Business
Trading Statement
Pennon Group's trading update for April 1 to September 25, 2025, indicates they are on track to meet expectations for the 2025/26 financial year, with a strong return to profitability. The company anticipates EBITDA to increase by approximately 60% year-on-year, net of revenue deferred into 2026/27, and are on track to deliver a target RORE of 7%, supported by efficient financing. They also completed a £300 million new issuance in September 2025 under the EMTN programme, enhancing their liquidity. Pollution incidents have halved, and storm overflow spills have reduced by nearly 50%. Pennon Power's renewable energy portfolio is expected to generate 40% of the Group's total consumption when all four sites are operational by the end of FY27. Disclaimer*
About this update from Pennon Group Plc
[{"type":"text","content":"\n\nPENNON GROUP PLC \n26 September 2025\nTrading Statement -\nA robust start to K8\nPennon Group announces the following trading update for the period from 1 April to 25 September 2025.\nSusan Davy, Group Chief Executive Officer commented:\n\"We're driving real improvements for our customers and communities whilst delivering a return to strong profitability. Despite the pressures of a hot summer, we've maintained resilient water supplies and continued to improve services for our customers. Whilst there is more to do, our pollution reduction plans are delivering tangible benefits, halving the number of pollutions and spills from storm overflows, reducing our impact on the environment.\"\nKey highlights\n· On track against expectations in 2025/26, with a strong return to profitability\n· Target RORE of 7% underpinned by efficient financing for FY26\n· Price control deliverables on track for 2025/26 - with programme efficiencies being secured as delivery progresses\n· Robust liquidity position enhanced by £300m new issuance in September 2025 under EMTN programme\nFinancial performance for the full year 2025/26 remains on track to deliver a strong return to profitability.\nHigh demand for clean water over the summer period due to the hot weather has been more than offset in revenues by increased meter optants and profiling of tariffs to smooth customer bills, deferring revenue into 2026/27. The hot weather has also resulted in higher operational costs to respond to the increased demand and operational pressure on the networks. Despite this, we have made a strong return to profitability, with EBITDA anticipated to increase by c.60% year on year, net of revenue deferred into 2026/27. We are on track to deliver our 7% RORE target, supported in-year by efficient financing costs, whilst efficiencies in delivering the capital programme are more than offsetting other cost pressures.\nIn Wastewater Services, 2025/26 Outcome Delivery Incentives are tracking to be net neutral - a first for South West Water since ODIs were introduced. Pollution incidents have h...