Hera (HER) investor relations material

Executive summary

• Revenue declined 18.6% year-over-year to €3,517.6 million due to lower energy prices and volumes, but EBITDA rose 0.2% to €418.9 million and net profit attributable to shareholders increased 0.6% to €154.6 million, with all business segments contributing.

• Strategic acquisitions in water and waste management (Sostelia Group, SEA Srl, Ambiente Energia) expanded the group's scope and are expected to boost EBITDA by €20 million annually.

• Capital expenditures surged 24.1% to €237.7 million, fully self-financed, supporting regulated asset resilience and green transition initiatives.

• Financial flexibility was maintained with net debt/EBITDA at 2.6x, and governance stability was reinforced by the reappointment of executives.

• Dividend per share to be distributed in June 2026 will be €0.16, up 6.7% from the previous year and above the business plan forecast.

Financial highlights

• EBITDA: €418.9 million (+0.2% year-over-year); EBIT: €248.8 million (+0.6%); Net profit: €165.1 million (+0.8%); Net profit attributable to shareholders: €154.6 million (+0.6%).

• Revenue: €3,517.6 million (-18.6% year-over-year), mainly due to lower energy commodity prices and reduced trading volumes.

• CapEx: €237.7 million (+24.1%), fully self-financed; net financial position: €4,028.6 million, up €84.2 million from year-end 2025.

• EBITDA margin increased to 11.9% from 9.7% year-over-year.

• Earnings per share: €0.105 (basic and diluted).

Outlook and guidance

• The business plan targets high single-digit CAGR in structural EBITDA, industrial growth, and sustainability, leveraging a balanced mix of regulated and free-market activities.

• Management expects continued resilience and value creation, supported by diversification and recent acquisitions.

• Financial strength and flexibility position the group to pursue further organic and M&A-driven growth.