Energy Outlook

25 years leading electrification

Iberdrola has spent a quarter of a century committed to a model in which electricity, especially that generated from renewable sources, is accessible to the greatest possible number of people and industries. 

Over this period, we have achieved sustained growth thanks to our financial strength, an innovative approach and active listening to the market, which has enabled us to invest in and develop business lines with significant potential. 

Thanks to these principles, we have multiplied our market capitalisation twelvefold, reaching €135 billion at the end of 2025. Our regulated asset base is 10 times higher, increasing from €5 billion to €51 billion over this period. The Group’s installed capacity now stands at 58,000 MW. 

 SEE INFOGRAPHIC: Achieving 25 years of sustained growth [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.
 

Outlook for the coming years

These are the main factors that will drive our performance in the coming years:

Networks

• Double-digit RAB growth to €90 billion by 2031
• Growing demand
• Favourable new tariff frameworks
• Evolution of energy policy and regulation in our core markets
• Fivefold increase in battery investment by 2035 

Electricity production & Customers

• Approximately 2,200 MW of new capacity fully commissioned in 2025
• 100% of 2026 energy already sold
• Hydroelectric reserves at record levels: 9.7 TWh
• Electricity demand to increase 1.5x by 2035 

We also expect a significant improvement in operating cash flow (FFO) and a progressive optimisation of our financial structure during 2026. The main drivers of this evolution will be:
 

Cash Flow Generation

• Renewables: lower investment under construction and higher EBITDA as projects enter into operation
• Renewable projects under construction with PPAs or CfDs to 2028
• Threefold increase in network investments by 2035
• €58 billion of investment to 2028 

Optimisation of the financial structure

• Asset turnover
• Strong ratios and liquidity of €20,900M
• €18 billion EBITDA projected for 2028

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. With 2026 guidance of €6.6 billion, the company is making solid progress towards delivering its Strategic Plan, which targets net profit of €7.6 billion by 2028.

This solid performance is possible thanks to three strategic pillars: