Hera (HER) Q2 2026 earnings summary

Executive summary

• H1 2026 delivered strong operational and financial performance, with adjusted EBITDA up 7.5% to €715.5m and adjusted net profit up 15.8% to €227.6m, driven by all business lines and supported by both organic growth and M&A.

• Investments surged 56% to €652.5m, with accelerated infrastructure development and major acquisitions in waste and water treatment, including Sostelia and SEA.

• The business model demonstrated resilience amid macroeconomic and geopolitical uncertainties, with improved margins and a focus on sustainability and digital transition.

• Shared-value EBITDA, linked to sustainability, reached 59.9% of total EBITDA, up one percentage point year-over-year.

• Customer base remained resilient, with churn rates below market average and successful integration of 950,000 STG customers.

Financial highlights

• Adjusted EBITDA rose 7.5% year-over-year to €715.5m, with all segments contributing; adjusted net profit increased to €227.6m (+15.8% YoY), and adjusted EBIT up 14.7% to €386.5m.

• Adjusted revenues were €6,494.6m, down 2.3% year-over-year, mainly due to lower energy consumption and volumes in last resort markets.

• CapEx reached €652.5m (+56% YoY), with €457.6m in net CapEx and €142m for M&A.

• Net financial position at €4,248.6m, with net debt/EBITDA ratio at 2.75x.

• Operating cash flows exceeded €700m in H1 2026.

Outlook and guidance

• H2 2026 expected to continue positive trends, with margin creation from STG customer migration, ongoing infrastructure investments, and further development opportunities.

• Regulatory time lags are ending, supporting future earnings momentum and high visibility on future cash flows.

• Management expects to slightly outperform current guidance, with value reserves from completed investments and customer base transitions progressively impacting future EBITDA.