Energy Outlook

Company outlook for 2025: electrification is key

In this section, we share our vision of the future of the energy industry and how our company is positioned to lead the transition to a more sustainable, efficient and resilient model.

The Iberdrola Tower in Bilbao.

Outlook for 2025

In the 2025 financial year, we expect to record solid performance in all our business areas, which will allow us to significantly increase our results. These are the main factors that will drive our performance:

Grids

Double-digit growth in RAB
Growing demand
New favourable tariff frameworks

Electricity production & Customers

~4,000 MW new with full operation by 2025
100% of 2025 power sold
Hydro reserves at record levels: 9 TWh

We also expect a significant improvement in operating cash flow (FFO) and a progressive optimisation of our financial structure during 2025. The main drivers of this evolution will be:

Cash Flow Generation

Renewables: less ongoing investment + more EBITDA as projects come on stream
More investments in Grids contributing from year one

Optimisation of the financial structure

Asset turnover
Strong ratios and liquidity of €20,900M

SEE INFOGRAPHIC: 2025 Outlook [PDF]

Electrification, a solution to today’s challenges

The electrification of the energy market is an unstoppable global trend. At Iberdrola, we believe that driving this process is one of the structural solutions to current challenges due to its potential to guarantee strategic independence, industrial competitiveness and environmental sustainability, etc.

We have been leading the transformation to an electricity-based model for decades, with investments in smart grids, renewables and storage. We are facing 2025 with the strongest foundations to take on a future where electrification will be the transformational trend par excellence.

To take advantage of the opportunities that this scenario presents in all our markets, this year we plan to invest €12.5B in developing more electricity grids, expanding our renewable capacity and commissioning new energy storage facilities.

SEE INFOGRAPHIC: Trends and opportunities in electrification [PDF]

Iberdrola: optimally positioned for the future

Iberdrola Group is optimally positioned to deliver long-term growth in today's global energy landscape, backed by our track record of more than two decades of sustained growth in earnings and dividends. This solid performance is possible thanks to three strategic pillars:

Strategy and proven track record

Focus on regulated grids and selective investments in renewables
Secured supply chain

Geographic diversification

The United States and the United Kingdom as growth hubs, with a presence in Continental Europe, Latin America, Australia, etc
Scale and strategic relevance: a key player in the regions where we operate