Pennon Group (LSE:PNN), down 3.2% to 491.1p, reported annual results that showed the group returned to profit for the year to 31 March and unveiled a £3.2bn AMP8 investment programme.
Underlying EBITDA rose 55% to £519.2m, driven by c.25% higher regulated water revenue and tighter cost management, while Water Group Return on Regulated Equity was 6.7%.
The Group invested £643.6m in the year, including £588.5m in its water businesses, and has mobilised a £3.2bn AMP8 investment programme to 2030 alongside a c.£250m submission to Ofwat for additional asset‑health funding.
Operationally, Pennon reported a c.34% reduction in pollution incidents and a c.53% fall in normalised pollution, storm overflow use down 17% with spill duration down c.25%, but incurred net operational ODI penalties of c.£42m.
Two Pennon Power solar sites are energised and generating revenues, and c.11% more customers are on one or more support tariffs as the Group rolls out affordability measures.
"Focusing on operational excellence, driving a performance culture and delivering through technology and innovation will be my key priorities," said Keith Haslett, Group Chief Executive.
The dividend was increased in line with the Group's CPIH policy, rising by 3.4% versus 2024/25.
Pennon said it will publish a strategic update before the end of September 2026.
Adam Vettese, market analyst at eToro, described the full-year results as "overshadowed" by the ODI penalty, blamed on exceptional weather and tighter AMP8 targets.
He also flagged management's warning of "ongoing net penalties in the short term" and new CEO Keith Haslett's call for a sharper performance culture as evidence that operational delivery, not just the P&L, is the primary risk
