Iberdrola's earnings are higher after the network business boosts results for 2025

Iberdrola, Europe's largest utility, expects its business of building and updating?power?networks in Britain and America to boost earnings this year, after it drove a 10% increase in 2025 adjusted Net Profit.

The Spanish company will benefit from its strategic shift to the more regulated business of power grids and plans to spend over 100 billion Euros through 2031 in order to build on that.

The company stated that results are progressing ahead of schedule. The company now targets an adjusted net profit of more than 6.6 billion euro ($7.8billion) this year, and more than 7 billion euro by 2028.

Ignacio Galan, Executive Chairman of the company, told analysts in a conference call that after a "transformational" 2025 it is "in a position to surpass" its previous guidance for 2028. This was around 7,6 billion euros.

US WIND PROJECT

Fernando Garcia, an analyst at RBC, said in a note that "Iberdrola's 2026 guidance is slightly above the consensus. This is supported by its record-high hydro?reserves." Iberdrola now points to over 7,6 billion euros for 2028. This is encouraging, given the decline in power prices and the negative impact of foreign exchange.

Iberdrola reported a net profit adjusted of 6.23 billion euro in 2025. This is up by more than 10% from the previous year and in line its guidance.

The strong performance of its power grid operations offset lower earnings for its renewable energy division, which were hit by costs of 177 million euro tied to the operation the Spanish power system after a blackout on April 28, and lower prices of renewable energy in Britain and Spain.

Galan stated that the fourth quarter results of last year included charges of 464 millions euros for adjusting the value of its Renewable Pipeline in multiple countries.

Pedro Azagra, CEO of the company, said that in the coming days, it will install two more turbines on its 806 megawatt Vineyard Wind 1 offshore wind farm in Massachusetts. This brings the total to 62. The project has already started selling electricity.

A federal judge in late January allowed Vineyard Wind to resume the work on this project. The Trump administration and others had stopped it due to concerns about national security.

Iberdrola has proposed a 2025 dividend of 0.68 Euros per share, which is a 6.3% rise on last year.

(source: Reuters)