Iberdrola (IBE) CMD 2025 summary

Strategic Investment Focus and Capital Allocation

• EUR 58 billion investment planned for 2025–2028, with two-thirds allocated to the U.K. and U.S., and over 85% in A-rated countries, targeting stable, high-return markets with strong regulatory frameworks.

• 70% of total investment directed to networks, emphasizing regulated distribution and transmission assets, with a selective approach to renewables focused on projects under construction and secured revenues via PPAs or CFDs.

• Networks investment to reach EUR 37 billion, aiming for a 40% increase in regulated asset base by 2028, with significant growth in the U.K. and U.S.

• No major M&A planned; growth is fully organic, with financial resources secured and no need for additional equity raises through the decade.

• Acquisition of a larger stake in Neoenergia, increasing presence in Brazilian distribution networks.

Financial Guidance and Shareholder Returns

• Adjusted net profit expected to rise by EUR 2 billion to EUR 7.6 billion by 2028, with high single-digit annual growth, exceeding previous guidance.

• EBITDA forecasted at EUR 18–18.5 billion by 2028, with 55% from regulated networks, up from 40% in 2024.

• Dividend policy reaffirmed with a floor of EUR 0.64/share and payout ratio between 65% and 75% of EPS.

• Financial structure remains robust: net debt to increase moderately, with 73% fixed-rate debt and a BBB+ rating target, supported by capital increase, asset rotation, and partnerships.

• Plan is almost fully funded, with no additional equity needed until at least 2030.

Business Model, Risk Management, and Sustainability

• Business model emphasizes predictable, profitable growth with a regulated and long-term contracted profile, targeting 75% of EBITDA from these activities by 2028-2030.

• Asset rotation and partnerships attract Tier 1 investors, supporting funding and risk mitigation.

• 90% of the investment plan aligned with EU taxonomy, with over EUR 30 billion in new green financial instruments planned.

• Sustainability targets include carbon neutrality by 2030 (Scope 1 and 2), over 15,000 new hires, over EUR 40 billion tax contribution, and over EUR 400 million annual R&D investment.

• Supply chain secured for 80% of strategic equipment, minimizing price and availability risks.