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Iberdrola (IBDRY)
:IBDRY
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Iberdrola
(OTC:IBDRY)
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Rating:77Outperform
Price Target:
$90.00
▲(13.11% Upside)
Iberdrola's overall stock score reflects its strong financial performance and positive earnings call, which highlight robust growth and strategic investments. The technical indicators suggest caution due to potential overbought conditions, and the valuation indicates moderate upside. The company's stable financial profile and strategic focus on renewables and networks support its long-term prospects, though regulatory challenges in Spain and debt levels warrant attention.
Iberdrola (IBDRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$135.03B
Dividend Yield3.55%
Average Volume (3M)11.11K
Price to Earnings (P/E)21.3
Beta (1Y)<0.01
Revenue Growth2.21%
EPS Growth-16.95%
CountryUS
Employees44,701
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)1.09
Shares Outstanding1,670,306,900
10 Day Avg. Volume0
30 Day Avg. Volume11,107
Financial Highlights & Ratios
PEG Ratio1.27
Price to Book (P/B)1.82
Price to Sales (P/S)1.92
P/FCF Ratio41.77
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue3.54
Enterprise Value/Gross Profit7.24
Enterprise Value/Ebitda9.52
Forecast
1Y Price Target
$82.00Price Target Upside3.05% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)4.43
Revenue Forecast (FY)$54.27B
Iberdrola Business Overview & Revenue Model
Company DescriptionIberdrola (IBDRY) is a leading global energy company based in Spain, primarily focused on the production, distribution, and commercialization of electricity. The company operates in the renewable energy sector, particularly wind and hydroelectric power, and is one of the largest producers of wind energy in the world. Iberdrola also provides electricity and gas supply services, and engages in infrastructure projects, including smart grids and electric vehicle charging networks, across various international markets.
How the Company Makes MoneyIberdrola generates revenue through multiple streams, primarily from the sale of electricity and gas to residential, commercial, and industrial customers. A significant portion of its income comes from renewable energy generation, particularly from its extensive portfolio of wind farms and hydroelectric plants. The company also earns revenue from regulated distribution networks, which ensure stable cash flows. Additionally, Iberdrola engages in energy trading and offers energy management services, which further contribute to its earnings. Strategic partnerships and joint ventures, particularly in renewable energy projects, enhance its capacity and market reach, solidifying its position in the global energy landscape.
Iberdrola Earnings Call Summary
Earnings Call Date:Oct 28, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a strong overall performance with significant growth in net profit and investments, particularly in the Networks and Renewables sectors. However, challenges such as increased costs due to system operation changes and regulatory uncertainties in Spain were noted.Q3-2025 Updates
Positive Updates
Strong Net Profit Growth
Reported net profit reached EUR 5,307 million, marking a 17% increase in adjusted net profit for the first 9 months of 2025, excluding capital gains from asset rotation.
Robust Networks Business Performance
EBITDA for the Networks business rose by 26%, driven by a higher rate base and improved regulatory frameworks, particularly in the United Kingdom and Brazil.
Record Investment and Capacity Expansion
Total investment reached a record EUR 9 billion, with 2,000 megawatts of new capacity added in the last 12 months.
Improved Financial Position
The company reduced consolidated net debt by EUR 3.2 billion to EUR 48.5 billion, improving financial ratios and aligning with a BBB+ rating.
Increased Shareholder Remuneration
Interim shareholder remuneration increased by 8.2% to EUR 0.25 per share, reflecting strong operating performance and financial position.
Positive Developments in Renewable Energy Projects
Significant progress was made in offshore wind projects in the UK and US, including the East Anglia THREE and Vineyard Wind 1 projects.
Negative Updates
Impact of Ancillary Service Costs
EBITDA from Renewables & Customers was negatively impacted by lower market prices and higher ancillary service costs in Iberia due to system operation changes.
Challenges in Spain's Regulatory Framework
The company faces uncertainty regarding the regulatory framework for networks in Spain, affecting investment plans.
Negative Impact from Blackout in Iberia
The blackout in Iberia resulted in increased costs for ancillary services, impacting financial results.
Downturn in Brazilian Renewables
Brazil experienced a 23.6% decline in renewable and thermal production EBITDA compared to last year.
Company Guidance
During the call, Iberdrola provided guidance for the fiscal year 2025, highlighting several key metrics. The company reported a 17% increase in adjusted net profit, excluding capital gains from asset rotation, with a net profit of EUR 5,307 million for the first nine months of 2025. EBITDA reached EUR 12,438 million, driven by a 26% increase in the Networks business. Investments hit a record EUR 9 billion, with a focus on expanding the regulated asset base to nearly EUR 50 billion. The company also reduced net debt by EUR 3.2 billion to EUR 48.5 billion, improving financial ratios in line with a BBB+ rating. In terms of shareholder returns, interim remuneration increased by 8.2% to EUR 0.25 per share. Iberdrola projected double-digit growth in adjusted net profit to over EUR 6.2 billion, even excluding a EUR 389 million cost recognition in the U.S., aiming to reach EUR 6.6 billion by year-end. The company intends to use capital gains from transactions to enhance future efficiencies and plans further investment in storage and renewable energy projects, particularly in the U.S. and the U.K.Iberdrola Financial Statement Overview
Summary
Iberdrola demonstrates strong financial performance with consistent profitability and efficient cost management. The income statement shows solid margins, and the balance sheet reflects a stable financial structure despite moderate leverage. Cash flows are robust, supporting operational and investment needs, though the debt level requires careful management.Income Statement
Iberdrola has shown consistent profitability with strong gross profit and EBIT margins. The gross profit margin stands at approximately 48.97%, and the EBIT margin is around 18.19%, indicating efficient cost management. Despite a slight revenue decline from 2022 to 2023, the net profit margin remains healthy at about 9.74%. Overall, the company demonstrates solid income statement performance with stable margins.85
Very Positive
Balance Sheet
The company's balance sheet shows a balanced equity ratio of about 29.76% and a debt-to-equity ratio of 1.15, which is moderate for the industry. While the equity ratio indicates a stable financial structure, the relatively high debt level could pose a potential risk if not managed carefully. Return on equity is strong at approximately 10.19%, reflecting effective use of shareholder capital.78
Positive
Cash Flow
Iberdrola's cash flow statements reveal robust operational cash flows, with an operating cash flow to net income ratio of 2.48, highlighting strong cash generation capabilities. The free cash flow has seen a decline, yet it remains positive, demonstrating financial flexibility. The company maintains a healthy free cash flow to net income ratio of 0.43, indicating efficient cash management.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 55.33B | 44.74B | 49.34B | 53.95B | 39.11B | 33.15B |
| Gross Profit | 27.03B | 23.88B | 23.30B | 20.20B | 17.06B | 16.14B |
| EBITDA | 20.55B | 17.53B | 14.36B | 12.77B | 11.80B | 10.12B |
| Net Income | 6.38B | 5.61B | 4.80B | 4.34B | 3.88B | 3.61B |
Balance Sheet | ||||||
| Total Assets | 157.57B | 158.29B | 150.03B | 154.67B | 141.75B | 122.52B |
| Cash, Cash Equivalents and Short-Term Investments | 3.34B | 4.57B | 3.81B | 7.47B | 5.52B | 3.98B |
| Total Debt | 56.38B | 57.73B | 61.65B | 50.42B | 44.27B | 40.51B |
| Total Liabilities | 98.15B | 97.24B | 89.74B | 96.55B | 85.63B | 75.30B |
| Stockholders Equity | 53.88B | 47.13B | 43.11B | 41.12B | 40.48B | 35.41B |
Cash Flow | ||||||
| Free Cash Flow | 2.48B | 2.05B | 4.25B | 3.66B | 1.19B | 2.50B |
| Operating Cash Flow | 6.62B | 11.93B | 12.13B | 10.44B | 8.11B | 8.35B |
| Investing Cash Flow | -6.01B | -8.40B | -9.69B | -10.15B | -9.49B | -6.64B |
| Financing Cash Flow | -2.21B | -2.27B | -4.09B | 151.00M | 1.87B | -71.00M |
Iberdrola Technical Analysis
Positive
79.57
Price Trends
76.73
Positive
75.26
Positive
69.56
Positive
Market Momentum
1.50
Negative
66.48
Neutral
66.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBDRY, the sentiment is Positive. The current price of 79.57 is below the 20-day moving average (MA) of 80.03, above the 50-day MA of 76.73, and above the 200-day MA of 69.56, indicating a bullish trend. The MACD of 1.50 indicates Negative momentum. The RSI at 66.48 is Neutral, neither overbought nor oversold. The STOCH value of 66.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IBDRY.
Iberdrola Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $135.03B | 21.30 | 11.16% | 3.55% | 2.21% | -16.95% | |
76 Outperform | $6.70B | 5.40 | 22.94% | 12.12% | -3.27% | -3.44% | |
74 Outperform | $7.64B | 14.57 | 9.81% | 5.22% | -5.28% | 14.50% | |
74 Outperform | $61.17B | 28.86 | 7.10% | 2.73% | 9.07% | -28.58% | |
69 Neutral | $16.27B | 30.36 | 10.50% | 4.81% | 8.14% | ― | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
59 Neutral | $10.06B | 8.60 | 23.02% | 4.98% | -1.55% | 12.83% |
* Utilities Sector Average
IBDRY
Iberdrola
81.66
26.58
48.26%
BIP
Brookfield Infrastructure
35.22
2.16
6.53%
CIG
Companhia Energetica Minas Gerais
2.17
0.42
24.00%
ELP
Companhia Paranaense de Energia Pfd
10.70
4.46
71.47%
SRE
Sempra Energy
93.72
4.48
5.02%
AES
AES
14.13
1.04
7.94%
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.