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30 Apr 2026 07:00
30 April 2026: United Utilities Group PLC today announces a strategic update, alongside its preliminary, unaudited full year results for the year ended 31 March 2026 in a separate announcement on our website here.
Accelerating investment supporting economic growth and resilience in the North West
● | Guidance for AMP8 capital investment programme increased to c. £11.5 billion, up from c. £9 billion, representing c. £2.5 billion of incremental investment |
● | Incremental investment to support housing and industrial growth in the region, AI-driven industrial development, proactive asset replacement and environmental improvements |
● | c. £1.4 billion of incremental investment programme submitted to Ofwat today with the balance of the c.£2.5 billion expected via future Re-openers1 |
● | Asset base now expected to grow at 10% CAGR through to 20302, up from prior guidance of 7% |
● | Upgraded financial framework: targeting regulatory returns3 of 10-11% in AMP8, an increase of 100 basis points versus prior guidance |
● | Funding the equity element of the c. £2.5 billion incremental capex through an £800 million placing, announced separately today, with gearing to remain within target range of 55-65% through AMP8 |
Louise Beardmore, Chief Executive Officer, said:
"One year into our most ambitious investment programme, we have made a strong start delivering£1.5 billion of capital investment in FY26 and mobilising over 100 supply chain partners to achieve our regulatory commitments on time. We are committed to supporting a stronger, greener, healthier North West, and the plans we are announcing today will do exactly that. We expect it could create a further 4,000 jobs across our supply chain, on top of the 30,000 supported by our existing AMP8 programme, by enhancing our infrastructure and aligning with the Government's mission for economic growth and decarbonisation.
The proposals we have submitted today for c. £1.4 billion, as part of Ofwat's 2026 Re-opener process, represent the first phase of our incremental investment programme and focus on providing the water infrastructure for thousands of new homes, powering data centres, enabling clean energy and strengthening the resilience of our network. The balance of the c. £2.5 billion is expected via future Re-openers as we continue to invest further in the North West through the AMP.
With our upgraded financial framework, sector-leading financing performance and strong delivery track record, we are confident in our ability to generate attractive and sustainable returns for shareholders while delivering for our customers, communities and the environment."
Investment background and 2026 Re-opener
Since the PR24 Final Determination in December 2024, the scale and urgency of infrastructure investment required across the North West has increased significantly. Mandatory housing targets for local authorities in the region have increased, with 66,000 additional homes expected to be built by 2030. The Government's declaration of data centres as Critical National Infrastructure and the launch of the AI Growth Zone initiative have generated significant new demand for water capacity in Greater Manchester that was not reflected in the Company's PR24 business plan. HyNet, one of the UK's largest industrial decarbonisation programmes, has been confirmed as a highest priority programme in the Government's Major Projects Portfolio.
United Utilities today submitted proposals to Ofwat under the AMP8 Re-opener process, requesting approval for c.£1.4 billion of incremental investment. Plans for a further c.£1.2 billion of investment are expected to be submitted for approval through subsequent submissions in 2027 and 2028 and transitional investment into AMP9, taking total incremental investment to c.£2.5 billion and total AMP8 capital investment to c.£11.5 billion.
The 2026 Re-opener submission comprises investment into the following areas:
● | Growth programme (c. £770 million): The programme will deliver new water infrastructure for data centres in East Manchester (c. £200 million), non-potable water supply to the clean energy cluster in Ellesmere Port (c. £220 million), and wastewater treatment capacity upgrades at 34 sites to support 66,000 new homes across the region (c. £350 million). The investment is expected to support over 4,000 new jobs in the supply chain, in addition to the 30,000 jobs already supported by the Company's existing AMP8 programme. |
● | Proactive asset replacement (c. £410 million): The programme will proactively address five asset classes - gravity sewers, water network storage, trickling filters, rapid gravity filters and boreholes. |
● | Windermere gated process and strategic water resources (c.£190 million): Investment covering 10 projects across Windermere progressing through Ofwat's large schemes gated process (c.£110 million) and acceleration of strategic water resource development across the region (c. £80 million). |
Ofwat's draft decisions on the 2026 submission are expected on 15 August 2026, with final decisions on 15 December 2026.
Preliminary, unaudited full year results - strong platform for delivery
United Utilities delivered strong financial and operational results for the year ended 31 March 2026, providing a firm platform for the accelerated investment programme. Underlying revenue increased 20% to £2,576 million, reflecting higher regulatory revenues under the PR24 Final Determination, with underlying operating profit up 35% to £1,060 million and underlying EPS up 42% to 107.1 pence. Capital investment increased 41% to £1.5 billion in line with expectations, with our regulatory commitments achieved on time in the year.
Operationally, the Company achieved a 23% reduction in spills, and 42% fewer internal sewer flooding incidents, and is in reward across all three customer service measures4. The supply chain is fully mobilised with over 100 suppliers in contract, delivery pathways established and working well, enabling us to achieve our regulatory commitments on time. The regulatory return for FY26 was 13.0% and full details of the financial results are set out in the accompanying preliminary, unaudited full year results announcement.
Upgraded financial framework
The Company is upgrading its financial framework to reflect the accelerated investment programme:
● | Targeting regulatory returns of 10-11% in AMP8, an increase of 100bps outperformance compared with prior guidance |
● | Capital investment increasing from c.£9 billion to c.£11.5 billion in AMP8 |
● | Asset base compound annual growth rate of around 10%, up from around 7% previously |
● | Maintain dividend growth in line with CPIH5 |
● | Maintain gearing within target range of 55-65%6, supported by a c.£800 million equity raise |
Equity placing
To fund the equity element of the c. £2.5 billion incremental investment programme, United Utilities Group PLC is today separately announcing an equity placing of £800 million. The placing has been structured to ensure gearing remains within the Company's 55-65% target range through AMP8. The base AMP8 programme of c.£9 billion was already fully funded prior to the Re-opener submission. Further details of the placing, including terms and conditions, are set out in a separate announcement released today.
Enquiries
Investors and Analysts | ||
Chris Laybutt - Investor Relations and Clean Energy Strategy Director | +44 7769 556 858 | |
Jenny Platt - Investor Relations Manager | +44 7733 064 907 | |
Media | ||
Andrew Ward - Corporate Affairs Director | +44 734 168 3924 | |
Graeme Wilson / Louise Male - Teneo Communications | +44 207 260 2700 | |
Preliminary full year results and strategic update presentation webcast - Thursday 30 April 2026
We will host a presentation and Q&A with management at 8:00am(BST), which can be accessed using the details provided below:
https://teams.microsoft.com/meet/360160455663116?p=tcTOMJf34cDlau2b2r
Meeting ID: 360 160 455 663 116, Passcode: tv7it6Wu
LEI: 2138002IEYQAOC88ZJ59
1Expectation of additional capital investment, to be determined through Ofwat re-openers, comprising Ofwat's 2026 Cost Change Process, Ofwat's 2027 Cost Change process, Ofwat's 2028 Cost Change Process and Transitional Investment
2From the 2024/25 baseline of £15,367 million assuming CPIH inflation of c.3.0% on average in AMP8
3Regulatory return is the return on regulatory equity comprising the base return, outperformance and inflation as per Table 1F of the Ofwat Annual Performance Report.
4Measures of Experience: customer measure of experience, developer measure of experience and business retailer measure of experience
5Target dividend growth in line with CPIH based on FY26 DPS of 53.66 pence
6 RCV gearing calculated as group net debt including loan receivable from joint venture/United Utilities Water Limited's adjusted RCV (adjusted for actual spend, timing differences and including expected value of AMP8 ex-post adjustment mechanisms).
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This financial report 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 differ materially from those anticipated. These forward-looking statements include without limitation any projections or guidance relating to the results of operations and financial conditions of the group as well as plans and objectives for future operations, expected future revenues, financing plans, expected expenditure and any strategic initiatives relating to the group, as well as discussions of our business plan and our assumptions, expectations, objectives and resilience with respect to climate scenarios. The forward-looking statements reflect knowledge and information available at the date of preparation of this financial report and the company undertakes no obligation to update these forward-looking statements. Nothing in this financial report should be construed as a profit forecast.
Certain regulatory performance data contained in this financial report is subject to regulatory audit.
This announcement contains inside information, disclosed in accordance with the Market Abuse Regulation which came into effect on 3 July 2016 and for UK Regulatory purposes the person responsible for making the announcement is Simon Gardiner, Company Secretary.
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