Iberdrola lifts profit guidance, raises dividend and ups investments

Iberdrola SA on Tuesday reported a slight decrease in profit over the first nine months of the year, despite a rise in revenue.

In the first nine months of 2025, the Bilbao, Spain-based electric company reported net profit of EUR5.31 billion, falling 3.0% from EUR5.47 billion.

Revenue, however, increased 2.3% to EUR33.86 billion from EUR33.12 billion.

Net operating expenses increased 36% to EUR3.89 billion from EUR2.85 billion.

Adjusted net profit, however, shot up 17% on-year to EUR5.12 billion. The figure excludes items such as capital gains from a sale of thermal generation assets in Mexico made in 2024, and the sale of smart meters in the UK in the third quarter of this year.

The company said it made EUR8.96 billion worth of investments over the first nine months of the year, a rise of 4%. It said the UK and US accounted for 60% of the investments made.

In the UK, Iberdrola owns ScottishPower. In the US, it owns Avangrid.

Looking ahead, Iberdrola expects annual net profit growth of 17% to EUR6.60 billion from EUR5.61 billion in 2024. Excluding network cost recognition in the US, net profit of over EUR6.20 billion is expected, still representing double-digit growth.

Iberdrola had previously predicted double-digit net profit growth overall, or "mid to high single-digit growth" when excluding the US hit, so that outlook has been raised.

Iberdrola announced an interim dividend of EUR0.25 per share, up 8.2% from EUR0.23.

"Iberdrola will allocate nearly EUR1.7 billion to the interim dividend alone, representing a double-digit increase over last year, as the company has increased its number of shares by 300 million following last July's capital increase," it added.