Is Iberdrola’s (BME:IBE) Green Hydrogen Deal With IFF Bolstering Its Industrial Decarbonization Edge?

• Earlier this month, IFF announced the installation of a nature-based hydrogen production facility at its Benicarló, Spain plant, becoming the first in the fragrance industry to use renewable electricity for on-site hydrogenation through a 10-year agreement with Iberdrola.
• This partnership not only supports IFF’s sustainability goals but also highlights Iberdrola’s expanding leadership in delivering green hydrogen solutions for industrial decarbonization.
• We'll examine how this long-term green hydrogen supply agreement strengthens Iberdrola’s positioning in industrial decarbonization and renewable energy solutions.

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Iberdrola Investment Narrative Recap

To be a shareholder in Iberdrola, you need to believe in the long-term global shift to renewables, and the company's ability to grow regulated network investments while maintaining robust renewable project delivery. While the IFF green hydrogen partnership clearly demonstrates Iberdrola’s leadership in industrial decarbonization, it has little material impact on the most immediate catalyst, execution of Iberdrola’s major networks investment programs in the US and UK, nor does it directly reduce the primary risk of regulatory or political changes in these markets.

Of the recent announcements, the completed €5 billion equity raise in July stands out. This capital infusion directly ties to Iberdrola’s ambitions to accelerate network upgrades and grid expansion, which are crucial for revenue and earnings growth in core regions amid global clean energy demand. However, securing ongoing access to favorable capital markets remains critical to these aims...

Read the full narrative on Iberdrola (it's free!)

Iberdrola's narrative projects €50.1 billion revenue and €7.0 billion earnings by 2028. This requires 3.7% yearly revenue growth and a €2.2 billion earnings increase from €4.8 billion today.

Uncover how Iberdrola's forecasts yield a €16.82 fair value, a 7% downside to its current price.

Exploring Other Perspectives

Fair value estimates from 10 Simply Wall St Community members range from €0.37 to €16.82, underscoring sharply contrasting views. Against this backdrop, the company’s reliance on regulated returns in the UK and US could influence future earnings profiles, be sure to consider how...

Explore 10 other fair value estimates on Iberdrola - why the stock might be worth as much as €16.82!

Build Your Own Iberdrola Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Iberdrola research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Iberdrola research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Iberdrola's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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