London · Delayed Price · Currency is GBP · Price in GBX Pennon Group Earnings Call Transcripts
Fiscal Year 2026
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.