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Investing.com -- Iberdrola (BME:IBE), the Spanish electricity company, has confirmed its 2025 guidance of mid to high single-digit growth in net profit, excluding asset rotation gains and past cost recognition in the U.S.
The company anticipates double-digit growth when including the past cost recognition in the U.S., which had a €386 million net profit impact.
At 09:02 GMT, shares were up by 0.5%.
In the first quarter of 2025, Iberdrola reported an EBITDA of €4.643 billion, surpassing the Bloomberg consensus of €4.541bn. Net income for the quarter was €2.004bn, also exceeding the Bloomberg consensus of €1.798bn.
The Q1 results were bolstered by a €508m positive impact from the recognition of costs from the previous year in U.S. networks.
Other contributing factors include the elimination of the Spanish 1.2% extraordinary tax, which had a €157m negative impact in Q1 of 2024, and the integration of Electricity North West from March 2025, which added €60m.
Iberdrola noted that hydro reservoirs reached historical highs of approximately 9TWh at the end of April. The company’s acquisition of Electricity North West, which closed in the first quarter of 2025, increased net debt by €2.3bn. The repurchase of hybrids had an impact of €800m.
The company’s adjusted FFO was €12.399bn, a 10.4% year-on-year increase, and capital expenditure increased by 14.2% year-on-year to €2,720m. The average cost of debt was 4.98%, compared to 4.81% in FY24.
In terms of customer numbers, Spanish electricity customers stood at 10.25m, slightly down from 10.31m at FY24. UK electricity customers decreased by 39k to 2.50m, and UK gas customers decreased by 25k to 1.746m. The Spanish electricity integrated EBITDA fell by 15% year-on-year.
The company’s net debt stood at €55.685bn.