Pennon Group (PNN) Trading Update summary

Financial performance and outlook

• EBITDA increased by approximately 55% year on year, despite weather-related and regulatory cost pressures.

• Underlying profitability for 2025/26 is within market expectations, though at the lower end.

• Targeting a 7% RORE over K8, with FY26 efficiencies partly offset by net ODI penalties.

• Full-year financial performance remains robust, with a return to profitability expected.

• Liquidity and balance sheet remain strong, supporting the largest ever capital programme.

Operational and regulatory developments

• Wastewater performance improved, with a 40% reduction in pollution incidents and a 17% drop in storm overflow use.

• Water quality remains strong, with upper quartile performance and water resources exceeding targets.

• Exceptional rainfall and storms increased operational pressures, leading to a net ODI penalty for 2025/26.

• Early mobilisation for AMP 8 capital programme, with year 1 deliverables on track and efficiencies realised.

• Regulatory investigations into past incidents are progressing, with expected conclusions in 2026.

Strategic and board updates

• Two renewable generation sites are now operational, with the full portfolio expected to supply 40% of group consumption by FY27.

• Keith Haslett will become CEO effective 1 April 2026.

• Full year results for 2025/26 will be announced on 2 June 2026.