Details of Iberdrola investment plan and profit expectations leaked

Iberdrola executive chair Ignacio Galan has been telling investors for years why he favours a capex mix of renewable generation and networks

Iberdrola's executive chairman Ignacio Galan at capital markets day 2024.
Iberdrola's executive chairman Ignacio Galan at capital markets day 2024.Photo: Iberdrola
Iberdrola is set to boost its capital expenditure by more than 22% under a three-year plan that will shrug off concerns about the increasingly bumpy investment terrain in the US, according to Madrid business daily Expansion.

The Bilbao-based power company will unveil its new business plan at a Capital Markets Day event to be held in London on Wednesday.

Expansion, which apparently had access to details from the new business plan, said Iberdrola expects to post a net profit of more than €6.4bn ($7.52bn) this year, up from €5.6bn in 2024.

Earnings will keep rising and are expected to hit €7.3bn in 2028, the report said.

Investments cited for the 2025-2028 period were described as gross capital expenditure, including partners' allocations in joint venture projects, but the broad target of €50bn-€55bn suggested a significant increase from the previous plan of 2024-2026.

Iberdrola's business strategy puts a strong emphasis on distributing capital expenditure between power generation and networks.

The company's core markets are the US, the UK, Spain and Brazil.

In the previous plan, between 50% and 60% of Iberdrola's investments were allocated toward electricity networks.

In the US, this strategy has helped reduce Iberdrola's exposure to the anti-wind measures and anti-renewables rhetoric of the Trump administration in comparison to other European companies invested in renewable energy there.

The 2.6GW New England Wind project being developed by Iberdrola’s US unit Avangrid was recently targeted by the administration, but this did not trigger the kind of stock market panic that hit Orsted when that company's US offshore developments were subjected to a regulatory assault.
Trump’s actions have pushed Orsted into crisis mode by creating investment uncertainty around itsplanned Sunrise Wind and Revolution Wind arrays, even though both are already under construction and the latter project is 80% complete.
The Expansion report stated that the portion of Iberdrola's capex earmarked for transmission and networks will exceed 60% in the new plan, and suggested that the biggest share of this will be focused in the US, and also in the UK, where government-backed investment is gathering pace.
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Published 22 September 2025, 09:50Updated 24 September 2025, 07:46
IberdrolaIgnacio Galan SpainDonald Trump