Hera (HER) Q3 2024 earnings summary

Executive summary

• Net profit rose over 20% year-over-year, with EBITDA up 3.1%, driven by organic growth, normalization of commodity markets, and strong operational performance.

• Shareholder value creation supported by a 24% total shareholder return and visible EPS growth.

• Growth in operating results was led by increased energy sales, waste management volumes, and regulated activities.

• Customer base expanded to 4.7 million in energy, with over 7.5 million citizens served across all services.

• Ongoing focus on ecological transition, asset resilience, and investments supporting Net Zero 2050 goals.

Financial highlights

• Revenues declined 25.3% year-over-year to €8,187.4m–€8,577.1m, mainly due to lower energy prices and reduced incentivised activities.

• EBITDA rose 3.1% to €1,037.6m, with margin improving to 12.1%; EBIT increased 3.5% to €522.5m.

• Net profit attributable to shareholders up 20.1% to €282.9m; EPS grew 20%.

• Gross operating capex reached €561.1m, up 9.2% year-over-year, supporting organic growth.

• Total shareholder return exceeded 20%, with a dividend yield of 4% and stock price at €3.5.

Outlook and guidance

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

• Net working capital absorption expected to remain stable, with normalization as commercial growth stabilizes.

• Management confident in continued strong performance into Q4 and beyond, with no prolonged negative cash absorption expected.