United Utilities Group (UU) investor relations material

Executive summary

• Strong operational and financial performance reported for the first year of AMP8 and H1 2025/26, with a 21% revenue increase and significant progress on environmental and customer service targets.

• Over £13 billion investment plan for the North West is on track, supporting 30,000 jobs and major infrastructure upgrades.

• Notable reduction in storm overflow spills (c.40% year-to-date) and increased leakage repairs, with customer service targets met and doubled affordability support for over 400,000 customers.

• Recognized as the top listed company for customer service, with all three regulatory service measures in reward.

• Demonstrated resilience against storm events and drought, with significant reductions in CSO spills and duration.

Financial highlights

• Revenue: £1,309.2m (+21% year-over-year); underlying EBITDA: £803.7m (+39.5%); underlying operating profit: £561.5m (+67.3%).

• Underlying EPS: 52.8p (+97%); interim dividend per share: 17.88p (+3.5%).

• Net regulatory capex: £568.5m (+21.8%); net debt: £9,610m (+6.2%); RCV gearing: 60%.

• Net finance expense increased 28% to £197m; profit after tax up 97% to £359.9m.

• Pension surplus: £293m (IAS 19 basis); fully funded pension scheme.

Outlook and guidance

• FY26 revenue expected between £2.5bn and £2.6bn, with underlying EPS around 100p and capex projected at c.£1.5bn.

• Underlying operating costs expected to decrease, offsetting inflation and asset base growth; depreciation and net finance expense will rise by c.£50m each.

• Dividend policy remains progressive and inflation-linked.

• Net customer ODI penalty forecast for 2025/26, but a net reward position is expected over the full AMP period as infrastructure investments deliver benefits.

• Ongoing discussions with regulators regarding reopeners and uncertainty mechanisms, with a focus on smoothing CapEx profiles and addressing new investment needs.