Iberdrola reported net profit rose 10% to €5.816 billion in the first nine months of 2026 as the company raised its full-year adjusted profit growth outlook to more than 10%. Record investment of €10.1 billion helped expand its regulated asset base.

Key Takeaways

  • Nine-month adjusted net profit rose 9% to €5.141 billion.
  • Networks EBITDA increased 15%, while Power & Customers EBITDA declined 2%.
  • Iberdrola raised its full-year profit growth guidance and approved an 8.7% interim dividend increase.

Table of Contents

Iberdrola earnings outlook benefits from network expansion

The upgraded forecast calls for more than 10% growth in adjusted net profit for full-year 2026. Iberdrola also targets approximately 10% average annual adjusted net profit growth over the next five years.

Executive Chairman Jose Galan attributed the stronger outlook to a growing regulated asset base and higher rates across its markets. He also pointed to completion of the SENC transmission project and transmission lines in Brazil, which he said would contribute an additional €250 million annually.

The company expects to add another 1.5 gigawatts of capacity before year-end. It brought 2,300 megawatts into operation between January and September.

Record spending lifts regulated assets

Investment increased 13% to €10.1 billion in the first nine months, with 75% directed to the UK, US and Brazil. Spending over the preceding 12 months totaled €15.5 billion.

The regulated asset base expanded 14% to €56 billion. Transmission assets grew 31% to €17 billion, while distribution assets increased 8% to nearly €40 billion.

Networks EBITDA rose 15% to €6.43 billion, with increases of 20% in the UK, 19% in the US, 18% in Spain and 4% in Brazil, measured in their respective reporting currencies.

Galan cited higher UK transmission contributions, higher rates in New York and Connecticut, increased Brazilian distribution revenue and recognition of operating-expense allowances from previous years in Spain.

Procurement and financing costs weigh on results

Power & Customers EBITDA fell 2% to €5.4 billion amid higher electricity procurement costs against sales priced in 2025, lower renewable production in Iberia and higher costs in regulated gas tariffs.

Group procurement costs increased 12.3%, reflecting higher purchase volumes and prices in the third quarter. Adjusted net operating expenses nevertheless declined 1% year over year, or remained flat excluding currency effects.

Net financial results deteriorated by €524 million to negative €1.7 billion, mainly because of derivatives and foreign-exchange hedging impacts, alongside a 22-basis-point increase in debt cost.

Galan said renewed energy contracts were reflecting higher prices, which he expects to benefit margins from 2027. That improvement remains an expectation rather than a completed result.

Dividend rises as Finland acquisition awaits approvals

The board approved an 8.7% increase in the interim dividend to €0.275 per share. Net debt stood at €54.6 billion, up €600 million during the quarter, with net debt-to-EBITDA at 3.4 times.

The planned acquisition of Karuna in Finland was progressing as expected. Approvals were anticipated by the end of 2026, with closing expected in early 2027. Management described the transaction as accretive from its first year.

Conclusion

Network growth underpinned Iberdrola’s higher profit outlook and dividend increase. Higher procurement and financing costs remained offsets, while further capacity additions and the Finland acquisition were still ahead.

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