UK's United Utilities interim revenue rises 9%, capex jumps
Overview
UK water utility's interim revenue rose 9% yr/yr to £1.41 bln
Adjusted operating profit for the half-year increased 7% yr/yr
Company accelerated capital investment, delivering £993 mln in regulatory capex in 1H
Outlook
Company expects 2026/27 revenue between a32.7 bln and a32.8 bln
Capex in 2026/27 expected to be more than a32 bln
Company forecasts a customer ODI penalty for 2026/27, improved from c.a335 mln penalty in 2025/26
Result Drivers
REGULATORY REVENUE INCREASE - Co said underlying revenue growth was driven by a 7% real increase in allowed wholesale revenues and a 3.5% CPIH-linked increase to the revenue cap
OPERATING COSTS - Higher operating costs were mainly due to growth in the asset base and price increases, including pay inflation, regulatory fees and power
CAPITAL INVESTMENT - Accelerated capital investment supported operational and environmental improvements, with £993 mln capex delivered in 1H
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | Beat | GBP 1.46 bln | GBP 1.41 bln (1 Analyst) |
H1 Adjusted Operating Profit | GBP 578.70 mln | ||
H1 Adjusted Pretax Profit | GBP 411.90 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 8 "hold" and no "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 United Utilities Group PLC is GBp1,475.00, about 4.2% below its November 11 closing price of GBp1,540.00
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 13 three months ago
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(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.)