Spanish Corporate Profits Reach Record Highs Despite Economic Uncertainty

Despite a global economic slowdown and geopolitical uncertainty, Spanish stock markets are experiencing a surge, driven by strong corporate earnings. Recent data reveals a historic performance for Spanish companies in 2025, with aggregate profits reaching 71.118 billion euros – the highest ever recorded and a 4.36% increase compared to the previous record set in 2024.

Broad-Based Improvement in Earnings

The increase in profits was widespread across various companies, with medium and minor-sized listed companies demonstrating the most significant gains. While companies within the Ibex 35 (excluding Inditex, which operates on a different fiscal year) earned 59.763 billion euros, a 2.56% increase, the remaining listed groups saw a substantial 14.95% rise in profits, totaling 11.354 billion euros.

Sales Growth Moderates, Cost Control Prevails

Although profits are soaring, sales growth is showing signs of slowing. Total revenue for Spanish listed groups reached 805.969 billion euros in 2025, representing a modest 0.6% improvement. However, companies are maintaining profitability through controlled cost policies, leveraging operating leverage – where slight increases in revenue translate into larger profit gains. The operating result, which reflects companies’ core earnings after deducting expenses, increased by 8.16% to 116.245 billion euros.

Domestic vs. International Performance

Spanish businesses performed slightly better internationally than domestically. Revenue generated within the Spanish market by Ibex 35 groups totaled 190.613 billion euros in 2025, a 1.6% decrease. International subsidiaries, however, contributed 363.411 billion euros, a 0.07% increase year-over-year. Currently, 65.59% of Ibex 35 revenue originates from abroad, while the domestic market accounts for 34.41%.

Sector Highlights: Banking and Energy Lead the Way

The banking sector was a primary driver of corporate earnings. The six financial entities listed on the Ibex 35 – Banco Santander, BBVA, CaixaBank, Bankinter, Banco Sabadell, and Unicaja – collectively earned 34 billion euros, a 7% increase. Commission income remained strong, although the interest margin experienced more moderate performance due to interest rate reductions by the European Central Bank (ECB).

Banco Santander and BBVA Dominate

Banco Santander led in overall profits, reporting a net result of 14.101 billion euros, a 12.14% increase. Spain and the United Kingdom were Santander’s strongest markets, followed by Mexico. BBVA, despite its unsuccessful attempt to acquire Sabadell, achieved a profit of 10.511 billion euros, a 4.5% increase, with Mexico contributing 45% of its profits and Spain accounting for 36%.

The energy sector also contributed significantly, with Iberdrola, Endesa, Naturgy, Repsol, Enagás, and Redeia earning a combined 13.249 billion euros, an 18% increase compared to 2024.

Iberdrola and Endesa Shine

Iberdrola ranked third in profits, reporting 6.285 billion euros, a 12% increase, driven by its network business. Endesa reported a 16.4% increase in profit, reaching 2.198 billion euros, and announced a 10.6 billion euro investment plan for 2026-2028, with 52% allocated to electrical networks.

Repsol earned 1.899 billion euros, an 8.14% increase, despite moderate oil and gas prices. The company announced plans to increase crude oil production in Venezuela by more than 50% in 2026, aiming to triple it within three years.

Real Estate and Tourism Show Strength

The booming housing market is positively impacting corporate accounts in the real estate sector. Six major listed real estate companies achieved a combined net result of 1.442 billion euros, a 93% year-over-year increase. Neinor, following the integration of Aedas, reported a net profit of 123 million euros, nearly double that of the previous year.

The tourism sector, though underrepresented on the Spanish stock market, is also performing well. Meliá improved its profits by 21%, reaching 170 million euros, reflecting a record 97 million foreign tourists visiting Spain in 2025.

Debt Levels and Workforce Trends

Taking advantage of lower interest rates, Ibex 35 companies increased their net financial debt to 195.438 billion euros, a 0.86% increase. Iberdrola holds the largest debt at 51.755 billion euros, while Inditex maintains the largest cash position with over 11 billion euros. The total workforce across Ibex 35 groups totaled 1.02 million workers, a slight increase of 0.68%.

The Comisión Nacional del Mercado de Valores (CNMV) continues to oversee and regulate the Spanish securities market, ensuring transparency and investor protection. Recent actions by the CNMV include authorizing the deferral of publication of trading volume data on Spanish sovereign debt, in accordance with MiFIR regulations (CNMV Announcement).