Gas, Water & Multiutilities
Pennon Group is a regulated water and wastewater utility serving customers across parts of South West England and the South East. Its earnings and investment plans are shaped by Ofwat's five-year regulatory settlements, with a large programme now under way for the 2025-30 AMP8 period.
Drinking-water supply, wastewater and sewerage services, network maintenance, treatment plants, environmental improvement programmes and associated renewable-energy investment.
Regulated water customers in England through South West Water and its wider water businesses, with revenues largely determined by Ofwat allowances and customer consumption.
AMP8 regulatory allowances, capital investment, operational efficiency, financing costs, inflation, leakage and pollution performance, customer consumption and delivery against Ofwat incentives.
Regulatory penalties, pollution and water-quality failures, political intervention, large-project execution, debt and refinancing costs, drought or extreme weather, customer affordability and reputational damage.
10 June 2026: Pennon returned to statutory profit, with pre-tax profit of £114.4m and underlying EBITDA of £519.2m. It invested £643.6m in 2025/26 as AMP8 began, but recorded around £42m of operational incentive penalties; delivery of pollution reductions, service targets and the larger 2026/27 investment programme will be central to returns.
Pennon's dividend policy for 2025-30 is to grow the base dividend in line with CPIH, subject to performance and Board approval. FY2025/26 total dividend was 29.29p; the 20.03p final dividend went ex-dividend 23 July 2026 and is payable 4 September.
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