Slide 1: Preliminary full year results and strategic update
Preliminary full year results and strategic update Year ended 31 March 2026 Thursday 30 April 2026
Slide 2: Business update
Business update Louise Beardmore Chief Executive Officer
Slide 3: Key messages
Key messages Strong operational and financial performance underpinning momentum for AMP8 delivery - 7.5% asset base growth to £16.5bn, underlying EPS of 107.1 pence +42% on the prior year 1 - Delivering improved operational and environmental performance - Supply chain mobilised, delivery pathways es
Slide 4: Significant operational and financial progress
Significant operational and financial progress Operational Performance Customer Service & People Financial Performance - 42% reduction in internal sewer flooding - 4.5 out of 5 on Trust pilot - 42% increase in underlying EPS3,4 vs 2024/25 - 23% reduction in spills, 27% reduction in - In reward in al
Slide 5: Strong start to our AMP8 programme
Strong start to our AMP8 programme 40% increase in capital investment YoY Confidence in AMP8 delivery AMP 8 project progress Nominal capital investment (£m) Historic data Forecast Completed Pre-planning 15% 8% 2000 1500 Delivery 15% Planning 1000 38% 500 Design 24% • Supply chain mobilised – over 10
Slide 6: Step-change in water infrastructure investment is underway
Step-change in water infrastructure investment is underway Government policy and regulation now underpins a …on top of positive regulatory momentum multi-decade growth opportunity… 88 Cunliffe Review recommendations Tightening environmental standards Environment Act 2021, PFAS, microplastics, net ze
Slide 7: Step-up in AMP8 investment
Step-up in AMP8 investment AMP8 capex guidance increased by ~£2.5bn1 …facilitated by Ofwat’s AMP8 Nominal capital investment (£bn) Re-opener process AMP8 ~£11.5bn • Ofwat’s AMP8 Re-opener process allows for in-period adjustments and improved phasing • The new process allows us to address AMP7 new an
Slide 8: Incremental capex of ~£2.5bn, supporting economic growth
Incremental capex of ~£2.5bn, supporting economic growth ~£2.5bn incremental capex (nominal, £bn) 2026 Re-opener breakdown ~£600m Future submissions ~£1.2bn • Growth to support defence Proactive asset • Maintaining momentum of storm overflow programme 6 replacement 1 New homes • Proactive asset repl
Slide 9: Future timeline
Future timeline 2026 Re-opener Anticipated AMP9 2027 Re-opener 2028 Re-opener Proposals submitted to Ofwat 1st May Transitional Investment FY27 FY28 FY29 FY30 Q1 Q2 Q3 Q4 15th August 2026 Ofwat draft decisions on 2026 Re-opener Late 2029 Spring 2026 2028 AMP9 Final Transition Plan, Strategic 15th De
Slide 10: Preliminary full year results
Preliminary full year results Phil Aspin Chief Financial Officer
Slide 11: Strong financial performance
Strong financial performance Key metrics (£m) FY25 FY26 Key highlights 2,576 107.1p 2,145 • 42% increase in underlying EPS1,2,3 vs 2024/25 75.3p • Capex +41% to £1.5bn, in line with expectations • 7.5% asset base growth to £16.5bn Underlying1 Revenue Underlying1,2,3 EPS 1,060 1,525 786 • Regulatory
Slide 12: 35% increase in underlying operating profit
35% increase in underlying operating profit Strong earnings driven by: Underlying Operating Profit (£m) Revenue +20% to £2,576m due to higher regulatory revenues allowed 1400 as part of our PR24 Final Determination, partially offset by a £40 million adjustment to accommodate the now-aborted 431 nort
Slide 13: Maintaining financial discipline and strong balance sheet
Maintaining financial discipline and strong balance sheet FY25 FY26 16.5 RCV gearing2 Capex 60% Capital programme progressing well 15.4 FY25: 60% Efficient delivery RCV1 (£bn) Agile Treasury Management Robust liquidity 9.9 Sector leading financing c.£1.5bn term funding raised outperformance 9.3 ~80b
Slide 14: Delivering a regulatory return of 13%
Delivering a regulatory return of 13% 2025/26 Regulatory return bridge Financing +3.1% underpinned by our strong balance sheet and credit 3.8% 13.0% ratings, along with leading Treasury management. ODIs Customer ODI penalty of around £35m, or 0.5 as a percentage on returns. We are confident in deliv
Slide 15: Technical guidance 2026/27
Technical guidance 2026/27 2025/26 2026/27 Guidance Underlying1 revenue £2,576m £2.7bn - £2.8bn Underlying revenue This figure excludes pass-through items of c.£110m relating to the Haweswater Aqueduct Resilience Programme (HARP) Underlying1,2 operating costs £1,016m + c.£100m (£70m, FY26: nil) and
Slide 16: Building on solid foundations - Upgraded financial framework
Building on solid foundations - Upgraded financial framework New Guid Previous plan Updated plan Change 9-10% nominal return 10 – 11% nominal return Regulatory Return1,2 + 1% Outperform by at least 100bps Outperform by at least 200bps Capital Investment ~£9bn across FY26-30 ~£11.5bn across FY26-30 +
Slide 17: Summary
Summary Louise Beardmore Chief Executive Officer
Slide 18: A compelling investment proposition – driving long-term growth
A compelling investment proposition – driving long-term growth ~10% asset base growth rate in AMP8 Nominal RCV (£bn) AMP6 AMP7 AMP8 • Capital investment of ~£11.5bn in AMP8 26.0 3% 5% ~10% 24.0 • Strong asset base growth of ~10% CAGR 22.0 20.0 • Robust balance sheet, supported by £800m 18.0 equity p
Slide 19: Summary
Summary Strong operational and financial performance underpinning momentum for AMP8 delivery - 7.5% asset base growth to £16.5bn, underlying EPS of 107.1 pence +41% on the prior year 1 - Delivering improved operational and environmental performance - Supply chain mobilised, delivery pathways establi
Slide 20: Cautionary statement
Cautionary statement This presentation contains certain forward-looking statements with respect to the operations, performance and financial condition of the group. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to diffe
Slide 21: Supporting information
Supporting information 1. Underlying income statement 8. Statement of financial position 2. Underlying operating costs 9. Reconciliation of net debt 3. Profit before tax reconciliation 10. Financing performance 4. Profit after tax reconciliation 11. Financing and liquidity 5. Finance expense 12. Deb
Slide 22: Underlying income statement
Underlying income statement 2025/26 2024/251 Change £m £m % Revenue 2,576.4 2,145.2 +20.1% Operating expenses (978.3) (857.0) +14.2% Infrastructure renewals expenditure (38.1) (37.6) +1.3% EBITDA 1,560.0 1,250.6 +24.7% Depreciation and amortisation (500.5) (464.9) +7.7% Operating profit 1,059.5 785.
Slide 23: Underlying operating costs
Underlying operating costs 2025/26 2024/251 Change £m £m % Underlying revenue 2,576.4 2,145.2 +20.1% Employee costs (260.9) (224.1) +16.4% Power (182.7) (154.5) +18.3% Hired and contracted services (147.4) (133.9) +10.1% Materials (160.3) (144.1) +11.2% Property rates (93.3) (89.9) +3.8% Regulatory
Slide 24: Profit before tax reconciliation
Profit before tax reconciliation 2025/26 2024/251 £m £m Reported operating profit 1,099.4 631.5 Net finance expense (315.8) (265.7) Share of profits/(losses) of joint ventures (4.6) (10.8) Reported profit before tax 779.0 355.0 Adjustments: HS2 revenue (39.9) - Fleetwood outfall pipe fracture - 2.3
Slide 25: Profit after tax reconciliation
Profit after tax reconciliation 2025/26 2024/251 £m £m Reported profit after tax 586.8 264.7 Adjustments: In respect of profit before tax (41.0) 158.6 Deferred tax adjustment 184.2 90.0 Underlying profit after tax 730.0 513.3 Basic earnings per share (pence) 86.1 38.8 Underlying earnings per share (
Slide 26: Finance expense
Finance expense 2025/26 2024/251 £m £m Investment income 99.9 106.2 Finance expense (415.7) (348.8) (315.8) (242.6) Fair value losses/(gains) on debt and derivative instruments, excluding interest on derivatives and debt under fair value (1.1) (18.7) option Underlying net finance expense (316.9) (26
Slide 27: Finance expense: index-linked debt
Finance expense: index-linked debt 2025/26 2024/251 £m £m Cash interest on index-linked debt (41.8) (43.4) RPI adjustment (£2.4bn debt at Mar-25/3.3% non-cash interest charge; £2.4bn debt at Mar-24/3.0% non-cash interest (75.7) (72.3) charge) – 3 month lag2 CPI adjustment (£1.4bn debt at Mar-25/3.0%
Slide 28: Derivative analysis
Derivative analysis 2025/26 2024/25 £m £m Derivatives hedging debt (95.5) (98.6) Derivatives – total accretion on inflation-linked swaps (151.4) (130.8) Derivatives – fixing future real interest rates through inflation-linked swaps 103.6 126.9 Derivatives – hedging future nominal interest rates 183.
Slide 29: Statement of financial position
Statement of financial position 2025/26 2024/25 Change £m £m % Property, plant and equipment 15,084.0 13,873.0 +8.8% Retirement benefit surplus 310.9 302.3 +2.8% Other non-current assets 174.5 181.0 -6.6% Cash and bank deposits 1,794.3 1,672.6 +7.3% Other current assets 415.6 399.9 +3.9% Total deriv
Slide 30: Reconciliation of net debt
Reconciliation of net debt 2025/26 2024/25 £m £m Cash and bank deposits (1,794.3) (1,672.6) Total derivative assets (347.7) (340.7) Gross borrowings 11,490.6 10,788.6 Total derivative liabilities 309.4 292.6 Balance sheet net debt 9,658.0 9,067.9 Exclude: The fair value impact of: Interest rate deri
Slide 31: Financing performance
Financing performance Existing debt locked in at rates favourable to the AMP8 allowed cost of embedded debt RPI-linked CPI-linked Fixed Floating/New 16,000 14,000 12,000 2.2% 2.6% 2.5% 2.4% 10,000 4.3% 4.4% 4.1% 4.4% 8,000 4.6% 4.0% 4.1% 4.2% 4.3% 4.4% 6,000 4,000 (0.6)% (0.6)% (0.6)% (0.6)% (0.6)%
Slide 32: Financing and liquidity at March 2026
Financing and liquidity at 31 March 2026 Gross Debt = £11.5bn Liquidity= £3.1bn £m Cash, cash investments and bank deposits 1,794.3 Undrawn committed bank facilities 1,275.0 Spot liquidity as at 31 March 2026 3,069.3 1. This segment includes fixed rate & RPI linked bonds that have been swapped to CP
Slide 33: Debt structure at March 2026
Debt structure at 31 March 2026 United Utilities Group PLC United Utilities PLC Yankees: • $400m in 28s on-lent at issue to UU Water Baa2 stable; BBB- stable; BBB+ stable7 Euro MTNs: Other debt: • £300m in 27s • £100m in 40s1 • £50m in 49s1 • EIB RPI-linked loans £273m1 United Utilities Water Limite
Slide 34: Term debt maturity profile as at March 2026
Term debt maturity profile as at 31 March 20261 Average term to maturity of approximately 14 years 1. Future repayments of index-linked debt include RPI/CPI/CPIH market derived forecasts out to 2029, subsequently transitioning to an average annual RPI rate of 2.4% and an average annual CPI rate of 2