Hera (HER) investor relations material

Executive summary

• Net profit increased by 5% year-over-year to €229.3 million in 1H 2025, with revenues up 18.7% to €6.8 billion and capital expenditures rising over 20%, reflecting strong alignment with business plan targets.

• EBITDA reached €721.7 million, down 1.5% year-over-year, but organic/structural EBITDA grew 7% across all business areas, with margin at 10.5%.

• Net financial debt reduced to €3,927 million, improving leverage to 2.49x Net Debt/EBITDA, with over €100 million reduction compared to H1 2024.

• The group maintained strong financial flexibility, robust operational cash flow, and continued investment, supporting resilience and value creation.

• All business segments contributed to growth, with a balanced multi-business model and efficient financial management enabling continued resilience.

Financial highlights

• Operational cash flow in H1 was €675 million, up €139 million year-over-year, and FCF reached €408 million.

• CapEx totaled €414 million, up over 20% year-over-year, mainly in water and waste sectors.

• Net financial debt fell below €4 billion, with a reduction of €137 million year-over-year, despite dividend payments.

• Financial charges declined to €39.2 million from €61.9 million year-over-year, and average cost of debt stands at 2.75% with 97% fixed rate.

• Moody’s upgraded the outlook to positive, and S&P rating is BBB+/A-2 (stable).

Outlook and guidance

• Management confirmed alignment with business plan targets, expecting net income growth of 4–6% over 2024 and structural EBITDA growth of 7%.

• H2 will include €30 million in technical quality premiums for water, boosting EBITDA.

• No major discontinuities expected in H2; continued focus on organic growth, efficiency, and innovation.

• Positive cash generation and financial flexibility position the group for further organic and M&A growth.