Italy's Hera targets core profit of 1.76 billion euros by 2029 (updated)

Hera SpA

21/01/2026 13:18

Adds consensus comparison in paragraph 2, chairman comments in paragraphs 4-5, context on Sostelia deal in paragraph 7

Jan 21 (Reuters) - Italian regional utility Hera HRA.MI targets core profit growth to 1.76 billion euros ($2.06 billion) by 2029 under its new industrial plan, it said on Wednesday.

The Bologna-based company said its 2025 earnings before interest, taxes, depreciation and amortisation would exceed 1.53 billion euros, compared with analysts' 1.56-billion-euro estimate in a company-provided consensus. It also flagged a preliminary net profit of more than 460 million euros.

Its shares fell as much as 3% after it announced the industrial plan and preliminary earnings.

Hera is planning to invest 5.5 billion euros under the new plan, up by around 40% compared to the last five years, Executive Chairman Cristian Fabbri said in a statement. These investments will support sustainable industrial development and increased resilience of Hera's infrastructures, also through innovation, he added.

The company will allocate about 100 million euros for mergers and acquisitions over the next five years, matching its previous M&A dealings and underscoring its strategy to pursue external growth.

Hera also aims to raise its dividend by 27% to 19 euro cents per share by 2029. For 2025, it plans to distribute 16 euro cents per share.

On Monday, Hera pledged to buy Sostelia to boost its water treatment operations in a deal worth 138 million euros.

($1 = 0.8534 euros)

(Reporting by Romolo Tosiani in Gdansk
Editing by Tomasz Janowski and Milla Nissi-Prussak)

((Romolo.Tosiani@tr.com;))