Hera (HER) Q2 2025 earnings summary

Executive summary

• Net profit increased by 5% year-over-year to €229.3 million in 1H 2025, reflecting strong operational and financial performance and alignment with strategic business plan targets.

• Revenues rose 18.7% year-over-year to €6,864.4 million, driven by higher energy prices, volumes, and trading value.

• EBITDA reached €721.7 million, down 1.5% year-over-year, mainly due to fewer temporary opportunities and margin compression in energy segments.

• Net financial debt reduced to €3,927.1 million, improving leverage to 2.49x Net Debt/EBITDA.

• Strategic acquisitions, including Ambiente Energia and TRS Ecology, and the launch of the FIB3R plant expanded operational scope and innovation.

Financial highlights

• Operational cash flow was €675 million, up €139 million year-over-year, supporting investments and debt reduction.

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

• EBIT was stable at €383.2 million, with lower provisions offsetting higher depreciation.

• Net profit post minorities grew 5% to €229.3 million; EPS increased to €0.157.

• Net financial debt/EBITDA ratio improved to 2.49x, down 7.5% year-over-year.

Outlook and guidance

• Management confirmed alignment with business plan targets, expecting continued net profit and investment growth.

• H2 expected to see continued organic growth, further reduction in provisions, and inclusion of €13 million in water business premiums.

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