Iberdrola, S.A.

In the first half of 2026, reported net profit increased 22% to EUR 4,336 million, while adjusted net profit rose 8% to EUR 3,565 million. Adjusted EBITDA increased 7% to EUR 8,050 million; Networks EBITDA was EUR 4,213 million, up 13%, and Power & Customers EBITDA was EUR 3,100 million, up 1%. Adjusted revenues increased 4.2% and adjusted gross margin rose 4%, while adjusted EBIT grew 10% to EUR 5,226 million. Net debt was EUR 54 billion at June 30, FFO to adjusted debt was 22.4%, and liquidity was more than EUR 21 billion. Management reaffirmed guidance for 2026 adjusted net profit growth above 8%, and said year-end net debt is expected to be around EUR 56 billion.

Ignacio Galán emphasized that the first-half results confirm the company’s strategy of expanding in regulated Networks while also benefiting from stronger Power & Customers output. He pointed to tariff increases, higher asset bases, new frameworks such as RIIO-T3, and the full contribution of Neoenergia as key second-half supports. His tone was upbeat and confident, repeatedly saying the company is comfortable with its outlook and could have “good news after summer” if current trends continue.

Pepe Sainz said the 22% reported net profit growth and 8% adjusted net profit growth were supported by 7% adjusted EBITDA growth, with FX acting as a headwind: excluding FX, adjusted EBITDA would have grown 9% and adjusted net profit 14%. He broke out key adjustments, including the EUR 950 million capital gain from the Mexico sale excluded from adjusted net profit, and noted U.K. capital allowances and U.S. past-cost recognition effects. He also said adjusted gross margin rose 4%, net debt increased EUR 3.8 billion to EUR 54 billion mainly due to CapEx and acquisitions, debt cost excluding the real fell to 3.5%, and full-year net debt is likely to be around EUR 56 billion.

Analysts focused on the sustainability of first-half profit growth, the rationale and pricing of the Caruna acquisition, AI upside, U.S. renewable growth, rate cases, batteries versus pumped hydro, and the year-end debt outlook. Management said much of the profit momentum should continue, especially from Networks RAB growth, RIIO-T3, higher U.S. rates, Brazil, and stronger hydro and pumped storage in Iberia. On Caruna, management said the deal is accretive from day one, financed partly by Mexico divestment proceeds, and justified by stable Finnish regulation and expected net income growth of around 7% per year; on debt, CFO guided to around EUR 56 billion by year-end.