Hera (HER) investor relations material

Executive summary

• Q1 2026 delivered stable financial performance with EBITDA up 0.2% to €418.9 million and net profit attributable to shareholders rising 0.6% to €154.6 million, despite an 18.6% revenue decline from lower energy prices and volumes.

• Structural growth averaged 9% annually since 2024, supported by organic expansion, investments, and all business segments contributing.

• Strategic acquisitions in water and waste management (Sostelia Group, SEA Srl) expanded the group's scope and are expected to boost EBITDA by €20 million annually.

• Capital expenditures surged 24.1% to €237.7 million, fully self-financed, supporting regulated asset resilience and green transition initiatives.

• Dividend per share to be distributed in June 2026 will be €0.16, up 6.7% from the previous year, with robust shareholder returns and governance stability reinforced by executive reappointments.

Financial highlights

• Revenue: €3,517.6 million, down 18.6% year-over-year, mainly due to lower energy commodity prices and reduced trading volumes.

• EBITDA: €418.9 million (+0.2%), EBIT: €248.8 million (+0.6%), Net profit: €165.1 million (+0.8%), Net profit attributable to shareholders: €154.6 million (+0.6%).

• CapEx: €237.7 million (+24.1%), fully self-financed; M&A investments totaled €142 million.

• Net financial debt: €4,028.6 million, up €84.2 million from December 2025; net debt/EBITDA ratio at 2.62x.

• Earnings per share: €0.105 (basic and diluted).

Outlook and guidance

• Management expects continued structural growth and resilience, leveraging diversification, recent acquisitions, and a balanced mix of regulated and free-market activities.

• The group is on track with business plan targets, pursuing industrial growth and sustainability objectives.

• Financial strength and flexibility position the group for further organic and M&A-driven growth.