Iberdrola has unveiled the update of its 2025-2028 strategic plan, which foresees €58 billion in investments, of which 85% will be allocated to countries with an A credit rating. The roadmap prioritises electricity networks, which will account for around €37 billion, and renewables and customer businesses, which will total €21 billion.
The company estimates that the Regulated Asset Base (RAB) will rise by around 40%, reaching €70 billion by 2028. In networks, the plan focuses on the United Kingdom and the United States, which will absorb approximately 70% of the investment, with an average nominal return on equity (ROE) of about 9.5% in new projects.
In the renewables segment, Iberdrola expects to exceed 60 GW of installed capacity by 2028. Of this target, 75% is already under construction or ready to build, and approximately 85% of production will be secured by long-term contracts (CfDs and PPAs), ensuring income stability in a volatile energy price environment.
The company highlights that the 2025-2028 plan is practically already financed. According to the presentation, the financing structure relies on the capital increase already largely executed, asset rotation and new partnerships worth €13.2 billion, of which three quarters have already been executed or are at an advanced stage. Additional debt will represent only 15% of the total funds.
Financial management remains focused on maintaining investment-grade credit ratings, currently BBB+/Baa1. In addition, the shareholder remuneration policy is reaffirmed with a pay-out of between 65% and 75% of earnings per share.
The plan also includes consolidation in Brazil, where Iberdrola reinforced its control of Neoenergia following the purchase of 30.29% previously held by Previ, raising its stake to 84% of the capital. The transaction, valued at €1.88 billion, adds 725,000 km of distribution networks, over 8,000 km of transmission and service to 40 million people in the South American country.
Operationally, Iberdrola projects an average price environment for 2026-2028 of between €60 and €65/MWh in Europe and equivalent benchmarks in the UK. The company warns that rising demand will require greater investment in storage and networks, areas where it is concentrating its growth strategy.
The execution of the plan foresees an improvement in net profit of €2 billion and in EBITDA of €3 billion by 2028. The group also maintains its climate commitment, stating: “Iberdrola, S.A. is committed to making its best efforts to meet its ambition of achieving carbon neutrality for Scopes 1 and 2 by 2030”.
In its conclusions, the company reaffirms its strength and capacity to create value in a competitive global environment. “Investments of €58 billion in 2025-28, 85% in countries with an A rating,” notes the plan update. This is accompanied by confirmation of financial discipline and the dividend policy: “Reaffirming the dividend policy: 65%-75% pay-out of EPS”.
Iberdrola’s renewed strategy positions the group as one of the leaders of the global energy sector, combining growth in networks, consolidation in key markets, expansion in renewables and a solid financial structure that ensures the viability of the plan through to 2028.
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