Iberdrola might be a big electric utility already, with 75% of its power generated from renewable sources, but its relevance is only set to get bigger. The contribution of wind energy to total production is on the rise, with robust growth in offshore wind production. Also, the company's planned investments are heavily tilted towards wind. Supporting the promise of renewables is the company's financial performance and prospects, particularly the healthy expected profit growth. Its good dividend yield is a positive too.
Here is how Iberdrola S.A. (IBDRY) and MYR Group (MYRG) have performed compared to their sector so far this year.
Spanish utility Iberdrola said on Wednesday its first-half reported net profit rose 22% to €4.34 billion ($4.95 billion), supported by higher investment in electricity networks in Britain, the United States and Brazil.
Iberdrola, S.A. (IBDRY) M&A Call Transcript
Iberdrola remains a buy, supported by a €58B investment plan enhancing long-term predictability and growth. IBDSF's full acquisition of Neoenergia and geographic diversification strengthen its competitive positioning and shareholder value. Dividend growth is robust, with a 30.75% five-year CAGR and a 4.11% 4Y average yield, outpacing sector medians.
Iberdrola (IBDRY) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Europe's largest utility Iberdrola posted on Wednesday a first-quarter net profit of 1.71 billion euros ($2.00 billion), largely in line with the median forecast by analysts polled by LSEG of 1.72 billion euros, after its electricity output rose 1.6%.
Spain's energy and antitrust watchdog CNMC observed anomalous behaviours at several of Iberdrola's power plants, but did not directly link them to last year's unprecedented blackout, the company's CEO for Spain said on Monday.
Iberdrola has put on hold for now the attempted sale of a minority stake in a roughly 1-gigawatt Spanish solar energy portfolio, according to two people familiar with the matter.
Iberdrola is a global renewable utility leader, with 65% of business outside Spain and ~86% of generation from renewables. Despite a premium valuation (P/E 32.4, PEG 3.99), IBDRY remains a buy due to strong regulated asset base growth and revenue visibility. IBDRY targets expanding its regulated asset base from €51B to €70B by 2028, supported by €58B in strategic investments and robust cash flow.
Iberdrola, S.A. (IBDRY) Q4 2025 Earnings Call Transcript
Iberdrola said net profit rose in 2025, driven by its networks business, and the energy company reiterated its guidance for the year ahead.