Hera (HER) Q4 2025 earnings summary

Executive summary

• Net profit attributable to shareholders rose 3.9% year-over-year to €464.3 million, in line with business plan forecasts for 2025.

• EBITDA for FY2025 was €1,537.2 million, down 3.2% from FY2024 due to extraordinary 2024 items, but up 4.5% on an adjusted basis; margin at 11.9%.

• Dividend proposal of €0.16 per share, up 6.7% from the previous year, with a policy to reach €0.19 by 2029.

• Total shareholder return reached 22% for the year and 77% over the last three years, supported by a 5% dividend yield.

• Investments reached a record €1,028 million, up 19.5% year-over-year, mainly self-financed.

Financial highlights

• Revenues were €12,812.2 million, down 0.6% year-over-year; EBITDA was €1,537.2 million, down 3.2%.

• EBIT was €802.9 million, down 3.3%; net profit attributable to shareholders was €464.3 million, up 3.9% on a like-for-like basis.

• Operating cash flow exceeded €1.3 billion, nearly €200 million higher than 2024.

• Free cash flow for FY2025 was €761 million, almost double the previous year.

• Net financial debt decreased slightly to €3,944.4 million; net debt/EBITDA ratio at 2.57x.

Outlook and guidance

• Dividend policy targets €0.19 per share by 2029, with the 2026 ex-dividend date set for June 22.

• Continued organic growth expected in networks and waste, with M&A (SEA, Sostelia, Ambiente Energia) contributing to expansion.

• Further optimization of provisions and financial costs anticipated in 2026.

• Double-digit value creation target confirmed for FY2025.

• Focus on industrial growth, sustainability, and financial flexibility to pursue business plan objectives.