Iberdrola (IBE) Q4 2024 earnings summary

Executive summary

• Net profit rose 17% to EUR 5,712 million (adjusted: EUR 5,530 million, +15%), surpassing guidance, with EBITDA up 17% to EUR 16,848 million, driven by strong operational performance, asset rotation, and higher regulated asset base in Networks.

• Record investments reached EUR 17 billion (EUR 12 billion organic, EUR 5 billion from acquisitions), focused on Networks and renewables, with major transactions in the UK (ENW) and US (Avangrid minorities).

• Cash flow increased 10% to EUR 11,836 million, supporting robust financial ratios and liquidity of over EUR 20 billion, covering 22 months of financing needs.

• Board proposes a 15% dividend increase to EUR 0.635 per share, reaching 2026 targets two years ahead, pending AGM approval.

• 2024 saw significant divestments from fossil generation, with proceeds reinvested in UK/US Networks and renewables.

Financial highlights

• Revenues declined 9.3% to EUR 44,739 million, but gross margin grew 2.5% to EUR 23,876 million, with procurement costs down 20%.

• Adjusted net profit reached EUR 5,530 million (+15.1%), slightly above guidance.

• Net operating expenses improved 0.7% (adjusted), and levies decreased 7% to EUR 2,567 million.

• Net financial expenses improved by EUR 612 million to EUR -1,575 million, with cost of debt at 4.81%.

• Net debt increased to EUR 51.7 billion, reflecting ongoing investments and asset rotation.

Outlook and guidance

• 2025 net profit expected to grow mid to high single digits, based on EUR 5,530 million adjusted 2024 net profit, driven by organic network investment and full-year contributions from recent acquisitions.

• 2026 outlook supported by higher regulated asset base, completion of major projects, and full consolidation of new assets.

• Continued focus on network investments, especially in the US and UK, with EUR 41 billion planned in transmission and distribution up to 2030.

• Net debt for 2025 projected at EUR 55-56 billion, with FFO/net debt ratio stable.

• Regulatory and market conditions in core geographies expected to remain supportive, with ongoing focus on decarbonization and energy transition.