Iberdrola reported a 12% increase in reported net profit for 2025 as higher regulated returns in the UK and US electricity networks underpinned solid full-year results.
The Spanish utility booked a net profit of €6.3bn for the year figure including a €464m of non-cash charges in the renewable pipeline in the fourth quarter.
Adjusted net profit rose 10%, while adjusted EBITDA increased 3% to €15.68bn, driven by a 21% gain in the Networks business as regulated asset base growth and tariff improvements fed through.
Power EBITDA declined 10% due to non-recurring ancillary service costs for reinforced system operation in Iberia and lower prices.
Total investments reached €14.46bn, with 60% directed to the US and the UK and 62% focused on networks, which delivered a 12% rise in regulated asset base to €51bn.
The company completed 2710MW of new capacity during the year and has a further 4679MW under construction and an additional 9000MW in the pipeline through 2028.
Adjusted net debt fell by €1.5bn to €50.2bn as operating cash flow rose 8% to €12.81bn.
Dividend payments reached €4.5bn, up 12%, and Iberdrola proposed a total dividend of €0.68 per share.
Record social dividend metrics included €13.2bn in purchases from suppliers, supporting 500,000 jobs, and a €10.4bn tax contribution, alongside 4500 new hires bringing the workforce to 45,400 people.
The company’s networks growth was supported by new transmission frameworks in the UK, full integration of Electricity North West, commissioning of a US-Canada interconnector, 30-year renewal of Brazilian distribution concessions and its first transmission award in Australia.
In generation and customers, Iberdrola invested €5.26bn across technologies and geographies, selling 100% of its 2026 output and maintaining its position as Europe’s largest PPA seller.
The group strengthened its financial position with €16.7bn of new financing, FFO/net debt improving 260bps to 25.5%, and liquidity exceeding €21bn, covering 29 months of needs.
Guidance for 2026 points to adjusted net profit above €6.6bn, rising to more than €7.6bn by 2028, supported by accelerating electrification.
Market capitalisation now exceeds €135bn, up from €12bn in 2001, while installed capacity has grown to 58GW from 16GW over the same period.
“2025 has been a record year for Iberdrola, with more investment than ever in transmission and distribution networks in the United States and the United Kingdom, which will be our main drivers of growth in the coming years,” said executive chairman Ignacio Galán (pictured).
“At Iberdrola, we saw 25 years ago that electricity infrastructure would be essential to meet growing demand,” Galán added. “Our strategy of geographic diversification, the access to financing and technology, and a track record of successful execution are and will continue to be the best guarantee for growth in results and dividends in the long term.”