Iberdrola's first quarter net profit beats expectations

Iberdrola, Europe's biggest utility, posted a net profit for the first quarter of 2 billion euro ($2.27 billion), exceeding market expectations.

The company's net profit was lower than last year when it reported 2.76 billion euros, which was the amount expected by LSEG analysts.

Iberdrola stated that the new tariffs proposed by the U.S. have had "minimal" impacts thanks to its supply-chain management.

The company reported that, excluding the impact from the asset sale in 2017, its earnings before taxes, depreciation, and amortization (EBITDA), in the third quarter, grew 12% to 4,64 billion euros. This was due to the fact that increased production in areas such as Iberia and the United States partially offsets the normalisation in margins for Britain and Iberia.

Iberdrola said that its free cash flow increased by 11%, to 3.5 billion Euros.

The utility reaffirmed its 2025 guidance for net profit growth at "mid-to-high single-digit", excluding the positive effect of past cost recognitions in the U.S., and stated that it would achieve double-digit growth when it included this impact.

(source: Reuters)