InvestorNews

In the first quarter of 2026, Hera Group’s Total Revenues fell by 18.2% compared with the same period of the previous fiscal year, reaching 3,564.2 m€. This change is mostly due to lower revenues in the Energy segment, caused by a drop in average commodity prices, despite the rise experienced in March 2026. Lower gas and electricity consumption by customers also had an impact, partly as a result of the new energy efficiency measures introduced. In the Networks segment, it is also worth noting the decline in gas tariff revenues, due to the absence of the impact of the retroactive adjustments set by the Regulator in 2025. On the other hand, revenues in the Waste area, are on the rise, driven primarily by urban waste collection, which benefits from inflation-indexed mechanisms, and by the strong performance of waste recovery and land remediation activities. The positive contribution from M&A is also material.

In the first quarter of 2026, Hera Group’s EBITDA amounted to 418.9 m€, an increase of 0.9 m€ (+0.2%) versus the same period of 2025.
Overall, approximately 42% of EBITDA has been achieved in regulated businesses while the remaining 58% derives from liberalised businesses.
Excluding one-off items and adjusting for temporary opportunities that the Group managed to grab in 2025, all business areas made a positive contribution to the growth of consolidated EBITDA.
 

The Energy area, with a 1.1% increase in EBITDA compared to the first quarter of 2025, is the main driver of the Group’s performance. The increase of 1.8 m€ should be analysed considering that, compared with last year, approximately 33 m€ in revenues from temporary opportunities were lost, due mainly to a reduced presence in last-resort markets, following the deliberate decision to withdraw from the Default segment in recent tenders, as they were expected to yield low returns. In this area, Hera also benefitted from a one-off income of approximately 11 m€, mainly from insurance reimbursement following a fire that affected the roof of the Imola cogeneration plant. The structural growth therefore amounts to 24 m€ and is largely attributable to energy sales, as well as the continued strong interest shown by customers in value-added services.

The Waste area made another significant contribution to the Group’s EBITDA, achieving an overall increase of 0.5 m€. This figure reflects progress in waste collection (+1 m€) and treatment (+3 m€). Hera continues to take advantage of the wide range of solutions the Group can offer to industrial customers, even in highly specialised sectors.
On 16 March 2026 the closing of the Sostelia acquisition took place, for an Enterprise Value of 138 m€. The acquired company is a leading provider of industrial and domestic water treatment technologies. In the first quarter, this M&A deal, together with the consolidation of SEA Ambiente, has already added approximately 2 m€ to EBITDA: a contribution that, once fully ramped up, could reach over 20 m€ on an annual basis, not including the synergies that may materialise over time.
In this area, Hera recorded a one-off negative impact of approximately 2 m€, mainly due to the unavailability of certain landfills – an obstacle that has since been overcome with the reopening of the facility. Also worth mentioning among the negative impacts is the approximately 4 m€ contribution made last year by commodity hedging contracts, which could not be closed on the same terms this year.

Overall, the Networks’ contribution, amounting to 157.1 m€, appears to have decreased by 1.1% vs Q1 2025. However, once adjusted for those one-offs that had benefitted this area last year – due to the concentration of tariff adjustments recognised by the Authority for the 2022–2024 period – all regulated businesses posted growth (Water: +6 m€; Gas Distribution: +3 m€; Electricity Distribution: +1 m€; District Heating: +1 m€). The improvement in the EBITDA of the Networks business reflects the strong returns on the investments made and the success of our ongoing efforts to drive new efficiencies.

In the first quarter of 2026, the Hera Group’s EBIT rose by 0.6%, outpacing the growth at EBITDA: a performance reflecting the positive impact of the item ‘Depreciation, Amortisation, Provisions and Write-downs’, amounting to 170.1 m€, which fell by 0.7 m€ (-0.4%) compared to Q1 2025. Higher Depreciation & Amortisation (due to investments becoming operational, mostly in the Networks, the intensification of the activities for the acquisition of new customers and changes in the scope of consolidation following recent acquisitions) were more than offset by lower Provisions for bad debts, due to lower volumes in the Gas Last Resort segments.

The net result of Financial Operations, which was a negative 19.1 m€, increased by 1.6 m€, mainly due to lower dividends from associated companies and lower income from the discounting of Ecobonus tax credits, while net financial charges reflect a stable cost of debt of 2.8%, unchanged from the first quarter of 2025.

After taxes for 69.4 m€, slightly lower than the 70.2 m€ level of Q1 2025 (with a tax rate hence moving from 30.0% down to 29.6%), Net Profit after Minorities increases by 0.9 m€, reaching 154.6 m€ (+0.6%).

Net Financial Debt, which was 4,028.6 m€ as of 31 March 2026, posts 84.2 m€ increase over 2025 year-end. Due to the strong cash generation, Hera could fund around 96 m€ in development capex and a significant share of the cashout of 142 m€ for M&A deals, with a limited impact in terms of changes in Net Financial Debt at the end of the quarter.
As at 31 March 2026, the Debt-to-EBITDA ratio is therefore 2.6x, a level that indicates a minimal change from the March 2025 level (2.5x), while it is fully aligned with the level as at 31 December 2025 (2.6x).
Therefore, Hera’s financial strength remains intact, providing a solid foundation for future opportunities that can create value.