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Iberdrola H1 2025 profit: €3.56bn after €17.3bn investment

23/07/2025

The company raises €5 billion in capital to take advantage of historic investment opportunities in electricity grids in the UK and US, accelerating its strategic focus on Networks in countries with high credit ratings and attractive regulation and preserving financial strength and dividend policy.

Iberdrola Office

First half results

  • Record investments of €17.3 billion in the last 12 months
  • Investments during H1 2025 grew by 7% to €5,662 million, with more than 60% in the United States and the United Kingdom.
  • Investment in networks grew by 14% to €3,082 million:
  • Regulated assets reach close to €50 billion, with an increase of 70% in just 5 years.
  • The company invests €2,155 million in renewables:
  • The United Kingdom and the United States account for 60% of total investment.
  • 40% is allocated to offshore wind, principally the East Anglia 2 and 3 (UK) and Vineyard Wind (USA) wind farms, where construction progresses as expected.

 

  • Gross operating profit (EBITDA) grew by 5% to €8,287 million
  • Growth in the United States and the rest of Europe offset the 12% drop in EBITDA at Iberdrola Spain.
  • In networks, the larger asset base and the integration of ENW in the United Kingdom boosted the result by 31%, already contributing more than half of the total.
  • EBITDA in the Production and Customers business fell by 13% affected by lower prices and higher costs of the Iberian Peninsula system.

 

  • Net profit of €3,562 million (+20% on a like-for-like basis)

 

  • Debt improved by €3 billion in the quarter, to c.€52 billion
  • 15% increase in cash flow.
  • New asset rotation operations and alliances included the extension of the strategic agreement with Masdar to East Anglia 3 in the UK.
  • Liquidity exceeds €19 billion.

 

  • Reiterating the full-year outlook
  • A double-digit increase in net profit is expected, taking into account the recognition of past costs in the US, already recorded.
  • Growth supported by new investments:
  • Networks: an increase of around 10% in regulated assets.
  • Renewables: a further 1,400 MW in operation in the second half of the year.
  • No impact on results from the new tariffs, which would have a cost impact on investment of less than 1%, thanks to supply chain management.

 

  • Commitment to shareholder remuneration:
  • The dividend will reach €0.645, of which €0.409 will be paid on July 24.

 

Capital increase: seizing a historic investment opportunity and accelerating our strategy of growth in networks with full financial strength 

 

  • Investments in networks will exceed €55 billion in the next 6 years (+75%)
  • The network asset base will exceed €90 billion by 2031, compared to €30 billion in 2020.
    • 75% of the network asset base will be from the United States and the United Kingdom, due to the new tariff frameworks in New York and Maine, and due to the UK’s new regulatory framework for electricity transmission (RIIO-T3) and framework for distribution (ED2 and the future ED3).
    • 15% of the network asset base will be from Brazil, whereas 10% will be from Spain.
  • The expected average regulatory return on equity for the coming years will be 9.5%.

 

  • €5 billion capital increase to finance an unprecedented investment opportunity and to accelerate the strategy of growth in Networks in the United States and the United Kingdom
  • The transaction will accelerate the company’s strategy of growth in networks in countries with stable, predictable and incentivizing frameworks and with an A-rating, like the United States and the United Kingdom.
  • The transaction will have a positive impact on the company's earnings per share.
  • Prospects for mid-to-high single-digit growth in net profit are reinforced until the end of the decade.
  • Operating cash flow, asset rotation and partnership operations, and increased liquidity, combined with this transaction, will be sufficient to undertake the significant planned investments, to continue paying dividends in accordance with our policy and to maintain our current BBB+ rating. Accordingly, no further capital increases are expected until at least 2030.

 

Ignacio Galan, Iberdrola Executive Chairman, said:  “Our first half results show a strong operating performance that we expect to improve even further over the rest of the year. Today’s equity raise provides us with further visibility and security in our long-term growth outlook, giving us a unique opportunity to accelerate our growth fully in line with our strategy focused on networks in the US and the UK and reinforcing our value proposition based on strong growth, sustained dividend increases and financial strength”.

  • The company will hold its Capital Markets Day in London on September 24
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