Iberdrola finishes the stock market year with a substantial market capitalization around 70 billion, after climbing about 6% on the year. The company now stands as the largest in Europe and ranks among the global top ranks, strengthening its position in the energy sector.
The electricity group, which has created value for roughly 600,000 shareholders once again, was well received by the market following its November 9 update. The firm outlined a €47 billion investment plan and signaled higher dividends through 2025, with a target payout of approximately 0.55 to 0.58 euros per share for the current exercise.
Net profit is expected to land in a range of €4.0 to €4.2 billion for the current year, with a projection of €5.0 to €5.2 billion for 2025, according to the company’s disclosures.
Iberdrola’s share performance this year has risen about 6%, delivering a total return near 11% when including a dividend of 0.449 euros per share. This marks Iberdrola as the best-performing utility in its European index and a standout value within its investment universe.
The strategic plan has momentum, with Ignacio S. Galán at the helm guiding a portfolio that has already seen a double-digit revaluation since the plan’s inception.
Analysts have welcomed the company’s plans presented at Capital Markets and ESG Day. Major banks and investment houses, including UBS, Mediobanca, Banco Santander, Goldman Sachs, Barclays, Morgan Stanley, Deutsche Bank, CaixaBank, and Rent, have updated their forecasts. FactSet data show analysts largely lifting their average target price, which sits around €12 per share. About 53% recommend buying, 47% keep, and none advocate selling Iberdrola shares.
Markets continue to value Iberdrola’s resilience, growth potential, and diversification across renewables, customers, and networks, with a strong footprint in Spain, the United Kingdom, the United States, and Brazil. The company’s disciplined investment plan prioritizes network expansion—around €27 billion—and promises steady returns within a broader, diversified business model that mitigates cyclicality in the sector.
Solvency remains a core contributor to value, with assets surpassing €170 billion and a robust rating profile. The financing strategy emphasizes ongoing relationships with European lenders while expanding the lender base to include institutions such as the IFC and select regional banks, strengthening liquidity and funding options.
Additionally, access to the ESG debt market affords Iberdrola the ability to secure favorable financing terms on green bonds, a market in which it is a leading issuer with outstanding issuance near €16 billion. A recent example is a €5 billion loan, complemented by a plan for €1.5 billion in green debt for 2025, designed to lower the initial borrowing rate for a portion of the debt program.
It reached its annual high on May 25.
The stock achieved its peak for the year at €11.415 per share on May 25, after an earlier milestone in January 2021, when price levels reached ceilings that underscored the company’s growth trajectory and investor confidence. The historical high for shares remains a benchmark for the sector and a reminder of Iberdrola’s capacity to sustain momentum across different market cycles.
Iberdrola continues to reward investors through a flexible remuneration framework that allows for dividend payments, share buybacks, or the sale of preference rights, thereby reducing dilution for shareholders who choose cash dividends. The company uses this mechanism to align investor returns with its capital strategy, ensuring stability as the business evolves.
The dividend policy outlined for 2022 and beyond points toward a gradual increase, with expectations of a return rising toward 5% by 2025, consistent with the company’s long-term plan to deliver growing value to shareholders while maintaining financial discipline and strategic flexibility.
Overall, Iberdrola’s blend of diversified geography, scalable renewable capacity, and reinforced network infrastructure positions it as a disciplined, cash-generative energy platform. The company continues to pursue its objective of sustainable value creation through prudent capital allocation, strong balance sheet management, and a clear path toward higher shareholder returns while navigating a dynamic regulatory and market environment. Citations for these assessments come from market updates and industry analysis published by major financial institutions and research firms, reflecting consensus on the company’s position in the global energy landscape.