United Utilities has reported a sharp rise in half-year profit as higher water bills lifted revenue and the company stepped up spending on its network across the North West. Pre-tax profit rose 66% to £539.2 million in the six months to 30 September 2026, while revenue climbed 12% to £1.46 billion, the FTSE 100 water company said on 12 November 2026.

Underlying operating profit, the measure the company uses to track its core performance, rose 7% to £579 million. The group said its operational performance was in line with expectations and that it now expects to invest more than £2 billion during the current financial year.

Higher bills drive revenue growth

Revenue rose from £1.309 billion in the same period last year to £1.462 billion, an increase of 11.7%. On an underlying basis, revenue was £1.407 billion, up 9.1% on a like-for-like basis, driven mainly by higher allowed revenues under the regulatory settlement for the current five-year period, known as PR24.

Reported profit before tax rose 65.8% from £325.3 million to £539.2 million, helped by gains on interest rate swaps and lower interest charges. Underlying profit before tax rose a more modest 5.3% to £411.9 million, while profit after tax increased 66.8% to £400.3 million.

Underlying earnings per share slipped 1.6% to 56.3p, after the company's £800 million share placing in April increased the number of shares in issue. Reported earnings per share rose 55.4% to 54.7p. The board declared an interim dividend of 18.51p per share, up 3.5%, and expects a total dividend of 55.54p for the full year, in line with its inflation-linked policy.

Investment programme accelerates

Capital spending nearly doubled in the half year. Net regulatory capital expenditure rose to £993 million from £569 million a year earlier, and the company expects investment to pass £2 billion for the full year. It also expects full-year revenue of between £2.7 billion and £2.8 billion.

Chief executive Louise Beardmore said: "We are making strong progress on our BIG North West Upgrade, with more than 1,000 projects under way across the region, supporting 30,000 jobs." The programme is part of a wider capital plan of around £9 billion over the five years to 2030, funded in part by the step-up in customer bills allowed under the current regulatory settlement.

Net debt rose 2% to £9.805 billion. United Utilities supplies water and wastewater services to around seven million people in the North West of England, and operates 88 water treatment works fed by reservoirs including Thirlmere and Haweswater in Cumbria.

Dividend, debt and regulation

The results arrive as the water industry awaits a key regulatory decision. United Utilities is the last water company with an open enforcement case from Ofwat's sector-wide investigation into sewage treatment works and networks, and the regulator's final determination is due on 15 December.

The company said it remains on track to deliver its investment plans for the year, and that the revenue increase, partly offset by higher operating costs, drove the rise in underlying operating profit. Investors will now watch the Ofwat decision and the pace of delivery on the capital programme, which will determine how much of the extra spending is ultimately allowed through customer bills.

United Utilities' shares are listed on the London Stock Exchange, and the company is one of the largest listed water groups in the UK. Source: United Utilities half-year results, with further reporting from TheBusinessDesk.