Hera Group approves results at 31/12/2025
The year closed with a 4% increase in net profit attributable to shareholders and a 20% rise in investments. Value creation for all stakeholders and a solid capital structure once again confirm the Group’s ability to combine business growth with sustainable development. The proposed dividend increases to 16 euro cents per share, up 6.7%.
Economic and financial highlights
- Revenues at €12,812.2 million (-0.6%)
- EBITDA at €1,537.2 million (-3.2%)
- Net profit attributable to shareholders at €464.3 million (+3.9% on a like-for-like basis compared with FY2024, which benefited from extraordinary items of €47.8 million)
- Gross operating investments of €1,028 million (+19.5%)
- Net financial debt slightly down to €3,944.4 million, with net debt/EBITDA at 2.57x
- ROI at 9.6% and ROE at 11.6%
- Proposed dividend increased to 16 euro cents per share (+6.7%)
Business highlights
- Around 4.4 million energy customers, with over 7.5 million citizens receiving at least one service from the Group
- Innovative initiatives continued to support the communities served in the ecological transition and strengthen the resilience of managed assets, in line with the Business Plan and the Net Zero target by 2050
- Shared-value EBITDA rose to €915.6 million (+7%), while shared-value investments amounted to €810.9 million (78% of total investments). 64% of investments are aligned with the European Taxonomy.
- Economic added value distributed across the areas served exceeded €2.1 billion
The Board of Directors of the Hera Group, chaired by Executive Chairman Cristian Fabbri, today unanimously approved the Annual Financial Report as at 31 December 2025, including the Sustainability Reporting pursuant to Directive (EU) 2022/2464 (CSRD), containing the information necessary to understand the company’s impact on sustainability matters and how those matters affect its performance and results.
In 2025, the Hera Group continued along its path of industrial growth, with investments up by almost 20%, increasing across all businesses and particularly in the environment and integrated water cycle areas.
The Group’s commitment to combining business growth and sustainable development, fully in line with the strategic pillars set out in the Business Plan, was confirmed. The economic and balance sheet results in fact highlight the value creation capability underpinning the Group’s growth.
With regard to external growth, in 2025 the Group further strengthened its activities in the waste management area through the acquisition of 100% of Ambiente Energia, a Veneto-based company specialising in the treatment of industrial liquid waste, while in the energy area the acquisition of the minority interests in EstEnergy and Hera Comm was completed. In March 2026, following the acquisition of a further 52% stake in SEA, the Hera Group increased its holding to 83% in the Marche-based platform for the treatment of industrial waste. In addition, the acquisition of 100% of STA and the related stakes in the subsidiaries belonging to the Sostelia Group was finalised. Sostelia is a major privately owned Italian player in industrial and civil water treatment, and the acquisition will be consolidated and produce effects from FY2026.
Cristian Fabbri, Executive Chairman of the Hera Group, stated:
“The positive results achieved in 2025 bring to a close the three-year term of office of the Board of Directors, a period marked by strong geopolitical instability and extreme weather events, which also had an impact on the businesses we manage. Despite this context, we accelerated industrial growth by investing almost €3 billion, 43% more than in the previous three-year period, improving the resilience of our assets and our contribution to environmental sustainability. We achieved significant results, confirming the validity of the direction taken by our Group and demonstrating that business growth, value creation and sustainable development can go hand in hand. Over these three years, EBITDA has grown by almost 20%, while net profit attributable to shareholders has grown continuously, up 44% overall. The cash flows generated enabled us to reduce debt and improve financial leverage. Total Shareholder Return increased overall by 77%, supported by 27% growth in dividends. At the same time, the economic value distributed to our stakeholders also increased significantly, exceeding €2.1 billion in 2025. In light of the positive results achieved and the financial strength of our Group, we will propose to the Shareholders’ Meeting the distribution of a dividend of 16 euro cents per share, up 6.7% on the last dividend paid. This increase will feed through to our dividend policy over the coming years, up to a dividend of 19 euro cents in 2029, as set out in our Business Plan.”
Orazio Iacono, CEO of the Hera Group, stated:
“In 2025, against a complex macroeconomic backdrop, the Hera Group continued along its industrial development path, increasing investments by 20% to €1.028 billion, the highest level in Hera’s history. These investments were fully self-financed thanks to the significant cash generation achieved during the year and provide a solid foundation for the future development of our Group. At EBITDA level, which reached €1.537 billion, 2025 demonstrated our ability to turn the extraordinary opportunities of previous years into structural and sustainable growth. Net finance costs decreased compared with the previous year, confirming our ongoing commitment to the efficient rationalisation of financial resources. Accordingly, in 2025 as well, the Hera Group confirmed its ability to create value, reporting net profit attributable to shareholders of €464.3 million (+3.9%). In summary, the year closed on a positive note, with a further strengthening of our financial and economic solidity, as evidenced by a net debt/EBITDA ratio of 2.57x, which provides us with significant financial flexibility to pursue effectively the objectives set out in the Business Plan. A recent example is the acquisition of the Sostelia Group, a company with more than 1,200 customers, which positions us as a leader also in the market segment for the treatment of civil and industrial wastewater, further expanding our range of services in support of Italy’s industrial fabric.”
Revenues of approximately €12.8 billion
Revenues as at 31 December 2025 amounted to €12,812.2 million, substantially in line with 2024 revenues. In the energy markets, the average increase in energy commodity prices was offset by lower gas consumption among the customer base, reduced energy efficiency activities linked to the scaling back of incentive schemes, and the effects of Decree-Law 19/2025, which introduced an extraordinary contribution towards energy bills for households facing economic hardship. Revenues from network services increased as a result of the adjustment of tariff revenues, driven both by growth in the RAB following the investments made and by the update of the tariff methodologies defined by the Authority, which offset the reduction resulting from changes in the regulatory WACCs for electricity and gas distribution. Lastly, revenues from the waste management value chain also increased, despite lower revenues from the sale of electricity generated by waste-to-energy plants, mainly thanks to the expansion of business volumes in the industrial market, remediation activities and plastics recovery.
EBITDA of over €1.5 billion
EBITDA for 2025 amounted to €1,537.2 million, down 3.2% compared with €1,587.6 million as at 31 December 2024. However, the comparison between the two years should be viewed in light of the extraordinary margins recorded in 2024, linked to temporary non-recurring opportunities amounting to around €114 million (relating to last resort markets and the ecobonus). Excluding these effects, EBITDA as at 31 December 2025 showed a growth of 4.5%. On this basis, all business areas contributed to growth: the integrated water cycle by €34.6 million, the energy area by €20.5 million and the waste management area by €7.8 million.
EBIT at €802.9 million
Depreciation, amortisation and provisions as at 31 December 2025 decreased overall by €23.4 million compared with the previous year. Higher depreciation and amortisation were recorded mainly in relation to new operating investments, particularly in the regulated sectors and in waste treatment, while provisions for risks and provisions for doubtful debts declined, above all due to the lower volumes managed in the gas last resort markets. EBIT as at 31 December 2025 amounted to €802.9 million, down 3.3% compared with FY2024.
Improved financial management and net profit up to €508.3 million
Net profit as at 31 December 2025 amounted to €508.3 million, up 4.1% compared with the €488.1 million reported in 2024.
Net financial expense decreased by €49.4 million compared with the previous year, thanks to the continued rationalisation of the financial structure and improved results from associates. Taxes for the year as at 31 December 2025 were substantially in line with the previous year, with a tax rate of 28.5%, down from 29.1% in the corresponding period of 2024.
Net profit attributable to shareholders up by around 4%
Net profit attributable to shareholders as at 31 December 2025 amounted to €464.3 million. This represents an increase of 3.9% on a like-for-like basis compared with FY2024, which had benefited from extraordinary items totalling €47.8 million relating to the exercise of the put option by Ascopiave, following which the Hera Group came to hold 100% of EstEnergy, the leading energy operator in North-East Italy.
Strong growth in investments and improvement in net financial debt
In 2025, Hera Group operating investments, gross of capital grants, reached €1,028 million, up 19.5% compared with the previous year. This increase was recorded mainly in operating investments in the integrated water cycle and in the waste management area.
The Group’s financial strength was fully confirmed, with a net debt/EBITDA ratio as at 31 December 2025 of 2.57x, in line with 2.50x in 2024, confirming the Group’s ability to meet its obligations thanks to its ample financial flexibility, which also enables it to seize potential future opportunities. Total net financial debt amounted to €3,944.4 million, substantially in line with the figures reported as at 31 December 2024.
The year’s performance resulted in a return on equity (ROE) of 11.6% and a return on net invested capital (ROI) at 9.6%.
Shared-value EBITDA and investments up to €915.6 million (+7%) and €810.9 million respectively, with the latter accounting for 78% of total investments.
Confirming the multi-utility’s commitment to sustainability and value creation in the areas served, in 2025 shared-value EBITDA, relating to business activities that also contribute to the objectives of the Global Agenda, rose to €915.6 million, up 7% compared with 2024, and accounted for 60% of the Group’s total EBITDA. This result confirms the significant progression in shared-value EBITDA envisaged in the Business Plan, which targets a level equal to 68% of total EBITDA by 2029.
Shared-value investments also increased, rising from €655.1 million in 2024 to €810.9 million in 2025, accounting for around 78% of total gross operating investments. In addition, around 64% of investments are aligned with the European Taxonomy and are therefore able to contribute to the environmental objectives of climate change mitigation, the circular economy, protection of water resources and pollution prevention.
In 2025, the economic added value distributed to stakeholders across the areas served (including shareholders, local communities, public administrations, suppliers and employees) amounted to €2,102 million, equal to 65% of the total.
All of these figures demonstrate the growing weight of initiatives which, in addition to generating margins for the company, deliver tangible benefits for sustainable development, in line with the objectives of the UN Agenda.
Proposed dividend increased to 16 euro cents per share
As announced on 21 January at the presentation of the Business Plan to 2029, and in view of the results achieved, the Board of Directors has decided to propose to the Shareholders’ Meeting on 29 April the distribution of a dividend of 16 euro cents per share, up 6.7% on the last dividend paid and above the expectations set out in the previous Plan (15.5 euro cents).
This increase will feed through to the entire dividend policy over the plan period, reaching 19 euro cents per share in 2029.
The ex-dividend date will be 22 June 2026, with payment from 24 June 2026. The dividend will be payable on shares outstanding as at 23 June 2026.
Remuneration Policy Report and Report on Remuneration Paid approved
The Board of Directors also approved the Report on the Remuneration Policy and Remuneration Paid, in line with international best practice.
Gas EBITDA for the gas area – which includes natural gas distribution and sales, district heating and energy services – amounted to €544.6 million as at 31 December 2025, compared with €571.4 million in FY2024. The 2025 results show a decline compared with the previous year, which had been characterised by extraordinary results related to margins in the last resort markets (“Default” and “FUI”) and energy efficiency activities. On a like-for-like basis, the positive results from gas distribution would have been more evident. The total number of gas customers stood at around 1.9 million, slightly down compared with 2024, mainly in the traditional markets and the last resort markets, following the natural expiry of the tender for the FUI service for the period from 1 October 2023 to 30 September 2025.
Gross investments amounted to €206.5 million, up 14.4% compared with the previous year. Key investments included the Trieste plant for the production of green hydrogen for local public transport and port logistics, a project forming part of the North Adriatic Hydrogen Valley and benefiting from NRRP funding, as well as the growing number of extraordinary maintenance works on networks and plants across the areas served. Investments in district heating also increased, driven by major works on networks and plants, as did investments in energy services through the activities of subsidiary Hera Servizi Energia.
The gas area contributed 35.4% of the Group’s total EBITDA.
Electricity
In the electricity area – which includes electricity generation, distribution and sales, as well as public lighting – EBITDA amounted to €255.3 million as at 31 December 2025, down from €322 million in FY2024. This decrease was mainly attributable to the normalisation of margins related to the new 2025–2026 Safeguard market tender. Results from electricity distribution, value-added services and public lighting all improved.
As at December 2025, the Group’s electricity sales customers stood at 2.5 million, slightly down compared with 2024, mainly due to the reduction in STG customers.
Customer appreciation and loyalty was confirmed, including the value-added services offered by the Group, which were requested by more than 100 thousand customers at December 2025, up 23.6% compared to 2024. Gross investments in the electricity area amounted to €134.4 million, up compared with the previous year. In electricity distribution, investments mainly concerned extraordinary maintenance and the upgrading of plants and distribution networks in the areas managed (Modena, Imola, Trieste and Gorizia), as well as measures to improve network resilience, such as the development of Smart Grids. In Trieste in particular, works continued on the electricity network aimed at increasing hosting capacity, with the objective of supporting the city’s energy transition and the electrification of port quays.
The electricity area contributed 16.6% of the Group’s total EBITDA.
Water cycle
The integrated water cycle area – which includes aqueduct, wastewater treatment and sewerage services – reported EBITDA of €331.7 million in 2025, up 11.7% compared with €297.1 million as at 31 December 2024. Growth in the RAB, incentive mechanisms and operating efficiency were the main drivers supporting the increase in margins in this area.
In FY2025, gross investments in the integrated water cycle area amounted to €342 million, up 31% compared with the previous year: €213.6 million in aqueducts, €86.8 million in sewerage and €41.7 million in wastewater treatment. Investments in the water cycle mainly related to extensions, remediation works and upgrades to networks and plants, as well as regulatory compliance measures, particularly in wastewater treatment and sewerage.
The installation of smart meters continues, with a view to reducing network losses. In sewerage, alongside the continuation of the implementation of Rimini’s Bathing Water Protection Plan (PSBO), mention should be made of maintenance works to upgrade the sewer network across a number of areas served, the construction of a first-flush tank in the municipality of Cattolica and the construction of a sewer backbone in San Giovanni in Persiceto. In the wastewater treatment sector, work is under way on the new Power-to-Gas plant at the IDAR wastewater treatment plant in Bologna, as well as upgrading and expansion on the Lugo and Ravenna purification plants.
With regard to incentives and service quality for the two-year period 2022–2023, the Ferrara area ranked among the top three in Italy, and in previous editions as well at least one of the areas managed by the Hera Group had ranked among the top three nationally.
As for linear water losses, these fell by 7%, from 8.4 cubic metres/km/day to 7.8, compared with a national figure which, in 2024, amounted to 24 cubic metres/km/day (source: Blue Book 2026).
The integrated water cycle area contributed 21.6% of the Group’s total EBITDA.
Waste
EBITDA for the waste management area – which includes waste collection, treatment and recovery services, as well as remediation activities – amounted to €374 million, up 2.1% compared with €366.2 million in 2024, thanks to the positive contribution from global waste management activities, with particular reference to treatment and recovery, higher sales volumes at Aliplast and the good performance of ACR, which more than offset the decline in energy management linked to lower commodity prices. Regulated urban waste collection services also increased.
Good results were achieved thanks to the diversification of the offering, the breadth of the customer portfolio and the ability to respond promptly in delivering the services offered, also in light of increasingly stringent European environmental protection regulations. More generally, in 2025 the multi-utility accelerated its path of industrial growth and innovation, strengthening its leadership role in the environment sector in terms of volumes of waste treated and its position as a benchmark operator in the circular economy.
The FIB3R plant in Imola, the first industrial-scale carbon fibre recycling plant in Europe, became operational, marking the Group’s entry into the business of high value-added recycled composite materials. This plant, with a second production line due to become operational by the end of 2026, is recognised nationally for its environmental value, as it helps reduce dependence on critical raw materials and supports the decarbonisation of industrial supply chains.
Expansion in business services also continued with the launch of CircularYard, the joint venture with Fincantieri and ACR for integrated waste management at shipyards, and the acquisition of Ambiente Energia, which strengthened the Group’s presence in Veneto in the treatment of industrial liquid waste.
In the environmental remediation and industrial decommissioning sector, ACR consolidated its national leadership, completing strategic projects on complex sites and expanding its portfolio of major contracts in the Energy and Oil & Gas sectors.
During the year, Aliplast launched circular economy partnerships with major customers and institutions, expanded production capacity through new acquisitions and completed its corporate integration into the Herambiente Group, consolidating its European leadership in plastics recycling.
The protection of environmental resources and the maximisation of their reuse continued to be a key priority. Alongside the initiatives mentioned above, this is also demonstrated by the particular focus placed on the development of separate waste collection which, thanks to the strong commitment shown by the Group across all the areas it serves, rose to 75.8%, up by one and a half percentage points compared with 2024.
Gross investments in the waste management area amounted to €208.8 million, up 28.7% compared with the previous year, and related to maintenance and upgrading works at waste treatment and recovery plants. Particularly significant were investments in the waste-to-energy facilities, mainly attributable to the construction of line 4 at the Padua plant, while in the industrial waste treatment segment the revamping of the F3 plant in Ravenna continued. In the selection and sorting and recovery plants, investments increased overall for the expansion of the Pozzilli treatment plant (Isernia), in addition to the platforms of HEA and TRS Ecology. Moreover, in 2025 the construction of the new rigid plastics recycling plant in Modena was substantially completed, and the facility is due to be inaugurated in the coming months.
The waste management area contributed 24.3% of the Group’s total EBITDA.
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The Consolidated Half-Year Financial Report as at 30 June reports a 16% increase in net profit and a 56% rise in investments, higher than in the previous period. The operational and financial soundness has been confirmed and the targets for the current year with regard to external growth have already been achieved in the first half. The results achieved at the end of June will enable the multi-utility to further enhance its infrastructure in the second half of the year and seize new development opportunities.
Economic and financial highlights Revenues adjusted* at €6,494.6 million (-3%)
- EBITDA adjusted* at €715.5 million (+7.5%)
- Net profit attributable to shareholders adjusted* at €227.6 million (+15.8%)
- Investments of €652.5 million, up 56%
- ROI adjusted* at 9.4% and ROE adjusted* at 10.9%
- Net financial position at €4,248.6 million, with a net debt/EBITDA ratio of 2.75x
The Hera Group's Board of Directors, chaired by Executive Chairman Cristian Fabbri, today approved the consolidated results as at 30 June 2026, which show a positive structural performance, with margins and net profit up compared to the same period of the previous year. The growth is even more significant if the results are compared with the first half of 2025 adjusted.
The results achieved highlight the Hera Group's ability to operate effectively even in a macroeconomic and geopolitical environment characterised by elements of uncertainty. The continuation of international tensions and the volatility of the energy markets did not affect operations, which recorded an improvement in gross margins and operating profit or loss compared to the first half of 2025, confirming the solidity of the business model and the constant generation of value.
The group’s business strategy, based on a balance between regulated and free-market activities, remains a key element for addressing the challenges anticipated for the remainder of 2026. The diversification of businesses and the ability to promptly seize the opportunities offered by the market make it possible to pursue the industrial growth and sustainability objectives defined by the Business Plan, confirming the solidity and flexibility of the Group's business model.With reference to growth opportunities through M&A, during 2026 the multi-utility further strengthened its presence, especially in waste management, through the acquisitions of the Sostelia Group, one of Italy's leading operators specialising in industrial and civil water treatment technologies and services, and of control of Servizi Ecologici Ambientali (SEA), which operates a multifunctional special waste storage and treatment facility located in Camerata Picena (Ancona).
Cristian Fabbri, Executive Chairman of the Hera Group, stated:
"The results achieved by the Hera Group as at 30 June 2026 confirm the strong impetus for growth provided by the Business Plan. The more than 7% increase in EBITDA on a like-for-like basis compared with the first half of 2025, is supported by all business lines and highlights the strength of the business portfolio, despite a complex external environment. The acceleration in investments, which exceeded 650 million euro, up by more than 50% compared to 2025, testifies to the Group’s ability to continue its path of external growth through M&A and infrastructure development, as reflected by the fact that 65% of EBITDA is generated by infrastructure businesses, 44% of which are regulated. The significant increase in development capex, which exceeded 800 million euro over the last 18 months, is only partially reflected in the results achieved in the first half of the year and constitutes a visible reserve of value to support future growth. The increase in net profit, in line with analysts' estimates before the IRAP surcharge, and the 9.4% return on invested capital highlight the Group's consistent focus on value creation.”
Orazio Iacono, CEO of the Hera Group, stated:
“In the first half of 2026, the Group achieved further improved economic and financial results compared to the corresponding period in 2025, despite a macroeconomic environment characterised by persistent elements of uncertainty. Net profit attributable to shareholders amounted to 227.6 million euro, up 15.8% compared to the like-for-like figure for the first half of 2025. This trend confirms the Group's ability pursue growth and transferring it down to the bottom line of the P&L. The acceleration of investments, both organic and for the M&A of Sostelia and SEA, was supported by the solid operating cash flows, exceeding 700 million euro in the first half of 2026. The strength of the capital structure is confirmed by a net financial position/EBITDA ratio of 2.75x, a figure that also incorporates the effects of the annual dividend recent distribution and shows ample room to fund further growth opportunities."
New view by business line
In line with the representation used for the Business Plan and with a view to continuously improving information for investors and stakeholders, starting with the financial report for the first half of 2026, an analysis of results by business line (Networks, Energy, Waste and Other Services) has been introduced as an alternative to the historical representation based on business areas (Gas, Electricity, Water Cycle, Waste and Other Services) giving a better accountability to our strategy.
Revenues adjusted at €6.5 billion
Revenues for the first half of the year amounted to €6,494.6 million, compared to €6,645.0 euro as at 30 June 2025, mainly due to the reduction in volumes in the last resort markets and Consip.
EBITDA adjusted up 7.5%
EBITDA as at 30 June 2026 stood at 715.5 million euro, up 7.5% compared with the first half of 2025 adjusted thanks to the contribution of all business areas. 65% of EBITDA adjusted is generated by the two infrastructure business areas, Networks and Waste.
EBIT adjusted rises
EBIT as at 30 June 2026 rose to 386.5 million euro, recording double-digit growth (+14.7%) when compared with the adjusted value for 2025. This result is due to normalised provisions, which offset higher depreciation and amortisation related to infrastructure growth.
Net profit attributable to shareholders adjusted up 15.8%
Despite the increase in the tax rate to 29.5%, compared with 29.0% in the first half of 2025, due to the increase in IRAP for the 2026-2027 period introduced by the Bollette Decree, adjusted net profit as at 30 June 2026 rose to €245.8 million, up 13.5%. Likewise, adjusted net profit attributable to the Group's shareholders increased to €227.6 million (+15.8%), compared with the adjusted result for the first half of 2025. Excluding the IRAP surcharge, net profit attributable to the Group's shareholders adjusted would amount to €232 million, in line with analysts' consensus estimates. All these results once again confirm value creation for all stakeholders, fully in line with the expectations set out in the Business Plan.
Investments up 56% and further strengthening of the Group's solidity
In terms of capital expenditures and investments, the Hera Group also recorded significant growth compared to the previous year, confirming its commitment to expanding infrastructure and strengthening the resilience of the assets under management, and to promoting technological evolution in support of the green and digital transition.
In particular, operating capital expenditures in the first half of 2026, including capital grants, rose to 510.5 million euro (+23.3%) compared to 414 million euro at 30 June 2025.
In addition to operating capital expenditures, there were investments for M&A relating to Sostelia and SEA amounting to 142 million euro.
In the first half of the year, operating capital expenditures plus those for M&A, amounting to a total of 652.5 million euro, were up 56% compared to 417 million euro in the same period of 2025. Even considering only development capital expenditures and M&A, a significant acceleration was achieved: they increased 2.6-fold to 362 million euro, compared to 137 million euro in the same period of 2025. This commitment is perfectly consistent with the strategy set out in the Business Plan, which reflects the strong execution and has enabled a relevant acceleration in the first half of the year.
As at 30 June 2026, ROI adjusted stood at 9.4% and ROE adjusted at 10.9%, despite the fact that development investments have not yet fully contributed to the year’s results (due to regulatory “time lag”).
The net financial position stood at 4,248.6 million euro, up from 3,944.4 million euro as at 31 December 2025, with a net debt/EBITDA ratio of 2.75x, confirming the financial strength and flexibility of the multi-utility, which will be able to continue to seize further growth opportunities, both organic and through M&A.
Sustainability: shared-value EBITDA is growing, reaching almost 60% of the total
In the first six months of the year, shared-value EBITDA, relating to business activities that also contribute to the objectives of the Global Agenda, rose to 435 million euro, accounting for 59.9% of total EBITDA, up one percentage point compared with the same period in 2025.
The Hera Group has continued to work intensively to combine its growth strategies with the generation of value in the medium and long term, as confirmed by the numerous milestones achieved: from the inclusion of Hera’s stock in the FTSE4Good Index Series for the seventh consecutive year, for its active commitment to sustainable development, to first place in the ESG Identity Corporate Index 2026, obtained for the integration of ESG factors into its strategy, governance and corporate culture.
Networks
EBITDA of the networks business line – which includes the integrated water service, gas and electricity distribution, and district heating – stands at 284.9 million euro, up 5.8% compared to the first half of 2025 adjusted, due to organic growth in all the network services managed, thanks to tariff adjustments linked to the recognition of the RAB, inflation and the implementation of the final 2024 electricity tariffs. Specifically, the main changes are noted in the water cycle, with an increase of 5.2 million, followed by electricity distribution with an improvement in margins of 5.0 million, and gas distribution with an increase of 4.1 million.
During the first half of 2026, gross investments in the networks business line amounted to 336.6 million euro, up 24.8% compared to the previous year. Capital grants, standing at 48.9 million euro, were up compared to the previous year and included 33.7 million euro relating to projects accessing NRRP funds. Capital expenditures mainly went towards extensions, remediation and upgrading on distribution networks and plants, as well as regulatory adjustments for the large-scale meter replacement and in the purification and sewage sector of the integrated water service.
The most significant investments include the construction of the new Bubano (Bologna) water treatment plant serving 13 municipalities in the Ravenna and Imola areas, aimed at increasing the available water reserve, ensuring greater operational flexibility, and meeting the development needs of the area, and the continuation of the Rimini Bathing Safeguard Plan, with the construction of two new retention and first flush rainwater tanks in Bellariva and Rivazzurra. As was already the case in Piazzale Kennedy, the hydraulic works will also become a real opportunity for urban regeneration in this case, with the subsequent construction of two viewing platforms above the new facilities. Also note the upgrading and expansion of the Ravenna purification plant and the construction of the new power-to-gas plant at the IDAR purification plant in Bologna. The trial in Castelfranco Emilia (Modena) for the introduction of mixtures of methane and hydrogen in progressive percentages up to 10% into the city's distribution network was also successfully completed. In Trieste, the works related to the smart grid, recognised as a national best practice in terms of network flexibility, have been completed. On the district heating side, the main investments concerned Bologna (interconnection of four district heating systems, currently physically separate, with simultaneous extension of the network to maximise heat recovery from the waste-to-energy plant), Ferrara (doubling of heat production from the geothermal source and expansion of the network in currently unserved urban areas) and Forlì (with the connection of three district heating systems and the laying of a new main network to increase the amount of heat recovered from the waste-to-energy plant). In the networks segment, over 520 million euro of investments have been made that are already operational but have not yet contributed to the results, pending the end of the 'time lag' period provided for by the tariffs regulation.
The networks business line contributed 39.8% of the Group’s adjusted EBITDA.
Energy
Adjusted EBITDA of the Energy business area – which includes the sale of natural gas and electricity, energy services, power generation and public lighting – amounted to €236.9* million, up 15.3% compared with the adjusted first half of 2025. The increase was supported by all activities within the business, from sales and trading to value-added services, energy efficiency activities and the margins generated by the Gradual Protection Service (STG) segment.
Gross investments in the energy business line amounted to 55.4 million euro, up 7.2% compared with the first half of 2025. The increase derives mainly from investments in electricity generation plants, with plant solutions that favour their construction at consumption centres. With a view to constantly focusing on the needs of its customers, the process of strengthening the physical presence in the areas served continued in the first half of the year with the restyling of priority branches such as the one in Forlì and the opening of new branches. In the first half of the year, the construction of the two Hydrogen Valleys of Trieste and Modena was also almost completed. These will produce more than 620 tonnes of green hydrogen per year, contributing to the decarbonisation of companies and, more generally, of the reference territories and, at the same time, to the redevelopment of brownfield sites.
With regard to public lighting, the percentage of lighting points using LED lamps increased in the first half of the year, reaching almost 70% of the total, confirming the Group's constant focus on an increasingly efficient and sustainable management of public lighting.
The energy business line contributed 33.1% of the Group’s adjusted EBITDA.
Waste
EBITDA for the waste management business line – which includes waste collection, treatment and recovery services – amounted to 178.6 million euro, compared with 175.5 million euro in the first half of 2025. In addition to the positive contribution resulting from changes in the scope of consolidation, with the integration of the Sostelia Group and SEA, the result benefited from treatment and recovery activities due to the higher volumes sold by Aliplast, the strong performance of ACR Reggiani in remediation activities, and the higher volumes of electricity sold by waste-to-energy plants. All these activities more than offset the reduction in the average unit market price compared to the same period of the previous year and the lower contributions from the Feronia's landfill - now back to full operations - due to a temporary administrative shut-down that has now ended. In the urban waste service, higher margins were reported, mainly related to inflation adjustments, greater efficiencies and higher supplementary services required in the tender areas.
Capital expenditures in the waste management business line amounted to 111.4 million euro, up 27.3% compared with the H1 2025, and related to maintenance and upgrading works at waste treatment and recovery plants.
In particular, approximately 80 million were invested in the upgrading of treatment and recovery plants: among the most significant interventions are the continuation, in line with the schedule, of the construction of the fourth line at the Padua waste-to-energy plant and the completion in Modena of a state-of-the-art plant for the recycling of rigid plastics and PE reprocessing, partially financed by NRRP funds, which will be inaugurated in the second half of 2026.
Thanks to the Modena plant and other projects currently underway – such as the new PE-LD recycling plant in Borgolavezzaro (Novara), which will be completed in 2027, and the acquisition of 70% of the newco Kronos Polymer Polska, for which a binding agreement has already been signed with the closing expected by the end of 2026 – the industrial synergies already existing within the Hera Group will be further strengthened, and the subsidiary Aliplast will be able to increase its recycling flexibility, doubling its capacity.
At Group level, thanks to the projects currently being finalised, the waste treatment and recovery capacity will be increased by more than 240,000 tonnes in total by the end of 2026.
In the urban waste collection activities, in the first half of 2026 the Hera Group further improved the quality and quantity of separate collection, reaching 76.8%, compared to 75.3% as at 30 June 2025.
The waste management business line contributed 25% of the Group’s adjusted EBITDA.
Other services
EBITDA for the other services business line – which includes telecommunications and other minor services – stood at 15.2 million euro, stable compared to the first half of 2025.
The other services business line contributed 2.1% of the Group’s adjusted EBITDA.
Special items /Consolidated financial statements reconciliation
The following table provides a reconciliation between the managerial statement of profit or loss and the consolidated statement of profit or loss drafted pursuant to accounting standards.
