United Utilities (LSE:UU.) reported a sharp increase in first-half profitability on Thursday and reiterated its full-year guidance, supported by a notable reduction in finance costs.
The company posted operating profit of £562 million for the first half of FY26, a 67% year-on-year increase and around 6% ahead of its own consensus forecast. Revenue rose 21% to £1,309 million, matching analysts’ expectations.
Profit before tax surged to £361 million, up from £183 million in the same period of FY25, driven in part by finance expenses that were 30% lower than last year. Earnings per share reached 52.8p, topping consensus estimates by 3%. The interim dividend was set at 17.88p, an increase of 3.5%, consistent with the company’s CPIH-linked dividend policy.
Regulatory capital value gearing remained steady at 60%, unchanged from the full-year 2025 level.
United Utilities reiterated its outlook for FY26, guiding for revenue in the £2.5–2.6 billion range. The company expects lower operating costs but forecasts £50 million increases in both depreciation and amortisation and financial expenses.
For the first time, the group issued full-year earnings per share guidance of approximately 100p, in line with market expectations. Capital expenditure is now projected to be around £1.5 billion, a slight refinement from its previous expectation of spending “over £1.5 billion.”
The water company also continues to anticipate a net penalty under its Outcome Delivery Incentives (ODI) framework for the full year.
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