United Utilities Group PLC (UU.) has reported interim results for the six months ended 30 September 2026, revealing reported revenue of £1,462m, up 11.7% year-on-year, alongside a 74.7% surge in net regulatory capital expenditure to £993.2m. The North West water and wastewater provider declared an interim dividend of 18.51 pence per share, a 3.5% increase on the prior period. With more than 1,000 projects underway under its BIG North West Upgrade programme and FY27 capex guidance upgraded to above £2 billion, investors will be watching closely how the group manages its accelerating investment cycle.

Key Points

  • United Utilities Group PLC (UU.) — regulated water and wastewater services provider for the North West of England
  • Reported revenue rose 11.7% to £1,462.0m for the six months ended 30 September 2026; underlying operating profit increased 6.9% on a pro forma basis to £578.7m
  • Net regulatory capex reached £993.2m in H1; FY27 capital investment guidance upgraded to above £2 billion; interim dividend of 18.51p declared, up 3.5%
  • Investors should monitor Ofwat ODI penalty outcomes, the AMP8 re-opener process targeting around £2.5 billion of additional investment, and inflation's effect on index-linked debt costs

United Utilities' BIG North West Upgrade Drives Record £993m First-Half Capital Spend

United Utilities accelerated capital delivery materially in the first half, with net regulatory capex rising 74.7% to £993.2m compared with £568.5m in the prior period. The group has upgraded its FY27 capital investment guidance to above £2 billion, as part of a c.£11.5 billion AMP8 programme running to March 2030. Work completed on more than 500 commitments to date includes major phosphorus removal schemes, drinking water quality improvements, and spill reduction for bathing waters. Construction has also commenced on the Haweswater Aqueduct Resilience Programme, described in the announcement as securing resilient drinking water supply for future generations across the region.

Revenue Growth and Underlying Profit Supported by PR24 Allowances and April Equity Raise

Reported revenue of £1,462.0m was up 11.7%, with underlying revenue of £1,406.9m representing a 9.1% increase on the pro forma prior half year, principally driven by higher allowed revenues set out in the PR24 Final Determination. Underlying EBITDA increased 8.3% on a pro forma basis to £849.2m, while underlying operating profit rose 6.9% to £578.7m. The group's balance sheet was supported by the £800 million equity raise completed in April 2026 from UK and international investors, with gearing falling to 56% of regulated capital value — at the lower end of the 55–65% target range. Liquidity is stated to extend into FY29.

Zero Serious Pollution Incidents and 47% Reduction in Storm Overflow Spills Highlight Environmental Progress

The announcement highlights a 47% reduction in storm overflow spills per overflow against the 2020 baseline and zero serious pollution incidents recorded year-to-date. Leakage has been reduced by a further 14 megalitres per day in the six-month period, equivalent to more than five Olympic swimming pools daily, with find-and-fix capacity increased from around 400 to over 1,100 jobs per week. Approximately 350,000 smart meters have been installed to date. The group received a £9.5 million award from Ofwat's Water Breakthrough Challenge to lead projects exploring biogas conversion into clean hydrogen and graphene, alongside advanced sludge treatment technologies.

FY27 Guidance: Revenue of £2.7bn–£2.8bn Forecast as ODI Penalty Expected to Improve

For FY27, United Utilities is guiding underlying revenue of between £2.7 billion and £2.8 billion, excluding pass-through items of approximately £110 million. Underlying operating costs are expected to rise by around £100 million due to asset base growth and price increases including business rates, while depreciation is forecast to increase by £50 million to £60 million. The group forecasts a customer ODI penalty for 2026/27, but expects year-on-year improvement versus a c.£35 million penalty in 2025/26. The full-year dividend per share is set at 55.54 pence, growing in line with CPIH inflation policy. Inflation sensitivity on index-linked debt remains a key financial risk, with a £45 million annual interest swing for every 1% change in inflation.