Iberdrola has set out plans to accelerate its growth in regulated networks, with a strategic focus on the United Kingdom and the United States. The company expects to invest €58 billion up to 2028, of which 65% will be allocated to networks and 85% in A-rated countries with stable regulatory frameworks.
The United Kingdom will be the main investment destination with €20 billion, followed by the United States with €16 billion. Iberia, Brazil, and other European countries together with Australia will account for the remainder. More than 70% of the planned investments will support growth.
The company will dedicate €37 billion to networks, with distribution and transmission assets set to expand significantly. Distribution will receive €25 billion, taking the regulated asset base to €50 billion, while €12 billion will be invested in transmission—95% of it in the UK and US—bringing transmission assets to €20 billion. Iberdrola expects an average return on equity of 9.5% from these activities.
A further €21 billion will be invested in generation and customer businesses, with three-quarters already under construction. Offshore wind will account for 38% of this, onshore wind 24%, solar photovoltaic 10%, and storage 10%.
By 2028, the company anticipates earnings before interest, tax, depreciation and amortisation (EBITDA) of €18 billion, with networks contributing 55% of the total. Including contracted generation, around 75% of EBITDA will not be exposed to market price fluctuations. Adjusted net profit is expected to reach €7.6 billion, up €2 billion from current levels.
Shareholder remuneration will increase in line with results, with close to £20 billion in dividends between 2025 and 2028. Payout is planned between 65% and 75%, with a floor of €0.64 per share. The group expects to generate €52 billion in operating cash flow during the period, complemented by €13 billion from asset rotation and partnerships.
The investment plan will also have social impacts, with Iberdrola forecasting 15,000 new jobs, €65 billion in purchases from suppliers supporting over half a million jobs, and tax contributions exceeding €40 billion. The company also plans to invest more than €1.6 billion in research and development and aims to reach carbon neutrality by 2030.
Looking ahead to 2031, Iberdrola plans to invest more than €45 billion between 2029 and 2031, with €30 billion dedicated to networks. By then, the regulated asset base is expected to exceed €90 billion, with earnings continuing to grow at mid-to-high single-digit levels while maintaining financial strength and increasing dividends.
