United Utilities increases investment to £2bn as half-year profit rises 7%

United Utilities Group plc (LON:UU) has announced interim results for the six-month period to 30 September 2026.

Louise Beardmore, Chief Executive Officer, said:

“We are making strong progress on our BIG North West Upgrade, with more than 1,000 projects underway across the region, supporting 30,000 jobs. Our capital investment will grow significantly, with more than £2 billion being delivered this year as part of our largest ever five-year programme. This is on-track and fully funded, supported by our robust financial performance and the £800 million of new equity we raised in April from UK and international investors.

“We are delivering better outcomes for the environment, with zero serious pollution incidents this year and improved treatment works performance. Building on the strong progress already made, we are increasing the scale and pace of activity to drive down leakage. We continue to engage constructively with Ofwat to enable additional investment to unlock new homes and industrial development, supporting the Government’s growth priorities across the region.

“We are working closely with our communities to deliver on local priorities and providing meaningful support for families facing cost-of-living pressures. Our £525 million affordability package is the most comprehensive in the sector, helping around one in six households between 2025 and 2030.

“Together, these investments in infrastructure, performance and affordability are delivering real progress and lasting benefits for customers, communities and the environment, helping to build a stronger, more resilient North West for the long term.”

Key financials – six months ended 30 September

	Reported			Underlying¹
£m	2026	2025	% change	2026	2025	2025(pro forma)²	% change(pro forma)²
Revenue	1,462.0	1,309.2	+11.7%	1,406.9	1,309.2	1,289.3	+9.1%
EBITDA	904.3	803.7	+12.5%	849.2	803.7	783.8	+8.3%
Operating profit	633.8	561.5	+12.9%	578.7	561.5	541.6	+6.9%
Profit before tax	539.2	325.3	+65.8%	411.9	361.0	391.2	+5.3%
Profit after tax	400.3	240.0	+66.8%	411.9	359.9	390.1	+5.6%
EPS (pence)³	54.7	35.2	+55.4%	56.3	52.8	57.2	-1.6%

	2026	2025	% change
Interim DPS (pence)	18.51	17.88	+3.5%
Net regulatory capex (£m)	993.2	568.5	+74.7%
RCV⁴ (£m)	17,492	15,980	+9.5%
Net debt (£m)	9,805	9,610	+2.0%
RCV gearing⁵ (%)	56%	60%	-4%

Operational highlights

●	Operational performance in line with expectations, as we continue to deliver our BIG North West upgrade
●	ODI guidance unchanged, expecting an improvement on prior year penalty
●	Improved environmental performance in 2026, with zero serious pollutions year to date
●	Continued progress on delivering our storm overflow reduction programme, with a 47% reduction vs 2020 baseline
●	Further 14Ml/day reduction in leakage year to date, following the largest reduction in the sector last year

Capital delivery

●	Accelerating capital investment, upgrading FY27 guidance to above £2 billion capital investment, with £993m capex delivered in 1H
●	Work completed on >500 commitments to date, including major works in relation to phosphorus removal, drinking water quality, and spill reduction for bathing waters
●	Currently on track to deliver around £2.5 billion of additional investment⁶ through AMP8 re-openers

Financial highlights

●	Underlying operating profit of £579m, +7% on the pro forma prior half year, principally driven by higher allowed revenues, supporting our expanded capital investment programme
●	Robust balance sheet with gearing at 56%, supporting solid credit ratings with Moody’s, Fitch and S&P
●	Liquidity extending into FY29, supported by £0.8bn equity raise in April
●	RCV growth of 9.5% year-on-year
●	Interim dividend of 18.51p, in line with policy

Financial framework

●	Targeting regulatory returns of 10-11%⁷ in AMP8
●	Capital investment of c.£11.5 billion in AMP8
●	Asset base compound annual growth rate of around 10%⁸ in AMP8
●	Maintain dividend growth in line with CPIH
●	Maintain gearing within target range of 55-65%

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