Ignacio Galán, Iberdrola’s executive chairman in his office. Image courtesy Iberdrola
Global utility giant Iberdrola has announced a €5 billion ($5.9 billion) capital increase to finance what they call an ‘unprecedented investment opportunity’ and accelerate their growth strategy in their US and UK networks segment.
The company confirmed the capital raise in their H1 results for 2025, coming ahead of their Capital Markets Day in London in September, where they are expected to share their new strategy. The capital increase will help fund said strategy.
Iberdrola has been increasingly looking to the UK and US as an attractive investment prospect, particularly in power networks.
In October, the company more than doubled its UK investment plan, listing networks the key component, and earlier this year in June appointed Pedro Azagra, formerly CEO of US subsidiary Avangrid, as group CEO.
Iberdrola says the transaction will accelerate the company’s strategy of growth in networks in countries with stable, predictable and incentivising frameworks and with an A-rating, such as the US and UK.
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In total, Iberdrola says their network asset base will exceed €90 billion ($105.6 billion) by 2031, compared to €30 billion ($35.2 billion) in 2020.
The vast majority of this asset base will be from the US and the UK (75%), with their home market of Spain home to the minority of 10%. Brazil will constitute the remaining 15%.
The company in a release cites new tariff frameworks in New York and Maine, as well as the UK’s new regulatory framework for electricity transmission (RIIO-T3) and framework for distribution (ED2 and the future ED3).
According to Reuters reportage, this comes as Spanish utilities recently warned that the country risks losing critical investments in grids to other countries as the remuneration on grid assets proposed by regulators was set below what they expect.
In their H1 2025, Iberdrola’s EBITDA grew by 5% to €8.3 billion ($9.7 billion), in contrast to their profit in Spain, where Iberdrola Spain reports a 12% drop; the drop was offset by growth in the US and the rest of Europe.
Investments during the company’s H1 2025 grew by 7% to €5.7 billion ($6.7 billion), with more than 60% of this directed to the US and UK.
Networks investments grew by 14% to €3.1 billion ($3.6 billion).
No further capital increases are expected from the company until at least 2030.
