Hera (HER) Q3 2025 earnings summary

Executive summary

• Net profit for the first nine months of 2025 reached €294.7m, up 4.2% year-over-year, reflecting continued value creation and solid performance.

• Revenue increased by 10.6% to €9,475.3m, driven by higher energy commodity prices and increased trading volumes.

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

• Operating investments surged 18.8% to €666.8m, with significant allocations to water, waste, and gas sectors.

• The group expanded its industrial scope through acquisitions and full consolidation of key subsidiaries, supporting both organic and external growth.

Financial highlights

• Net profit post minorities rose from €282.9m to €294.7m year-over-year (+4.2%).

• EBITDA was €1,037.2m, with a margin of 10.9%.

• EBIT slightly decreased by 0.5% to €519.9m, mainly due to higher depreciation and amortization from new investments.

• Free cash flow generation remained strong, supporting a stable net debt/EBITDA ratio of 2.6x.

• Return on Equity (ROE) increased to 11.5%, and Return on Investment (ROI) to 11.7%.

Outlook and guidance

• The group remains on track to achieve Business Plan targets, emphasizing structural EBITDA growth and disciplined leverage.

• Organic growth opportunities are robust across all business areas, with investments prioritized in water, electricity distribution, and waste.

• Sustainability and competitiveness are central to the strategy, with investments aimed at innovation and resilience to support the Net Zero 2050 target.

• 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.

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