Iberdrola (IBE) Q3 2025 earnings summary

Executive summary

• Reported net profit for the first nine months of 2025 was €5,307M, with adjusted net profit up 17% year-over-year, driven by strong Networks performance and asset rotation.

• EBITDA rose to €12,438M, mainly from Networks, which saw a 26% increase due to higher regulated asset value and regulatory improvements in the UK, US, and Brazil.

• Investments increased by 4% to €9B, with over 60% allocated to the UK and US, and more than 2,000 MW of new renewable capacity installed in the last 12 months.

• Net debt decreased by €3.2B to €48.5B, improving FFO/Net Debt to 26.2%.

• Interim shareholder remuneration rose 8.2% to €0.25/share.

Financial highlights

• Adjusted net profit was €5,116M, up 16.6% year-over-year; revenues grew 2.3% to €33,863M, and gross margin increased 2% to €18,407M.

• Adjusted EBITDA rose 4.4% to €12,057M; adjusted EBIT increased 5.9% to €7,785M.

• Net debt at the end of September was €48.5B, down from €51.7B at 2024 year-end, with liquidity of €23B covering 25 months of needs.

• FFO to adjusted net debt improved to 26.2%, and net debt/EBITDA improved to 2.98x.

• Effective tax rate expected to be around 20% for the year, below historical averages.

Outlook and guidance

• FY 2025 adjusted net profit guidance raised to double-digit growth, targeting €6.6B or more, exceeding previous 2026 targets.

• Strategic plan targets €55B investment in US and UK networks between 2026-2031.

• Minimum shareholder remuneration of €0.64/share set for 2025-2028.

• Continued focus on asset rotation, partnerships, and capital increases to support growth and reduce debt.

• Net debt at year-end 2025 expected to be around €51B, excluding potential Mexico divestment proceeds.