Iberdrola Lifts 2026 Outlook as 9M Profit Rises 10% to €5.8 Billion

Iberdrola reported net profit of 5.8 billion euros for the first nine months of 2026, up 10% from the same period a year earlier, and raised its full-year earnings guidance, the Spanish utility said in its nine-month results announcement published on 21 October 2026.

Reported net profit came to 5,816 million euros, while adjusted net profit rose 9% to 5,141 million euros; excluding currency effects, adjusted net profit was up 13%, the company reported. Adjusted EBITDA increased 7% to 11,891 million euros, driven by a 15% rise in the Networks business to 6,430 million euros, reflecting a higher asset base in all countries and an increasing contribution from transmission assets. EBITDA at the Power & Customers business fell 2% to 5,359 million euros.

The company raised its 2026 outlook to adjusted net profit growth of at least 10% and set a target of maintaining that 10% average annual growth rate in adjusted net income over the next five years. Under the targets it outlined, the Regulated Asset Base will grow in all countries to exceed 90 billion euros globally by 2030, and the Power business will add 15 GW of capacity between 2025 and 2030. The company said further detail will be provided at a Capital Markets Day in March 2027.

Commenting on the results, Executive Chairman Ignacio Galán said:

“Iberdrola’s performance in the first nine months of 2026 gives us the confidence to raise our full-year outlook to at least 10% adjusted profit growth. As never before, we are leading the way globally in investing and delivering the electricity infrastructure essential for energy security and economic growth. Across all our geographies, unprecedented demand is driving accelerated grid build-out to 2030 and beyond.”

Networks and Regulated Asset Base

Networks adjusted EBITDA of 6,430 million euros accounted for 54% of group EBITDA, split across Brazil (27%), Spain (25%), the United Kingdom (24%) and the United States (24%), according to the company’s 9M 2026 results presentation. In local currencies, the company reported Networks EBITDA of 1,782.0 million US dollars in the United States, up 19.2%; 1,355.5 million pounds sterling in the United Kingdom, up 20.1%; 10,436.0 million Brazilian reais in Brazil, up 4.0%; and 1,586.1 million euros in Spain, up 18.3%.

The company attributed the segment’s growth to the RIIO-T3 transmission framework contributing in the UK since April, new distribution rates in New York and Connecticut and the NECEC transmission line, which entered commercial operation on 16 January, in the US, rate increases and higher transmission contributions in Brazil, and an improved regulatory framework in Spain.

The Regulated Asset Base reached a record 56 billion euros, up 14%, with transmission RAB up 31%. The RAB is split 33% in the UK, 28% in the US, 22% in Brazil and 17% in Spain, and the presentation indicates around 65% of the 2030 RAB will be located in the US and UK. In Brazil, Iberdrola is investing 9 billion euros to 2030 following a concession renewal and has completed a transmission investment cycle with a RAB of 4.3 billion euros that generates more than 250 million euros of annual EBITDA, the company stated. The presentation projects RAB will reach 58 billion euros by year end, up 15%.

Investment and Balance Sheet

Total investment rose 13% to 10,087 million euros, with almost 75% directed to the UK, the US and Brazil. Networks investment increased 28% to 6,277 million euros, while Power & Customers investment was 3,600 million euros. Investment in renewables totaled 3.3 billion euros: 1,211 million euros in onshore wind, 1,195 million euros in offshore wind, 447 million euros in solar PV and 404 million euros in storage and other technologies.

More than 2,300 MW of new capacity was installed in the first nine months, two-thirds of it in onshore and offshore wind and over 600 MW in the US. The release describes a year-on-year increase of 3,300 MW, and the presentation indicates a further 1,500 MW is expected in the fourth quarter. The company has installed 5.0 GW since 2025 and has 6.5 GW under construction with commercial operation dates between the fourth quarter of 2026 and 2028.

Within Power & Customers, Iberia EBITDA fell 4.6% to 2,912.8 million euros, which the company attributed to demand growth driving sales at prices fixed in 2025 while procurement costs reflected 2026 prices, alongside a negative impact from the regulated gas rate and higher ancillary services. UK EBITDA rose 8.4% to 880.1 million pounds, US EBITDA rose 4.2% to $847.7 million, and Brazil EBITDA rose 6.3% to 1,007.4 million reais. EBITDA in the rest of the world fell 11.9% to 518.2 million euros, affected by the disposal of onshore businesses in Hungary and France and by lower prices. The group produced 91 TWh of electricity, a 3% increase driven by higher demand, with 90% locally sourced and emission-free, the company reported.

Reported net profit includes a 953 million euro net capital gain from the disposal of the Mexican business, registered as discontinued operations under IFRS 5; the adjusted figure removes that gain and adds back 278 million euros of UK capital allowances. Adjusted revenues rose 8.0% to 34,405 million euros and adjusted EBIT rose 11.3% to 7,645 million euros. The net financial result was negative 1,687 million euros, compared with negative 1,163 million euros a year earlier, an increase the presentation attributes mainly to derivatives.

Adjusted net debt stood at 54.6 billion euros, up 4.4 billion euros from 50.2 billion euros at the end of 2025, an increase the company attributed to higher capital expenditure and currency appreciation. Adjusted net debt to adjusted EBITDA was 3.4x, versus 3.3x a year earlier, and adjusted funds from operations to adjusted net debt was 22.4%. Around 80% of debt carries fixed rates, or 78% excluding Brazil. Liquidity of 23 billion euros covers 20 months of financing needs, comprising 14,449 million euros of credit lines, 6,873 million euros of cash and 1,724 million euros of available financing. The company signed 6,410 million euros of new sustainable financing in the first nine months, of which 5,714 million euros was green, taking its sustainable portfolio to 71,768 million euros.

Proposed interim shareholder remuneration is 0.275 euros per share, an increase of 8.7%, with a supplementary dividend to be announced in 2027 following the annual general meeting. The calendar for the January 2027 “Iberdrola Retribución Flexible” scrip program begins with a board resolution on 20 October, with the rights trading and election period running from 12 to 25 January.