United Utilities is reporting strong strong operational and financial performance for the first six months of AMP8, according to its latest set of financial results up to the end of September 2025.

Commenting on the results, Louise Beardmore, Chief Executive Officer, said:

"We have achieved strong operational and financial performance in the first half of 2026, delivering for customers, communities, and the environment. Our transformative plan to invest over £13 billion in the North West over the next five years is on track with our supply chain fully mobilised, boosting economic growth and supporting 30,000 jobs across United Utilities and the supply chain.”

Operational review

Key operational highlights the company is flagging up include:

• Supply chain fully mobilised, over 100 suppliers onboarded and 85% of AMP8 Enterprise projects in design or delivery
• Making great progress on spill reductions, with a c.40% reduction so far this year and on track to meet its performance commitment for 2025
• Managing water resources, 30% increase in leakage repairs and a strong start to the smart metering programme, network fully optimised to manage water resources during dry spring
• Building in resilience, signing the contract with Cascade Infrastructure for the delivery of the £3bn Haweswater Aqueduct Resilience Programme
• Strong customer service performance, with a net reward for all Measures of Experience (MeXs) and affordability support doubling across the AMP

According to the company’s operational review, AMP8 delivery is on track with transitional investment in AMP7 and the mobilisation and onboarding of supply chain partners starting over a year ago. United Utilities now has over 100 suppliers onboarded and its enterprise delivery model is up and running, with over 85% of AMP8 projects in design or delivery.

In parallel, the firm says it is committed to doing things differently, exemplified by its Project Blueprint, which focuses on standardising assets to reduce cost, reduce carbon and deliver at pace.

Storm overflows

Building on last year's reduction, improving performance on combined sewer overflows remains a top priority. The number of spills from storm overflows is down by c.40% year-to-date with the utility on track to meet 26 spills per overflow performance commitment for 2025 - targeted interventions have delivered around 10,000 fewer spills so far this year, with the remainder of the reduction driven by dry weather. The long-term target is to reduce spills by over 60% in the decade to 2030.

Storm overflow interventions include:

• installation of modular, fast acting side stream treatment units
• construction of additional storm storage
• the use of tidal control valves to prevent ingress from river/sea water in coastal areas
• introduction of automated storm storage control
• delivery of increased power resilience to reduce spills that result from power outages

United Utilities has been moving from planning to delivery across the bulk of its AMP8 storm overflow investments, with live construction works underway across all five counties. The firm is “working at pace” with around 27 projects moving into delivery per month, peaking at over 200 sites concurrently at the programme peak.

Water supplies resilience

Despite a start of the year which was the driest in over a century and widespread drought across the country, United Utilities work to ensure sufficient resource was available for customers and the environment meant it avoided the need for restrictions, including throughout the dry summer.

In terms of strengthening long-term resilience of water supplies, United Utilities signed a contract with Cascade Infrastructure to deliver the flagship Haweswater Aqueduct Resilience Programme (HARP). The project will see water supply secured for over two million customers in Manchester.

Customer service

The water company is currently tracking to achieve reward for all three regulatory customer service incentives, C-MeX, D-MeX and Br-MeX, based on performance in first six months of AMP8.

United Utilities’ AMP8 business plan will see it doubling affordability support, with a package of £525 million supporting one in six households in the region. To date this year, it has supported over 400,000 customers with affordability, and over 580,000 customers registered to receive tailored support through Priority Services.

However, the company is forecasting to incur a net customer ODI penalty for 2025/26, recognising the introduction of new measures in AMP8, with performance improvements expected to be progressive.

Financial performance and capital investment

United Utilities’ AMP8 capital programme is significantly larger than previous regulatory periods, due to a number of long-term investment drivers – the company expects to see regulated assets grow at a compound annual growth rate of around 7 per cent. Capital investment is forecast to be approximately £9 billion across the five years to March 2030, representing an uplift of around £5 billion compared to AMP7.

The board has maintained a target gearing range of 55 to 65 per cent net debt to regulated capital value. As at 30 September 2025, gearing sits in the middle of this range at 60 per cent.

The group maintains a dividend policy to target a growth rate of CPIH inflation each year, having increased the dividend at least in line with inflation for the last 15 years.

Revenue is expected to increase to between £2.5 billion and £2.6 billion in 2025/26 in line with the final determination, adjusted for inflation.

Underlying net finance expense is expected to increase by around £50 million year on year, due to increased debt requirements to fund the step up in investment in AMP8. As at 31 March 2025, the firm had £4.7 billion of index-linked debt exposure, resulting in a £47 million swing in its annual interest charge for every 1 per cent change in inflation.

Underlying operating costs are expected to decrease, with higher costs associated with inflation and growth in the asset base, more than offset by lower IRE due to a more granular asset recognition, resulting in the greater component of network expenditure being capitalised.

Capital expenditure during 2025/26 is expected to be c.£1.5 billion and earnings per share in 2025/26 to be around 100 pence.