Iberdrola is on the verge of becoming the world’s largest investor-owned electricity company by market capitalisation for the first time, overtaking NextEra Energy, according to Spanish financial daily Expansión.
At the close of trading on Friday 25 September, Iberdrola’s shares stood at €20.33, near record highs, giving the company a market value of €135.67 billion. NextEra closed at $76.08 on the New York Stock Exchange, for a market value of $158.70 billion, or about €139.30 billion. The gap between the two is now less than €4 billion.
NextEra has been the world’s largest investor-owned utility by market value for years, with a capitalisation consistently above $100 billion since at least 2017. Chinese state-controlled groups are not included in this comparison.
A grid-focused strategy
Iberdrola’s shares have risen by more than 10% so far this year and by around 30% over the past twelve months. The company has reaffirmed its 2026 outlook, which anticipates net profit growth of more than 8%.
The group’s strategy has shifted from renewables towards electricity networks. Under its 2025–2028 strategic plan, Iberdrola expects to invest €58 billion, of which €37 billion will go to power grids, at a time when electrification is increasing the need for energy infrastructure.
Its asset rotation programme has also played a role, allowing the group to mobilise more than €20 billion. Almost ten investment firms now see upside of more than 10% for the stock, including HSBC and JB Capital, which have set a price target of €23.50.
Headwinds for NextEra
NextEra’s shares have fallen by 6.3% so far this year, largely since it announced the acquisition of Dominion Energy in May. The all-stock deal, valued at around $66 billion, would create the world’s largest regulated electric utility. However, the integration has proved more complex than expected, and the deal still requires regulatory approval amid political opposition over its impact on electricity bills and competition.
Rising US Treasury yields have also weighed on the sector. They increase financing costs for capital-intensive utilities and make their dividends less attractive to investors.
In addition, NextEra faces growing opposition to data centre development in the United States, a segment on which much of its future growth depends. Some surveys show that more than 70% of Americans oppose the construction of these facilities near their homes.
