InvestorNews

In the first six months of 2026, Total Revenues adjusted of Hera Group stood at 6,494.6 m€, down by 3.0% compared to the same period of the previous year. The drop is mostly due to lower revenues in the Energy area, reflecting reduced exposure to the last-resort markets and weaker consumption as a result of energy efficiency measures adopted by customers. On the other hand, revenue in the Networks area increased, mainly reflecting inflation-linked adjustments in waste collection services, while the Waste area benefitted from the strong growth in soil remediation activities and a broader consolidation perimeter (following the two acquisitions of SEA and Sostelia).

In the first half of 2026, Hera Group’s EBITDA adjusted amounted to 726.7 m€, an increase of 7.5% when measured against a 2025 baseline adjusted for one-off items. Overall, approximately 44% of EBITDA was generated by regulated businesses, while the remaining 56% came from liberalised businesses.

Accounting for 39.8%, the Networks area was the largest contributor to the Group's EBITDA in the first half of 2026: a result that proves the attractive returns generated by the investments made in recent years to develop and strengthen Hera’s infrastructural assets. Those investments continue at a sustained pace under a cycle designed to support their continued expansion. The EBITDA adjusted of this area increased by 5.8% compared with the first half of 2025 when adjusted for the one-off items from which the business benefitted last year, mostly due to the concentration of tariff adjustments recognised by the Authority for the 2022–2024 regulatory period.
All regulated businesses posted growth when compared to adjusted first-half 2025 figures (Water: +5.2 m€; Electricity Distribution: +5.0 m€; Gas Distribution: +4.1 m€; District Heating: +1.4 m€).

The Energy area, which has a 33.1% weight, was the main contributor to the Group’s EBITDA adjusted growth during the semester, recording a 15.3% increase compared with the adjusted 1H 2025 figure. Hera delivered a strong performance, particularly in energy sales, where customer migration from the Gradual Protection Service to the free market continued at a fast pace.
This performance confirms the attractiveness of the commercial offer that Hera can provide and the high level of customer loyalty – factors that are highly valuable in a market characterised by fierce competition.

The Waste business continued to make a significant contribution to the Group's EBITDA, posting a 1.8% increase vs the adjusted 1H 2025 figure due to the sound results in waste collection (+2 m€) and waste treatment activities (+4 m€). This progress reflects the drive for organic growth through sustained investments in new treatment and recycling capacity, as well as the expansion of the scope of consolidation following the inclusion of SEA and Sostelia – acquisitions that were finalised in March. While the change in consolidation perimeter contributed 7 m€ to first-half results, Hera expects the most recent acquisitions to generate an annual EBITDA contribution of more than 20 m€ once fully integrated, before considering any synergies that may emerge over time.
The increase was partly offset by 5 m€ due to the inability to use certain landfills, which have now resumed operations, and by a further 5 m€ due to the contribution generated last year by particularly favourable management of the energy produced, which could not be replicated in 2026.

In 1H 2026, Hera Group’s EBIT adjusted rose by 14.7%. Such change, higher than the increase posted at EBITDA, reflect the positive dynamics of the item ‘Depreciation, Amortisation, Provisions and Write-downs’. Higher Depreciation & Amortisation for investments becoming operational - mostly in Networks and following the inclusion of recent acquisitions within the Group’s scope of consolidation - were more than offset by lower Provisions.

The net result of Financial Operations, which was a negative 44.7 m€, increased by 5.5 m€, mostly due to lower income generated by cash balances and reduced cash-in from Ecobonus tax credits. The balance also reflects acquisition-related costs for Sostelia. These higher costs were partly offset, to the extent of 6.8 m€, by the absence of the discount charges related to the put option on Ascopiave, which was settled in June 2025. In first-half 2026, Hera Group's cost of debt remained broadly stable (2.82% vs. 2.75% in 1H 2025, leveraging on a debt structure that is 91% composed of fixed-rate instruments).

Taxes, amounting at 102.9 m€, are up compared to the 88.4m€ recorded in the first half of 2025, with a tax rate increasing to 29.5% (vs. 29.0% in 1H 2025), mainly due to the temporary 2% increase in the IRAP rate for companies operating in the Energy business, as a result of the “Decreto Bollette” (or “Bill Decree”) taking effect.

Net Profit after Minorities adjusted therefore reaches 227.6 m€, posting a 15.8% growth.

Net Financial Debt, which was 4,248.6 m€ as of 30 June 2026, posts an increase of 304.2 m€ over the 2025 year-end data. Counting on strong cash generation, in first-half 2026, Hera could fund the significant development capex, the 2025 dividend distribution and the cashout of 142 m€ for M&A deals, while maintaining the leverage (Net Financial Debt-to-EBITDA) at 2.75x.

The marginal change from the 2025 year-end level (when it was 2.6x) preserves ample flexibility to fund future investment opportunities that can accelerate growth and create value.