Why invest in Iberdrola today?
Investing in Iberdrola
is profitable
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 and 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.
Strong financial results
Highlights at the end of our 2023 financial year.
bn total assets
bn EBITDA
bn net profit
earnings per share
A business model that adds value
More than 20 years ago at Iberdrola, we were pioneers in our commitment to renewable energies as a cornerstone to building a clean, reliable and intelligent business model. The transition to a carbon neutral economy by 2050 is technologically possible, economically viable and socially necessary, and our commitment is to achieve Net Zero status in all our activities by 2040.
In this process, decarbonisation is the way to create autonomy and wealth, create jobs, improve the state of the planet and protect people's health. That’s why we’re committed to spearheading the energy transition in our day-to-day business through our renewable energy, smart grid and storage facilities and the best solutions for our customers. Our strategy is structured around three key ideas:
A unique mix of businesses and geographies
We are currently world leaders in renewable energies, including offshore wind power. In addition, through our subsidiaries and investee companies, we operate in dozens of countries, mainly in Spain, the United Kingdom, the United States, Brazil and Mexico. We take into account the stability of the regulatory environment: more than 82 % of the countries in which we operate have an A credit rating.
Financial strength and sound dividend policy
Our business model is aligned with our financial strength, based on cash recovery as a key investment criterion, fixed-rate financing, long-term debt maturities, active liquidity management and high diversification, maximising the use of green financing instruments. We maintain a stable dividend policy, which proposes a safe and growing minimum dividend in line with the company's increasing results.
Business-integrated sustainability and shared value
At Iberdrola, we carry out our activities with the goal of creating sustainable value for all of our stakeholders and contributing to the achievement of the Sustainable Development Goals (SDGs): this is what we call our social dividend. That’s why we work in line with the three axes used to measure the impact and sustainability of investments: environmental, social and governance (ESG) factors.
Iberdrola’s Net Profit & dividends per share evolution 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
- BN ⁽²⁾ IBE ⁽³⁾
- DPA 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 Incom.
⁽³⁾ Iberdrola.
⁽⁴⁾ Dividend per share Iberdrola.
Source: Bloomberg
Shareholder remuneration aligned with Net Profit growth.
| Net Profit CAGR* | DPS CAGR* | |
|---|---|---|
| 5 years | 10% | 10% |
| 10 years | 6% | 7% |
| 20 years | 8% | 6% |
* Compound annual growth rate.
High profitability for our shareholders
The strength of our business model and our excellent results generate a positive impact on our shareholders’ profitability. At Iberdrola, we have been committed for years to strengthening dialogue with them and achieving their maximum involvement in the company’s most important decisions. The data confirm the positive results of this commitment:
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 euros.
The Iberdrola share has increased in value from €3.5 in 2001 to over €12.5 on August and has distributed more than €7 additional per share in dividends.
The cumulative return for investors who have reinvested their dividends exceeds 900% since 2001.
Iberdrola’s Total Shareholder Return last 10 years
Iberdrola Total Shareholder Return over the last 10 years exceeds 300% based on higher growth than American & 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.
"Huge investments, geographical diversification, our financial strength and the best team are the foundations for continuing on 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, healthy, 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 context, we have strengthened our commitments with a record Strategic Plan of €41 billion in investment between 2024 and 2026, which we will allocate to the promotion of electrification, the development of new sources of electricity demand, and the optimisation of 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 is focused on transmission lines.
Storage development
We will allocate €1.5 billion by 2026 to storage, which will allow us to reach 120 million kWh capacity through pumped storage.
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 is focused on transmission lines.
Storage development
We will allocate €1.5 billion by 2026 to storage, which will allow us to reach 120 million kWh capacity through pumped storage.
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 (Eur 4,803 M) 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
Environment (E)
We aim to reduce emissions by up to 60 g CO2/kWh by 2025, to be carbon neutral in electricity generation by 2030 and to achieve net zero status in all our activities by 2040.
01
Environment (E)
We aim to reduce emissions by up to 60 g CO2/kWh by 2025, to be carbon neutral in electricity generation by 2030 and to achieve net zero status in all our activities by 2040.
02
Social (S)
We will generate 10,000 new hires by 2026, reach 23,000 people in the International Corporate Volunteering Programme by 2030 and have more than 60 accessible customer solutions by 2026.
02
Social (S)
We will generate 10,000 new hires by 2026, reach 23,000 people in the International Corporate Volunteering Programme by 2030 and have more than 60 accessible customer solutions by 2026.
03
Governance (G)
We work to maintain our culture of ethics, transparency and good governance, to have 75 % of facilities with the Stakeholder Relations Model in place and to lead in governance, ethics and compliance rankings.
03
Governance (G)
We work to maintain our culture of ethics, transparency and good governance, to have 75 % of facilities with the Stakeholder Relations Model in place and to lead in governance, ethics and compliance rankings.
04
Finance (+F)
We aim to achieve 90 % CapEx (capital expenditure) in line with European taxonomy and to manage more than 80 % of all our funding under environmental, social and governance criteria.
04
Finance (+F)
We aim to achieve 90 % CapEx (capital expenditure) in line with European taxonomy and to manage more than 80 % of all our funding under environmental, social and governance criteria.
Financial and ESG achievements 2022-2023
Over delivery of financial and ESG targets reaffirming Iberdrola’s execution track record
Net profit 2023
- Nov 22 CMD¹
- Reported
¹ Capital Markets & ESG Day.
Finantial Ratios 2023
- Adjusted Net Debit / EBITDA
- FFO / Adjusted Net Debit
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.
