United Utilities Group Plc · LSE:UU.
United Utilities — H1 2025/26 Earnings Presentation
27 slides from United Utilities's earnings presentation, Nov 13, 2025
Slide 1: Half year results
Half year results Six months ended 30 September 2025 Thursday 13 November 2025
Slide 2: Business update
Business update Louise Beardmore Chief Executive Officer
Slide 3: Key messages
Key messages Strong operational and financial performance in H1 1 - - Positive H1 results Performing in line with expectations Transformative period for the industry has begun 2 - Strong start to AMP8 delivery - Emerging drivers of future investment Well positioned for water sector transition 3 - Fu
Slide 4: Strong operational and financial performance in H1
Strong operational and financial performance in H1 Operational performance Customer service Financial performance 1 - Performance in line with expectations across - Top listed company for customer service, - Revenue +21% to £1,309m Water, Wastewater and Bio currently in reward for all three regulato
Slide 5: Transformative period for the industry has begun
Transformative period for the industry has begun Strong start to AMP8 delivery Nominal2 RCV (£bn) Historic data Forecast data - 85% of Enterprise projects progressed to design or delivery phase - Over 100 supply chain partners mobilised and delivering 22.0 AMP6 AMP7 AMP83 3% 5% - Capex tracking inli
Slide 6: Well positioned for water sector transition
Well positioned for water sector transition Fundamental reset of UK water regulation Independent Water Commission proposed reform of the regulatory framework, supporting focus on regional priorities Cumbria Returns and investability Investor confidence addressed through a more stable regulatory regi
Slide 7: Financial performance
Financial performance Phil Aspin Chief Financial Officer
Slide 8: Financial highlights
Financial highlights Key metrics (£m) HY25 HY26 Strong financial performance in H1 1,309 52.8p • Underlying operating profit1 +67% to £562m, in line with expectations 1,082 26.8p • 97% increase in underlying EPS1 vs HY 2024/25 • Capital programme on track Revenue Underlying1 EPS • Strong balance she
Slide 9: Underlying operating profit
Underlying operating profit 67% increase in underlying operating profit Strong H1 earnings driven by: Revenue +21% to £1,309m due to higher regulatory revenues allowed as part of our PR24 Final Determination 700 650 71 Infrastructure Renewals Expenditure Impact of a higher allocation to capex 600 -3
Slide 10: AMP8 growth fully equity funded
AMP8 growth fully equity funded FY25 HY26 16.0 RCV gearing2 Capex 60% Capital programme on track 15.4 FY25: 60% Efficient delivery plan RCV1 (£bn) 9.6 Funding raised Liquidity c.£700m £3bn 9.3 Funding flexibility in AMP8 > 24 months of liquidity Net debt (£bn) 1. Includes the full expected value of
Slide 11: Financial framework
Financial framework RoRE Aim to outperform by at least 100 bps Capital Investment c.£9 billion across FY26-30 Target ratings Asset Base Growth 7% CAGR Moody's Baa1 Standard & Poor's Dividend Policy Growing in line with CPIH BBB+ Fitch Strong Balance Sheet Target 55 – 65% gearing BBB+ United Utilitie
Slide 12: Technical guidance 2025/26
Technical guidance 2025/26 2024/25 y-o-y 2025/26 Revenue is expected to increase to between £2.5 billion and £2.6 billion in 2025/26 in line with the Revenue £2,145m final determination, adjusted for inflation. Underlying operating costs are expected to decrease, with higher costs associated with in
Slide 13: Financial summary
Financial summary Strong financial result Financial strength • Underlying operating profit: £562m (+67%) • RCV gearing of 60%1 • Underlying EPS: 52.8p (+97%) • Fully funded pension scheme Funding and liquidity position Dividend • 24 months of liquidity, with funding in place through to • HY25/26 int
Slide 14: 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 15: 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 16: Underlying income statement
Underlying income statement HY26 HY25 Change £m £m % Revenue 1,309.2 1,082.0 +21.0% Operating expenses (486.8) (413.8) +17.7% Infrastructure renewals expenditure (18.7) (92.0) -79.7% EBITDA 803.7 576.2 +39.5% Depreciation and amortisation (242.2) (240.5) +0.7% Operating profit 561.5 335.7 +67.2% Net
Slide 17: Underlying operating costs
Underlying operating costs HY26 HY25 Change £m £m % Revenue 1,309.2 1,082.0 +21.0% Employee costs (125.4) (107.7) +21.2% Power (86.1) (73.0) +17.9% Hired and contracted services (77.1) (58.2) +44.0% Materials (84.8) (69.0) +22.9% Property rates (47.9) (47.6) +0.6% Regulatory fees (26.0) (21.0) +23.8
Slide 18: Profit before tax reconciliation
Profit before tax reconciliation HY26 HY25 £m £m Reported operating profit 561.5 333.4 Net finance expense (232.7) (193.4) Share of profits/(losses) of joint ventures (3.5) 0.6 Reported profit before tax 325.3 140.6 Adjustments: Fleetwood outfall pipe fracture - 2.3 Fair value losses/(gains) on debt
Slide 19: Profit after tax reconciliation
Profit after tax reconciliation HY26 HY25 £m £m Reported profit after tax 240.0 103.1 Adjustments: Fleetwood outfall pipe fracture - 2.3 Fair value losses/(gains) on debt and derivative instruments, excluding interest on derivatives and debt under fair value 35.7 40.0 option Deferred tax adjustment
Slide 20: Finance expense
Finance expense HY26 HY25 £m £m Investment income 47.5 51.7 Finance expense (280.2) (245.1) (232.7) (193.4) Fair value losses/(gains) on debt and derivative instruments, excluding interest on derivatives and debt under fair value 35.7 40.0 option Underlying net finance expense (197.0) (153.4) Adjust
Slide 21: Finance expense: index-linked debt
Finance expense: index-linked debt HY26 HY25 £m £m Interest on index-linked debt (29.4) (28.8) RPI adjustment (£2.3bn debt at Mar-25/3.7% indexation charge; £2.4bn debt at Mar-24/2.5% indexation charge) – 3 (82.2) (60.0) month lag1 CPI adjustment (£1.3bn debt at Mar-25/2.7% indexation charge; £1.3bn
Slide 22: Derivative analysis
Derivative analysis HY26 HY25 £m £m Derivatives hedging debt (19.6) (43.6) Derivatives – total accretion on inflation-linked swaps (148.0) (122.1) Derivatives – fixing future real interest rates through inflation-linked swaps 119.4 124.1 Derivatives – hedging future nominal interest rates 143.0 136.
Slide 23: Statement of financial position
Statement of financial position HY26 FY25 Change £m £m % Property, plant and equipment 14,323.6 13,873.0 +3.2% Retirement benefit surplus 292.8 302.3 -3.1% Other non-current assets 151.7 181.0 -16.2% Cash and bank deposits 1,935.7 1,672.6 +15.7% Other current assets 476.6 399.9 +19.2% Total derivati
Slide 24: Reconciliation of net debt
Reconciliation of net debt HY26 FY25 £m £m Cash and bank deposits (1,935.7) (1,672.6) Total derivative assets (348.7) (340.7) Gross borrowings 11,377.8 10,788.6 Total derivative liabilities 275.8 292.6 Balance sheet net debt 9,369.2 9,067.9 Exclude: The fair value impact of: Interest rate derivative
Slide 25: 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 8,000 4.0% 4.1% 4.2% 4.3% 4.4% 6,000 4,000 (0.6)% (0.6)% (0.6)% (0.6)% (0.6)% 1.4% 2,000 1.5% 1.5% 1.6%
Slide 26: Financing and liquidity at 30 September 2025
Financing and liquidity at 30 September 2025 Gross Debt = £11.4bn Liquidity= £3.1n Other borrowings including EIB & other floating GBP £m lease obligations and short- loans £824.0m term debt Cash, cash investments and bank deposits 1,935.7 £208.3m GBP CPI linked bonds and loans Undrawn committed ban
Slide 27: Term debt maturity profile as at 30 September 2025
Term debt maturity profile as at 30 September 20251 Average term to maturity of approximately 15 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 o
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