Iberdrola (IBE) Q1 2026 earnings summary

Executive summary

• Adjusted net profit rose 11.4% year-over-year to €1,865M, driven by strong Networks performance in the UK and US, Neoenergia consolidation, and regulated businesses in A-rated countries.

• Adjusted EBITDA increased 2.4% to €4.1B, led by Networks, while Power & Customers EBITDA declined 3% due to non-recurring impacts.

• Investments totaled €2.7B in Q1, with over half allocated to the UK and US, supporting medium- and long-term growth.

• Asset rotation and partnerships, including the Mexico asset sale and Neoenergia minority purchase, optimized the business profile and reinforced financial strength.

• Over 300 AI projects underway, with initiatives to drive efficiency and new business opportunities.

Financial highlights

• Revenues were stable at €12,018M (-0.3% year-over-year), while adjusted gross margin declined 1% to €6,429M; excluding FX, both would have grown 3%.

• Adjusted EBITDA reached €4.1B, up 2.4% year-over-year; adjusted net profit increased 11.4% to €1,865M.

• Net operating expenses improved 6% to €1,348M; recurring expenses up 8.1% excluding FX, mainly due to ENW consolidation.

• Pro-forma adjusted net debt at €50.3B, with FFO/adjusted net debt at 24–24.8%.

• Adjusted net debt/EBITDA improved to 3.3–3.4x; adjusted leverage ratio at 43.6–44.3%.

Outlook and guidance

• Upgraded 2026 guidance to more than 8% growth in adjusted net profit, excluding capital gains from asset rotation.

• Networks expected to remain the main growth driver, with ongoing increases in Regulated Asset Base and new regulatory frameworks in the UK and Brazil.

• 2.7 GW of new capacity to be added before year-end, on top of 1 GW commissioned in Q1.

• Focus on efficiency improvements and ongoing resiliency to geopolitical dynamics.

• Debt expected to end 2026 at around €55B, in line with capital market expectations.