Iberdrola posts a year of historic profits from its business in the United Kingdom and the United States.

MadridIberdrola will close the year with record profits, the company announced on Tuesday, coinciding with the presentation of its results for the first nine months of the year (January through September). Although the country's leading electricity company recorded a net profit of €5.307 billion between January and September, which represents a 3% decrease compared to the first nine months of 2024, expects adjusted net profit to exceed €6.6 billion for the full year, as reported by the company to the National Securities Market Commission (CNMV), while net income will reach €6.2 billion (not including the €389 million already charged for past electricity grid costs).

In this way, the company chaired by Ignacio Sánchez Galán has improved its forecasts for 2025, pointing to record profits, which will allow it to increase shareholder remuneration by 8.2%, with an interim dividend of up to €0.25 per share. Excluding the divestments recorded in 2024, mainly in Mexico, and deductions, Iberdrola's adjusted net profit grew by 16.6% between January and September, reaching €5,116.1 million. In 2023, Iberdrola announced that it would divest 80% of its electricity generation business in Mexico.

Gross operating profit (EBITDA), that is, earnings before taxes, interest, and amortization, amounted to €12,438.2 million through September, 4.4% more than in the same period of the previous year due to the good performance of the business linked to the electricity grid in the US and the US, the accounts for divestments in Mexico and the increase in costs in the Iberian Peninsula. However, adjusted EBITDA for the first nine months stood at €12,057 million, down 4% due to the fall in energy prices.

United Kingdom and United States

The company chaired by Ignacio Sánchez Galán reiterated that the results presented this Tuesday are supported by increased investment, the strong performance of the regulated electricity grid business (the infrastructure that allows electricity to reach homes), as well as improved regulatory frameworks in the countries in which it is investing heavily. In fact, of the €9 billion investment Iberdrola has disbursed in the first nine months of the year, more than 60% corresponds to investments made in the United Kingdom and the United States, both markets the company is targeting. Half of the investment is earmarked for the electricity grid.

With a market capitalization of around 115 billion euros, the company has become the first utility (a company that provides an essential service) in Europe, and one of the largest in the world. Regarding its financial health, net debt stood at €48.5 billion in September.

Almaraz Earrings

However, one of the pending issues that Iberdrola wants to resolve in the State is the extension of the useful life of the Almaraz nuclear power plant, in Cáceres (Extremadura), which is expected to close in November 2027. "Nuclear power plants are safe and necessary [...] to avoid supply problems and blackouts," he stated. The president of Iberdrola has stated that "there is a social demand to keep [the plants] operating." "Civil society is asking for it," assured Galán.

The company, as the owner of part of the plant, plans to meet this Thursday with the other two owner companies, Endesa and Naturgy, to finalize the formal request to the Spanish government to change the closure schedule, according to what ARA has learned from sources familiar with the negotiations. In fact, last week the three companies sent a letter to the Ministry for the Ecological Transition in which they raised their "willingness" to request an extension of the closure until 2030.