Iberdrola (IBE) Q4 2025 earnings summary

Executive summary

• Reported net profit rose 12% to €6,285M; adjusted net profit increased 10.3% to €6,231M, exceeding guidance by 10.3%.

• Adjusted EBITDA increased 3% to €15,684M, driven by Networks growth, partly offset by lower power prices and non-recurring costs.

• Investments totaled €14,460M, with nearly two-thirds allocated to Networks; the regulated asset base grew 12% to €51B.

• Net debt fell €1.5B to €50.2B, supported by operating cash flow growth of 8.2% to €12,811M.

• Proposed dividend rose 6.3% to €0.68/share; total dividend payments increased 12% to €4.5B.

Financial highlights

• Adjusted revenues grew 0.6% to €45,017M; adjusted gross margin rose 1.8% to €24,299M.

• Adjusted net operating expenses fell 4.1% to €5,842M; recurring net operating expenses increased 1%.

• Adjusted EBIT reached €9.9B, up 3.1% year over year.

• Cost of debt decreased 6 basis points to 4.75%; net financial costs increased €288M amid higher average net debt.

• Adjusted FFO/net debt was 25.5%.

Outlook and guidance

• Adjusted net profit guidance exceeds €6.6B for 2026, with a target of more than €7.6B by 2028.

• Growth drivers include Electricity North West and Neoenergia consolidation, new regulatory frameworks, and transmission projects in the UK, US, Brazil, and Australia.

• All 2026 energy production was sold through long-term PPAs and regulated contracts.

• Continued focus on Networks, with selective investment in Power, renewables, and storage; 2.7 GW of Power capacity was completed in 2025, with a 9 GW pipeline.