Spanish energy utility giant Iberdrola has reported huge profits of over €2 billion (US$2.28 billion) in the first quarter of 2025.
The company’s €2.004 billion in net profits from January through March was a 26% increase compared with Q1 2024. EBITDA was €4.642 billion, of which 50% came from operations in the US and UK, Iberdrola said.
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Q1 saw “record” investments for Iberdrola – €2.72 billion (US$3.1 billion), a 14% increase. The company also said its total shares had reached an “all-time high” of around €100 billion in market capitalisation, making it one of two energy companies to meet the threshold.
Q1’s vast profits and growth were underpinned by greater focus on Iberdola’s regulated networks and grid business and what it called “selective” investment in renewables.
Ignacio Galán, executive chairman of Iberdrola, said: “Our focus on regulated networks and selective investment in renewables in A-rated markets has continued to contribute to sustained growth in results and dividends”.
Lucrative businesses
Of its record €2.72 billion investments over Q1, over half (€1.432 billion) was invested into Iberdrola’s regulated network business. Utilities’ regulated assets are those in markets where they have a stake in the transmission and distribution networks, and thus greater control.
According to its results presentation, Iberdrola’s organic investments in networks increased by 18% compared with Q1 2024.
Of these network investments, more than two-thirds were in the US and UK, driven largely by Iberdrola’s acquisition of Electricity North West (ENW), an electricity distribution network in the UK. Moreover, the value of its regulated assets grew by 14% to €49 billion after the integration of ENW.
Some US utilities have focused their investments on specific markets or technologies, and often on regulated assets, in recent months. PV Tech Premium heard last year that US utilities were divesting their competitive market solar assets to refocus on regulated markets and network infrastructure because the latter assets are more profitable.
The UK and US markets also dominated Iberdrola’s “selective” investments in renewables. Two-thirds of the €1.064 billion invested into renewable energy was in the two markets, dominated by the East Anglia 2 and 3 offshore wind projects in the UK and the Vineyard offshore wind farms in the US.
Solar PV accounts for 21% of the utility’s investments in renewables, with the remainder taken up by offshore and onshore wind.
83% of Iberdrola’s EBITDA came from “A rating” countries with high credit scores. Like the focus on regulated and network assets, its strategic investment in developed renewable energy markets likely plays into the company’s standout profits.
The results continue the “record” investment and strong performance the company reported in 2024. Last year saw the utility invest €12 billion, with a 31% year-on-year increase in its operational solar capacity. In February, the company signed power purchase agreements (PPA) with tech and delivery giant Amazon for solar PV and wind capacity in its native Iberia.
