Iberdrola Doubles Down on Power Grids in the U.S. and U.K.Ion Jauregui - ActivTrades Analyst
Iberdrola is accelerating its international expansion with a historic investment of over €33 billion in power grid infrastructure across the United States and the United Kingdom. Through its subsidiaries New York State Electric & Gas (NYSEG) and Rochester Gas and Electric (RG&E), the company has launched the "Power New York" plan, which includes a $20 billion investment to modernize and reinforce the grid in New York State. This move follows the green light granted by the U.K. energy regulator Ofgem for a €12.42 billion investment through 2031 to develop infrastructure in the country, confirming the central role of networks in the group’s upcoming strategic plan.
The U.S. plan includes improvements in reliability, technology integration, customer service, and the hiring of over 1,100 employees. Around 40% of costs relate to legacy burdens such as delinquent payments, storm recovery, and new regulatory requirements. The modernization strategy also includes social investments, such as support for vulnerable households and the reinforcement of electric corridors to prevent outages.
Fundamental Analysis
The utility, chaired by Ignacio Galán, maintains a solid and diversified profile, supported by regulated revenues and a presence in key strategic markets. The newly announced plan aims to strengthen operational and financial stability in line with the group's energy transition goals.
Key strengths include:
A diversified and regulated business model, helping to reduce income volatility.
A strong focus on clean energy and smart grids, aligned with climate policy in both the U.S. and EU.
Positive regulatory backing, with Ofgem’s approval and the beginning of a rate case process in New York enhancing visibility on future revenues.
From a financial standpoint:
In 2024, Iberdrola posted a net profit above €5 billion, with solid EBITDA growth driven by grids and renewable generation.
The net debt/EBITDA ratio remains under control, supported by prudent financial management.
The dividend yield stood above 4%, indicating stable returns for shareholders.
Potential risks in the new investment cycle include:
Regulatory delays in the U.S. that could affect implementation timelines.
Prolonged high interest rates that may increase financing costs.
Legacy infrastructure issues in the U.S. subsidiaries requiring significant capital outlay.
Technical Analysis
As of July 2, Iberdrola shares closed at €16.29, down 0.58%. Early trading on the following day showed a slightly bearish tone. From a technical perspective, the stock maintains a sideways-upward trend, supported around €15.90. A breakout above €16.60 could pave the way toward €17.20, while a drop below the support level could lead to €15.30.
Overall trend: Sideways-upward since early May, with strong support at €15.90 and €15.065, and resistance around €16.80.
Moving averages: The 50-day MA sits just below the current price, offering short-term support. Longer-term moving averages are expanding, consistent with a consolidating upward structure.
Technical indicators:
RSI at 53.64%: Room for further upward movement before overbought conditions. The RSI reached 70% during the all-time highs on June 24.
MACD: Weakness appeared after recent highs. The Signal line is currently above the MACD, suggesting weakened momentum. A bullish crossover of the MACD over the Signal line in the coming sessions would be a key confirmation of potential upside.
Conclusion
With over €33 billion earmarked for power grids in its most strategic markets, Iberdrola strengthens its position as a key player in the global energy transition. Regulatory support on both sides of the Atlantic and the scale of investment enhance its role in modernizing critical infrastructure. Technically, the stock maintains a solid structure as the market digests the long-term implications of these plans.
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IBE/N trade ideas
Iberdrola is breaking out of a Pennant Chart Pattern🟢 Iberdrola is breaking out of a Pennant Chart Pattern
The Spanish renewable energy company Iberdrola is forming a Pennant Chart Pattern amid a years-long bullish rally. This type of pattern is typically ideal for making quick profits as both the pattern and the overall trend indicate the same direction.
✅ What pattern is unfolding in BME:IBE ?
The Pennant is similar to a triangle or a flag, but its shape is distinct. In all cases, these are continuation patterns occurring amid a years-long bullish rally. The buy signal is clear here.
💰 How to trade this chart pattern?
Selling once the break is done is key, you need to wait until is broken and use a tight Stop Loss.
🛡️ The risk management strategy
As we have done in so many previous ideas, remember you can split the position in 2.
- 50% of the position in a take profits, at least, as large as your stop loss (adapt SL and this 1st TP to local supports/resistance levels). In this case, a 3% TP for 2% SL is fine.
- 50% of the position to a price as large as the previous pattern, which would mean a profit of 7%.
✴️ ENJOY AND FOLLOW for more 😊
New clean green and meanI checked the budget last year and noticed a increase in spending on energy - I do this every couple of years but this year we can see room is being made for the new industries we are evolving...IBM as always takes a high percentage of THIS money, I have watched this game for many years... Ive taken entry @8.6-7 and recently reduced looking to reenter in this area obviously Im not sharing exact entry here - DYOR
IBE // Super ShortAcciones Iberdrola (IBE) might give you the short of your life . As stated in the video, I got no clue what this company about except for the intro on TV - of it being a holding company that deals w electricity.
However, the chart shows me all I need to see to make a decision. As stated in the video, after a few years of strong upward trending structure, price finally fell below the monthly 21EMA for the first time since 2013 . The weekly timeframe also shows bearish reversal patterns.
A retracement back to my target entry area could be the beginning of a long downwards spell. Seeing that this will be a very long term trade, I will and suggest taking my/your time with entry.
Obviously such a strong company overtime can rebound due to a fundamental fix, however as it stands, this sets up for the perfect R:R short.