Iberdrola: Best integrated utility in the world with a stellar track record and solid growth driven by networks and renewables

The best run utility in the world riding the inflection of electricity demand for the first time in decades driving a historical investment cycle into grids

Welcome to the 17th investment case, 15th resilience, 9th reshoring/sovereignty and 8th AI & data center idea on Crack the Market (and the most comprehensive Iberdrola investment case you will find online)! Join me as I dissect one of the largest and the best run utility company in the world, benefiting from the historical growth in power demand throughout the world thanks to its growing power grid and generation portfolio.

Twice a week, I will release deep dives into stocks and sectors that fit into the three themes that I see winning in this age of tariffs and deglobalization: resilience, sovereignty & reshoring, China. I will then deep dive into the opportunities in the AI data center value chain.

Take advantage of this once in a generation opportunity to build long term wealth by investing in great stocks that will deliver returns for your portfolio for years to come.

You can already read my first 16 deep dives, all of which I see as winners in this new world of tariffs and deglobalization:

• ASML (reshoring & China idea): The most innovative company in the world will 2.5x its EPS by 2030.

• LKQ (resilience idea): The most defensive business in the auto industry is a tariff winner and could become a compounder.

• Atlas Copco (resilience, reshoring & China idea): The best industrials business in the world is on sale, extremely resilient and will benefit from US reshoring.

• Badger Meter (resilience idea): The perfect business in the perfect end market, water meters are the definition of resilience.

• Knorr Bremse (resilience idea): Who knew making brakes was this lucrative? Rerating with self help story and upside from German infra plan.

• Flex (reshoring idea): The electronics manufacturing giant building Nvidia’s servers and enabling reshoring is becoming a better business.

• Itron (resilience & reshoring idea): Riding the grid investment super cycle and enabling smart grids.

• Roper (resilience idea): A resilient cashflow compounder in the software space with inflecting growth.

• RELX (resilience idea): The company to own forever – one of the very best businesses on Earth.

• CPKC (resilience & reshoring idea): The rail connecting Canada/US/Mexico and benefiting from reshoring.

• Novo Nordisk (resilience idea): The most exciting pharma company in the world is misunderstood and its growth engine is ready to roar back to life.

• Kurita (resilience, reshoring & China idea): Water services expert with improving margins and benefiting from reshoring of semiconductor production.

• Halma (resilience idea): High quality compounder in safety, health and environmental technologies.

• Quanta Services (resilience & reshoring idea): Countercyclical compounder riding a multi decade infrastructure buildout.

• Infineon (China idea): Power semiconductor leader with strong structural drivers (AI power and China auto) amidst a cyclical recovery.

• Hubbell (resilience & reshoring idea): Pure play on US electrification demand driven by AI and grid investment cycle.

After reading this article, you will understand why this company is so special thanks to its unique strategic vision and execution delivering best in class value creation for its shareholders for many years, what it does, why it is so defensive thanks to its balanced geographical and activity mix, why it is seeing faster growth (which could still accelerate) and why it remains one of the best businesses to own for the next decade.

In this article I go through:

1. Iberdrola’s business and how it is central to the production and distribution of electricity, a very resilient business.

2. How the company has transformed into an international powerhouse and one of the largest and most balanced integrated utilities in the world.

3. How the inflection of power demand in the West brought on by electrification, digitalization and reshoring is driving a mega investment cycle in power grids and strong growth and value creation for Iberdrola.

4. How the company has become the gold standard for utilities thanks to its very strong track record on strategic vision and value creation.

Iberdrola Investment Case