Thames Water, the UK’s largest water supplier, posted a £1.6 billion loss for the year ending March 2025, a sharp reversal from a £154 million profit the previous year.
Despite revenues rising nearly 9% to £2.7 billion, the company’s net debt grew to £16.8 billion.
Chief Executive Chris Weston warned that turning the business around will take at least a decade.
Thames is working with its creditors on a recapitalisation plan to stabilise finances and avoid collapse or temporary nationalisation.
The loss included large provisions for bad loans, fines, financing costs, and turnaround expenses.
The company has secured emergency funding from creditors, with £424 million in cash on hand as of June.
Operationally, Thames reduced leaks and customer complaints but saw a rise in pollution incidents, partly due to weather conditions.
The firm did not award performance bonuses amid regulatory pressure and ongoing challenges.