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Iberdrola (ES:IBE)
BME:IBE
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Iberdrola (IBE) AI Stock Analysis

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ES:IBE

Iberdrola

(BME:IBE)

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Neutral 60 (OpenAI - 5.2)
Rating:60Neutral
Price Target:
€21.50
▲(6.81% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid and improving profitability and steady net income growth, but is held back by multi-year revenue contraction, a debt-heavy capital structure, and a sharp 2025 deterioration in free cash flow. Technical indicators also point to weak near-term momentum, while valuation and the dividend yield provide moderate support.
Positive Factors
Improving Profitability
Higher margins and steady net income growth indicate stronger earnings quality and operating efficiency. If sustained, this profitability can support reinvestment in networks and renewables while improving resilience against variable power prices.
Negative Factors
Multi-Year Revenue Contraction
Persistent top-line contraction raises questions about the durability of growth despite improving margins. Continued revenue pressure could limit operating leverage, reduce funds available for expansion and make earnings more dependent on efficiency gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Profitability
Higher margins and steady net income growth indicate stronger earnings quality and operating efficiency. If sustained, this profitability can support reinvestment in networks and renewables while improving resilience against variable power prices.
Read all positive factors

Iberdrola (IBE) vs. iShares MSCI Spain ETF (EWP)

Iberdrola Business Overview & Revenue Model

Company Description
Headquartered in Bilbao, Spain, Iberdrola, S.A. is a long-standing energy company, established in 1840. It is actively involved in the entire electricity value chain, encompassing power generation, transmission, distribution, and retail supply, bo...
How the Company Makes Money
Iberdrola makes money primarily through a combination of regulated network revenues and market-based electricity generation and supply activities, complemented by other energy-related services. 1) Regulated electricity networks (transmission and ...

Iberdrola Financial Statement Overview

Summary
Profitability is solid and improving, with net profit margin rising from ~8.0% (2022) to ~13.8% (2025) and net income increasing steadily from 2020 to 2025. Offsetting this, revenue declined for three straight years (2023–2025) with a sharp drop in 2025, leverage remains meaningful (debt-to-equity ~1.19–1.43), and free cash flow fell materially in 2025 (down ~52% year over year).
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
54
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue45.27B44.08B44.74B49.34B53.95B39.11B
Gross Profit14.21B24.05B23.88B23.30B20.20B17.06B
EBITDA17.55B15.39B14.56B13.92B12.77B11.80B
Net Income7.06B6.29B5.61B4.80B4.34B3.88B
Balance Sheet
Total Assets165.10B160.76B158.29B150.03B154.67B141.75B
Cash, Cash Equivalents and Short-Term Investments6.61B6.35B4.57B5.47B7.47B8.40B
Total Debt62.47B59.79B57.73B61.65B50.42B44.27B
Total Liabilities102.66B97.34B97.24B89.74B96.55B85.63B
Stockholders Equity50.85B50.07B47.13B43.11B41.12B40.48B
Cash Flow
Free Cash Flow0.001.19B3.72B4.41B3.66B1.19B
Operating Cash Flow0.008.80B11.93B12.13B10.44B8.11B
Investing Cash Flow0.00-11.77B-8.40B-9.07B-10.15B-9.49B
Financing Cash Flow0.002.80B-2.27B-2.35B151.00M1.87B

Iberdrola Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
€42.41B16.3631.00%3.82%-1.29%26.14%
69
Neutral
€28.57B13.5223.71%5.99%
69
Neutral
€29.92B8.9514.10%3.73%10.40%396.76%
63
Neutral
€2.23B12.3122.94%2.46%36.20%42.26%
60
Neutral
€131.17B18.2514.10%3.45%0.95%33.17%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
51
Neutral
€11.10B30.697.63%2.70%7.62%-56.65%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:IBE
Iberdrola
19.83
4.56
29.91%
ES:ANA
Acciona
209.20
42.76
25.69%
ES:ELE
Endesa SA
41.43
16.49
66.13%
ES:NTGY
Naturgy Energy Group, S.A.
29.54
4.51
18.00%
ES:REP
Repsol
28.17
14.41
104.78%
ES:SLR
Solaria Energia y Medio Ambiente
17.19
4.45
34.93%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 06, 2026