Pennon Group (PNN) Q2 2025 TU earnings summary

Executive summary

• Strong return to profitability in 2025/26, with EBITDA expected to rise by approximately 60% year-over-year, net of deferred revenue into 2026/27.

• Robust water supply maintained despite high summer demand and operational pressures.

• Pollution incidents and storm overflow spills halved year-over-year, reflecting effective environmental initiatives.

• Construction of all four major Pennon Power renewable projects underway, with two sites set to generate power by October and all operational by end of FY27.

Financial highlights

• EBITDA anticipated to increase by around 60% year-over-year, even after deferring some revenue into 2026/27.

• Target Return on Regulated Equity (RORE) of 7% for FY26, supported by efficient financing.

• Robust liquidity position, enhanced by £300m new issuance under the EMTN programme in September 2025.

Outlook and guidance

• Full-year 2025/26 financial performance remains on track for strong profitability.

• Price control deliverables and capital programme efficiencies are progressing as planned.

• Renewable energy portfolio expected to generate 40% of total group consumption by end of FY27.