Spain’s Iberdrola reported a 12% rise in reported net profit for 2025, supported by stronger regulated returns from its electricity networks in the United Kingdom and the United States.
The company posted net profit of €6.3 billion for the year, a figure that included €464 million of non-cash charges linked to its renewable pipeline in the fourth quarter.
Adjusted net profit increased 10%, while adjusted EBITDA rose 3% to €15.68 billion. The improvement was driven by a 21% increase in the Networks division, reflecting regulated asset base growth and tariff gains.
By contrast, power EBITDA fell 10%, weighed down by non-recurring ancillary service costs related to reinforced system operations in Iberia and by lower market prices.
Total investments reached €14.46 billion during the year, with around 60% allocated to the United States and the United Kingdom and 62% directed to networks. The regulated asset base rose 12% to €51 billion.
Iberdrola commissioned 2,710 MW of new capacity in 2025 and reported 4,679 MW under construction, with a further 9,000 MW in its development pipeline through 2028.
Adjusted net debt declined by €1.5 billion to €50.2 billion as operating cash flow increased 8% to €12.81 billion.
Dividend payments totalled €4.5 billion, up 12%, and the company proposed a full-year dividend of €0.68 per share.
The group said its networks expansion was supported by new UK transmission frameworks, the full integration of Electricity North West, commissioning of a U.S.-Canada interconnector, the 30-year renewal of Brazilian distribution concessions and its first transmission award in Australia.
In generation and customer activities, Iberdrola invested €5.26 billion across technologies and regions and said it had already sold 100% of its 2026 output, maintaining its position as Europe’s largest power purchase agreement (PPA) seller.
The company raised €16.7 billion in new financing during the year, improving its FFO-to-net debt ratio by 260 basis points to 25.5%. Liquidity exceeded €21 billion, covering 29 months of financing needs.
Looking ahead, Iberdrola expects adjusted net profit to exceed €6.6 billion in 2026 and to rise above €7.6 billion by 2028, supported by accelerating electrification trends.
Executive chairman Ignacio Galán said: “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.”
He added: “At Iberdrola, we saw 25 years ago that electricity infrastructure would be essential to meet growing demand. 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.”
