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, operational improvements, and all business segments contributing.

• Net profit for shareholders rose 31.8% to €494.5 million, and EBITDA increased 6.2% to €1,587.6 million, reflecting organic and structural improvements.

• Maintained strong financial flexibility, low net debt/EBITDA ratio (2.5x), and increased dividend per share to €0.15, supporting future organic and M&A investments.

• Significant commercial expansion, including acquisition of one million new electricity customers and strategic M&A in waste and energy sectors.

• Continued focus on sustainability, with shared value representing up to 54% of EBITDA and a 14% CAGR since 2016.

Financial highlights

• EBITDA grew by €93 million year-over-year to €1,587.6 million (+6.2%); 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

• No formal 2025 guidance provided, but business plan targets ongoing EPS and value growth, with a dividend policy aiming for €0.17 per share by 2028.

• Expectation to offset reductions in safeguarded and last instance markets through market evolution and customer acquisition.

• Continued focus on M&A, especially in waste and networks, with €700 million allocated for M&A in the business plan.

• Anticipate stable working capital and further integration of Aimag acquisition in 2025.

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