Subscribe to InvestorNews
to stay updated on Hera Group’s results and strategy
InvestorNews
Financial Results 2025
Hera on stock exchange
FY2025 results strenghten Hera’s track record
The figures of the 2025 Annual Report confirmed the solid foundation on which the 2025-2029 Plan is based while provinig the conditions for continued shareholder value creation – starting with the proposed 2025 dividend of 16 euro cents, which indicates a yield of around 4% at current prices.
After offering a 22% Total Shareholder Return in 2025, Hera continues to represent an attractive opportunity for investors who seek visible returns, combined with a low risk profile.
With the average target price of the analyst coverage standing at 4.52 euro after the presentation of the new Plan, Hera continues to offer room for appreciation in the medium term.
In the short term, in the context of strong market turbulence triggered by the fears of negative impacts from the inflation driven by the energy shock, following the outbreak of the war in the Middle East, Hera represents a safe haven for investors, due to the profile of a solid infrastructure operator it has built over time, its increasingly balanced multi-utility diversification, and a proven track record of delivering continuously growing results across economic cycles and the various crises experienced in recent years.
Jens Klint Hansen
Today Hera’s Boad of Directors approved FY2025 results. What message does the past year convey to the market?
The results of the 2025 Annual report confirm the strength of the foundations on which the 2029 Business Plan is based, with 2025 marking its first year. The preliminary figures we presented last January have been fully confirmed in the actual numbers: evidence that once again proves Hera’s ability to navigate the economic environment by seizing unique business opportunities and deliver structural results with an underlying trend that ensures continuous growth, supported by a well-established multi-business strategy.
The results achieved in 2025 made it possible to confirm a dividend of 16 euro cents, significantly higher than the 15 cents of the previous year and an improvement also compared to what was envisaged in the 2024-2028 Plan, when the 2025 dividend was forecasted at 15.5 euro cents.
Therefore, Hera is maintaining its commitment to shareholder value creation…
I would say that this commitment is fully supported by facts. In 2025, Total Shareholder Return reached 21.6%, well beyond expectations. Since the IPO (2003), the overall return for shareholders has been 387%. The market has incorporated into the share price the return profile that our Group is able to offer, even against a prudent risk profile: for this reason, today, with share prices just below 4 euro, the stock is trading at around 12.7 times 2025 earnings and around 12.5 times 2026 earnings, based on consensus estimates. These are multiples that imply a premium compared to the average, although they are still below Hera’s historical levels, as the 10-year average shows an earnings multiple of 14.6 times.
What impact did the 2025–2029 Plan have on the consensus target price?
Following the presentation of the past 21st January, the consensus target price rose by approximately 2%, moving from 4.43 to 4.52 euro: most of the analysts upgraded their fair value for the Hera stock. If before the publication of the new Plan the range of target prices ranged from a low of 4.10 euro to a high of 4.70 euro, today we have a range between 4.30 euro and 4.80 euro. Four brokers recommend buying the stock, whilst two suggest holding it in the portfolio. No analyst recommends selling Hera shares. Overall, we can conclude that the Plan was well received. The changes made by analysts to their estimates and recommendations reflect the fact that the new targets have effectively confirmed a well-established strategic framework.
| Broker | Rating | Target Price (€) |
| Banca Akros | Accumulate | 4.30 |
| Equita Sim | Buy | 4.80 |
| Intermonte | Neutral | 4.40 |
| Intesa Sanpaolo | Neutral | 4.40 |
| Kepler Cheuvreux | Buy | 4.70 |
| Mediobanca | Outperform | 4.50 |
| Average | 4.52 |
What feedback did you receive from investors during the roadshow to present the new Plan?
We definitely sparked the interest of a large number of investors across several markets, to the extent that we are actually planning further meetings for the weeks following the publication of our annual results: a development previously unseen. Our long-standing shareholders appreciate the certainty that we offer as a serious infrastructure player, whilst we have several prospects among value investors seeking opportunities with a low risk profile and dividend visibility, at a time, like the present, of total uncertainty in the external environment and high volatility in the financial markets. With the share price currently just below 4 euro, the 2025 dividend that will be proposed at the Shareholders' Meeting and distributed in June is expected to yield around 4%. Hera also made an explicit commitment in the Plan to create value also through the component of structural growth in earnings per share, which is expected to average around 6% over the Plan period. These are therefore double-digit returns, which base their credibility on a long track record.
How is Hera positioned in the current context of great turbulence in the financial markets?
The outbreak of the conflict in the Middle East has triggered a sudden energy crisis, with inevitable impacts on inflation dynamics. On one hand, this raised concerns about a slowdown in economic growth; on the other, it has already caused bond yields to rise. The ECB itself, which has left interest rates unchanged for now, has indicated that it has raised its 2026 inflation forecast for the EU from 1.9% to 2.6%, while lowering its GDP growth forecast from 1.2% to 0.9%.
In this context, even though Hera cannot be entirely immune to the higher risk premium affecting the market as a whole, it can offer investors a safe haven, given its proven ability to manage spikes in energy-driven inflation through the increasingly balanced diversification of its business portfolio and the prudent risk management policies already in place.