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, with net profit up 7.4% to €153.7 million and EBITDA stable at €418.0 million (+0.2%).

• All business segments contributed to EBITDA growth, with structural improvements, efficiency gains, and recurring, high-quality earnings outweighing temporary market opportunities.

• Strong cash generation and investments supported further growth, with gross operating investments up 22.2% to €191.6 million, fully self-funded.

• Return on equity (ROE) increased to 11.0% and return on investment (ROI) to 10.3%, reflecting accretive capital discipline and portfolio mix.

• 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); Net profit: €153.7 million (+7.4% YoY); EBITDA: €418.0 million (+0.2% YoY); EBIT: €247.2 million (+0.5% YoY).

• Earnings per share increased to €0.106 from €0.099 in Q1 2024.

• Dividend per share proposed at €0.15, up 7%, with a yield above 4%.

• Cash generation reached €352 million, with free cash flow of €117 million and working capital absorption significantly lower than last year.

• Net financial debt decreased to €3,896.9 million from €3,963.7 million at year-end 2024.

Outlook and guidance

• Management expects continued growth, leveraging a multi-business strategy, recent portfolio expansions, and ongoing investments in resilience, sustainability, and innovation.

• Structural EBITDA and net profit growth of 7% are on track with business plan targets.

• Dividend yield remains above 4%, with ongoing P/E expansion expected due to margin improvements.

• No major one-off opportunities expected; focus remains on recurring, structural growth.