Iberdrola S.A. has announced it will pay an interim dividend of €0.25 per share in January for the 2025 fiscal year, amounting to approximately €1.7bn ($1.8bn). This represents an 8.2% increase compared to last year’s interim dividend of €0.23 per share. The rise aligns with the Spanish group’s dividend policy, which has been in place for more than two decades.
Increase supported by capital raise
The dividend hike follows the issuance of 300 million new shares after the July capital increase. This move allowed Iberdrola to expand its shareholder base while maintaining a rising payout level. The dividend will be distributed under the company’s flexible remuneration scheme, offering three options to shareholders: receive new shares, collect the dividend in cash, or sell their rights on the market. These options can be combined according to individual preferences.
Improved financial performance driven by network operations
The group also reported stronger financial results, supported by significant growth in its Networks business in the United Kingdom and the United States. Total investment reached €9bn ($9.5bn), with over 60% allocated to these two markets. The regulated asset base of the Networks division now stands at €49.3bn ($52bn), contributing to a 26% increase in operating profit.
Improved cash flow and reduced debt
Performance in the Networks segment also led to a 10% increase in operating cash flow, reaching €9.7bn ($10.3bn). Meanwhile, Iberdrola’s net debt fell by €3.2bn to €48.5bn ($51.5bn), supported by asset rotations and strategic partnerships totalling €8bn ($8.5bn). The company now holds liquidity of over €23bn ($24.4bn), equivalent to 25 months of financing needs.
Upgraded 2025 outlook despite pressure on other segments
Despite an 11% decline in EBITDA (earnings before interest, taxes, depreciation and amortisation) in the Renewables and Retail segments, driven by higher service costs in Iberia and asset sales in Mexico, Iberdrola now forecasts adjusted net profit of €6.6bn ($7bn) for fiscal 2025. Even excluding €389mn in network cost recoveries already collected in the United States, net profit is expected to exceed €6.2bn ($6.6bn).
