Iberdrola boosts its profit by 17% in 2024 thanks to a record investment of 17 billion

Iberdrola has presented its results to the National Securities Market Commission (CNMV), in which it demonstrates its firm commitment to the electrification of the planet as the only way to grow in energy autonomy and competitiveness. During 2024, the company has accelerated its investments to reach a
 record figure of 17 billion euros, which represents a growth of 50% more than in 2023. The United States and the United Kingdom have been the main areas of investment, with 70% of the total. 

The group headed by Ignacio Galán has allocated 12 billion euros to organic investments. Added to this figure are 5 billion euros from corporate operations of Avangrid and ENW. 

Driven by this investment effort, the group’s net profit stood at €5.612 billion in 2024, representing an increase of 17% compared to the previous year. 

The group’s gross operating profit (EBITDA) rose to €16.848 billion, 17% higher than in 2023. The company has allocated almost all of the capital gains from its divestment in fossil generation to measures that will improve results in the future.

Iberdrola currently has more than 158 billion euros in assets and a market capitalisation of around 90 billion euros, making it the leading utility in Europe and one of the three largest in the world.

A MODEL RESILIENT TO THE ECONOMIC CONTEXT 

2024 has been characterized by a historic increase in distributed energy thanks to the increase in demand in all the countries in which Iberdrola operates electricity networks. Iberdrola broke the record for distributed electricity – the energy that the company transports through its networks – with 238,164 GWh in 2024, 1.9% more than in 2023.

In this context, the company is focusing its growth on the networks business, where it has allocated 11.2 billion euros of investment in 2024. In addition to organic investments in distribution, the 54% growth in the transport area stands out, mainly in projects in the USA and the United Kingdom.

The network asset base has increased by 16% to €49 billion. 

The company has directed almost €5.5 billion of investment into the renewable business with a selective approach, which has allowed it to reach a renewable installed capacity of 44,478 MW worldwide. In addition, Iberdrola has €9.2 billion in ongoing projects that will be launched in 2025 and 2026.

The group has managed to lead the PPA market – long-term renewable energy sales – in Europe for the second consecutive year, with more than 1,250 MW signed in 2024, 38% more than in 2023.

INVOLVEMENT WITH SOCIETY

The results have been accompanied by an increase in its commitment to society in all its spheres. Iberdrola has continued to increase its purchases to reach 18 billion euros from its thousands of suppliers – with more than 75% earmarked for future growth -, giving visibility and certainty to a supply chain that supports nearly 500,000 jobs worldwide. 

In addition, it has made 6,000 new hires worldwide  in 2024 – 2,100 from ENW – bringing the company’s total to 42,200 employees.

The group continued to reduce its emissions to just 38 grams of CO2/kWh in Europe, five times less than the European industry average.

Committed to innovation as the way forward, the company has also allocated 400 million euros to investment in R&D&I, making it, for the third consecutive year, the private electricity company in the world that invests the most in innovation, according to the European Commission.

Iberdrola has been recognised as the world’s leading utility company in terms of valuation in the Dow Jones Best in Class index.

In light of these results, the Board will propose to the General Shareholders’ Meeting a supplementary remuneration of 0.404 gross euros per share, to which must be added the interim dividend of 0.231 gross euros per share paid in January, which benefits hundreds of thousands of savers who invest in Iberdrola. In this way, the company will distribute 0.635 euros per share from the 2024 results, which represents an increase of 15%.

SOLIDITY AND FORECASTS

Business growth has been accompanied by financial strength. Iberdrola’s chairman, Ignacio Galán, has also improved his forecasts for 2025. He now expects to achieve mid- to high-single-digit growth in adjusted profit for 2024, above the Strategic Plan forecast that estimated a profit of €5.3/€5.4 billion. 

The company plans to provide further details of its Strategic Plan on September 24, when it will hold its Capital Markets Day.