United Utilities Reports Massive Profit Surge in FY26, Hikes Dividends

United Utilities Group PLC (UU.L) has posted a stellar financial performance for fiscal 2026, characterized by a dramatic increase in profitability and revenue growth. The company's pre-tax profit surged 119.4% to £779.0 million, a significant leap from the £355.0 million reported in the previous year. This financial windfall triggered an immediate positive reaction from investors, with shares on the London Stock Exchange climbing approximately 9.3% to trade at 1,433.50 pence. The results underscore a period of aggressive growth for the water and wastewater services provider, supported by strong operational performance. Revenue for the period rose 22% to £2.62 billion, while EBITDA climbed 46% year-over-year to £1.60 billion. Profit after tax saw a similar trajectory, increasing 121.7% to £586.8 million. Basic earnings per share rose to 86.1 pence, up from 38.8 pence a year ago. Looking ahead to fiscal 2027, the company expects revenue to grow further, forecasting a range between £2.7 billion and £2.8 billion. To support this growth, United Utilities is planning additional investments in regional infrastructure to facilitate the development of clean energy, data centers, and new housing. Shareholders will benefit from a 3.5% increase in dividends, with the full-year payout reaching 53.66 pence per share. Additionally, the company anticipates that its new infrastructure investments could create 4,000 new jobs across its supply chain, supplementing the 30,000 jobs already supported by the existing AMP8 programme.