Hera (HER) Q1 2025 earnings summary

Executive summary

• Revenues rose 28.3% year-over-year to €4,321.3 million, driven by higher energy prices, increased trading volumes, and a larger customer base.

• EBITDA was stable at €418.0 million (+0.2%), with growth in water and waste management offsetting declines in energy segments; all business segments contributed to EBITDA growth through structural improvements and efficiency gains.

• Net profit attributable to shareholders grew 7.4% to €153.7 million, with strong cash generation supporting investments.

• Gross operating investments reached €191.6 million, up 22.2%, fully self-funded by operating cash flows.

• Net financial debt improved to €3,896.9 million, with a net debt/EBITDA ratio of 2.45x, enhancing financial flexibility.

Financial highlights

• Revenues: €4,321.3 million (+28.3% YoY); EBITDA: €418.0 million (+0.2% YoY); EBIT: €247.2 million (+0.5% YoY); Net profit: €163.8 million (+6.8% YoY); EPS: €0.106 (up from €0.099 YoY).

• EBITDA margin declined to 9.7% from 12.4% YoY due to higher revenues.

• Net financial debt decreased to €3,896.9 million from €3,963.7 million at year-end 2024; equity increased to €4,199.5 million.

• Net debt/EBITDA improved to 2.45x, supporting financial deleveraging.

• Pre-tax profit increased 9.9% to €234.0 million.

Outlook and guidance

• Management expects continued structural and recurring growth, with a focus on resilience, sustainability, and innovation amid a complex macroeconomic scenario.

• Dividend yield remains above 4%, with a €0.15 dividend confirmed for June.

• Improved financial flexibility positions the Group to pursue further organic and M&A growth opportunities.

• Temporary market opportunities are expected to decline, but structural growth will offset this.

• No specific numerical guidance, but management expects stable or growing volumes and prices in waste, and continued RAB-driven growth in networks.