Why invest in Iberdrola today?
To invest in Iberdrola
is to invest well
At Iberdrola, we offer a sustainable and competitive business model that creates value for society as a whole. With this purpose and after more than 180 years of history, we have established ourselves as global leaders in the energy sector.
Today we are a world leader in renewable energy sources, the largest European electricity company in terms of market capitalisation, and one of the two largest in the world. We supply energy to nearly 100 million people in dozens of countries, have a diverse workforce of more than 40,000 employees, and assets in excess of €150 billion.
Solid financial results
Highlights at the end of our 2023 financial year.
total assets
EBITDA
net profit
earnings per share
A business model that adds value
More than 20 years ago now, Iberdrola was already a pioneer thanks to its commitment to renewable energies as a foundation for building a clean, reliable and intelligent business model. The transition toward a carbon-neutral economy before 2050 is technologically feasible, economically viable and socially necessary, and we have committed to reaching Net Zero status with all of our activities before 2040.
In this process, decarbonisation is the path to creating autonomy, wealth and employment, improving the health of the planet, and protecting people’s health. That is why we are committed to leading the energy transition through our daily activities, with renewable-energy installations, smart grids, energy storage and the best range of solutions for our customers. Our strategy is built around three key ideas:
A unique combination of businesses and locations
We are currently global leaders in renewable energy, particularly in offshore wind power. In the field of networks, we contribute significantly more (10 percentage points higher) than our European Union competitors. What’s more, through our subsidiaries and associated companies, we operate in dozens of countries, primarily Spain, the United Kingdom, the United States, Brazil and Mexico. We carefully consider the stability of the regulatory environment: more than 82% of the countries where we operate have an A credit rating. We also maintain a balance in supply, with approximately 85% of our 2024-2026 production already sold with guaranteed margins.
Financial Strength and robust dividend policy
Our business model is aligned with our strong financial foundations, prioritising cash recovery as a key investment criterion. This is supported by fixed-rate financing, long-term debt maturities, active liquidity management, currency hedging and broad diversification, maximising the use of green financing instruments. Our partnership model adds stability and long-term value. What’s more, we maintain a stable dividend policy, guaranteeing a secure and growing minimum dividend in line with the company's increasing results.
Business-integrated sustainability and shared value
At Iberdrola, we conduct our activities with the aim of creating sustainable value for all our stakeholders and contributing to the achievement of the Sustainable Development Goals (SDGs) – what we call our social dividend. To this end, we align our efforts with the three pillars used to measure investment impact and sustainability: environmental, social and governance factors (ESG).
Evolution of Iberdrola’s Net Profit, dividends per share and volatility
Net Profit growth above peers with lower volatility ⁽¹⁾ even during uncertain times.
- Covid-19
- Volatility ⁽¹⁾ (σ)
- Iberdrola0.07
- Peers4.7
- Ukraine-Russia conflict
- NP ⁽²⁾ IBE ⁽³⁾
- DPS IBE ⁽⁴⁾
- BN ⁽²⁾ Utility 1
- BN ⁽²⁾ Utility 2
- BN ⁽²⁾ Utility 3
- BN ⁽²⁾ Stoxx Utilities
⁽¹⁾ Calculated as standard deviation of Net Profit growth during the last 10 years.
⁽²⁾ Net profit.
⁽³⁾ Iberdrola.
⁽⁴⁾ Dividend per share Iberdrola.
Source: Bloomberg
Shareholder remuneration aligned with Net Profit growth.
| Net Profit CAGR* | Dividend per share CAGR* | |
|---|---|---|
| 5 years | 10% | 10% |
| 10 years | 6% | 7% |
| 20 years | 8% | 6% |
* Compound annual growth rate.
High returns for our shareholders
The strength of our business model and our excellent results have a positive impact on our shareholders’ returns. For years at Iberdrola, we have been committed to strengthening dialogue with our investors and ensuring their maximum involvement in the company’s most important decisions. The data confirm that this commitment has had positive results:
Iberdrola is Europe's largest utility company by market cap and one of the two largest in the world. At the end of the first nine months of 2024, we reached historic market capitalization levels, with a valuation of around €90 billion.
Iberdrola’s share price rose from €3.50 in 2001 to exceed €12.50 by August 2024, and paid out more than €7 per share in dividends.
The cumulative return for investors who have reinvested their dividends exceeds 900% since 2001.
Total return for Iberdrola shareholders over the last 10 years.
The total returns for Iberdrola shareholders over the last 10 years comes in at above 300% driven by higher growth compared to American and European peers.
- European Utilities ⁽¹⁾
- American Utilities ⁽²⁾
- Iberdrola ⁽³⁾
⁽¹⁾ Arithmetic average of European Utilities (Enel, EDP, RWE, Engie, E.ON).
⁽²⁾ Arithmetic average of American Utilities (NextEra Energy, Southern Co, Duke Energy).
⁽³⁾ Total Shareholder Return, including dividend reinvestment.
Source: Capital Markets & ESG Day, 21 March 2024.
"Our significant investments, geographic diversification, financial strength and the best team possible are the foundations for continuing our path of growth in results and dividends."
Ignacio S. Galán
Executive Chairman of Iberdrola
The market opportunity: trends and our Strategic Plan
At Iberdrola, we are working to build an efficient, sustainable and accessible energy model, placing the well-being of people and the preservation of the planet at the core of our activity. To achieve this and to anticipate this future context, we have strengthened our commitments with a record Strategic Plan involving €41 billion in investment between 2024 and 2026. This will be allocated to promoting electrification, developing new sources of electricity demand and optimising our customer portfolio.
The next Capital Market's & ESG Day, where we will update our investment outlook, will be held in the autumn of 2025.
Electrification with clean energy
More than half of our investment in renewables (€15.5 billion) will be focused on offshore wind construction projects. This is followed by onshore wind (28%) and solar (28%).
Boosting smart grids
We will devote 60% of net investment to 2026 (€21.5 billion) to networks in the US, the UK, Brazil and Spain. More than €6.5 billion of that will be allocated to transmission lines.
Storage development
We will allocate €1.5 billion to storage by 2026, enabling us to achieve a capacity of 120 million kWh through pumped storage hydropower.
Electrification with clean energy
More than half of our investment in renewables (€15.5 billion) will be focused on offshore wind construction projects. This is followed by onshore wind (28%) and solar (28%).
Boosting smart grids
We will devote 60% of net investment to 2026 (€21.5 billion) to networks in the US, the UK, Brazil and Spain. More than €6.5 billion of that will be allocated to transmission lines.
Storage development
We will allocate €1.5 billion to storage by 2026, enabling us to achieve a capacity of 120 million kWh through pumped storage hydropower.
Track record of net profit achievement vs. guidance
CAGR⁽¹⁾ of high-single-digit net profit reported since 2016, with an average improvement of more than 3% over the full-year guidance.
High-single-digit reported >3% of average improvement over what was reported
Improved expectations for 2024 to double-digit increase⁽²⁾
- Guidance anual
⁽¹⁾ CAGR (Compound Annual Growth Rate).
⁽²⁾ Reported Net Profit 2023 (€4.8bn) is the basis for guidance 2024. (Source: Results presentation FY2023).
⁽³⁾ Excluding capital gains from asset rotation.
A roadmap in line with our ESG+F commitments
Our Strategic Plan 2024–2026 also contributes to this goal of generating a positive impact on people's well-being and respect for the planet, in line with ESG factors. Here are some of our most important goals:
01
Environmental (E)
Our goal is to reduce emissions to 60g CO₂/kWh by 2025, achieve Carbon Neutrality in electricity generation by 2030, and attain Net Zero status across all our activities before 2040.
01
Environmental (E)
Our goal is to reduce emissions to 60g CO₂/kWh by 2025, achieve Carbon Neutrality in electricity generation by 2030, and attain Net Zero status across all our activities before 2040.
02
Social (S)
We will create 10,000 new jobs by 2026, engage 23,000 people in the International Corporate Volunteering Program by 2030, and offer more than 60 accessible solutions for customers by 2026.
02
Social (S)
We will create 10,000 new jobs by 2026, engage 23,000 people in the International Corporate Volunteering Program by 2030, and offer more than 60 accessible solutions for customers by 2026.
03
Governance (G)
We are committed to maintaining our culture of ethics, transparency and good governance, achieving 75% of facilities with the Stakeholder Engagement Model implemented, and leading rankings in governance, ethics and compliance.
03
Governance (G)
We are committed to maintaining our culture of ethics, transparency and good governance, achieving 75% of facilities with the Stakeholder Engagement Model implemented, and leading rankings in governance, ethics and compliance.
04
Finance (+F)
We aim to achieve 90% of CapEx (capital expenditure) aligned with the European taxonomy and manage more than 80% of all our financing under environmental, social and governance (ESG) criteria.
04
Finance (+F)
We aim to achieve 90% of CapEx (capital expenditure) aligned with the European taxonomy and manage more than 80% of all our financing under environmental, social and governance (ESG) criteria.
Financial and ESG achievements 2022-2023
The achievement of financial and ESG goals reaffirms Iberdrola's track record of execution.
Net profit 2023
- Nov 22 CMD¹
- Reported
¹ Capital Markets & ESG Day.
Financial Ratios 2023
- Adjusted Net Debt / EBITDA
- FFO / Adjusted Net Debt
² Basis points.
Asset Rotation & Partnerships
- Nov 22 CMD
- Status
ESG + F
Specific emissions g CO₂ / kWh
- 2022
- 2023
Driving innovation for a more sustainable future
Technological development can provide new and better solutions that facilitate the economy’s decarbonisation and, therefore, the energy transition. For this reason, at Iberdrola we have established ourselves as the private energy company that invests the most in R&D&I in the world, and innovation has an impact on all the businesses and activities that we do every day.
To continue to lead this drive, we will allocate close to €400 million a year to innovation and digitisation as set out in our Strategic Plan and we will continue to support start-ups, universities and research centres around the world. Our main objectives are to:
Automate 85% of our high- and medium-voltage networks.
Lead green hydrogen production to 5 kilotonnes of H2 a year.
Maintain 2,000 external cybersecurity assessments or verifications a year.
Contact
Investor Relations Office
For more information please contact investor.relations@iberdrola.es
Shareholder's Office
Shareholder's service line: 900 10 00 19.
Hours: from Monday to Friday from September to July, from 9:00 to 19:00, and from Monday to Friday in August, from 9:00 to 14:00.
Calle Tomás Redondo, 1, 28033 Madrid, Spain.
For more information please contact accionistas@iberdrola.com.
