FY 2024 results confirm Hera’s ability to improve its EBITDA (+6.2%) consistently despite the normalisation of energy prices, which drove a 16.2% drop in Revenues, and despite the exhaustion of the 110% Ecobonus incentives, which had generated attractive returns from energy efficiency activities in 2023.

All the KPIs of the Income Statement show significant increases compared to 2023. EBIT (+12%) grew at a higher rate than EBITDA on the back of lower Provisions, while Net Profit after minorities increased by 31.8%, also benefitting from lower net financial charges.

The new Business Plan, which drives Hera’s roadmap to 2028, has all the features of a high visibility and low-risk growth plan.  
As much as 2.4 billion of the 4.6 billion in investments cumulatively planned over the five-year period are development investments – out of which 2.1 billion as operating capex and about 300 million for M&A. In addition, there are 500-million-euro investments funded through non-repayable grants.
Hera will dedicate around 60% of those development investments to Networks and Waste collection, thus providing high visibility to the 9.5% ROI target in 2028, compared to the 8.7% adjusted figure for 2023.

Once again, nine-month 2024 results prove the strength and effectiveness of Hera’s business model. The Group succeeded in increasing operating margins even though the normalisation of energy prices led to a 25.3% fall in Revenues, against the backdrop of an anaemic economy and the expiry of the 110% Ecobonus incentives.
EBITDA and EBIT post a growth of 3.1% and 3.5% respectively, an improvement even compared to first-half performance, while P&L bottom line shows a 20.1% rise in Net Profit post minorities.

In the first six months of 2024, Hera confirmed its continued ability to improve operating margins due to the strength of its structural business portfolio, even against a backdrop of energy prices returning to more normal levels and the expiry of the 110% Ecobonus benefits. Against a 33.3% drop in Revenues, Group’s half-year results post a 2.0% progress at EBITDA and a 2.8% increase at EBIT.
At the consolidated level, the significant increase in EBITDA of Networks (+26.2 m€) and Waste (+8.6 m€) offset the EBITDA decrease in the Energy area, which nevertheless grew on an organic basis by about 28 m€, despite a penalising comparison with the first half of 2023 due to the expiry of the SuperEcobonus tax incentives, whose negative impact that can be calculated at about 51 m€.

In the first quarter of 2024, Hera achieved an increase of 1.7% at EBITDA level and of 4.2% in EBIT, despite the 40.9% decline of Revenues due to the normalisation of energy commodity prices.
Networks EBITDA provided an incremental contribution of 13.5 m€ at Group level, leveraging on the positive impacts of the new regulatory framework, while the Waste area added for 2 m€, offsetting the negative impacts of the scenario.
The Energy area delivered a strong organic growth due to the broader customer basis, thus almost wholly compensating for the lower contribution of Energy Efficiency services, as the 110% Ecobonus tax incentives expired at the end of 2023.

In 2023, Hera achieved an EBITDA increase of 15.4%, in a framework featuring a 25.8% decline in Revenues, as energy commodity prices returned to levels closer to those before the outbreak of the conflict in Ukraine.
The EBITDA of Energy areas, which has determined 182.5 m€ of the total Group EBITDA progress of 199.7 m€, posted a significant increase (+40.6%), due to the fast expansion of the customer basis (+c.330,000) and the broadening of the services offered, including those in the Energy Efficiency business.
In the Waste area (+4.6%), where also the second bio-methane plant entered into operations, Hera recorded a growth both in prices and in volumes, while leveraging the successful integration of the activities of ACR Reggiani, after the acquisition of 60% of its capital in March 2023.

Over the five-year period, Hera will concentrate more than half (about 55%) of the 4.4 billion euro investment plan in regulated businesses (Networks and Waste collection), with the aim of enhancing the existing infrastructure and seizing the opportunities of the regulatory framework, thus generating returns with high visibility and keeping the risk profile low.

Over the Plan’s period, Energy will have available investments of about one billion euro. This area will benefit from a normalisation phase following the crisis in 2022, even in terms of lower absorption of working capital. Therefore, in Energy, Hera aims to provide a qualified offer of value-added services…

In the first nine months of the current fiscal year, Hera achieved an EBITDA growth of 15.1%, despite a 22.3% decrease in Total Revenues, due to falling energy commodity prices.
Energy areas, which explain 112.4 m€ of the total EBITDA progress of 132.0 m€, recorded a significant increase (+43.8%), leveraging on a fast growth of the customer basis (+310 thousand) and a wide range of services provided, including those successfully addressing the Decarbonisation issue.
In the Waste area (+4.8%), where one of the two Waste-to-Energy plants in revamping has not returned into operation yet, Hera leveraged higher treated volumes and prices, as well as the broader scope gained with the acquisition of ACR Reggiani.

Despite the 6.7% reduction in Revenues, reflecting the pullback of energy commodity prices from past peaks, Hera achieved significant growth in the first half of 2023, with double-digit growth rates in EBITDA and EBIT.
Not only did all major P&L balances show improvement compared to H1 2022, but also all strategic business areas made a positive contribution to the 13.8% growth in consolidated EBITDA.
The Energy areas saw a very dynamic development (+30%), due to the strong expansion in the number of customers and the broad portfolio of services offered, with a robust contribution from Decarbonisation services.

Hera starts 2023 on a growth path. All KPIs are up compared to the first quarter of 2022, while Net Financial Debt decreases
by €472.2 m, thus taking the Debt-to-EBITDA ratio down to 2.84x.
The Energy and Waste areas, which outperformed the Group average growth, have driven the 9.4% increase in EBITDA.
The quarterly results achieved indicate that Hera continues along the Business Plan’s growth path, by leveraging on its proven ability to manage the operating businesses with prudence and foresight, while riding the opportunities of the scenario…