selective and amounted to €1.064 billion, representing a 7% increase. More than half of this amount was allocated to offshore wind: specifically, East Anglia 2 and 3 (United Kingdom) and Vineyard Wind (USA) account for 80% of the investment. 

Driven by this investment effort, gross operating profit (EBITDA) stood at €4.643 billion in the first quarter, representing a 12% increase year-over-year (excluding last year’s divestments in thermal generation). 

A MODEL RESILIENT TO THE ECONOMIC CONTEXT

The energy distributed through Iberdrola’s networks continues to reach record levels thanks to increased demand in all the countries where Iberdrola operates: Spain, the United Kingdom, the United States, and Brazil . Specifically, the energy transported through its networks exceeded 62,500 GWh in the first quarter, a 1.7% increase compared to the same period in 2024.

In response to new demands for electrification, the company has committed to investing more than €13 billion in its network business between 2025 and 2026. 

Furthermore, the group has installed approximately 2,600 MW of renewable energy in the last twelve months, bringing the company’s installed renewable capacity to 44,675 MW worldwide. Thanks to this capacity, the company has reached 25,222 GWh of renewable generation during the first three months of the year, a 4.9% increase over the same period last year, driven by strong performance in the United States, Iberia, and the rest of the world.

INCREASING FINANCIAL STRENGTH 

Business growth has been accompanied by financial strength. Iberdrola increased its operating cash flow (FFO) by 11%, to over €3.5 billion, allowing it to maintain its financial strength and rating after consolidating ENW. 

The cash flow-to-net debt ratio stands at 22.3%. The group’s liquidity has reached €20.9 billion, which would allow it to cover 19 months of financing needs without resorting to the market.

IMPROVED FORECASTS

Thanks to its diversified business, primarily focused on grids, with selective investment in renewables and significant financial strength, the company expects a double-digit increase in adjusted net profit for 2024, taking into account the positive impacts of regulated assets and US accounting standards. 

This growth is supported by an increase of more than 10% in regulated assets with improved rates. Furthermore, the group plans to bring nearly 4,000 MW of renewable energy into operation this year, with 100% of the energy sold by 2025.

The company has asserted that it has little impact from the new tariffs because it has secured future growth: 80% of its purchases are made with local suppliers, and 100% of strategic contracts for projects under construction are already secured.  

Thus, the new trade policy will have no impact on results, while investment costs will be affected by less than 1%. 

COMMITMENT TO SHAREHOLDERS AND THE BOARD ON MAY 30

Iberdrola, which will hold its General Shareholders’ Meeting (GAM) on May 30 in Bilbao, presents its shareholders with assets of more than € 160 billion and a capitalization of around €100 billion, making it the first utility in Europe to reach this level and among the two largest in the world. 

If approved by the General Shareholders’ Meeting, the company plans to pay a final dividend of €0.404 per share in July, in addition to the gross dividend of €0.231 per share distributed in January. The total dividend for fiscal year 2024 will be increased by 15% compared to the dividend paid for 2023 results. €0.005 per share will be added to this amount if the quorum for the General Shareholders’ Meeting reaches 70%.