Hera (HER) Q3 2024 earnings summary

Executive summary

• Net profit attributable to shareholders rose 20.1% to €282.9 million, with EBITDA up 3.1% to €1,037.6 million, driven by organic growth, normalization of commodity markets, and strong operational performance.

• Revenues declined 25.3% year-over-year to €8,187.4 million, mainly due to lower energy commodity prices and reduced incentivized activities.

• Customer base expanded to 4.7 million in energy and over 7.5 million citizens served overall, with significant gains from tenders and auctions.

• Investments increased, supporting asset growth, ecological transition, and resilience, with capex up to €561.1 million.

• Total shareholder return exceeded 20%, with visible EPS growth and enhanced value creation.

Financial highlights

• Adjusted EBITDA: €1,037.6 million (+3.1% YoY); Adjusted EBIT: €522.5 million (+3.5% YoY); Adjusted net profit: €282.9 million (+20.1% YoY).

• Revenues: €8,187.4 million (-25.3% YoY), mainly due to lower energy prices and reduced incentivized activities.

• Net financial debt: €4,175.0 million; net debt/EBITDA ratio stable at 2.7x.

• ROI improved to 9.5%; ROE increased to 11.7%; EPS at €0.196.

• Operating cash flow for nine months at €774 million, up €110 million YoY.

Outlook and guidance

• Business Plan targets confirmed, with continued focus on sustainable growth, infrastructure development, and green transition.

• Stable market conditions and regulatory changes expected to support future revenue streams and operational efficiency.

• Financial flexibility and solid net debt/EBITDA ratio position the Group for future external growth opportunities.