Iberdrola raised its 2026 profit outlook for the second time this year and projected faster earnings growth through the end of the decade as investment in electricity networks strengthens the utility’s financial performance.
The Spanish company now expects adjusted net profit to increase by at least 10% this year, compared with previous guidance for growth above 8%.
Iberdrola also expects adjusted net profit to grow at an average annual rate of approximately 10% over the next five years.
Reported net profit for the first nine months of 2026 increased 10% to €5.8 billion.
Excluding gains associated with the sale of Mexican assets, adjusted net profit rose 9% to approximately €5.1 billion.
The company’s strategy increasingly centers on regulated electricity networks in markets including Britain and the United States.
Iberdrola expects the value of its regulated grid assets to exceed €90 billion by the end of the decade, compared with roughly €56 billion currently.
It also plans to add 15 gigawatts of power-generation capacity by 2030.
The shift toward networks is significant as electricity demand expands from data centers, electrification and broader economic growth while aging transmission and distribution systems require substantial investment.
Networks can also provide utilities with more predictable regulated returns than power-generation projects exposed directly to wholesale electricity prices.
Iberdrola said 62% of its investment during the first nine months of 2026 went into networks.
The company proposed an interim dividend of €0.275 per share, 8.7% higher than the comparable payout.
For investors, the next major strategic checkpoint comes at Iberdrola’s capital-markets day in March 2027.
The key question will be whether accelerating electricity demand allows the company to sustain double-digit profit growth while financing the large grid investments required across its major markets.
