Gold prices climb, set for fourth straight month of gains on rate cut cheer
Investing.com -- United Utilities reported a sharp increase in first-half earnings, supported by a substantial uplift in allowed revenues and continued progress on its AMP8 investment programme.
Revenue rose 21% to £1.31 billion, reflecting regulatory adjustments including a real increase in wholesale revenues and a CPIH-linked rise in the revenue cap.
Underlying operating profit climbed 67% to £562 million, driven by the higher revenue base and aided by a greater capital allocation of infrastructure renewals expenditure that helped offset inflationary pressure on operating costs.
Underlying EPS climbed to 52.8p, nearly doubling from a year earlier.
The company continued to increase investment across the region, with net regulatory capex rising 22% to £568.5 million and regulatory capital value expanding 6.9% to almost £16 billion.
Gearing remained stable at 60%, supported by more than two years of liquidity and solid credit ratings. Net debt edged up to £9.61 billion as United Utilities accelerated AMP8 delivery.
The interim dividend increased 3.5% to 17.88p.
Chief Executive Louise Beardmore said the group delivered “strong operational and financial performance in the first half of 2026,” highlighting progress on its £13 billion five-year investment plan. She emphasised that the programme is “boosting economic growth and supporting 30,000 jobs across United Utilities and the supply chain.”
Beardmore also noted the company’s environmental progress, saying spills from storm overflows are down about 40% so far this year, with roughly 10,000 fewer spills directly attributable to operational actions.
Looking ahead, United Utilities expects full-year 2026 (FY26) revenue of £2.5 billion to £2.6 billion, with underlying operating costs set to fall as more expenditure is capitalised.
EPS for FY26 is expected to be around 100p, and capital expenditure is forecast at roughly £1.5 billion.
Depreciation and net finance costs are both projected to rise by around £50 million due to the expanding asset base and higher debt requirements.