Iberdrola reported that 2025 was one of the strongest years in its history, driven mainly by record investment in transmission and distribution networks in the United States and the United Kingdom. According to the company, these two markets will remain its primary engines of growth over the coming years. The company’s reported net profit increased by 12 per cent, reaching €6.285 billion. This figure includes non-cash adjustments related to renewable project development, worth €464 million in the final quarter of 2025. Without these charges, reported net profit would have amounted to €6.749 billion. Adjusted net profit, which excludes capital gains, also saw a 10 per cent increase.
Adjusted EBITDA rose to €15.68 billion, up 3 per cent. Network operations recorded a significant 21 per cent increase thanks to an expanded regulated asset base and improved tariff frameworks, while earnings from the power business fell by 10 per cent due to one-off costs required to reinforce system operation in Iberia and the impact of lower market prices. Total investment for the year reached €14.46 billion, with 60 per cent directed to network projects in the U.S. and the UK. Overall, 62 per cent of total capital spending went into Networks, where organic investment grew 13 per cent and contributed to expanding the regulated asset base to €51 billion. During the year, the company added 2,710 MW of new capacity, with a further 4,679 MW under construction and an additional project pipeline of 9,000 MW expected by 2028.
Iberdrola also strengthened its financial position. Adjusted net debt fell by €1.5 billion, ending the year at €50.2 billion. Operating cash flow increased by 8 per cent to €12.811 billion, while dividend payments rose 12 per cent to €4.5 billion. The company announced a dividend proposal of €0.68 per share. The company also reported a record “social dividend”. Purchases from suppliers totalled €13.2 billion, supporting around 500,000 jobs. Iberdrola contributed €10.4 billion in taxes worldwide and hired 4,500 new employees in 2025, raising its global workforce to 45,400 people.
Reflecting on the year, Ignacio Galán said that the company recognised early on, more than two decades ago, the central role electricity infrastructure would play in meeting global demand. He emphasised that the company’s diversified geographic strategy, access to financing and technological capabilities continue to underpin long-term growth in both earnings and dividends. Across its core markets, the company reported substantial progress. Its regulated asset base grew by 12 per cent to €51 billion.
In the UK, a new transmission framework was established through 2031, and Electricity North West was fully integrated. In the U.S., a major interconnection project with Canada became fully operational. In Brazil, regulators approved the renewal of distribution concessions for an additional 30 years, and the company secured its first transmission award in Australia. Iberdrola also advanced its strategy of strengthening ownership in affiliates by acquiring minority stakes in Avangrid in the U.S. and Neoenergia in Brazil.
The company adopted a selective approach to power generation and customer businesses, investing €5.26 billion in a diversified portfolio across different technologies and regions. In 2025, it added 2,710 MW of new capacity, supported by another 4,679 MW under construction and more than 9 GW projected through 2028. All electricity production for 2026 is already contracted, and Iberdrola remains the largest seller of long-term power purchase agreements in Europe.
Financial indicators also improved significantly. Operating cash flow reached €12.81 billion, while net debt declined to €50.2 billion. The company raised €16.7 billion in new financing on competitive terms, achieved stronger financial ratios, and maintained liquidity in excess of €21 billion—equivalent to covering more than two years of financing needs. Shareholders received €4.5 billion in dividends, including a proposed final payment of €0.427 per share to be added to the €0.253 per share interim dividend distributed earlier.
In terms of sustainability and social impact, the company made major contributions throughout its supply chain and continued strengthening its environmental performance. Its European operations produced just 41 grams of CO₂ per kilowatt-hour, significantly lower than the EU industry average. Iberdrola was ranked the top utility in the Dow Jones Sustainability Indices and allocated €425 million to research, development and innovation, maintaining its position as the world’s leading private electricity company in R+D+I investment.
Looking ahead, Iberdrola expects steady and predictable growth supported by accelerating electrification. The company forecasts adjusted net profit above €6.6 billion in 2026, rising to more than €7.6 billion by 2028. With more than 25 years of uninterrupted growth, the company now holds a market capitalisation exceeding €135 billion, twelve times its value at the start of 2001. Over the same period, it has distributed €47 billion in dividends, expanded its total assets to €161 billion and increased installed capacity to 58 GW, representing an increase of 42,000 MW since 2001.
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