Iberdrola (IBE) Q2 2025 earnings summary

Executive summary

• Net profit for H1 2025 reached €3,562 million, up 20% year-on-year, excluding prior year divestments, with EBITDA at €8,287 million, driven by strong Networks business performance.

• Networks EBITDA rose 31% to €4,271 million, now 52% of total EBITDA, with growth in all geographies and successful ENW integration.

• Investments increased 7% to €5,762 million, mainly in Networks and Renewables, with 60% allocated to the UK and US.

• Consolidated net debt decreased by €3 billion to €52.7 billion, with FFO/Net Debt at 24.2% and operating cash flow up 15% to €6,796 million.

• A €5 billion equity raise was announced and fully subscribed, aimed at funding accelerated network investments in the UK and US, with no further equity needs expected until at least 2030.

Financial highlights

• Revenues grew 0.5% year-on-year to €22,743 million; gross margin up 1.6% to €12,693 million.

• Adjusted EBITDA rose 4.9% to €8,287 million; adjusted EBIT up 6.3% to €5,467 million.

• Net operating expenses improved 10% year-on-year, excluding one-offs.

• FFO increased by 15% to €6,796 million, supporting a €3 billion reduction in net debt.

• Dividend payments for the period total €0.645 per share, up 15.6% year-on-year.

Outlook and guidance

• Double-digit net profit growth expected for 2025, or mid-to-high single-digit growth excluding US networks cost recognition.

• Networks RAB projected to grow by double digits in the US and UK, with higher contributions from new rate cases.

• Energy production to increase in H2, with 1,400 MWs coming online and hydro reserves at record levels.

• No additional equity raise anticipated before 2030; plan fully funded through cash generation, debt, asset rotation, and partnerships.

• Capital Market Day scheduled for September 24 to provide further outlook.