Iberdrola (IBE) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 reached EUR 2,004 million, up 26% year-over-year, excluding prior year capital gains from thermal generation divestment.

• Reported EBITDA rose 12% to EUR 4,643 million, driven by strong network performance and higher generation volumes in the U.S., Iberia, and globally.

• Investments hit a record EUR 2,720 million in Q1, up 14%, with two-thirds allocated to the U.S. and U.K.

• Networks business drove growth, contributing 52% of EBITDA, aided by U.S. cost recognition and U.K. asset base expansion after ENW acquisition.

• Cash flow grew 11% year-over-year to EUR 3,502 million, with financial ratios in line with BBB+ rating after ENW consolidation.

Financial highlights

• Revenues increased 1.5% year-over-year to EUR 12,864 million; gross margin up 5.4% to EUR 7,202 million.

• Adjusted EBITDA grew 12.2% to EUR 4,643 million; adjusted EBIT up 17% to EUR 3,256 million.

• Funds from operations (FFO) rose 11% to EUR 3,502 million; liquidity position at EUR 20,905 million, covering 19 months of needs.

• Net financial results improved by EUR 16 million, mainly due to FX derivatives.

• Net operating expenses improved 10.4% year-over-year, excluding asset rotation effects.

Outlook and guidance

• Reaffirmed net profit guidance of mid to high single-digit growth for 2025, excluding capital gains from asset rotation; including U.S. past cost recognition, expects double-digit growth.

• Over 4,000 MW of new capacity to be operational in 2025, supporting further EBITDA growth.

• 100% of 2025 energy already sold; record hydro reserves at 9 TWh.

• Anticipates progressive acceleration in the second half of 2025, with a different quarterly profit profile due to prior year one-off gains.

• Strategy remains focused on regulated networks and selective renewables, prioritizing the U.S. and U.K.