Updates throughout with details on outlook, investment, strategy

By Pietro Lombardi

MADRID, Feb 27 (Reuters) - Europe's largest utility Iberdrola IBE.MC expects a mid-to-high single-digit net profit growth this year after increased earnings from its network business pushed 2024 profit above analysts' expectations.

In a sign the company's shift towards building and upgrading grids and a more selective approach to renewable energy is yielding results, Iberdrola is also performing better than it foresaw in its 2026 strategy.

By investing to expand its network assets, the company is ensuring a growing stream of predictable returns. Last year, its network business benefited from higher tariffs in Britain, Brazil and the United States.

Net profit rose to 5.61 billion euros ($5.87 billion) in 2024, also helped by the sale of some assets. This is a 17% increase from the 4.8 billion euros it posted in 2023.

The median forecast by analysts polled by LSEG was 5.51 billion euros.

The company set a record for investment at 17 billion euros last year, 70% of which was in the United States and Britain, which it sees as its most important markets.

This amount includes about 5 billion euros for the acquisition of British power network Electricity North West (ENWL) and the stake in U.S. power firm Avangrid that it does not already own.

Iberdrola proposed a dividend of 0.635 euros per share against 2024 results, a 15% increase.

The profit reported for 2024 is already above its initial 2025 outlook.

"A strengthened business profile and better market fundamentals contribute to a structural improvement in our outlook for 2025 and beyond," Executive Chairman Ignacio Galan said in a statement.

Iberdrola will hold its next Capital Markets Day on September 24.

($1 = 0.9552 euros)

(Reporting by Pietro Lombardi; Editing by David Latona and Barbara Lewis)

((Pietro.Lombardi@thomsonreuters.com;))