Iberdrola sees higher earnings after network business boosts 2025 results (updated)

Iberdrola SA

25/02/2026 07:43

Iberdrola targets 2026 adjusted profit of over 6.6 billion euros Power networks business boosted results

Final two turbines at Vineyard Wind 1 project to be installed in coming days, CEO said

Adds chairman, CEO comments in paragraphs 1, 4, 8-10

By Pietro Lombardi

MADRID, Feb 25 (Reuters) - Europe's largest utility Iberdrola IBE.MC expects its business of building and upgrading power networks, particularly in Britain and the U.S., to lift earnings this year after it helped drive a 10% rise in 2025 adjusted net profit.

The Spanish company is benefitting from its strategic shift towards the more regulated power grids business and plans to invest over 100 billion euros through 2031 to build on this.

Results are progressing ahead of plan, the company said. It is now targeting adjusted net profit - which excludes one-offs - of more than 6.6 billion euros ($7.8 billion) this year and more than 7.6 billion euros by 2028.

The company is "in the best position to exceed" previous 2028 guidance of around 7.6 billion euros after a "transformational 2025," Executive Chairman Ignacio Galan told analysts on a call.

US WIND PROJECT

"Its 2026 guide is slightly above consensus, supported by the record high hydro reserves," RBC analyst Fernando Garcia said in a note. "For 2028, Iberdrola is now pointing to over 7.6 billion euros, which is encouraging given the declining trend in power prices and negative impact of FX."

Iberdrola posted an adjusted net profit of 6.23 billion euros in 2025, up more than 10% on the year and in line with its guidance.

A strong performance in its power grid operations offset lower earnings in its division that includes renewable power, which was hit by costs of around 177 million euros tied to the operation of the Spanish power system after an April 28 blackout and by lower power prices for renewables in Britain and Spain.

Last year's results include fourth‑quarter charges of 464 million euros to adjust the value of its renewable pipeline in several countries, Galan said.

In coming days, the company will install the final two turbines at its 806-megawatt Vineyard Wind 1 offshore wind project in Massachusetts, reaching the planned 62, CEO Pedro Azagra said. The project is already selling electricity.

In late January, a federal judge allowed Vineyard Wind to resume work on the project, which President Donald Trump's administration had halted along with others due to national security concerns.

Iberdrola proposed a dividend of 0.68 euros a share for 2025, a 6.3% increase on the year.

($1 = 0.8472 euros)

 (Reporting by Pietro Lombardi; Editing by David Latona and Mark Potter)

 ((Pietro.Lombardi@thomsonreuters.com;))