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Investing.com -- Iberdrola (BME:IBE) on Thursday reported its full-year 2024 earnings, demonstrating solid growth across key financial metrics while aligning with analyst expectations.
The renewable energy company’s FY24 EBITDA reached €15.2 billion, reflecting a 6% year-over-year increase and falling just 1% short of their estimates.
Morgan Stanley (NYSE:MS), however, reports an EBITDA of €16.8 billion, 3% ahead of market consensus, including a €1.7 billion capital gain from the Mexico disposal.
Net income figures present a mixed outlook. Iberdrola’s reported headline net income was €5.61 billion, while recurring net income (excluding gains and charges) was €5.53 billion, 2% below consensus expectations.
The company offset the €1.165 billion net income gain from Mexico in depreciation and amortization provisions, mainly in Onshore Renewables, citing delays in pipeline development in favor of better opportunities in networks.
The U.S. networks underperformed due to higher storm costs, while UK retail outperformed expectations.
By segment, the Networks business reported an FY24 EBITDA of €6.4 billion, up 7% year-over-year but 2% below Jefferies’ estimates. Strong performance in the UK and Brazil contributed to this growth.
Electricity production and customer business EBITDA reached €8.8 billion, reflecting a 2% increase year-over-year but also trailing expectations by 2%, with strong results in the U.S. and international markets outside Mexico.
Iberdrola’s forward-looking guidance indicates strong growth, with FY25 net income projected between €5.8 billion and €6 billion, representing a 5-9% year-over-year increase.
This forecast not only exceeds the market consensus of €5.76 billion but also aligns with Morgan Stanley’s €5.9 billion estimate.
The company anticipates continued growth into 2026, with net income guidance ranging from €6.1 billion to €6.6 billion, significantly surpassing the consensus estimate of €6.08 billion and prompting a 4% upward revision of the midpoint forecast.
Balance sheet figures show Iberdrola’s net debt stood at €51.7 billion at the end of 2024, 2% higher than consensus expectations of €50.6 billion.
The company has also announced a dividend per share of €0.635, exceeding consensus expectations of €0.62 by 2%, with a 73% payout ratio reflecting a 15% year-over-year increase.
Despite strong financial performance, risks remain, including regulatory changes, construction delays, and potential energy price fluctuations. However, Jefferies maintains a "buy" rating, emphasizing Iberdrola’s strong position in renewable energy and its stable network business as key growth drivers.