Iberdrola lifts 2028 profit outlook, boosts investment plan to €58 bln

Published 24/09/2025, 09:44

Investing.com -- Spanish electric utility company, Iberdrola (BME:IBE) outlined new financial targets at its capital markets day on Wednesday, flagging a larger investment plan and slightly higher profit guidance compared with analyst estimates.

The Spanish utility said it expects to invest €58 billion over 2025 to 2028 on a gross basis, with net investments of about €50 billion.

Networks will take the largest share, at around €36 billion, while renewables will account for roughly €14 billion. 

In its previous plan for 2024 to 2026, the company had outlined €41 billion in gross investments, with €21.5 billion in networks and €15.5 billion in renewables.

Iberdrola projected adjusted net profit to grow at a high single-digit compound annual rate between 2024 and 2028, reaching about €7.6 billion in 2028. 

That compares with RBC Capital Markets estimates of €7.20 billion and consensus of €7.25 billion. 

The company noted that the figure includes roughly €100 million in adjusted net income from an accounting change in its U.K. networks business.

Guidance for 2028 also includes earnings before interest, taxes, depreciation and amortization of about €18 billion, below RBC’s €18.72 billion forecast and consensus of €18.91 billion.

Iberdrola set a dividend payout ratio of 65% to 75% of earnings per share, with a dividend per share floor of €0.64. 

In its previous plan, the company guided for a similar payout ratio, leading to dividends between €0.61 and €0.66 in 2026.

The company expects regulated asset base growth to reach about €70 billion in 2028, up from €49 billion in 2024.

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