United Utilities underlying operating profit rises to £1.06 billion

The Tip Desk · April 30, 2026 · 2 min read

Underlying earnings per share reached 107.1p for the year ended 31 March 2026.

United Utilities Group Plc, a provider of water and wastewater services in the United Kingdom, reported underlying operating profit of £1,059.5 million for the year ended 31 March 2026. This figure represents an increase of £274 million compared to the previous year, which the company attributed to higher revenue partially offset by increased operating costs.

Reported revenue rose to £2,616.3 million from £2,145.2 million in the prior year. This total included £40 million of revenue allowed by Ofwat for recovery in AMP8 related to diversion activity for the aborted northern leg of HS2, an amount the company said will be returned to customers during AMP9. Underlying revenue, which adjusts for the HS2 diversion activity, was £2,576.4 million.

Profitability metrics showed significant growth over the prior year. Reported profit after tax was £586.8 million, up from £264.7 million. Underlying profit after tax rose to £730.0 million from £338.3 million. Consequently, underlying earnings per share increased to 107.1p from 49.6p.

The company's cash position and capital expenditure also shifted. Net cash generated from operating activities rose to £1,381.9 million from £918.1 million. During the same period, net cash used in investing activities increased to £1,478.0 million from £987.2 million, driven by £1,492.1 million spent on the purchase of property, plant, and equipment. Net debt stood at £9,943.3 million at year-end, compared to £9,345.6 million the previous year, while RCV gearing remained flat at 60%.

Shareholder returns increased as the directors recommended a final dividend of 35.78 pence per ordinary share. Combined with an interim dividend of 17.88 pence, the total dividend for the year was 53.66 pence per share, up from 51.85 pence in the prior year.

Looking forward, the company is executing a plan to invest over £13 billion in the North West over the next five years. Management stated that the supply chain is fully mobilised to support this investment, which includes a new aqueduct for Manchester and efforts to reduce storm overflow spills. The company aims to cut spills by 60% in the decade to 2030.