Iberdrola (IBE) investor relations material

Executive summary

• Reported net profit for 2025 reached €6,285 million, up 12% year-over-year, with adjusted net profit at €6,231 million, exceeding guidance by 10.3%.

• Adjusted EBITDA rose 3.1% to €15,684 million, driven by a 21% increase in Networks, offset by non-recurring costs and lower prices in power.

• Total investment was €14,460 million, with two-thirds allocated to transmission and distribution networks, including major acquisitions of ENW (UK) and Neoenergia (Brazil).

• Net debt decreased by €1.5 billion to €50.2 billion, supported by an 8.2% increase in operating cash flow to €12,811 million.

• Dividend proposal of €0.68 per share, a 6.3% increase year-over-year, with total dividend payments up 12% to €4.5 billion.

Financial highlights

• Adjusted revenues rose 0.6% to €45,017 million, with adjusted gross margin up 1.8% to €24,299 million.

• Adjusted net operating expenses improved 4.1% to €5,842 million, with recurring net operating expenses up just 1%.

• Adjusted EBIT reached €9.9 billion, up 3.1% year-over-year.

• Cost of debt improved 6 basis points to 4.75%; net financial costs increased by €288 million due to higher average net debt.

• Adjusted net debt to EBITDA was 3.02x; FFO to adjusted net debt at 25.5%.

Outlook and guidance

• Adjusted net profit guidance for 2026 set at more than €6.6 billion, aiming to exceed €7.6 billion by 2028.

• Growth driven by consolidation of Electricity North West and Neoenergia, new regulatory frameworks, and major transmission projects.

• 100% of 2026 energy production already sold via long-term PPAs and regulated contracts.

• Continued focus on expanding networks, selective investment in renewables and storage, and asset rotation.

• Liquidity position of €21,381 million covers 29 months of financing needs.