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Net Profit: Reported net profit increased by 22% to EUR3,336 million; adjusted net profit up 8% to EUR3,565 million.

Adjusted EBITDA: Increased by 7% to more than EUR8 billion.

Investment: Rose by 24% to more than EUR7 billion, with 72% allocated to the UK, the US, and Brazil.

Regulated Asset Base: Increased by 11% to EUR55 billion.

Network Adjusted EBITDA: Reached EUR4.2 billion, up 13%.

Power & Customers Adjusted EBITDA: EUR3,800 million, up 1% year-on-year.

UK EBITDA: Rose by 14% due to higher transmission contributions and increased production.

US EBIT: Increased by 6%, excluding one-off impacts.

Brazil EBITDA: Grew by 90% due to tariff increases and new transmission lines.

Spain EBITDA: Up by 2%, supported by strong hydro output.

FX Impact: Negative impact of EUR106 million due to currency depreciation.

FFO to Adjusted Net Debt Ratio: 22.4%.

Liquidity: More than EUR21 billion.

Dividend: Approved dividend per share of EUR0.685, with a total dividend payment of EUR4.5 billion.

Release Date: July 22, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Iberdrola SA (IBDRY) reported a 22% increase in net profit, reaching EUR3,336 million, and an 8% rise in adjusted net profit to EUR3,565 million, reflecting strong operating performance.

Adjusted EBITDA rose by 7% to more than EUR8 billion, driven by a 13% increase in networks due to tariff hikes and higher asset acquisitions across all geographies.

Investment surged by 24% to over EUR7 billion, with significant allocations to the UK, US, and Brazil, including the acquisition of Neoenergia minorities.

The acquisition of Caruna network in Finland is expected to be accretive from day one, with a projected 7% annual growth in net income due to additional investments.

Iberdrola SA (IBDRY) maintains a strong financial profile with an FFO to adjusted net debt ratio of 22.4% and liquidity exceeding EUR21 billion, supporting its BBB plus rating.

Negative Points

The depreciation of the dollar and the pound against the euro negatively impacted operating results by EUR106 million.

Net financial results were adversely affected by negative derivative impacts and FX hedges, leading to a EUR508 million increase in financial costs.

The sale of onshore activities in Hungary and France, along with ancillary service costs in Portugal, negatively impacted EBITDA in other European countries and Australia.

The net debt increased by EUR3.8 billion to EUR54 billion, driven by higher replacement costs and currency appreciation.

The retail business in Spain faced challenges due to additional costs from reinforced system operations and regulated gas service impacts.

Q & A Highlights

Q: Could you walk us through the main drivers behind net profit growth in the first half of 2026? And how much of that performance is sustainable for the rest of the year? A: The main drivers include a higher regulated asset base (RAB) in all countries, strong performance in the UK, US, and Brazil, and increased contributions from transmission and distribution. In the UK, the RIIO-T3 framework and in the US, the NECEC interconnection have been significant contributors. Additionally, strong hydro production in Iberia, especially from pumped storage, and the acquisition of Neoenergia have positively impacted results. We expect these trends to continue throughout the year. (Ignacio Galan, Executive Chairman)

Q: What gives you confidence when reaffirming your 2030 net profit guidance, and what are the key operational drivers for the second half? A: We expect positive dynamics from the second quarter to continue, driven by an increasing regulated base, new frameworks with better rates, and additional contributions from Neoenergia. In Power, we have installed significant capacity and expect further additions before year-end. We also anticipate improved FX dynamics and operational efficiencies. These factors support our confidence in achieving more than 8% growth in net profit for 2026. (Ignacio Galan, Executive Chairman)

Q: Could you comment on the strategic rationale for entering Finland with the Caruna acquisition and the expected value creation? A: The acquisition aligns with our strategy of investing in regulated networks, similar to past acquisitions in the UK, US, and Brazil. We are financing this transaction with funds from the sale of our thermal generation in Mexico, transitioning to a regulated network operation. The transaction is expected to be accretive from day one, with a projected 7% annual increase in net profit due to a predictable regulatory framework and investment plan up to 2031. (Ignacio Galan, Executive Chairman)

Q: Can you provide an update on your artificial intelligence initiatives and quantify the expected impact over time? A: We are progressing with around 300 AI projects in production or final development, with another 150 in progress. We are training over 4,000 people, and we expect the value of these initiatives to be measured in hundreds of millions, with visible impacts in the coming months. (Ignacio Galan, Executive Chairman)

Q: How do you balance the need for grid investments with affordability concerning the US and Europe? A: The key is ensuring availability and reliability of electricity, which requires robust grid investments. To reduce electricity prices, reducing taxes and charges on electricity is crucial, as recommended by the European Commission and recently implemented by the UK government. This approach supports electrification and ensures a reliable grid for 24/7 service. (Ignacio Galan, Executive Chairman)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.