In 2024, Hera delivered solid operating performance, with EBITDA growth of 6.2%, which was reflected all the way to the P&L bottom line, with a 32.2% increase in Earnings per Share. An impressive result also from a qualitative point of view, considering the purely structural nature of the activities underlying the progress achieved.
An additional proof of the healthy results deriving from the effective strategic approach lies in the deleveraging that continued in FY2024, with the Debt-to-EBITDA ratio dropping to 2.5x in a year of significant investments made and higher dividends distributed: a reflection of the strong cash generation achieved through a successful operating and financial management. Therefore, in 2024 Hera succeeded in offering its shareholders a Total Shareholder Return of nearly 36%, among the highest levels in the industry.

The 2024-2028 Business Plan reaffirms significant features of the previous one, especially in its strategic design. Hera intends to remain consistent with a business model and management approach proven to ensure continuity of growth while maintaining a low risk profile, even under very challenging external scenarios.

The targeted ROI of 9.5% in 2028 derives from a significant 4.6 billion investment plan, mostly aimed at making sustainability goals a reality. About half of the development investments are dedicated to the strengthening of the Networks’ infrastructure.

Against a backdrop of continuing normalisation of commodity prices and weak economic growth, Hera achieved very healthy nine-month 2024 results, through wholly organic growth, generated by activities that are the structural pillars of its business portfolio.
Therefore, the Group has achieved an improvement of all the P&L KPIs, through a 3.1% rise at EBITDA, a 3.5% increase at EBIT and Net Profit accelerating and exceeding by 20.1% the nine-month 2023 level: a set of results that makes it possible to state that Hera is on the right track to meet the Plan’s 2027 targets.

After the brilliant results achieved in 2023, which provide a challenging basis for comparison, Hera manages to deliver further progress in the first half of 2024, as proven by EBITDA increasing by 2%, EBIT improving by 2.8%, and Earnings per Share up 16%.
The half-year growth in Group EBITDA is based on structural components and fully organic: a strong impetus came from the positive dynamics of Networks, where Hera has taken full advantage of the new regulatory framework, and from the strong position in industrial waste treatment.
Significant expansion was achieved in the energy customer base, with a million new customers entering the Gradual Protection service as of July 1.

In the first quarter of 2024, following record growth in the previous year, Hera again succeeded in posting healthy operating performance, with EBIT up 4.2%, resulting in a 12.2% increase in Earnings per Share.

Regulated businesses are once again having a significant impact on growth, whereas Hera had lately only been relying on additional efficiencies and service quality rewards to produce sound results. We had been waiting for the application of the new WACC levels expected from the ARERA Resolutions and the adjustment of RAB and costs to the high levels of inflation: an update that is instead currently possible with the new regulatory framework, in force since the beginning of the year.  

Fiscal Year 2023 shows very healthy performance at operational level, with an EBITDA increase of 15% translating into a 17% EPS increase.

The strong EBITDA improvement reflects a “structural” component connected to organic growth and M&A – typical Hera’s development levers over time – which is complemented by a significant contribution from the markets of Last Resort and Energy Efficiency services under the Ecobonus incentives.

The Energy area played a driving role in the growth of the Group’s EBITDA, leveraging on a significant expansion of the customer base, which Hera proved to be able to manage while improving margins.

With the 2023-2027 Business Plan, Hera clearly defines the path to follow over the coming years. Even in the new, challenging scenario, Hera continues to leverage on a strategy that has been proven effective over time, with well-defined priorities in terms of value creation, sustainability and resiliency.

By deploying 4.4 billion euro in investments over the five-year Plan period, Hera will concentrate its resources on ensuring visible value creation while pursuing the goals of both sustainability and resilience to negative exogenous factors. 

Based on preliminary results, the year 2023, the first of the Plan, shows a sharp acceleration in the EBITDA growth rate and a significant deleveraging.

The first nine months of 2023 showed double-digit growth, moving from EBITDA to the P&L bottom line.
A set of clear features backs up the quality of the growth achieved over the period. Indeed, this was a cross-sectional growth, which involved operational, financial, and fiscal management, as well as all businesses across the multi-utility portfolio. Such growth can also be described as qualitative due to the high EBITDA component achieved in activities that contribute to the energy transition and circularity.
The Energy area goes on playing a driving role, in the wake of repeated and well-targeted achievements through commercial activities that often bring with them better margins. The outcome is that Hera can now leverage a solid base of 3.8 million customers.

In the second quarter of 2023, Hera gave fresh impetus to the growth already achieved in the first quarter, with first-half EBITDA showing an overall progress of 13.8%.

This result reflects the positive contribution of all business areas, while also having a significant sustainable connotation, given the continued development of the Decarbonisation activities.
In the first half of the year, the successful efforts to win new customers in the free market, the tenders awarded in the segments of last resort, STG and Consip, as well as the strong positioning in Decarbonisation services gave the Energy area a driving role in the Group’s growth. 

Hera opens 2023 with reassuring results from the first quarter, not just for the entity but also for the quality of the progress achieved.
All typical drivers contributed to the 9.4% increase in EBITDA: organic growth, mainly supported by the expansion of the customer base in the Energy areas and the strong competitive positioning in Waste, as well as activities that promote the circular economy and M&A.
Operating cash flow generation covered increasing capex and the disbursement for acquisitions, while the depletion of stored gas reserves contributed to the debt reduction of 472 million euro.