InvestorNews
Financial Results 2025
Looking at the figures
Focus on 2025 results
In 2025, Hera achieved results that confirm further strengthening of those aspects of its business model which have delivered uninterrupted growth in structural EBITDA over time.
The 17.6 m€ increase in Net Profit after Minorities, which reached 464.3 m€, reflects how the slight decline in Operating Profit (EBIT: -27.0 m€ vs. 2024) was more than offset by a radical improvement in Net Financial Result (45.2 m€) during the fiscal year, due to the gradual normalisation of the energy market and the successful measures taken in debt optimisation.
In 2025, the Networks area accounted for the largest share of the Group’s EBITDA (591.4 m€ out of a total of 1,537.2 m€, representing 38.5%). The Energy area continues to play a key role, accounting for 35.1% of consolidated EBITDA, despite the absence, in 2025, of approximately 114 m€ in EBITDA from market opportunities - mainly contracts in the last-resort markets, which had delivered high margins in 2024. Finally, the Waste area accounted for 24.3% of the Group’s EBITDA, having recorded an overall increase of almost 8 m€, driven by strong performance across treatment activities and soil remediation projects: these positive factors more than offset the loss of approximately 29 m€ due to normalisation of the contribution from hedging contracts for electricity generated by WTE plants.
In line with the capital expenditure pipeline set out in the Plan, in 2025, Hera carried out Net Operating Investments for 947.3 m€: 16.7% more than in 2024. The significant generation of Operating Cash Flow (approximately 1,332 m€) provided the means to cover expenditure on investments and dividends, resulting in a positive Net Cash Flow of 19.3 m€ compared to 2024. As at 31 December 2025, with Net Financial Debt down to 3,944.4 m€, leverage remained at a low level of nearly 2.6x, confirming the financial flexibility Hera can use in the future to fuel further growth.
| FY 2025 (data in m€) |
TOTAL REVENUES 12,968.8 (-0.6%) |
EBITDA 1,537.2 (-3.2%) |
NET PROFIT 464.3 (+3.9%) |
NET OPERATING INVESTMENTS 947.3 (+16.7%) |
NET FINANCIAL DEBT 3,944.4 (-19.3 m€ vs 3,963.7 as at 31 Dec 2024) |
In 2025, Group Revenues remained broadly stable compared with the previous year, standing at 12,968.8 m€.
Revenues from regulated businesses made a positive contribution, with a substantial boost from the water cycle business, due to tariff increases approved by ARERA and, to a certain extent, to increases in volumes supplied and in the number of users served. Moreover, in the Networks area, significant investments made in 2025 enabled Hera to benefit from the application of the intangible asset accounting model for the infrastructure that the Group manages under concession.
The waste treatment business continued to expand in 2025, driven by strong market leadership and a continuous broadening of its offering.
Revenues in the Energy division, however, were affected by lower volumes of electricity trading, only partially offset by growing activity in gas trading.
In 2025, Hera Group’s EBITDA amounted to 1,537.2 m€. The slight decrease compared with the 2024 figure (1,587.6 m€) confirms that organic growth across the different business areas has almost entirely offset the lack of 114 m€ from non-recurring growth opportunities, which had contributed to the previous year’s result.
| EBITDA (m€) | 2025 | 2024 | Change |
| Waste | 374.0 | 366.2 | 2.1% |
| Networks | 591.4 | 519.0 | 13.9% |
| Energy | 540.2 | 671.5 | -19.6% |
| Other services | 31.6 | 30.9 | 2.3% |
| TOTAL | 1,537.2 | 1,587.6 | -3.2% |
Consolidated EBITDA for 2025 saw a significant contribution from the Networks, which recorded a 13.9% increase. All the main regulated businesses showed growth compared with 2024 (Water: +35 m€; Electricity Distribution: +8 m€; Gas Distribution: +30 m€). The growth in Networks’ EBITDA confirms the attractive returns generated by investments in regulated businesses, with RAB rising from 3.7 bn€ at the end of 2024 to 3.9 bn€ at the end of 2025. The Networks’ 2025 EBITDA also benefits from inflation adjustments and the retroactive recognition of costs by the regulation for the 2022–2024 period, in addition to the efficiencies achieved, which exceeded recognised costs. Overall, the positives have more than offset the negative effect of the reduction in the WACC that the Regulator has set for gas and electricity distribution.
In 2025, the Waste area made a key contribution to the Group’s EBITDA, with an overall increase of 7.8 m€, reflecting strong performance in waste treatment (+16 m€) and recycling (+10 m€), as well as in soil remediation (+5 m€). In 2024, Hera had benefited from electricity hedging contracts with high margins (29 m€), which came to an end in 2025 as the energy crisis normalised. Therefore, the overall positive performance in this area reflects a premium for the advantage of being able to offer industrial customers a very broad and specialised range of solutions. A leadership position that Hera further strengthened in 2026 in the water treatment segment through the acquisition of Sostelia.
The Energy area saw an overall decline of 131.3 m€ in EBITDA, which must be viewed in the context of the absence of 114 m€ that, in 2024, came from temporary opportunities, mostly linked to non-recurring margins in supply contracts in the last resort markets. A further impact, amounting to approximately -25 m€, was recorded in the STG (gradual protection) customer segment, which was only consolidated from 1st July 2024. Hera partially offset these negatives by achieving structural growth of approximately 17 m€, mainly through value-added services provided to customers and public lighting.
In 2025, Group’s EBIT posted a slight decline (-3.3%), in line with that of EBITDA, reaching 802.9 m€. A positive impact from the item ‘Depreciation & Amortisation, Provisions and Write-downs’ contributed to the EBIT result; this item decreased by a total of 23.4 m€ (-3.1%) compared to 2024: the increase in Depreciation for the investments entered into operation in regulated sectors and waste treatment was more than offset by the size of the reduction in Provisions for bad debts (due to the decline in volumes in the last-resort gas segments) and provisions for risks (due to the normalisation of the energy crisis).
The Result of Financial Operations shows a significant improvement over FY2024, having achieved a negative balance of 108.6 m€. The 45.2 m€ decline in net financial charges reflects the success of measures aimed at optimising the debt structure and minimising its cost. The reduction in financial expenses was also helped by the lower funding requirements for working capital, against a backdrop of energy markets that moved towards a gradual normalisation in 2025.
After taxes for 202.5 m€, which bring the tax rate up to 28.5% (a reduction vs. 29.1% of 2024), Net Profit after Minorities stands at 464.3 m€ (+3.9%).
Net Financial Debt, which as of 31 December 2025 reached 3,944.4 m€, shows a 19.3 m€ decrease compared to 2024 year-end. Strong cash flow generation was the main driver paving the way to the funding of 947.3 m€ operating investments and 278.6 m€ dividends, in addition to the cash out for M&A deals (among which, the 75% stake in Ambiente Energia srl, which has strengthened Hera’s presence in the treatment of industrial liquid waste), while allowing for a positive change in Net Debt over the 12 months of fiscal year 2025.
The Debt-to-EBITDA ratio, which stood at 2.57x as of 31 December 2025, provides a clear indication of the Group’s financial strength, whilst confirming significant financial flexibility that can be utilised in the future for M&A opportunities that promise to create value.