Record investments drive Iberdrola's results to record highs
Iberdrola continues to set new historical milestones. The company, which has presented its results for the first nine months, has made record investments of 12.3 billion euros in the last 12 months, an increase of 13% compared to the same period last year.
This has enabled the group to achieve a net profit of 5.471 billion euros up to September 2024, an increase of 50% compared to the same period last year.
Gross operating profit (Ebitda) reached 13,269 million euros, 23% higher than in the same period of the previous year. Recurring Ebitda grew 11% to 11,551 million euros. The United States and the United Kingdom drove the result, with increases of 25% and 15% in Ebitda, respectively.
The increase in results was mainly driven by higher investments, the good performance of renewable generation and results from asset rotation.
The company spent around 4.4 billion euros on networks - an increase of 25% - in the first nine months. The company's grid asset base now stands at 47.6 billion euros (including the UK's ENW), with the United States and the United Kingdom already accounting for 60% of the total.
In addition, the company has invested 4,000 million euros in generation and customers, which has enabled the installation of more than 2,300 MW of renewables in the period.
Thanks to investments and new renewable generation, the company's production set an all-time record of 63,300 GWh in the first nine months, an increase of 7.4%. The electricity distributed by the company was also historic, with 177,943 GWh, 2.5% higher than in the same period of the previous year.
With these investments, the group has increased its presence in countries with an A rating in regulated businesses, obtaining 82% of the recurring operating profit in these regions.
In its third quarter results presentation, the company set its profit forecast for the full year at 5.5 billion euros, an increase of 14% compared to the previous year (excluding any capital gains from asset rotation), driven by the new tariff frameworks for the networks, the increase in installed capacity and the increase in long-term contracts.
Iberdrola also increased its interim dividend by 14% to 0.23 euros per share, having already reached this year's dividend floor for 2025, set at 0.55 euros - this year it paid out 0.558 euros per share.
Financially strong
Business growth has been accompanied by financial strength. The company has increased its cash flow by 69% to 13,821 million euros. The FFO/net debt ratio improved by 210 basis points to 25.3%.
In addition, it has liquidity of 22.1 billion euros, which would allow it to cover 20 months of financial needs without resorting to the market.
Iberdrola has managed to reduce its cost of debt by 14 basis points to 4.84%.
Achievement of the Business Plan and taking advantage of new opportunities
The chairman also wanted to highlight the positive evolution of the strategic plan, at a time when the company's capitalisation is close to 90,000 million euros and it has good prospects from investment banks.
Iberdrola currently has 90% of its supply chain secured for grids and renewables until 2026. In fact, in offshore wind the company already has 100% of contracts secured and in grids, 95% by 2026, while it is securing purchases for 2027 and beyond.
In addition, the results presentation highlights that Iberdrola is accelerating its strategic plan and taking advantage of new electrification opportunities. Therefore, it plans to increase its investment forecasts in renewables and networks in an environment of greater regulatory support.
The company has increased its investments, mainly in the United States and the United Kingdom. It has closed the purchase of the British company ENW and obtained the approval of Avangrid's shareholders for their merger.
In addition, Iberdrola will triple its offshore wind capacity to 6,500 MW by 2030, as the company has obtained two new offshore projects in the UK - East Anglia 2 and 3 - for 1,000 MW and one in the US - New England - for 800 MW.
Iberdrola also has an important portfolio of long-term customers: it has closed long-term contracts for 5 million MWh in 2024 and supplies more than 10 TWh to technology companies.
It also plays a facilitating role in the development of data centres, as it has 615 MW with assured connection in Madrid and Aragon and a potential portfolio of 5 GW. The company has therefore developed an alliance model, in which Iberdrola will have a minority stake, contributing land, renewable assets, grid connection and long-term contracts with 24x7 clean energy.
The company will hold its next Capital Markets Day in autumn 2025.
