Hera (HER) Q4 2024 earnings summary

Executive summary

• Achieved record profit and EBITDA growth in 2024, with the largest increase in company history, driven by structural activities, efficiency gains, and offsetting the loss of one-off incentives from 2023.

• All business lines—energy supply, waste, and networks—contributed positively to EBITDA growth, with networks as the main driver and significant commercial expansion, including major customer acquisitions.

• Maintained strong financial flexibility and low leverage, supporting organic investments, M&A activities, and increased dividend policy.

• Focus on accretive capital discipline, market development, and sustainability, with investments supporting resilience and future growth.

• Proposed dividend increased to €0.15 per share, with a policy targeting further increases through 2028.

Financial highlights

• EBITDA grew by 6.2% to €1,587.6 million; EBIT increased by 12% to €829.9 million.

• Net profit for shareholders reached €494.5 million, up 31.8% year-over-year; adjusted net profit at €446.7 million (+28.2%).

• Operating cash flow was €1,148 million, up €210 million from 2023.

• Free cash flow stood at €357 million after maintenance CapEx of €563 million and development CapEx of €248 million.

• Dividend per share increased to €0.15, with high double-digit total shareholder return.

Outlook and guidance

• Expect continued growth in EPS and value creation, with dividend policy targeting €0.17 per share by 2028 and net earnings per share rising by an average of 6% per year.

• Business plan and Climate Transition Plan aim for Net Zero by 2050, with a 90% emissions reduction from 2019 levels.

• M&A remains a strategic focus, with flexibility to pursue further opportunities.

• Shared-value EBITDA projected to exceed €1.1 billion by 2028, or 66% of total EBITDA.

• Focus remains on sustainable growth, innovation, and further value creation for shareholders.