Pennon Group FY revenue rises on regulatory allowances & higher water consumption

Pennon

10/06/2026 07:11

Overview
UK water utility's full-year revenue rose 23% yr/yr, driven by regulatory allowances and higher use
Adjusted pretax profit missed analyst expectations
Dividend per share set at 29.29p, down from 31.57p last year

Outlook
Pennon expects financial performance to improve through increased revenues and cost management
Company expects operational performance to remain in net ODI penalties as it works to improve outcomes
Pennon plans £3.2 bln investment programme to 2030, with c.£250 mln Ofwat submission for asset health

Result Drivers
REGULATORY ALLOWANCES & CONSUMPTION - Revenue growth driven by increased regulatory revenue allowances and higher water consumption
COST MANAGEMENT - Underlying EBITDA rose 55% as a result of increased revenues and a focus on cost management
WEATHER IMPACTS & OPERATIONAL PENALTIES - Exceptional storms and sustained rainfall created operational pressures, resulting in a net operational ODI penalty of c.£42.0 million

Company press release: ID:nRSJ7307Ha

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Net Income
 
GBP 92.60 mln
 
FY Adjusted Pretax Profit
Miss
GBP 135.10 mln
GBP 139.23 mln (10 Analysts)
FY Dividend
 
GBP 0.29
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the water & related utilities peer group is "buy"
Wall Street's median 12-month price target for Pennon Group PLC is GBp605.00, about 19.2% above its June 9 closing price of GBp507.50
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 17 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)