Iberdrola raises its 2025 forecast after exceeding expectations

Iberdrola, Europe's biggest utility, expects to grow its net profit by a single digit percentage this year. This is after the increased earnings of its network business helped push 2024 profits above analyst expectations.

Iberdrola's performance is better than what it had predicted in its strategy for 2026. This is a clear sign that the company is achieving results from its shift to building and upgrading grids, and taking a more selective approach towards renewable energy.

The company can increase its predictable return by investing in expanding its network assets. The network business of the company benefited last year from increased tariffs in Britain and Brazil.

In 2024, the net profit reached 5.61 billion euro ($5.87 billion), also due to the sale of certain assets. This represents a 17 percent increase over the 4.8 billion euro it reported in 2023.

The median forecast of the analysts polled at LSEG was 5,51 billion euros.

The company invested 17 billion euros in 2017, 70% of that amount was spent on the United States and Britain which are its two most important markets.

This includes approximately 5 billion euros to acquire British power network Electricity North West and any stakes in Avangrid, a U.S. energy firm that it doesn't already own.

Iberdrola has proposed a dividend per share of 0.6335 euros, which is a 15% rise on the results for 2024.

The profit for 2024 has already exceeded the initial forecast of 2025.

In a press release, Executive Chairman Ignacio Galan stated that "a strengthened business profile and improved market fundamentals contribute to structural improvements in our outlook for the years 2025 and beyond."

Iberdrola's next Capital Markets Day will be held on September 24, 2019.

(source: Reuters)