Iberdrola raises 2026 adjusted profit growth forecast to at least 10%
Key Facts
Iberdrola raised its forecast for adjusted net profit growth in 2026 to at least 10% as it reported results for the first nine months of the year showing higher earnings and an expansion in its networks business. Executive Chairman Ignacio Galan said the company was targeting "adjusted profit growth of at least 10%", raising the target announced with its first-half results. The group had reaffirmed its forecast at that time for adjusted net profit growth "comfortably above 8%" for the year, according to its statement on those results. Reported net profit in the first nine months reached about 5.8 billion euros, up nearly 10% year on year, according to the company's statement. The higher annual target coincided with earnings growth in networks, with the company citing an expanding asset base as one driver of the business's improved performance.
On an adjusted basis, the group posted net profit of 5141 million euros in the first nine months of 2026, according to the detailed comparison in its results presentation. Adjusted net profit in the corresponding period of 2025 was about 4727 million euros, bringing the annual increase to 8.8%, according to the same presentation. Adjusted earnings before interest, taxes, depreciation and amortisation rose to 11891 million euros from 11064 million euros a year earlier, an increase of 7.5%. Networks led growth in this measure across the segments, with adjusted operating earnings rising about 15% to 6430 million euros, according to the company's disclosure. By contrast, operating earnings in the generation and customers segment fell about 2% to around 5.4 billion euros during the period, diverging from the improving performance of networks.
Earnings growth was accompanied by higher capital spending, with Iberdrola saying total investment reached 10087 million euros in the first nine months of 2026. That represents a 13% increase year on year, according to the results statement, which linked the improvement in net profit to record investment during the period. Within that total, the group increased investment in networks to 6277 million euros, up 28% year on year, outpacing investment growth across the group. Networks thus accounted for 62% of total investment, taking the largest share of the spending the company announced for the first nine months. This investment focus coincided with an expansion in the networks' regulated asset base, which also recorded growth at the end of September, according to the same disclosure.
The networks' regulated asset base reached about 56000 million euros at the end of September 2026, an increase of 14%, according to figures Iberdrola released with its results. The company attributed part of the earnings growth in this business to an "expanding asset base", according to the results presentation outlining the drivers of networks' operating performance. In the United Kingdom, the electricity distribution business recorded an increase in volumes distributed during the first nine months of the year, according to the group's energy balance statement. Electricity distributed there grew 22.8%, a development the company attributed to higher demand and the integration of distributor Electricity North West. Iberdrola cited both factors in explaining growth in its British distribution business, which included the contribution from the Manchester-based distributor.
In generation, Iberdrola's total electricity output reached 90560 gigawatt-hours in the first nine months of 2026, according to the energy balance statement. Output increased 3% year on year, alongside the expansion in generating capacity the group announced over the preceding period. The company added 3300 megawatts of generating capacity over the twelve months ended September 2026, according to its statement on the nine-month results. The increase in electricity output and expansion in installed capacity came during a period of declining operating earnings in the generation and customers segment, according to the financial results presentation. Growth in generation volumes thus coincided with lower segment earnings, while networks' contribution to the group's operating performance increased in the first nine months.
On financing and shareholder returns, Iberdrola announced liquidity of 23 billion euros when presenting its results for the first nine months of 2026, according to the company's statement. The group said this liquidity covered financing needs for 20 months, while fixed-rate debt accounted for about 80% of its total debt. The company also proposed an interim dividend of 0.275 euros per share as part of the results announcement that included the higher annual earnings forecast. The proposed interim dividend represents an increase of 8.7%, according to Iberdrola's disclosure on shareholder remuneration, alongside the announcement of earnings and investment figures for the period. The group is scheduled to present further details on its targets and investments at its Capital Markets Day in March 2027, the next date it has announced for outlining these plans.