Iberdrola (IBE) investor relations material

Strategic investment focus and capital allocation

• €58 billion investment planned for 2025–2028, with two-thirds allocated to the US and UK, focusing on regulated networks and renewables, and over 85% in A-rated countries.

• 65% of total investment directed to networks, with €37 billion planned, representing a 50% increase over the previous four years and more than 70% in the UK and US.

• Regulated asset base projected to grow over 40% from €49 billion in 2024 to €70 billion by 2028, with 65% concentrated in the US and UK.

• Investment in renewables and customer solutions totals €21 billion, with 75% of projects already under construction and over 90% in A-rated countries.

• Acquisition of a larger stake in Neoenergia increases presence in Brazilian distribution networks.

Financial guidance and shareholder returns

• EBITDA is forecast to reach €18 billion by 2028, up from €15.1 billion in 2024, with 55% from regulated networks and 50% of EBITDA from the US and UK.

• Adjusted net profit is expected to grow by €2 billion to €7.6 billion by 2028, with high single-digit annual growth.

• Dividend policy targets a payout of 65–75% of earnings per share, with a floor of €0.64 per share, and continued share buybacks to maintain share count stability.

• No additional equity raises are planned, with funding secured through capital increases, asset rotation, partnerships, and strong cash flow generation.

• Maintaining BBB+ rating, with prudent leverage and 73% of debt at fixed rates.

Regional and business segment outlook

• UK and US will account for 65% of total investment and 65% of the regulated asset base by 2028, with Spain and Brazil representing smaller shares.

• Transmission investment will nearly double to €20 billion by 2028, with major projects in the UK (Eastern Greenlink, Western Link) and the US (NECEC, Powering New York).

• Distribution investment in the UK and US is secured under advanced regulatory frameworks, with inflation protection mechanisms in place.

• Renewables investment focuses on offshore wind (€8 billion), onshore wind (€5 billion), solar PV (€2.2 billion), and storage (€2 billion), with a strong pipeline in Australia, Germany, and Italy.

• Customer business will invest €2.5 billion to maintain market share and secure long-term contracts, with a focus on digitalization and efficiency.