Iberdrola has reported a record investment of €17.3 billion over the last year, emphasizing its commitment to energy networks and renewable energy initiatives, especially in the United States and the United Kingdom, which collectively represented 65% of total investments in just the first quarter.
Ignacio Galán, the Executive Chairman of Iberdrola, stated, “Our focus on regulated networks and selective investment in renewables in A-rated markets has continued to contribute to sustained growth in results and dividends.”
Quarterly investments increased by 14% to €2.72 billion, with €1.432 billion directed towards energy networks, marking an 18% rise and accounting for 53% of the total investment. More than two-thirds of the network investment was concentrated in the U.S. and U.K. The regulated asset base grew by 14% to €49 billion, largely due to the integration of Electricity North West (ENW), and is projected to surpass €51 billion by the end of the year.
Selective investments in renewables rose by 7% to €1.064 billion, with two-thirds again allocated to the U.S. and U.K. Offshore wind projects made up over half of this investment, primarily in East Anglia 2 & 3 (UK) and Vineyard Wind (USA). EBITDA increased by 12% to €4.643 billion, with nearly 50% generated in the U.S. and U.K., reflecting a 20-point rise year-over-year. Notably, 83% of EBITDA was derived from countries with A-rated credit profiles.
Network operations now account for over half of total EBITDA, with results up 43% due to a larger regulated asset base. The company added 2,600 MW of renewable capacity in the past 12 months, resulting in a net profit of €2.004 billion, a 26% increase on a like-for-like basis.
Strong Financial Position
Operating cash flow rose by 11% to €3.5 billion, bolstering financial stability following the ENW acquisition. The company anticipates that offshore wind projects and network investments will further enhance cash generation in the upcoming quarters. Liquidity is currently at €20.9 billion, sufficient to meet 19 months of financial obligations without resorting to capital markets.
Confident Outlook and Shareholder Returns
A double-digit growth in net profit is expected for the full year, supported by:
– Recognition of U.S. cost adjustments already reflected in Q1.
– Continued investment in networks (+10% in regulated assets with improved rates).
– Anticipation of 4,000 MW of additional renewable capacity coming online by 2025, all with secured energy sales.
New tariffs are not expected to have a significant impact, as supply chain resilience is keeping cost increases below 1%, with over 80% of procurement sourced from local suppliers and 100% of strategic contracts for ongoing projects secured.
Source: Iberdrola
