Hera focuses on long-term strategy, shares in the Italian utility peer comparison

By Stefan Krueger, Long-Term & Business Model desk. Reviewed prior to publication on 2026-06-27, 10:42.

Hera S.p.A. (IT0000062825) is one of Italy’s major listed multi-utility groups, with the shares trading on Borsa Italiana in Milan alongside peers such as Enel and A2A. The focus for many investors today is the group’s long-term strategy and investment plan in regulated networks and environmental services.

Hera’s position among Italian utilities

Hera operates mainly in the regions of Emilia-Romagna, Marche and Friuli-Venezia Giulia, where it supplies energy, water and environmental services under long-term concessions and regulated tariff frameworks. The company’s activities span gas and electricity distribution, integrated water services, waste collection and treatment, and district heating.

According to the group’s latest annual materials, Hera generated revenues of around 15 billion euros in 2024 and manages services for roughly 5 million citizens in its core regions. The company’s business mix is heavily tilted towards regulated and semi-regulated activities, which tend to provide relatively stable cash flows and visibility on returns for long-term shareholders.

Comparing Hera with Enel and A2A

On the Italian equity market, Hera is often compared with larger integrated utility Enel and Milan-based multi-utility A2A. Enel’s wider footprint includes substantial international operations and a large renewables portfolio, while A2A shares Hera’s strong presence in waste, energy and water services but with a different regional focus.

Analyst reports from houses such as Mediobanca and Equita SIM frequently assess Hera’s valuation against these peers, looking at metrics like price-to-earnings, enterprise value to EBITDA and dividend yield. Some recent commentary highlights that Italian multi-utilities, including Hera, tend to trade at a discount to broader European utilities despite comparable regulatory support and long-term infrastructure needs.

The business model behind Hera

Hera’s long-term strategy centers on integrated management of local public services, with an emphasis on circular economy solutions and efficient use of networks. In waste management, the company runs collection services, sorting centers and waste-to-energy plants that recover energy from residual waste streams.

In the water segment, Hera manages aqueducts, water treatment and distribution infrastructure, as well as sewage and wastewater treatment, under regulated tariffs that typically cover investment and operational costs plus a regulated return. In energy, the group is active in gas and electricity distribution, sales to retail and business customers, and district heating networks that supply heat and hot water in urban areas.

Where the Hera stock trades today

Hera S.p.A. shares (IT0000062825) trade on Borsa Italiana in Milan, where the latest available price data show the stock quoted in euros during regular trading hours. The shares form part of the Italian utility peer group, alongside names such as Enel and A2A, in many investors’ infrastructure portfolios.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. All data are based on sources believed to be reliable but may be subject to change.