Iberdrola (IBE) Q2 2026 earnings summary

Executive summary

• Reported net profit for H1 2026 increased by 22% to €4,336 million; adjusted net profit up 8% to €3,565 million, reflecting strong operational performance and significant investment activity.

• Adjusted EBITDA rose 7.4% to €8,050 million, with Networks up 13% and Power & Customers up 1%, driven by asset base growth, tariff increases, and renewables output.

• Investments surged 25% to €7 billion, with over 70% allocated to the UK, US, and Brazil, and major acquisitions including Neoenergia minorities and Caruna Networks.

• Strategic focus on regulated Networks, highlighted by the Caruna acquisition in Finland and divestment of Mexican thermal assets.

• Shareholder remuneration increased 6.2% to €0.685 per share; AGM approved all board proposals with 97.88% support.

Financial highlights

• Revenues grew 4.2% year-over-year to €22,469 million; gross margin up 3.7% to €12,257 million.

• Adjusted EBIT grew 10% to €5,226 million; net financial results at €-1.1 billion, impacted by derivatives and FX hedges.

• Net debt rose to €54 billion, mainly due to CapEx and currency effects; expected to reach €56 billion by year-end.

• Adjusted FFO to net debt ratio at 22.4%; liquidity at €21.5 billion, covering 22 months of needs.

• Dividend per share for 2025 results set at €0.685, a 12% increase year-over-year.

Outlook and guidance

• Guidance reaffirmed for adjusted net profit growth above 8% for 2026, with further upside possible if positive trends persist.

• H2 expected to benefit from higher RAB, additional transmission, and new GW capacity; all expected energy for the year already sold.

• Continued strong performance in Networks and Power & Customers, with 2.1 GW of new capacity to be installed by year-end and hydro reserves at near-record levels.