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Reported Net Profit: EUR6,285 million, up 12%.

Adjusted Net Profit: EUR3,231 million, increased by 10.3%.

Adjusted EBITDA: EUR15,684 million, up 3%.

Total Investment: EUR14,460 million, with two-thirds allocated to transmission and distribution networks.

Net Debt: Reduced by EUR1.5 billion to EUR50.2 billion.

Operating Cash Flow: Increased by 8.2% to EUR12,811 million.

Dividend Proposal: EUR0.68 per share.

Regulated Asset Base Growth: 12% increase to almost EUR51 billion.

New Gigawatts in Operation: Added 2.7 gigawatts, with 4.7 gigawatts under construction.

Networks Adjusted EBITDA Growth: 21% increase.

Power and Customer EBITDA: Fell by 10% due to lower market prices.

UK and US Investment: Contributed 60% of total investment.

FFO to Adjusted Net Debt Ratio: Improved to 25.5%.

Release Date: February 25, 2026

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

Positive Points

Iberdrola SA (IBDRY) reported a 12% increase in net profit for 2025, reaching EUR6,285 million.

Adjusted EBITDA rose to EUR15,684 million, with a significant 21% increase in networks.

The company achieved a reduction in net debt by EUR1.5 billion, driven by an 8.2% increase in operating cash flow.

Iberdrola SA (IBDRY) proposed a total dividend of EUR0.68 per share, reflecting a 6.8% year-on-year growth.

The company expanded its regulated asset base by 12% to EUR51 billion, with significant investments in transmission and distribution networks.

Negative Points

Renewable power and customer EBITDA fell by 10% due to lower market prices and increased operational costs in Spain.

The company faced nonrecurring ancillary service costs in its power business, impacting financial performance.

Iberdrola SA (IBDRY) experienced a decrease in EBITDA from its power division, attributed to lower volumes and prices.

The company had to adjust the value of its renewable pipeline, resulting in EUR464 million in noncash charges.

Net financial costs increased by EUR288 million, primarily due to higher debt-related expenses.

Q & A Highlights

Q: Can you expand on the main elements driving the increase in net profit? A: Jose Galan, Executive Chairman, explained that the growth in net profit is driven by several factors, including the consolidation of Electricity Northwest and Neoenergia, new distribution frameworks like RIIO-T3 in the UK, and interconnections between Canada and Massachusetts. Additionally, the completion of transmission projects in Brazil and the contribution from new installed power capacity are significant contributors. The company also benefits from record hydro reserves and controlled financial expenses, leading to a confident outlook for achieving more than EUR6.6 billion in net profit this year.

Story Continues

Q: What are the nonrecurring impacts affecting the 2025 EBITDA and net profit? A: Jose Sainz Armada, CFO, noted that the 2025 EBITDA was impacted by a capital gain from the sale of smart meters in the UK, which was adjusted by EUR464 million in write-offs in the renewable pipeline. Additionally, there were provisions of EUR460 million due to adjustments in the value of the renewable pipeline across different geographies. These adjustments were made to align reported and adjusted figures.

Q: How do recent regulatory developments in Spain and the UK compare with the assumptions in your strategic plan? A: Jose Galan highlighted that in Spain, the company is adapting to regulatory signals by adjusting operations and investments. In the UK, the RIIO-T3 framework is transformational, with significant growth expected in transmission investments. The UK regulator has recognized the need for accelerated transmission line construction, which will significantly increase the regulated asset base.

Q: Could you provide an update on the status of the Vineyard Wind 1 project? A: Jose Galan confirmed that the Vineyard Wind 1 project is nearly complete, with over 60 of the 62 turbines installed and operational. The project is on track, with the majority of turbines already exporting electricity.

Q: How is your customer base evolving in Spain, particularly in terms of churn rate and portfolio quality? A: Pedro Azagra Blazquez, CEO, stated that Iberdrola remains the market leader in energy supply and customer numbers in Spain. The company has a strong customer retention rate, with a churn rate lower than competitors, especially new market entrants. The margin per customer is also growing.

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