Iberdrola (IBE) AI Stock Analysis

• Market Cap: €129.35B
• Dividend Yield: 2.92%
• Average Volume (3M): 9.15M
• Price to Earnings (P/E): 31.5
• Beta (1Y): 0.41
• Revenue Growth: 0.50%
• EPS Growth: -19.06%
• Country: ES
• Employees: 44,701
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.14
• Shares Outstanding: 6,757,845,700
• 10 Day Avg. Volume: 9,262,991
• 30 Day Avg. Volume: 9,152,873
• PEG Ratio: 2.44
• Price to Book (P/B): 2.46
• Price to Sales (P/S): 2.71
• P/FCF Ratio: 103.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €18.57
• Price Target Upside: -4.08% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 0.99
• Revenue Forecast (FY): €46.87B

• Rating: 62 Neutral
• Price Target: €20.00 ▲(3.31% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is driven primarily by solid and improving profitability, but is held back by multi-year revenue declines, a sharp 2025 free-cash-flow deterioration, and a debt-heavy capital structure. Technicals are moderately constructive but not strong, and valuation is fair-to-slightly expensive with a modest (~3%) dividend yield.

Positive Factors

Renewable-focused, diversified business model

Iberdrola’s integrated model spans renewable generation, transmission/distribution and retail across multiple markets. That vertical diversification and scale align with long-term decarbonization policies, creating durable regulated/contracted cash flows and a competitive moat versus smaller peers.

Improving profitability and margins

Material margin expansion and steady net income gains reflect operational leverage and improved unit economics. Sustained higher margins enhance internal funding capacity for capex and dividends and provide a buffer if top-line growth remains weak, underpinning longer-term returns.

Balance-sheet resilience and improving leverage

Although debt remains meaningful, the improvement from 2023 and equity growth strengthen resilience. Healthy ROE (≈9.6–12.6%) and a trend toward lower leverage support access to capital for large renewable investments and reduce refinancing strain over the medium term.

Negative Factors

Multi-year revenue decline

A sustained top-line contraction over multiple years signals structural demand, pricing or volume pressures that undermine growth optionality. If revenue tailwinds don’t return, management must rely on margin gains or higher investment to restore growth, raising execution risk.

Sharp free-cash-flow deterioration

A large FCF drop reduces internal funding for high-capex renewable programs and dividends. Persistent volatility in cash conversion increases reliance on external financing, elevates refinancing and execution risk for multi-year projects, and weakens financial flexibility.

Debt-heavy capital structure

Meaningful leverage for a utility heightens sensitivity to rising rates and tighter funding conditions. High debt relative to equity limits strategic flexibility, raises interest burden and could constrain the pace of capital deployment into renewables without dilutive or costly financing.

Iberdrola Business Overview & Revenue Model

Company Description

Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain and internationally. It generates and markets electrical power using renewable sources, such as onshore and offshore wind, hydro, solar photovoltaic, combined cycle gas, nuclear, and biomass, as well as through installation of batteries. The company is also involved in the purchase and sale of electricity and gas on wholesale markets; development of green hydrogen projects; and distribution and sale of gas. It has a total installed capacity of 58,320 MW, including 38,138 MW of renewable installed capacity; and operates 1.2 million kilometers of electricity transmission and distribution lines, as well as serves 36.11 million consumers. In addition, the company offers energy storage, heat pumps, self-consumption, and electric vehicles for residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is headquartered in Bilbao, Spain.

How the Company Makes Money

Iberdrola generates revenue through several key streams. Primarily, it earns money from the sale of electricity generated from a diverse portfolio of renewable sources such as wind, solar, and hydroelectric power, as well as from conventional energy sources. The company also derives income from its electricity distribution networks, charging fees for the transmission of electricity to end-users. Additionally, Iberdrola has a retail segment that sells electricity and natural gas to residential, commercial, and industrial customers. The company's strategic investments in renewable energy projects, coupled with government incentives and favorable regulatory frameworks for clean energy, further bolster its revenue. Significant partnerships with local and international stakeholders, as well as its ventures into new markets, also contribute to Iberdrola's earnings.

Iberdrola Financial Statement Overview

Summary

Profitability and net income trends are strong, with net margin improving materially into 2025. Offsetting this, revenue has declined for three consecutive years and free cash flow dropped sharply in 2025, while leverage remains meaningful (debt above equity), reducing financial flexibility.

Income Statement

Profitability is solid and improving: net profit margin rose from ~8.0% (2022) to ~13.8% (2025), while operating profitability also trended up versus 2022–2024. Net income increased steadily from 2020 to 2025. The key weakness is top-line momentum: revenue declined for three straight years (2023–2025), including a sharp drop in 2025, which raises questions about growth durability despite stronger margins.

Balance Sheet

The company carries meaningful leverage for a utility, with debt running above equity (debt-to-equity ~1.19–1.43 over 2021–2025). A positive is that leverage improved from the 2023 peak and equity has grown over time, supporting balance-sheet resilience. Returns on equity are healthy and consistent (~9.6% to ~12.6%), but the capital structure remains debt-heavy, which can limit flexibility if rates or funding conditions tighten.

Cash Flow

Operating cash flow remains positive, but cash generation weakened in 2025 versus prior years. Free cash flow fell materially in 2025 (down ~52% year over year) and sits low relative to net income in the latest period, signaling heavier investment needs and/or working-capital volatility. Prior years (2022–2024) showed better free cash flow conversion, so the main concern is the sharp recent deterioration and variability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	55.33B	45.55B	44.74B	49.34B	53.95B	39.11B
Gross Profit	27.03B	11.65B	23.88B	23.30B	20.20B	17.06B
EBITDA	20.55B	16.59B	14.56B	13.92B	12.77B	11.80B
Net Income	5.04B	6.29B	5.61B	4.80B	4.34B	3.88B
Balance Sheet
Total Assets	157.57B	160.76B	158.29B	150.03B	154.67B	141.75B
Cash, Cash Equivalents and Short-Term Investments	3.34B	6.35B	4.57B	5.47B	7.47B	8.40B
Total Debt	56.38B	59.79B	57.73B	61.65B	50.42B	44.27B
Total Liabilities	98.15B	97.34B	97.24B	89.74B	96.55B	85.63B
Stockholders Equity	53.88B	50.07B	47.13B	43.11B	41.12B	40.48B
Cash Flow
Free Cash Flow	2.48B	1.19B	3.72B	4.41B	3.66B	1.19B
Operating Cash Flow	6.62B	8.80B	11.93B	12.13B	10.44B	8.11B
Investing Cash Flow	-6.01B	-11.77B	-8.40B	-9.07B	-10.15B	-9.49B
Financing Cash Flow	-2.21B	2.80B	-2.27B	-2.35B	151.00M	1.87B

Iberdrola Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:IBE, the sentiment is Neutral. The current price of 19.36 is below the 20-day moving average (MA) of 19.79, above the 50-day MA of 19.02, and above the 200-day MA of 16.96, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 47.34 is Neutral, neither overbought nor oversold. The STOCH value of 31.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:IBE.

Iberdrola Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTGY	72 Outperform	€23.86B	12.42	22.84%	6.66%	2.66%	1.26%
ENG	67 Neutral	€3.84B	179.64	3.85%	7.01%	5.35%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ELE	63 Neutral	€35.24B	14.75	26.20%	4.32%	-2.54%	103.14%
IBE	62 Neutral	€129.35B	31.54	11.50%	2.92%	0.50%	-19.06%
RED	62 Neutral	€7.99B	16.24	10.14%	4.27%	-23.15%	-39.13%
ANE	52 Neutral	€6.45B	11.10	13.06%	2.02%	2.05%	307.60%