The Spanish economy received a strong boost with the publication of financial results from two corporate giants. Iberdrola closed 2025 with a record profit of €6.28 billion, representing a 12% increase. Meanwhile, Banco Santander presented an ambitious strategic plan through 2028, aiming to achieve over €20 billion in net profit and drastically increase its dividend. This news dominated sentiment on the Madrid stock exchange, despite ongoing restructuring at Telefónica.

Santander's Ambitious Target

The bank plans to exceed €20 billion in profit by 2028 and double its cash dividend for shareholders.

Iberdrola's Record

The energy giant's profit rose 12% to €6.28 billion, mainly due to investments in networks and foreign markets.

Costs of Change at Telefónica

The company paid €78.3 million in severance to former chairmen while implementing a plan for drastic savings.

Banco Santander has set a new, historic financial target, planning to achieve a net profit exceeding €20 billion by 2028. Chairwoman Ana Botín presented a strategy that not only aims to grow the customer base to 210 million but, more importantly, signifies a significant shift in shareholder remuneration policy. The bank intends to more than double its cash dividend payout, signaling immense confidence in future capital generation. This plan follows the successful acquisition of Webster, which strengthened the group's position in the US market. The banking sector in Spain underwent a profound transformation after the 2008 financial crisis, evolving from a fragmented system of savings banks towards global capital groups with high resilience to market shocks. Simultaneously, the energy conglomerate Iberdrola reported historic success, achieving a profit of €6.285 billion in 2025. The main drivers of growth were investments in transmission networks and the dynamic development of renewable energy sources outside of Spain. The company announced it would allocate a substantial €4.5 billion for dividends, confirming its position as one of the most stable payers in the European energy market. This success contrasts with the situation at Telefónica, where the new chairman Marc Murtra is implementing "iron financial discipline," while also dealing with severance costs for former leaders that reached €78.3 million. Iberdrola, founded as a result of a merger in 1992, has become a global leader in wind energy, surpassing traditional fuel conglomerates thanks to an early bet on decarbonization and Europe's green transition. Despite the record results of individual companies, the Ibex 35 index showed some fluctuations, which analysts link to uncertainty regarding new network regulations announced by the government. The new requirements for connecting generators aim to optimize the saturated electricity grid, which could affect the future pace of capital investments. Nevertheless, optimism stemming from the banking and energy sectors dominates concerns about the costs of restructuring in telecommunications.

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