Hera (HER) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of 2025 rose 10.6% year-over-year to €9,365.6 million, driven by higher energy commodity prices and increased sales and trading volumes in gas and electricity.

• Net profit attributable to shareholders increased by 4.2% to €294.7 million, reflecting strong operating performance and financial optimization.

• EBITDA remained stable at €1,037.2 million, with a 9% structural growth rate, supported by all business segments.

• Significant investments focused on water, waste, and gas infrastructure, with capital expenditure up 18.8% to €666.8 million and expansion through acquisitions and new ventures.

• The group expanded its industrial scope through acquisitions, including Ambiente Energia and full consolidation of key subsidiaries, and launched new projects such as the Circular Yard joint venture.

Financial highlights

• EBIT was €519.9 million, down 0.5% year-over-year due to higher depreciation and provisions.

• Net financial debt increased to €4,147.2 million, with a net financial position/EBITDA ratio of 2.6x, reflecting improved financial flexibility.

• Return on equity (ROE) reached 11.5%, and return on invested capital (ROI) was 9.9%.

• Earnings per share rose to €0.201 from €0.196 year-over-year.

• S&P rating at BBB+/A-2 (stable outlook), Moody's at Baa2 (positive outlook), and cost of debt stable at 2.75% with 94% at fixed rates.

Outlook and guidance

• The group remains on track with business plan targets, emphasizing structural EBITDA growth, disciplined leverage, and robust organic and external growth opportunities.

• Investments are prioritized in water, electricity distribution, and waste, with sustainability and innovation central to strategy.

• Market volatility is expected to persist, but the group is positioned to benefit from regulatory incentives and stable demand in core sectors.

• Dividend policy is reviewed annually, with possible adjustments based on market conditions and business performance.

• M&A market is not seen as a constraint; potential exists to double the current business plan's M&A impact if suitable opportunities arise.