Pennon Group Plc (PEGRY) Q4 2026 Earnings Call Transcript
Pennon Group LON: PNN reported a return to profitability for the 2025/2026 financial year, while new Chief Executive Officer Keith Haslett said the company must improve operational performance, customer service and environmental outcomes following a challenging year for the U.K. water utility.
Pennon Group PLC (LSE:PNN, OTC:PEGRY) returned to the black in its latest financial as higher regulatory allowances and increased water consumption boosted revenue, though the water group warned operational performance would continue to be weighed down by regulatory penalties. The owner of South West Water swung to a statutory pre-tax profit of £114.4 million in the year to March, from a loss of £72.7 million before.
Shares in Pennon Group PLC (LSE:PNN, OTC:PEGRY) rose 3.4% to 553.5p on Tueaday morning despite the owner of South West Water saying full-year profitability would come in at the lower end of market expectations. The FTSE 250 water company said exceptional rainfall and storm-related disruption have pushed up costs.
Pennon Group Plc (OTCPK:PEGRY) Q2 2026 Earnings Call November 27, 2025 3:00 AM EST Company Participants Susan Davy Laura Flowerdew - CFO & Director Sarah Heald - Chief Strategy, Regulatory Affairs & Investor Relations Officer Conference Call Participants Sarah Lester - Morgan Stanley, Research Division Julius Nickelsen - BofA Securities, Research Division James Brand - Deutsche Bank AG, Research Division Mark Freshney - UBS Investment Bank, Research Division Laura Marconi - Barclays Bank PLC, Research Division Jenny Ping - Citigroup Inc., Research Division Presentation Susan Davy Good morning, everyone. I'm Susan Davy, CEO of Pennon Group.
Pennon Group PLC (LSE:PNN, OTC:PEGRY) shares rose 3% to 544.5p as the water company reported a return to profit for the first half of 2025/26, but the results were not as strong as some analysts expected. The owner of South West Water and Bristol Water also cut its interim dividend by nearly a quarter to 9.26p per share, citing timing mechanics following last year's rights issue.
After an eight-month climb that has lifted Pennon Group PLC (LSE:PNN, OTC:PEGRY) shares by nearly 30%, Citi thinks it is time for a breather. The broker has cut the South West Water owner to neutral, arguing that the stock's recovery and falling gilt yields have already done most of the heavy lifting.
Pennon Group PLC (LSE:PNN, OTC:PEGRY) has reported a strong start to its 2026 financial year, with profitability returning and EBITDA expected to increase by about 60% year on year. In a trading statement, the water utility company said it remains on track to deliver its 7% rate of return on equity (RORE) target, supported by efficient financing and programme efficiencies.
Pennon Group Plc (OTCPK:PEGRF) Q4 2025 Results Conference Call June 3, 2025 4:00 AM ET Company Participants Susan Davy - Chief Executive Officer Laura Flowerdew - Chief Financial Officer Conference Call Participants Dominic Nash - Barclays Sarah Lester - Morgan Stanley Mark Freshney - UBS Jenny Ping - Citi Susan Davy Okay. I think that's everybody in.
Britain's water companies have been told to pick up the pace. In a strongly worded letter to industry bosses, Ofwat chief executive David Black urged firms to speed up construction of major infrastructure such as reservoirs and to find smarter ways to get projects completed earlier and more efficiently.
Pennon Group PLC has seen its share price target upgraded by Citi analysts after completing a £490 million rights issue. Funding cleared a “material overhang,” Citi said in a note, including after Pennon backed proposals from regulator Ofwat allowing it to raise bills by 23% over the coming five years.
Thames Water has taken its battle with regulator Ofwat to the next level by appealing to the Competition and Markets Authority over how much it can charge customers. The UK's largest water supplier had sought approval to raise bills by up to 53% by 2030, but Ofwat capped the increase at 35%.