In the new Business Plan to 2025 Hera expresses its commitment to make a concrete contribution to the path towards greater environmental sustainability, through a significant capital expenditure and investment plan of 3.8 billion euro in total.
The cumulative capex and investments over the 2021-2025 period, due to the careful allocation in different business areas, help fuel a strong growth of EBITDA, which is expected to reach 1.4 billion euro at the end of the Plan.
With its sustainable approach to business, the multiutility nature and many circularity projects matching the Recovery Fund, Hera is well positioned to leverage the increasing sustainability demand coming from the policy makers and from the market itself.
Leveraging 98% of investments that are taxonomy-compliant, and for about two-thirds consistent with Shared Value criteria, Hera expects to give a strong “Green” boost to EBITDA growth.
The new Plan to 2025 expresses a clear equity story, based on the growth acceleration of both EBITDA and Earnings per Share. It also leverages the high visibility of the factors that drive an increasingly green path.
Investors will have new elements to evaluate the Hera stock, starting from the 2025 targets, which also envisage a higher remuneration through dividends following higher expected earnings, while the financial profile remains solid.
To explain how the new Plan to 2025 signs a substantial change of pace compared to the Plans that Hera presented in the past, we focus on evidence emerging from the key targets.
From this exercise, some of the features that characterise the Group’s new strategic commitment for the coming years appear crystal clear: The average annual investments planned are in total 59% higher than those made in the last five years and 20% higher than those in the Plan to 2024, with a significant contribution from organic investments (+16%).