London · Delayed Price · Currency is GBP · Price in GBX Pennon Group Earnings Call Transcripts
Fiscal Year 2026
-
A reset plan targets at least 40% RCV growth by 2030, funded by a £550m rights issue, Cost Change investment and efficiency reinvestment. Operational recovery is expected to take the rest of AMP8, with ODI penalties forecast to fall by at least half by 2030.
-
EBITDA rose 55% year-over-year, driven by tariff increases and operational improvements, while adverse weather and regulatory penalties weighed on results. Strategic transformation is underway, with a focus on asset management, customer service, and environmental performance.
-
Strong H1 2025-2026 results with revenue up 25% and EBITDA up 55%, driven by tariff increases, higher consumption, and operational efficiencies. CapEx reached GBP 305 million, gearing remains at 60%, and the group is on track for a 7% RORE, with robust investment and regulatory engagement.
Fiscal Year 2025
-
Delivered 70% of regulatory targets, with flat revenues and a £35.1m loss due to investment and lower demand. Strong balance sheet, major acquisitions, and a reset position the group for a return to profitability and 7% RORE in K8.
-
Management targets 7% real RORE, £86m in efficiency savings, and improved balance sheet flexibility through interim determinations. Operational focus includes supply chain optimization, local storm overflow interventions, and achieving a four-star EPA rating by 2028, with ongoing regulatory engagement.
-
Ofwat has approved a record £3.2 billion investment plan to 2030, supported by a £490 million rights issue and a stable dividend policy. The company targets a 7% RORE through efficiency, financing, and ODIs, with significant investment in environmental improvements and operational cost alignment.
-
A record £3.2 billion investment plan through 2030 is set, backed by a £490 million rights issue and acceptance of Ofwat's final determinations. Projected 34% RCV growth, strong operational performance, and a revised CPIH-linked dividend policy underpin a robust outlook.
-
Group gearing is at 65% due to advanced investments and lower revenues, with strong RCV growth and robust funding. Awaiting the December 19 FD for clarity on capital structure, with a focus on efficiency, customer support, and regulatory compliance.
-
Resilient H1 2024-25 results with revenue up 17.5% year-over-year, driven by SES acquisition and strong non-regulated business growth. Record investment and robust operational performance offset by higher costs and a statutory loss before tax.