Iberdrola (IBE) Q2 2024 earnings summary

Executive summary

• Net profit for H1 2024 rose 64% year-over-year to €4,134M, driven by the Mexico asset sale and strong operational performance.

• EBITDA increased 27% to €9,614M, with recurring EBITDA up 9% to €7,897M, supported by robust results across all business segments.

• Investments reached a record €5,276M, up 16% year-over-year, focused on networks and renewables, with 3,100 MW of new capacity added in 12 months.

• Shareholder remuneration increased 11.4% to €0.558/share, with a supplementary dividend of €0.351/share payable July 29.

• Adjusted net financial debt decreased by €2.7B to €45.2B, improving leverage and liquidity.

Financial highlights

• Gross margin increased 3% to €12,489M, aided by improved procurement costs and fixed price sales.

• Recurring net profit (excluding Mexico capital gain) rose 18% to €2,969M.

• Net financial expenses improved 25% to €848M; cost of debt stable at 4.89%.

• H1 cash flow nearly doubled (+98%) to €11,362M, supporting investment acceleration without capital increases.

• FFO/Adjusted Net Debt at 25%; Adjusted Net Debt/EBITDA improved to 3.06x.

Outlook and guidance

• FY24 guidance raised to double-digit net profit growth (excluding capital gains), driven by strong H1 performance and continued investment.

• Full-year net debt expected around €47B.

• H2 2024 to see further investment ramp-up, 1,600 MW of new renewables, and increased PPA portfolio.

• Minimum shareholder remuneration of €0.55/share set for 2024–2026.

• Positive trends in tariff adjustments, asset base growth, and commercial activities expected to continue into 2025.