Iberdrola S.A.

Business Description

Iberdrola is one of the world's largest electric utility companies and a global leader in renewable energy. Headquartered in Spain, it operates across the entire energy value chain, including generation, transmission, distribution, and retail, with a strategic focus on regulated networks and renewable investments in high-credit-rating markets.

Key Financials

• Adjusted EBITDA (Q1 2026): EUR 4.1B (+2.4% Y/Y).
• Adjusted Net Profit (Q1 2026): EUR 1.87B (+11.4% Y/Y).
• Regulated Asset Base (RAB): EUR 53B (+8% Y/Y).
• Credit Profile: 84% of EBITDA generated in countries with A-credit ratings or above.

Competitive Moat

• Global Network Leader: Massive regulated asset base in stable markets (U.K., U.S., Brazil, Spain), providing predictable cash flows.
• Renewable Scale: One of the world's largest renewable capacities, totaling 46,741 MW (including offshore wind).
• Vertical Integration: Balanced mix of regulated grids and renewable generation provides stability and growth potential.
• Credit Quality: Strong focus on A-rated jurisdictions enhances earnings predictability and lowers the cost of capital.

Recent Developments

• 2026-04-29: Solid Q1 2026 results reported. Strong growth in Networks (+8.6%) offset margin compression in the Power & Customers segment.
• 2026-Q1: Full consolidation of Electricity North West (ENW) in the U.K. contributed significantly to EBITDA growth (+26.4%).
• 2026-Q1: Offshore wind production increased by 42% Y/Y.

Investment Risks / Red Flags

• ⚠️ Margin Compression: The Power & Customers segment faces headwinds from lower electricity prices and higher ancillary service costs in Iberia.
• ⚠️ Regulatory Risk: Dependence on regulatory frameworks for network returns across multiple jurisdictions.
• ⚠️ Market Volatility: Exposure to fluctuating wholesale electricity prices in non-regulated segments.
• ⚠️ Resource Risk: Renewable generation (wind, hydro) is subject to weather-dependent variability.

H-Score Signals

• No data available in the current H-Score dataset.

Theme Exposure

• [[Renewable Energy]]: A global pure-play leader in wind (onshore and offshore) and solar.
• [[Electrification]]: Key beneficiary of the transition to electric heating and transportation through its grid investments.
• [[Infrastructure]]: Massive owner of critical energy transmission and distribution networks.

Related

• [[Utilities]] (Sector)
• [[Electric Utilities]] (Sub-Industry)