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• EBITDA Growth:55% increase year-on-year.

• Underlying Operating Profit:More than doubled to 326 million.

• Return on Regulatory Equity (RORI):6.7% for the year.

• Group CapEx:644 million invested in asset improvements.

• Gearing:Stable at 61.8% for the water group.

• Dividend:Proposed at 29.29p per share.

• Revenue Increase:23% increase in water tariffs.

• Non-Underlying Costs:20 million, including restructuring and regulatory investigation costs.

• Net Debt:Increased to fund asset base investment.

• Regulatory Return:12.4% allowing for inflation and balance sheet adjustments.

• Anticipated Revenue Growth:Expected increase of 50 to 70 million next year.

• Anticipated EBITDA Growth:5% to 10% year-on-year.

• Anticipated CapEx:Between 620 and 700 million next year.

• Pollution Reduction:Absolute number of pollutions reduced by around a third.

• Spill Reduction:17% lower spill numbers and 25% reduction in spill duration.

• Customer Support Increase:11% increase in customers receiving support year-on-year.

• Warning! GuruFocus has detected 11 Warning Signs with PEGRF.

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Release Date: June 10, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Pennon Group PLC ( PEGRF ) reported a 55% increase in EBITDA and more than doubled its underlying operating profit to 326 million for the 2025-26 financial year.

• The company has identified significant opportunities for solar generation and energy management improvements, with five sites already being implemented.

• Pennon Group PLC ( PEGRF ) has made progress in reducing pollution incidents, with a reduction of around a third in pollution incidents and a 17% decrease in storm overflow spills.

• The company has proposed a dividend of 29.29p per share, maintaining its policy and providing returns to shareholders.

• Pennon Group PLC ( PEGRF ) has a robust balance sheet with stable gearing at 61.8% and has raised 635 million to fund its capital expenditure program.

Negative Points

• The company received a provisional one-star rating on its Environmental Performance Assessment (EPA), indicating significant room for improvement.

• Operational performance was impacted by adverse weather conditions, resulting in net penalties and challenges in network resilience.

• Pennon Group PLC ( PEGRF ) incurred 20 million in non-underlying costs, including regulatory investigation closeout costs and restructuring expenses.

• The company faces challenges in achieving its four-star rating target due to pollution and treatment compliance issues.

• Operational incidents, such as storms and adverse weather, led to an 18 million increase in costs, affecting overall performance.