LSE$PEGRF

Pennon Group PLC · Q3 2025 earnings

Q3 2025 earnings · · Investor relations

Briefing

Pennon reported a statutory loss in Q4 as rising costs and investment impacted profitability, while preparing for a stronger FY 2025/26.

Pennon Group ended Q4 2024/25 with a statutory loss amid increased capital expenditures and restructuring costs. Revenue increased year-over-year due to the full-year inclusion of SES Water. The Group remains focused on investment-led growth with a strong liquidity position and gearing maintained at a stable level.

  • Revenue for the year reached £1,047.8 million, up from £907.8 million.
  • Statutory loss before tax widened to £72.7 million, primarily due to water quality event and restructuring charges.
  • Adjusted EPS fell to -10.3p while basic EPS was -16.1p.
  • Group capital expenditure remained high at £652.5 million to support infrastructure upgrades and investment.

Headline financials

Total Revenue

£1.36B

No prior period
EPS (adj)

-£0.13

No prior period
Capital Expenditure

652.5M

No prior period
Group Gearing

61.8%

No prior period
SWW Nominal RORE

10.4%

No prior period
SWW Real RORE

6.0%

No prior period
Net Income

-£73.5M

No prior period
Operating Income

-£45.4M

No prior period

Revenue & EPS history

Pennon · Revenue · Quarterly

£1.36B

Q3 2025

Forward guidance

Pennon anticipates a return to profitability in 2025/26 driven by higher revenue, improved operational efficiency, and the continued execution of its investment programme.

Tailwinds

  • Expected EBITDA growth of two-thirds in FY 2025/26
  • No water restrictions predicted despite dry weather
  • Major infrastructure projects like new reservoirs underway
  • Continued reduction in storm overflows and sewer flooding
  • Strong liquidity of approximately £1 billion supports future investment

Headwinds

  • Higher finance costs due to increased capital expenditure
  • Profitability impacted by water quality incidents
  • Ongoing inflationary pressures on operating costs
  • Customer bills rising for the first time in a decade
  • Challenges in maintaining performance metrics across all areas

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 1 quarterly earnings reports · overlaid with Q3 2025

Historical avgQ3 2025

-3.2%

Avg return

Earnings day

-4.7%

Avg return

5 days after

-1.6%

Avg return

30 days after

0%

0 / 2 earnings

Positive

-2.7%

Q3 2026

Best reaction

-3.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-2.7%-9.4%
Q3 2025-3.8%+0.0%-1.6%

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