Iberdrola, S.A. Reports Strong 2024 Results

Shares of Iberdrola, S.A. (OTC:IBDRY) rose after the company reported strong results for the first nine months of 2024, driven by underlying performance and favorable hydroelectric output in Spain.

At 4:57 am (0857 GMT), Iberdrola, S.A was trading 1.9% higher at €14.098.

The energy giant posted an EBITDA of €13.269 billion, slightly below Bloomberg's consensus estimate of €13.460 billion, but analysts from RBC Capital Markets anticipated €13.244 billion.

Despite this small miss, strong fundamentals, particularly recurring EBITDA (excluding one-off gains), were highlighted. On a recurring basis, Iberdrola's EBITDA grew by 11% year-on-year to €11.551 billion.

The reported net income for the period came in at €5.471 billion, exceeding expectations of €5.286 billion. Excluding capital gains from asset sales in Mexico, net income still grew robustly, increasing 22% year-on-year to €4.305 billion.

Hydroelectric generation in Spain surged 68% compared to the previous year, which offset weaker performance in other areas like offshore wind in the UK. Net debt slightly increased to €46.697 billion, which was in line with RBC's forecast of €46.5 billion.

RBC analysts noted that Iberdrola's earnings may be influenced by lower power prices, particularly due to reduced margins in hydro, nuclear, and renewable generation. However, they believe the company can mitigate this impact through growth in new investments, improved returns in network operations, and a selective approach to renewable investments.

Iberdrola has multiple growth opportunities across its platforms, including networks, renewables, and generation/supply, in diverse markets like Spain, the US, UK, Brazil, Mexico, and Australia. This allows them to focus on the best risk-adjusted returns, contributing to an upward trend in expected rates of return and creating value, according to the analysts.