Yu Group (YU) H2 2025 earnings summary

Executive summary

• Achieved record revenue of £700m for 2025, up 8% year-over-year, with strong organic meter point growth and increased market share to 3.5%.

• Adjusted EBITDA rose 4% to £51m, and profit before tax increased 9% to £49m, reflecting operational leverage and disciplined cost control.

• Cash generation remained robust, closing at £106m, supporting a 12% increase in total dividends to 67p per share.

• Launched a new three-year plan to double market share and revenue, targeting 7% market share by 2028, with a self-funded £9m opex investment.

• Strategic partnerships with Shell (commodity hedging) and HSBC (banking) underpin growth and liquidity.

Financial highlights

• Revenue: £700m (+8% YoY); Adjusted EBITDA: £51m (+4% YoY); Profit before tax: £49m (+9% YoY).

• Adjusted fully diluted EPS: 216p (+3% YoY); Statutory basic EPS: 214p (+7% YoY).

• Gross margin: 14.3% (down from 14.5%); Net customer contribution: 11.7% (down from 12.5%).

• Operating cash inflow: £36m; Closing cash: £106m (+£21m YoY).

• Dividend per share: 67p (+12% YoY); Dividend cover >3x on adjusted diluted EPS.

Outlook and guidance

• Entered 2026 with record Q1 revenue, EBITDA, and cash balance.

• 2026 targets: 175k+ meter points, 60k+ smart meter assets, contract book >£1.75bn, revenue £850m–£875m.

• Adjusted EBITDA and PBT expected to be flat YoY in 2026 due to planned investment; cash to decline slightly from early ROC payment and sales acquisition costs.

• Progressive dividend policy to continue, maintaining 3x cover.