Hera (HER) Q2 2026 earnings summary

Executive summary

• H1 2026 delivered strong growth, with adjusted EBITDA up 7.5% to €715.5 million and adjusted net profit up 15.8% to €227.6 million, driven by all business lines and both organic and M&A initiatives.

• Infrastructure investment accelerated, with €652.5 million invested in H1 2026, including €142 million for M&A, and development capex 2.6x higher than previous cycles.

• Customer base remained resilient, with churn rates below market average and successful integration of 950,000 STG customers.

• High visibility on future earnings as regulatory time lags diminish and new assets come online.

• Shared-value EBITDA, linked to sustainability, reached 59.9% of total EBITDA, up one percentage point year-over-year.

Financial highlights

• Adjusted EBITDA rose to €715.5 million (+7.5% year-over-year), and adjusted net profit increased to €227.6 million (+15.8% year-over-year).

• Operating cash flow exceeded €700 million in H1 2026, supporting robust capital allocation.

• Net debt/EBITDA ratio at 2.75x, with net financial position at €4,248.6 million.

• Development CapEx in H1 was €220 million, nearly double the prior year period.

• Adjusted EBIT rose 14.7% to €386.5 million.

Outlook and guidance

• H2 2026 expected to continue positive trends, with margin creation from STG customer migration and ongoing infrastructure investments.

• Targets for external growth in 2026 have already been achieved in H1, enabling further infrastructure enhancement and new development opportunities in H2.

• Regulatory time lag for STG nearly finished, boosting near-term earnings momentum.

• Value reserves from completed investments and customer base transitions will progressively impact future EBITDA.