United Utilities Group (LSE:UU.) increased its AMP8 capital investment guidance to c. £11.5 billion from c. £9 billion, signalling c. £2.5 billion of incremental investment and submitting c. £1.4 billion to Ofwat as the first phase of that programme.
The company also released preliminary, unaudited results for the year ended 31 March showing underlying revenue up 20% to £2,576 million, underlying operating profit up 35% to £1,060 million, underlying EPS up 42% to 107.1p and capital investment up 41% to £1.5 billion.
United Utilities said its asset base is now expected to grow at around a 10% compound annual rate through to 2030, up from prior guidance of c. 7%, and it has upgraded its financial framework to target regulatory returns of 10-11% in AMP8, a 100bp increase.
The c. £1.4 billion Re-opener submission comprises c. £770 million of growth projects (data centres, non-potable supply and wastewater upgrades), c. £410 million of proactive asset replacement and c. £190 million for Windermere large schemes and strategic water resources, with a further c. £1.2 billion expected via future re-openers.
To fund the equity element of the incremental programme the group is raising £800 million via a placing, and it says gearing will remain within a 55-65% target range through AMP8 while maintaining dividend growth in line with CPIH on a FY26 DPS of 53.66p.
Operationally the business reported a 23% reduction in spills, 42% fewer internal sewer flooding incidents, reward across all three customer service measures, delivered £1.5 billion of capex in FY26 and achieved a regulatory return of 13.0%.
"With our upgraded financial framework, sector-leading financing performance and strong delivery track record, we are confident in our ability to generate attractive and sustainable returns for shareholders while delivering for our customers, communities and the environment," Louise Beardmore, Chief Executive Officer.
Ofwat's draft decisions on the 2026 submission are expected on 15 August, with final decisions due on 15 December.
