Iberdrola is a company with notable growth potential thanks to its geographical diversification, leadership in renewable energies and its solid investment strategy in regulated networks. This is detailed in a recent report by Bernstein, which analyzes the performance and prospects of this company as a key player in the global energy transition. With a focus on the development of sustainable energy infrastructure and a constantly expanding renewable capacity, Iberdrola is positioned as a benchmark in generating long-term value.
Headquartered in Spain and with operations in Europe, the United States, Latin America and Asia-Pacific, Iberdrola is an integrated giant that covers the entire electricity value chain, from generation to distribution and supply. In 2023, the company managed assets valued at 150 billion euros, It served 36 million customers and generated nearly 170 terawatt hours (TWh) of electricity. Its success is based on the ability to adapt to market changes and take advantage of opportunities in renewable energy and electrical networks.
The report highlights that Iberdrola has reoriented its strategy towards regulated networks, especially in the United Kingdom and the United States, where it plans to allocate most of its investment. With a projection of 36 billion euros in net investments between 2024 and 2026, the company expects that 60% of these resources will be allocated to networks, while 29% will go to renewable energies, with a special focus on offshore wind energy. . These decisions reflect a response to growing demand for electrification, driven by the expansion of data centers, battery factories and electric vehicles.
Iberdrola has demonstrated sustained growth in EBITDA, net profits and dividends in recent years. Between 2018 and 2024, EBITDA had a compound annual growth rate (CAGR) of 9%, while net profits and earnings per share grew 11% annually. By 2025, the company is expected to achieve an EBITDA of between 16,500 and 17,000 million euros and net profits of up to 5,800 million. This performance has been supported by solid debt management, which has remained at stable levels despite the aggressive expansion plan.
In 2023, Iberdrola had an installed renewable capacity of 42.1 gigawatts (GW), of which 50% corresponded to onshore wind farms and 30% to hydroelectric plants. The report highlights the company’s commitment to offshore wind energy, a key segment for its future growth. The company plans to add 9 GW of renewable capacity by 2026, with significant investments in projects in the United States, the United Kingdom and Iberia.
Strategic transformations
Iberdrola’s history in strategic acquisitions, such as Scottish Power in 2007 and Energy East in 2008, has been key to its internationalization. More recently, The purchase of Electricity North West in 2024 expanded its presence in the United Kingdom. These transactions have diversified its revenue base and reduced its dependence on the Spanish market, which now represents 31% of its projected EBITDA for 2026.
Despite its achievements, Iberdrola faces challenges such as competition in regulated markets, the volatility of energy prices and regulatory uncertainties in some regions. However, Bernstein’s report highlights that the company is well positioned to capitalize on the growing demand for sustainable energythanks to its solid financial structure, its leadership in renewables and its commitment to innovation.
Iberdrola presents itself as a «long-distance runner» in the race towards the global energy transition, says Bernstein. Its ability to combine a diversified strategy, sustainable investments and an innovative approach allows it to not only stay relevant in a constantly evolving sector, but lead it. Its growth potential not only benefits its shareholders, but also the development of a cleaner and more efficient energy future.