United Utilities Group PLC

Latest Results (01.08.2026):

United Utilities Group PLC — preliminary results for the year to 31 March 2026 (FY26; reporting Q4 2025/26). The group delivered a strong first year of AMP8 driven by higher regulatory allowances: underlying revenue rose ~20% to £2,576m and underlying operating profit increased ~35% to £1,060m, lifting underlying EPS to 107.1p. The business is accelerating capital delivery (net regulatory capex £1,525m), retained a 60% RCV gearing position and reported a regulatory return of 13.0%. Management also upgraded its AMP8 investment plan (c.£11.5bn) and confirmed dividend policy growth in line with CPIH.

Key financials (FY26)

Underlying revenue £2,576m (reported £2,616m); underlying EBITDA £1,560m (reported £1,600m); underlying operating profit £1,059.5m (reported £1,099.4m). Underlying EPS 107.1p (reported 86.1p). Net regulatory capex £1,525m; RCV £16,527m (+7.5%). Net debt £9,943m; RCV gearing 60%. Underlying DPS 53.66p; recommended final dividend 35.78p.

What drove the results

Revenue uplift mainly reflects PR24/AMP8 allowed increases and CPIH indexing; operating costs rose with asset-base growth and price inflation (power, chemicals, rates). Net finance expense increased as debt funded AMP8, while fair value and accounting presentation adjustments affected reported vs underlying numbers.

Operational progress

BIG North West AMP8 delivery mobilised: >1,000 live projects and 100+ supply chain partners. Material operational gains: spills down 23% (duration -27%), internal sewer flooding -42%, external flooding -25%, zero category 1 pollutions, >200k smart meters installed. Leakage work intensified (150+ km mains replaced) though the three‑year rolling leakage target may still be missed due to methodology and legacy effects.

Capital, funding and liquidity

FY26 capex £1,525m; AMP8 capex guidance increased from c.£9bn to c.£11.5bn (asset base CAGR ~10%). Net debt £9.94bn; liquidity covered to H2 FY28 supported by additional committed facilities and a planned c.£800m equity raise to help maintain target gearing 55–65%.

Regulatory return, ODIs and incentives

Reported regulatory return 13.0% (base 5.2% plus financing outperformance and other items). FY26 included a net customer ODI penalty of ~£35m (management expects progressive ODI outcomes across AMP8). Financing outperformance was a meaningful positive contributor this year.

Dividend and shareholder guidance

Board proposes a final dividend of 35.78p (total FY26 DPS 53.66p, +3.5% y/y in line with CPIH policy). FY27 dividend guidance is c.55.54p (growth in line with CPIH).

FY27 outlook

Guidance: underlying revenue £2.7–2.8bn; capex ~£2bn; underlying operating costs to rise c.£100m; depreciation +£50–60m; underlying net finance expense expected lower; ODI position forecasted to remain a penalty in FY27 but improving year‑on‑year.

Principal risks and points to watch

Key risks include regulatory outcomes (Ofwat OAM/OAM adjustments), ODI exposure, inflation/energy volatility and timely execution of the much larger AMP8 programme. Comparability is affected by accounting changes and fair‑value movements in debt/derivatives — management provides underlying vs reported reconciliations.