Iberdrola (IBE) Q3 2024 earnings summary

Executive summary

• Net profit for the first nine months of 2024 rose 50% year-over-year to €5,471 million, with EBITDA up 23% to €13,269 million; recurring net profit grew 22% to €4,305 million, and recurring EBITDA increased 11% to €11,551 million, driven by strong operational performance, asset rotation, and robust business growth.

• Investments increased 12% to €8.6 billion, with a focus on regulated networks and renewables, and interim shareholder remuneration up 14% to €0.23 per share.

• Major transactions included the acquisition of Electricity North West in the UK, approval to acquire Avangrid minorities in the US, and the commissioning of the Saint Brieuc offshore wind farm in France.

• Asset rotation, including the Mexico transaction, contributed €1,717 million pre-tax capital gain, strengthening the regulated business profile.

• The company remains ahead of its strategic plan, with a strong liquidity position covering 20 months of financing needs.

Financial highlights

• EBITDA for the first nine months of 2024 reached €13,269 million, up 23% year-over-year; net profit was €5,471 million, up 50%.

• Gross margin increased 5% to €18,045 million, driven by a 25% improvement in procurement costs and stable revenues.

• Net operating expenses rose 5.3% (excluding Mexico capital gain), with net personnel expenses up 1.9% and external services up 7.3%.

• Reported levies improved 7% to €1,924 million, aided by favorable court rulings in Spain.

• EBIT grew 33% to €9,071 million, and cash flow surged 69% to €13,821 million; liquidity at €22.1 billion.

Outlook and guidance

• Net profit outlook for full year 2024 raised to around €5.5 billion, excluding capital gains from asset rotation, in line with the interim dividend increase.

• Guidance for 2025 expected to show continued growth, with more investment in networks, higher tariffs, and additional capacity coming online.

• Long-term growth secured through increased regulated and semi-regulated profile, major T&D frameworks, and new offshore wind projects in the UK and US.