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(Sharecast News) - Iberdrola reported a 12% rise in net profit for 2025 on Wednesday, as stronger returns from its regulated electricity networks in the UK and US offset weaker performance in power generation.
Net profit reached about 6.29bn, including 464m of non-cash charges in the fourth quarter linked to its renewables pipeline.
Adjusted net profit rose around 10% to 6.23bn, while adjusted EBITDA increased 3% to 15.68bn, driven by 21% growth in the networks division.
The regulated asset base expanded 12% to 51bn, supported by tariff improvements and new transmission frameworks in the UK, the full integration of Electricity North West, a US-Canada interconnector and renewed distribution concessions in Brazil.
By contrast, earnings in the generation and supply business declined, with power EBITDA down 10% due to non-recurring system stabilisation costs in Iberia and lower wholesale prices in Britain and Spain.
Reuters reported that costs of about 177m were tied to the operation of the Spanish power system following the 28 April blackout, while full-year results also reflected the 464m renewables pipeline charges booked in the final quarter.
Total investment reached 14.46bn in 2025, with roughly 60% allocated to the US and the UK and 62% directed towards networks.
Iberdrola commissioned 2,710MW of new capacity during the year and has 4,679MW under construction, with a further 9,000MW in the pipeline through 2028.
The group also completed the sale of a 118MW operational onshore wind portfolio in France, along with a 639MW development pipeline, as part of its strategy to focus on regulated networks and contracted generation in core markets.
Operating cash flow rose 8% to 12.81bn, while adjusted net debt fell by 1.5bn to 50.2bn.
Dividend payments totalled 4.5bn for the year, and the company proposed a dividend of 0.68 per share, up 6.3% on the previous year.
Looking ahead, Iberdrola said it expected adjusted net profit to exceed 6.6bn in 2026 and to rise to more than 7.6bn by 2028, broadly in line with or slightly above previous guidance, according to Reuters.
Executive chairman Ignacio Galn described 2025 as a record year, highlighting increased investment in transmission and distribution networks in the US and UK as the main drivers of future growth.
At 1121 CET (1021 GMT), shares in Iberdrola were down 0.72% in Madrid at 19.90.
Reporting by Josh White for Sharecast.com.