Iberdrola plans to invest €50 billion until 2028, to which it will add another €8 billion from alliances with its partners, totaling €58 billion. This represents a 40% increase over the €41 billion plan presented a year ago, as detailed this Wednesday in London during the update of its strategic plan, where it underscored its commitment to the US and UK markets. The company also anticipates investments of over €45 billion between 2029 and 2031.
Iberdrola expects to boost investment significantly in regulated grids in the countries where it anticipates greater regulatory stability: the US and the UK. In this plan, Spain is relegated to a more discreet role, although the utility emphasizes that it remains the top company on the Ibex index in terms of investment in the country.
Investment in the UK will account for 35%. 30% will go to the US, while Spain and Portugal will receive half of that, at 15%. Brazil will account for 12%. The rest of the European Union and Australia will make up 8% of the total investment.
Investment in grids will jump from approximately €21 billion projected in 2024 to €37 billion. This is divided into €25 billion for distribution grids and 12 billion euros for transmission grids.
All investment in high-voltage grids is planned outside of Spain. Regarding investment in low-voltage grids, Spain ranks fourth, with only 15%. This commitment to investing in grids outside the Iberian Peninsula comes after the CNMC (Spain’s markets and competition regulator) proposed a remuneration rate of 6.4%, which the utility considers insufficient to incentivize investment.
With these figures, Iberdrola aims to increase its net profit to €7.6 billion euros in 2028, up from €5.6 billion in 2024. Its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Am€ortization) is projected to rise from €15.1 billion in 2024 to €18 billion in 2028. The payout (percentage of profit distributed) will be set between 65% and 75%, and the dividend will be a minimum of €0.64 euros per share.
The utility promises to create 15,000 jobs by 2028 and generate a fiscal contribution of €40 billion. In what it calls the “social dividend,” it assures that it will directly and indirectly employ 500,000 people. Debt is also projected to grow, from €52 billion in 2024 to €64 billion in 2028.
