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United Utilities Group (UU) investor relations material

United Utilities Group H2 24/25 (Q&A) earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H2 24/25 (Q&A) earnings summary15 May, 2025

Executive summary

  • Achieved top quartile operational and financial performance, with consistent delivery across key metrics and strong positioning for AMP8.

  • EPS grew by 49% year-over-year, reflecting robust profitability and operational efficiency.

  • Maintained a strong balance sheet with 60% gearing and reaffirmed dividend policy, supporting financial flexibility.

  • Guidance set for at least 100 basis points outperformance over the base allowed return, mainly driven by financing, ODIs, PCDs, and totex contributions.

  • Delivered 13 consecutive years of 'Green' status for serious pollutions and significant reductions in environmental incidents.

Financial highlights

  • Revenue increased 10% year-over-year to £2,145m; underlying operating profit up 22% to £634m.

  • Underlying EPS rose 49% to 49.6p; dividend per share up 4% to 51.85p.

  • Capital investment reached £1,083m, up 47% from the prior year.

  • RCV gearing at 60%, with liquidity of £2.8bn extending to 2027.

  • Underlying profit after tax increased 49% to £338m; underlying net finance expense decreased to £284m.

Outlook and guidance

  • Revenue expected to rise to £2.5–2.6bn in FY26, with higher depreciation and finance costs due to asset base growth.

  • At least 100bps outperformance in RoRE targeted for AMP8, mainly from financing, ODIs, PCDs, and totex.

  • FY26 dividend forecast at 53.66p, in line with CPIH growth policy.

  • Capital investment for AMP8 projected at approximately £9bn, with 7% CAGR asset base growth.

  • Guidance incorporates Bank of England CPI forecasts, assuming 2% long-term inflation.

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Frequently asked questions

United Utilities Group PLC provides water and wastewater services in the United Kingdom. The company is involved in the management of water and wastewater networks; treatment of water; supply of bottled water; and provision of gas central heating, plumbing, and repair services. It also supplies electricity; sells construction materials; provides IT consultancy, development, and managed services; manufactures chemicals for use in the water industry; and manages landfill sites for the disposal of non-hazardous waste.

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