Equity Snap: Iberdrola (IBE SM): H1 2026 beat with soft FY26 upgrade

Research evidence excerpt

Equity Snap: Iberdrola (IBE SM): H1 2026 beat with soft FY26 upgrade

22 July 2026

Equity Snap: Iberdrola (IBE SM) Equities Electric Utilities

H1 2026 beat with soft FY 26 upgrade Spain

◆ H1 2026 beat; FY 26 guidance reiterated with H2 2026 better than Meike Becker*

H1 2026; renewables capacity growth accelerated SeniorHSBC BankGlobalplcUtilities & Renewables Analyst

meike.becker@hsbc.com

◆ Acquisition of c80% stake in Caruna for equity of EUR2bn, expects +44 20 7991 6441

EPS accretive from year 1 Charles Swabey*

Global Utilities & Renewables Analyst

HSBC Bank plc

charles.swabey@hsbc.com

Iberdrola (IBE SM, EUR21.32, Buy, TP EUR23.10) +44 20 3268 3954

(Priced as of 21 Jul 2026)

Chandrahasan S*

Associate

Headline H1 2026 results: Iberdrola announced H1 2026 reported EBITDA of Bangalore

EUR8,050m which is slightly above consensus and our expectations. The beat

versus our estimates was mainly driven by better performances in Spain. Adjusted * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

net profit (excluding discontinued activities) of EUR3,3,565m is above our estimates not registered/ qualified pursuant to FINRA regulations

as well as market expectations. Reported net profit of EUR4,336m is strong on

capital gains from Mexican asset sales

Outlook: Iberdrola expects H2 2026 to be better than H1 2026 because of higher

RAB, 100% stake in Neoenergia, 2.1GW of new capacity by end 2026, improved

margins in integrated business, potentially positive forex movements and efficiencies.

The company states FY 26 net profit guidance of comfortably above c8% yoy

earnings growth. This implies minimum adjusted net profit of EUR6.7bn and potential

adj. net profit of over EUR7bn (with H2 better than H1), which is in line with estimates