Today, Iberdrola $IBE (+1,37 %) announced a €5 billion capital increase to fund a major expansion of its electricity grids, primarily in the US and UK. The offering was oversubscribed 3.8×, and despite a ~3% dip in share price due to dilution I feel that this is a correct move to boost future growth.
The company is shifting decisively toward regulated, stable-return businesses—targeting €55 billion in grid investment through 2031. While H1 net profit dropped 14% YoY (due to the absence of one-off gains), underlying profit rose 20%, showing solid core growth.
📉 Iberdrola also addressed the April blackout in Spain and Portugal, stating it expects no financial liability and that insurance will cover associated costs. Internal and external reviews confirmed no fault on their part.
🔋 Why now?
The energy sector is becoming increasingly strategic. AI, data centers, and electrification are driving unprecedented energy demand globally. Power infrastructure—especially in stable, regulated markets—is becoming the backbone of this growth.
Owning quality utilities like Iberdrola means exposure to this megatrend, with long-term visibility and reliable returns. As AI scales, so will the need for resilient energy systems—and Iberdrola is positioning itself at the center of that future.
