Iberdrola’s nine-month profit rises on resilient networks and decarbonisation growth

• Iberdrola’s adjusted net profit rose 16.6% to €5.12bn in the first nine months of 2025, driven by networks in the US and UK and steady renewables delivery.

Iberdrola reported a 16.6% year-on-year increase in adjusted net profit to €5.12 billion for the first nine months of 2025, crediting robust performance in its regulated networks businesses in the United States and the United Kingdom, alongside continued progress in renewables and customer solutions. The results highlight a strategy that leans on predictable, inflation-linked grid earnings while building out green generation and flexibility assets.

Networks remain Iberdrola’s ballast. Regulated returns, capex visibility, and a pipeline of grid modernisation—smart meters, digital substations, and interconnections—offset commodity volatility and weather swings. In the US and UK, frameworks that reward reliability, DER integration, and storm resilience are driving investment, with regulators increasingly valuing grid-forming capabilities, hosting capacity upgrades, and advanced protection schemes.

On the generation side, the company continued to commission wind, solar, and storage, focusing on markets with stable offtake or corporate PPA demand. Hybrid projects—PV with co-located batteries—are becoming standard in regions facing steep evening ramps, improving capture rates and curbing curtailment. Portfolio-level procurement of long-lead gear (transformers, switchgear) has helped preserve build cadence amid supply constraints.

Customer solutions are evolving into a steady contributor: energy management for commercial clients, rooftop PV and heat pumps for households, and EV charging infrastructure paired with dynamic tariffs. These offerings complement the networks business, turning demand flexibility and behind-the-meter storage into system assets that reduce peak stress and integrate more renewables.

Risks remain: permitting timelines, interconnection bottlenecks, and inflationary pressure on materials and labor. But Iberdrola’s diversified geography and capex discipline provide buffers. The company continues to recycle capital—selling minority stakes in mature assets to fund growth in grids and flexibility where returns are strongest.

The upshot: a classic “pipes and wires” anchor supporting a renewables expansion. With networks delivering predictable earnings and green assets coming online with better grid fit, Iberdrola’s earnings profile shows the advantages of scale and vertical integration in a transition year defined by volatility.