United Utilities Group (UU) H2 24/25 earnings summary

Executive summary

• Achieved top quartile operational and financial performance, meeting or exceeding 80% of performance commitments in AMP7 and positioning strongly for AMP8.

• EPS grew nearly 50% year-over-year, reflecting robust profitability and a strong balance sheet with gearing at 60%.

• Fully equity-funded for AMP8, with a progressive, inflation-linked dividend policy reaffirmed.

• Demonstrated sector-leading environmental and customer service improvements, including 13 consecutive years rated 'Green' for serious pollutions.

• Strong employee engagement and industry-leading affordability support.

Financial highlights

• Revenue increased 10% year-over-year to £2,145m, driven by regulatory adjustments and inflation-linked increases.

• Underlying operating profit rose 22% to £634m; underlying EPS up 49% to 49.6p.

• Dividend per share increased to 51.85p, in line with policy.

• Net debt at £9.3bn; RCV grew to £15.4bn; liquidity of £2.8bn extends into 2027.

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

Outlook and guidance

• AMP8 guidance targets at least 100 basis points of outperformance, mainly from financing.

• Capital investment for AMP8 forecast at £9bn, with asset base growth rate accelerating to 7%.

• FY26 revenue expected between £2.5–2.6bn; operating costs to decrease, depreciation to rise by £50m.

• Dividend per share for FY26 projected at 53.66p, in line with CPIH growth policy.

• Underlying operating costs anticipated to decrease as more network expenditure is capitalised.