United Utilities raises capital spending to more than £2 billion in 2026/27
Key Facts
United Utilities raised its capital spending guidance for the 2026/27 financial year to more than £2 billion, and expects this to drive growth of about 10% in its asset base. The company said on its results call, according to Investing.com, that it expects to "deliver capital investment of more than £2 billion this year, driving 10% growth in our asset base." The new guidance follows the company’s September 25 update, when it indicated investment of around £2 billion during the financial year. That puts annual spending above the previous approximate level as the company carries out its AMP8 investment programme. The company also linked the investment to asset-base growth, in line with its long-term expansion of infrastructure investment.
First-half results for the six months ended September 30, 2026 showed core revenue rising to £1,406.9 million, up 9.1% on a like-for-like basis, while reported revenue reached £1,462.0 million, up 11.7%, according to the results report published via Investegate. Core operating profit rose 6.9% on a like-for-like basis to £578.7 million. Core profit after tax was £411.9 million, while core earnings per share were 56.3 pence. The company said core earnings per share remained broadly stable at 56.3 pence, attributing this to a share issue in April 2026. The figures reflect growth in revenue and core operating profit alongside the expansion of the spending programme.
Spending accelerated over the same period: regulatory net capital expenditure was £993.2 million, up 74.7%, according to the results report. The regulatory asset base stood at £17,492 million, up 9.5%. Meanwhile, net debt reached £9,805 million, up 2.0%, and gearing was 56%. These indicators show an expanding asset base alongside higher debt and spending needed to support investment. The chief executive said the company had made "really good progress on AMP8, with strong operational and financial performance in the first half."
The annual guidance is part of a broader expansion under AMP8, the 2025–2030 investment programme. In a strategic update issued on April 30, the company raised its estimate for the programme to about £11.5 billion from about £9 billion previously, and said the increase was about £2.5 billion. It submitted the first phase of the additional investment to Ofwat at the time, worth about £1.4 billion, to support new homes, data centres, clean energy and network resilience; it said the remainder of the increase was expected through subsequent regulatory reopening applications. The company also linked the plan to supporting supply chains and jobs, saying it could enable 4,000 additional jobs on top of the 30,000 jobs supported by the existing AMP8 programme. It had recorded capital investment of £1.5 billion in the 2025/26 financial year, up 41%, and said it had delivered its regulatory commitments on time.
In its September update, the company said operational performance was in line with expectations and the AMP8 programme was on track, while keeping its financial framework and 2026/27 financial-year guidance unchanged at the time. It also maintained its target of delivering regulatory returns of between 10% and 11% during AMP8. The interim dividend was raised to 18.51 pence per share, in line with CPIH inflation, while the dividend policy remained unchanged. According to the company’s financial calendar, the interim dividend was scheduled to be paid to shareholders on February 1, 2027. Comparing the September update with the current results shows an increase in annual spending guidance, while the stated returns targets and dividend framework remain part of the company’s plan.
In the market, the company’s shares, traded under the ticker UUGRY, closed at $40.98 on November 11, 2026, according to EL7 data. The first-half results for the period ended September 30 were scheduled to be announced on November 12, 2026, according to the company’s financial calendar. The next regulatory step cited in the results presentation concerns Ofwat’s final decision on the reopening application submitted in 2026, which was expected on December 15, 2026. These dates place the regulatory decision after the period’s results announcement, as part of the review of proposed additional investment. The company had also linked part of the increase in its AMP8 programme to subsequent regulatory reopening applications.