Bankinter | This Wednesday, 24 September, Iberdrola will hold its Investor Day, or Capital Markets Day (CMD), at which it will present its new three-year strategic roadmap (2025-2028) and offer an overview of its expectations until 2031. The press is leaking some of the guidelines that will be included in the Plan. These leaks point to an annual investment of between €12 billion and €14 billion. Net profit could reach €6.4 billion in 2025 and €7.3 billion in 2028.
The networks would be the main destination for the Plan’s investments, as approximately three-quarters would be allocated to these infrastructures and would focus on the United Kingdom and the United States, followed by Brazil and Spain.
Analysis team’s view: Good news for Iberdrola, if these targets are finally confirmed on Investor Day. Our current estimates point to a net profit of €7 billion in 2028 versus €7.3 billion shown in the preliminary figures appearing in the press. Networks will account for the lion’s share of investments. These investments are necessary to advance the electrification of growing energy demand, meet decarbonisation targets, integrate renewables, improve efficiency and digitalisation, and facilitate the adoption of new technologies (storage, self-consumption, etc.). In the previous Plan, investment in networks accounted for between 50% and 60% of the total, and now it rises to over two-thirds of the total. The network business is subject to stable regulatory frameworks and allows for a predictable cash flow. In addition, the returns are very attractive. Iberdrola announced on the occasion of the recent €5 billion capital increase that the average ROE on these investments was 9.50%.
