United Utilities (LSE:UU.) posted a sharp rise in first-half earnings, powered by higher allowed revenues and continued momentum across its AMP8 investment programme. Group revenue increased 21% to £1.31 billion, reflecting regulatory uplifts including a real increase in wholesale income and a CPIH-linked rise to the revenue cap.

Underlying operating profit climbed 67% to £562 million, supported by the stronger revenue base and a higher capital allocation of infrastructure renewals expenditure, which helped ease inflationary pressure on operating costs. Underlying EPS nearly doubled year-on-year, reaching 52.8p.

The company continued to ramp up investment across the region, with net regulatory capex rising 22% to £568.5 million. Regulatory capital value expanded 6.9% to almost £16 billion. Gearing remained steady at 60%, backed by over two years of liquidity and solid credit ratings, while net debt rose modestly to £9.61 billion as AMP8 delivery accelerated. United Utilities increased its interim dividend by 3.5% to 17.88p.

Chief Executive Louise Beardmore highlighted “strong operational and financial performance” in the first half of 2026, noting continued progress on the company’s £13 billion five-year investment plan. She added that the programme is bolstering regional economic growth and supporting around 30,000 jobs across the business and its supply chain. Beardmore also pointed to environmental gains, with storm overflow spills down roughly 40% so far this year—around 10,000 fewer spills attributable to operational improvements.

Looking ahead, United Utilities expects FY26 revenue between £2.5 billion and £2.6 billion. Underlying operating costs are forecast to decline as more expenditure is capitalised. EPS for FY26 is projected to reach around 100p, while capital expenditure is set to be about £1.5 billion. Depreciation and net finance costs are both anticipated to increase by approximately £50 million due to a growing asset base and higher debt requirements.

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