Iberdrola Reports Significant Financial Growth in Q3 2024

Iberdrola (OTC:IBDRY) (BME: IBE) has reported substantial financial growth for the first nine months of 2024, with net profit increasing by 50% to EUR 5,471 million and EBITDA rising 23% to EUR 13,269 million.

Key Highlights

• Net profit soared to EUR 5,471 million, a 50% increase YoY.
• EBITDA grew 23% to EUR 13,269 million, with recurring EBITDA up 11%.
• Cash flow increased by 69%, leading to over EUR 22 billion in liquidity.
• Investments reached EUR 8.6 billion, emphasizing Networks and renewable energy.
• Shareholder remuneration rose by 14% to EUR 0.23 per share.
• Compliance with stricter ESG guidelines from the European Security and Market Authority.

Outlook

• Net profit forecast raised to approximately EUR 5.5 billion for the year.
• Capital Market Day scheduled for fall 2025 to review growth targets.
• Asset rotation anticipated to achieve around EUR 2 billion by early 2025.

Challenges

• Concerns regarding Spanish regulation and potential U.S. election impacts on operations.
• Supply chain constraints affecting offshore project vessels.

Positive Developments

• Strong performance in all segments, especially Networks due to tariff hikes.
• Secured two offshore wind projects totaling 1,100 megawatts, operational by 2028-2029.
• Achieved nearly 85% emission-free energy production.

Misses

• Non-recurring items amounted to EUR 254 million, mainly linked to capitalized interest.
• Decline in foreign exchange contributions for 2024 compared to the prior year.

Financial Overview

Executives confirmed established rate cases for 2025 and 2026 in the U.S. Networks sector. Demand for electricity is rising, driven by electrification across various sectors. Iberdrola is focusing on integrating recent acquisitions rather than pursuing additional M&As.

Performance Context

Iberdrola's robust financial performance reflects its strategic focus on Networks and renewable energy investments. Despite regulatory challenges and supply chain limitations, the company is positioned for sustained growth in electrification and renewable sectors.

Full Transcript Overview

Executives' Welcome
Ignacio Arambarri opened the results presentation, welcoming attendees for the Q3 2024 results. Executive Chairman Ignacio Galan, CEO Armando Martinez, and CFO Pepe Sainz provided details.

Financial Metrics
Galán confirmed a net profit of EUR 5,471 million with a 50% increase and EBITDA of EUR 13,269 million, representing a 23% increase. The recurring EBITDA rose by 11%, supported by robust performance across all business segments.

Investments and Projects
Investment operations included Electricity North West acquisition and substantial offshore wind projects, with a focus on long-term growth. Power generation diversification and long-term Power Purchase Agreements (PPAs) were emphasized.

Market Conditions and Future Strategies
Galan noted the shift toward more electrification, indicating the trend will continue over the upcoming decades, thus increasing overall electricity demand. Iberdrola plans to present updated growth targets at the Capital Market Day in 2025.

Conclusion
The trend of double-digit growth and the positive outlook for net profit reflects Iberdrola's commitment to renewable energy investments and strategic positioning in the market. Questions from financial professionals concluded the session, ensuring inquiry on guidance for 2024 and beyond.

Supported by AI and edited for clarity.