Iberdrola profit rises about 10% to 5.8 billion euros on networks, Mexico gains
Key Facts
Iberdrola said on October 21 that reported net profit reached about 5.8 billion euros in the first nine months of 2026 as its networks business expanded. The company said in its earnings statement that reported profit rose about 10% from the same period a year earlier. Adjusted net profit was 5,140.5 million euros, compared with 4,726.9 million euros in the first nine months of 2025, according to its financial report. Adjusted profit thus grew 8.8% year on year during the period, more slowly than reported profit. The adjusted profit calculation excluded net gains of about 953 million euros from the divestment of its Mexico business, which were included in reported profit.
Adjusted net profit included a positive impact of 277.6 million euros from capital allowances in Britain, according to the company's financial report. Iberdrola said in its statement that this profit grew about 13% excluding exchange-rate effects in the first nine months. Group adjusted earnings before interest, taxes, depreciation and amortisation reached 11,890.6 million euros over the same period. These earnings rose from 11,064.1 million euros in the corresponding period of 2025, posting year-on-year growth of 7.5%. By contrast, adjusted earnings before interest, taxes, depreciation and amortisation in the generation and customers business fell about 2% to 5,359 million euros, according to the earnings presentation.
The networks business led operating growth, with adjusted earnings before interest, taxes, depreciation and amortisation of about 6,430 million euros, according to the earnings presentation. That represents an increase of about 15% from the same period a year earlier, compared with the decline in the generation and customers business. The company cited new tariffs in New York and Connecticut among the factors supporting its U.S. networks performance in its investor presentation. The regulated asset base stood at about 56 billion euros at the end of September 2026, according to the official statement accompanying the results. The regulated asset base increased 14% year on year, alongside higher network earnings and increased capital spending on the business.
Iberdrola's total investment reached 10,087.2 million euros in the first nine months of 2026, according to figures in its financial report. Networks accounted for 62% of total spending, including inorganic investment, making them the main destination for investment during the period. Network investment amounted to about 6,277 million euros, according to figures the company provided in its investor earnings presentation. Investment in the business increased 28% from the same period a year earlier. The acceleration in spending coincided with growth in the regulated asset base and earnings at networks, which accounted for the largest share of group investment.
On the operational front, Iberdrola distributed 206,947 gigawatt-hours of electricity globally in the first nine months of 2026, according to its operating statement. Distributed volumes rose 5.8% from the same period a year earlier, with activity growing in the British market. Electricity distributed in Britain increased 22.8%, which the company attributed to higher demand and the consolidation of Electricity North West. Ignacio Galan said in the earnings statement that "unprecedented demand is driving an acceleration in network expansion through 2030". Alongside the results announcement, Iberdrola proposed an interim dividend of 0.275 euros per share, an increase of 8.7%, according to its official statement.
On financing, the ratio of adjusted net debt to adjusted earnings before interest, taxes, depreciation and amortisation was 3.4 times, according to the company's statement. Iberdrola said about 80% of its debt carried fixed interest rates, in details of its financing structure accompanying the nine-month results. Available liquidity stood at 23 billion euros, covering financing needs for 20 months, according to the same statement. The company raised its adjusted net profit growth forecast for the full year 2026 to at least 10% following the results for the period. It will provide further details of its plans at its Capital Markets Day scheduled for March 2027, according to the investor earnings presentation.