Iberdrola Reports Higher Profit Despite Weak Revenue

Iberdrola has reported a strong profit increase ahead of its strategic goals. The company achieved a net profit of 5.61 billion euros in 2024, 17% higher than the previous year, indicating a positive outlook despite decreasing revenues.

Date: 27-02-2025

AI Rating: 7

Profit Growth Analysis
Iberdrola SA reported an impressive increase in net profit for fiscal 2024, achieving 5.61 billion euros, which marks a 17% increase from 4.80 billion euros in 2023. This growth reflects the company's ability to navigate challenging market conditions and align with its 2026 Strategic Plan despite facing weak revenues.

The EBITDA also grew by 17%, reaching 16.85 billion euros, attributed to strong operational performance and capital gains from divestments. This is a favorable indicator of the company's operational efficiency.

However, the report highlights a significant issue with net revenues, which fell by 9.3% to 44.74 billion euros from 49.33 billion euros the previous year. This decline could raise concerns among investors about the company's revenue stability amid rising operational costs or market pressures.

On a positive note, the proposed final dividend per share of 0.404 euros suggests that Iberdrola is committed to returning value to shareholders, with an overall pay-per-share increase of 15% from the previous year. This could enhance investor sentiment.

Looking ahead, the outlook for fiscal 2025 shows a promising mid- to high-single digit growth projection in net profit, which could attract investor confidence moving forward. The company's focus on electrification as a growth driver indicates a proactive approach to meet future energy demands.

Overall, Iberdrola's substantial profit growth juxtaposed with weak revenue growth presents a mixed signal to investors. The strong operational performance and committed dividend increase are certainly positive, yet the decline in revenues poses questions about the company's market resilience.

Stocks: IBDSF.PK