Iberdrola shrugs off tariff hit with first-quarter earnings beat

By Pietro Lombardi

MADRID, April 30 (Reuters) - Europe's largest utility Iberdrola IBE.MC said on Wednesday U.S. tariffs and trade tensions will have no significant impact on its results after posting a better-than-expected net profit in the first quarter of the year.

The Spanish firm said tariffs will increase its cost of investment by just 1%, as it relies on local producers for 80% of its supplies and has already secured key contracts for its projects under construction.

First-quarter net profit came in at 2 billion euros ($2.27 billion), higher than the 1.81 billion euros expected by analysts polled by LSEG but down 27% year on year after last year's result was boosted by booking the sale of gas assets in Mexico.

Shares in Iberdrola fell 0.86% at 15.62 euros at 0750 GMT, roughly in line with Spain's blue-chip index.

Excluding the impact of last year's asset sale, profit rose 26%, while earnings before interest, taxes, depreciation and amortisation (EBITDA) in the quarter climbed 12% to 4.64 billion euros.

Increased production in regions such as the United States and Iberia partially offset the normalisation of margins in Britain and Iberia.

Its free cash flow grew 11% to 3.5 billion euros, Iberdrola added.

The utility reiterated its 2025 net profit growth guidance at "mid to high single-digit" - excluding the positive impact of past cost recognition in the U.S. - and said it would reach double-digit growth if it included the impact.

($1 = 0.8792 euros)