United Utilities Group PLC · LSE:UU.
United Utilities — H1 2026/27 Earnings Presentation
33 slides from United Utilities's earnings presentation, Nov 12, 2026
Slide 1: Half year results
Half year results Six months ended 30 September 2026 Thursday 12 November 2026
Slide 2: Business update
Business update Louise Beardmore Chief Executive Officer
Slide 3: Key messages
Key messages Strong operational and financial performance - Positive results with asset base growth of 9.5% 1 - - Financial framework remains on track, with AMP8 plan fully funded Business performing in line with expectations with encouraging improvements on a number of key metrics Capital delivery
Slide 4: Strong operational and financial performance
Strong operational and financial performance Operational performance improving Capital delivery on track Strong financial performance - Delivering improved environmental - c.£1bn capex delivered in 1H - 9.5% asset base growth to £17.5bn performance, with no serious pollutions YTD - Upgrading FY27 gu
Slide 5: Utilising supply chain capacity, de-risking delivery
Utilising supply chain capacity, de-risking delivery Confidence in AMP8 delivery Delivery pathways established and Nominal capital investment (£bn) working well AMP8 ~£11.5bn1 Capital delivery on track Guiding to >£2bn capital investment in FY27 and all regulatory deliverables on track Supply chain
Slide 6: 2026 re-opener: supporting growth, strategic projects and resilience
2026 re-opener: supporting growth, strategic projects and resilience On track to deliver ~£2.5bn re-opener capex… … with substantially all of first Future submissions ~£1.2 billion re-opener scope approved c.£1.2bn c.£2.5bn Key: 2027 & 2028 re-openers Draft decision AMP9 Transitional Investment & Ot
Slide 7: Targeted annualised process accelerating investment
Targeted annualised process accelerating investment 2026 re-opener Anticipated AMP9 2027 re-opener 2028 re-opener Proposals submitted to Ofwat 30 April Transitional Investment Company response 24 September 2026 FY27 FY28 FY29 FY30 Q1 Q2 Q3 Q4 2026 re-opener Draft Decision 13 August 2026 2028 Late 20
Slide 8: Only Rainwater into Windermere: Coalition Blueprint
Only Rainwater into Windermere: Coalition Blueprint A solution focused around ‘place’, co-designed by a number of coalition partners One of the most ambitious freshwater restoration programmes ever proposed in the UK, to protect Lake Windermere for 100 years Plan to remove private and public wastewa
Slide 9: We are well placed for regulatory changes to come
We are well placed for regulatory changes to come Fundamental reset underway, with regional focus driving future success Established County Model Our regional business planning and operations structure lends well to future regional stakeholder regulatory Working together differently model and suppor
Slide 10: Financial performance
Financial performance Phil Aspin Chief Financial Officer
Slide 11: Strong financial performance
Strong financial performance Key metrics HY26 HY27 (£m) 1,407 Key highlights 57p 56p 1,289 • Capex £993m, in line with expectations • 9.5% asset base growth to £17.5bn • Strong balance sheet, with gearing3 at 56% Underlying1,2 revenue Underlying1,2, EPS 579 993 • Underlying EPS1,2 of 56.3 pence, -1.
Slide 12: Underlying operating profit of £579m
Underlying operating profit of £579m Strong 1H earnings driven by: Underlying operating profit (£m) Underlying revenue +9% to £1,407m due to higher regulatory revenues allowed as part of our PR24 Final Determination, partially offset by a £55 700 million adjustment relating to the Haweswater Aqueduc
Slide 13: AMP8 growth fully funded
AMP8 growth fully funded FY26 HY27 17.5 Balance sheet strengthened Capital programme on track 16.5 RCV gearing2 56%, reduced from 60% in 1H capex £993m FY26 following equity raise Sustained level carried over from 2H26 RCV1 (£bn) Financing outperformance Liquidity into FY29 9.9 9.8 c90bps locked-in
Slide 14: Technical guidance 2026/27
Technical guidance 2026/27 2025/26 2026/27 Guidance Underlying revenue This figure excludes pass-through items of c.£110m relating Underlying1 revenue £2,576m £2.7bn - £2.8bn to the Haweswater Aqueduct Resilience Programme (HARP) (£70m, FY26: nil) and HS2 diversions income (£40m, FY26: Underlying1,2
Slide 15: Building on solid foundations - financial framework unchanged
Building on solid foundations - financial framework unchanged Regulatory Return1,2 10 - 11% nominal return Capital Investment ~£11.5bn across FY26-30 Target ratings Asset Base Growth2 ~10% CAGR Moody's Baa1 Standard & Poor's Dividend Policy Growing in line with CPIH BBB+ Fitch Strong Balance Sheet T
Slide 16: Summary
Summary Louise Beardmore Chief Executive Officer
Slide 17: Summary
Summary Strong operational and financial performance - Positive results with asset base growth of 9.5% 1 - - Financial framework remains on track, with AMP8 plan fully funded Business performing in line with expectations with encouraging improvements on a number of key metrics Capital delivery on tr
Slide 18: 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 19: Supporting information
Supporting information 1. Underlying profit adjustments 8. Statement of financial position 2. Underlying income statement 9. Reconciliation of net debt 3. Underlying operating costs 10. Financing performance 4. Profit before tax reconciliation 11. Financing and liquidity 5. Profit after tax reconcil
Slide 20: Underlying profit adjustments
Underlying profit adjustments Adjusted item Rationale Pro forma adjustments applied to prior half year – provided to facilitate comparison on a like-for-like basis High Speed Two (HS2) income In the financial reporting for the year ended 31 March 2026 management included an adjustment to exclude rev
Slide 21: Underlying income statement
Underlying income statement HY27 HY261 Change £m £m % Revenue 1,406.9 1,289.3 +9.1% Operating expenses (543.2) (486.8) +11.6% Infrastructure renewals expenditure (14.5) (18.7) -22.5% EBITDA 849.2 783.8 +8.3% Depreciation and amortisation (270.5) (242.2) +11.7% Operating profit 578.7 541.6 +6.9% Net
Slide 22: Underlying operating costs
Underlying operating costs HY27 HY261 Change £m £m % Revenue 1,406.9 1,289.3 +9.1% Employee costs (152.8) (125.4) +21.9% Power (86.1) (86.1) - Hired and contracted services (84.1) (77.2) +8.9% Materials (90.6) (84.8) +6.8% Property rates (58.9) (47.9) +23.0% Regulatory fees (28.3) (26.0) +8.8% Bad d
Slide 23: Profit before tax reconciliation
Profit before tax reconciliation HY27 HY261 £m £m Reported operating profit 633.8 561.5 Net finance expense (94.6) (232.7) Share of profits/(losses) of joint ventures - (3.5) Reported profit before tax 539.2 325.3 Adjustments: Fair value (gains)/losses on debt and derivative instruments, excluding i
Slide 24: Profit after tax reconciliation
Profit after tax reconciliation HY27 HY261 £m £m Reported profit after tax 400.3 240.0 Adjustments: Fair value (gains)/losses on debt and derivative instruments, excluding interest on derivatives and debt under fair value (72.2) 35.7 option Change in estimation technique for measuring index-linked d
Slide 25: Finance expense
Finance expense HY27 HY261 £m £m Finance income 57.4 47.5 Finance expense (152.0) (230.1) (94.6) (182.6) Fair value (gains)/losses on debt and derivative instruments, excluding interest on derivatives and debt under fair value (72.2) 35.7 option Underlying net finance expense (166.8) (146.9) Adjustm
Slide 26: Finance expense: index-linked debt
Finance expense: index-linked debt HY27 HY261 £m £m Interest on index-linked debt (21.2) (29.4) RPI adjustment (£2.1bn debt at Mar-26/3.8% non-cash interest charge; £2.3bn debt at Mar-25/3.8% non-cash interest (38.9) (33.5) charge) – 3 month lag2 CPI adjustment (£1.4bn debt at Mar-26/4.4% non-cash i
Slide 27: Derivative analysis
Derivative analysis HY27 HY26 £m £m Derivatives hedging debt (278.4) (19.6) Derivatives – total accretion on inflation-linked swaps (167.9) (148.0) Derivatives – fixing future real interest rates through inflation-linked swaps 108.5 119.4 Derivatives – hedging future nominal interest rates 245.9 143
Slide 28: Statement of financial position
Statement of financial position HY27 FY26 Change £m £m % Property, plant and equipment 15,927.1 15,084.0 +5.6% Retirement benefit surplus 324.2 310.9 +4.3% Other non-current assets 211.8 174.5 +21.4% Cash and short-term deposits 2,179.7 1,794.3 +21.5% Bank deposits with maturity greater than three m
Slide 29: Reconciliation of net debt
Reconciliation of net debt HY27 FY26 £m £m Cash and bank deposits (2,229.7) (1,794.3) Total derivative assets (388.2) (347.7) Gross borrowings 11,588.5 11,490.6 Total derivative liabilities 467.6 309.4 Balance sheet net debt 9,438.2 9,658.0 Exclude: The fair value impact of: Interest rate derivative
Slide 30: 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% 4.5% 4.7% 8,000 4.0% 4.1% 4.2% 4.3% 4.4% 6,000 4,000 (0.6)% (0.6)% (0.6)% 1.4% (0.6)% (0
Slide 31: Financing and liquidity at 30 September 2026
Financing and liquidity at 30 September 2026 Gross Debt = £11.6bn Liquidity = £3.6bn £m Cash, cash investments and bank deposits 2,229.7 Undrawn committed bank facilities 1,355.0 Spot liquidity as at 30 September 2026 3,584.7 1 This segment includes fixed rate & RPI linked bonds that have been swapp
Slide 32: Debt structure at 30 September 2026
Debt structure at 30 September 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 £248m1 United Utilities Water Li
Slide 33: Term debt maturity profile as at 30 September 2026
Term debt maturity profile as at 30 September 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 2030, subsequently transitioning to an average annual RPI rate of 2.4% and an average annual CPI rate o
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