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 value creation.

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

• EBITDA reached €721.7 million, down 1.5% year-over-year, with margin at 10.5% and €56 million from temporary opportunities.

• Net financial debt reduced to €3,927 million, improving leverage to 2.5x Net Debt/EBITDA.

• Moody’s upgraded the outlook from stable to positive, reflecting improved financial flexibility.

Financial highlights

• Operational cash flow was €675 million, up €139 million year-over-year.

• CapEx totaled €414 million, up 20.2%, reflecting accelerated investment in water and waste sectors.

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

• Financial costs declined to €39.2 million from €61.9 million year-over-year.

• Basic and diluted EPS increased to €0.157 from €0.152 in 1H 2024.

Outlook and guidance

• Management confirmed alignment with business plan targets, expecting continued net profit and structural EBITDA 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.