InvestorNews

In the first nine months of 2025, we operated in a more stable external environment compared to the previous year. We experienced a reduction in the volatility of energy commodity prices, which nonetheless remain at some distance from pre-crisis levels. In such a scenario, we intensified our investments and reaped the benefits of a solid strategy that creates value by leveraging on a multi-utility portfolio.

Sound results that we consistently achieve over time derive from the ongoing effort to strengthen industrial assets, through well-aimed operating investments
In the third quarter, Hera’s commitment to expanding and continuously enhancing the quality of its infrastructure portfolio went ahead; that effort translated into net operating investments of approximately 633 million euro. The cumulative figure for the first nine months of the year shows an increase of over 18% compared to the same period in 2024, with a strong focus on regulated activities, which offer visible returns. This enabled development investments to double compared to the previous year, in line with the execution set out in the Business Plan approved at the beginning of the year.

During the period, we also increased by nearly 32% investments in waste treatment – an area in which we benefit from a strong leadership position, not only in terms of plant capacity but also for the extensive range of materials that we can process and recycle.

A well-balanced mix of multi-utility activities ensures risk profile optimisation and minimises EBITDA volatility over time
Despite the lack of contributions from temporary opportunities, which in the first nine months of 2024 accounted for approximately 85 million euro, the Group EBITDA in the same period of 2025 remained basically unchanged, going from 1,037.6 to 1,037.2 million euro, as it was supported by growing results that led to a rebalancing of our portfolio. Therefore, EBITDA stability is the result of the compensation achieved through an average growth of 9% of the structural components. Moreover, this growth consistently took shape across all businesses in which Hera operates.

Networks are the regulated area that offered the greater contribution, with progress exceeding 38 million euro. That improvement increased the weight of this area on total EBITDA from 38% in the first nine months of 2024 to the current 41%, thus proving the significant returns that Hera can generate from the investments carried out.

The Energy area, whose EBITDA shows organic growth of 23 million euro, notably points out that, in the Gradual Protection Service, effective customer management has fully absorbed the impact in terms of investments.
The organic contribution of 23 million euro in the Waste area also provides very reassuring messages, with EBITDA increasing not only in waste treatment activities, but also in the vertical segments of plastics recycling and soil remediation.

EBIT’s 0.5% decrease reflects higher depreciation for the new investments
In the first nine months of the year, Hera could benefit from lower provisions for doubtful debts, due to lower volumes in the Markets of Last Resort and reduced requirements in the Gradual Protection Service segment. However, the increase in depreciation, due to new investments that came into operation, slightly slowed down the trend of EBIT, which stood at 519.9 million euro.

Net profit grows by 4%, driven by the strong performance achieved in the financial management area
Despite broadly stable operating results, we achieved progress at bottom line of the Income Statement, confirming full consistency with the value creation path outlined in the Plan. By leveraging the successful liability management activities in the recent past and the ongoing normalisation of energy markets, we optimised our debt structure. Thus, we could benefit from an improvement of 27.8% in the net result of the financial management area compared to the first nine months of 2024, with Net Financial Charges decreasing by 27.5 million euro – actually, creating new value for our shareholders.

M&A activity also provided well-aimed growth opportunities
In the first nine months of 2025, while continuing to focus on our key businesses, we completed an acquisition in the Waste area: Ambiente Energia Srl, a company that brings with it a new plant for the management of liquid and sludge waste. We have thus strengthened our asset base in this specific market segment, which is very dynamic and shows growing demand for services. In the same period, we also acquired some minority stakes in Group companies, including 3% of Hera Comm, 25% of EstEnergy and 20% of Aliplast, thereby contributing to an increase in the share of earnings attributable to shareholders.

2025 performance must be analysed through a lens that encompasses all the impacts of the different business mix
We are therefore approaching the end of a financial year that has confirmed our ability to grow steadily by leveraging increasingly structural components of our business portfolio. Past temporary opportunities gave boost to EBITDA growth, while at the same time absorbing some resources in terms of greater working capital financing requirements, with implications in terms of higher financial expenses.
 

Therefore, when comparing 2025 with 2024, it is
key to observe the overall progress recorded in the
Income Statement down to Net Profit, as it combines the effects of the
presence of non-structural business components both on operating
and financial management.

One final consideration: 2025 figures clearly show that the resources accumulated in the past as excess cash from temporary opportunities - which we successfully captured in 2024 - have been cautiously preserved. These resources now allow us to rely on significant financial flexibility to further strengthen value creation.