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.
Chief executive Susan Davy said: "We're driving real improvements for our customers and communities whilst delivering a return to strong profitability. Despite the pressures of a hot summer, we've maintained resilient water supplies and continued to improve services for our customers. Whilst there is more to do, our pollution reduction plans are delivering tangible benefits, halving the number of pollutions and spills from storm overflows, reducing our impact on the environment."
The group highlighted that pollution incidents and storm overflow spills had halved year-on-year, supported by investments in wastewater networks and reduced rainfall. In water services, performance was impacted by supply interruptions from a burst main, although resources benefited from resilience measures put in place after the 2022 drought.
Pennon also strengthened its liquidity by raising £300 million under its Euro Medium Term Notes (EMTN) programme. Construction is progressing across Pennon Power's projects, with two sites in Scotland set to be connected to the Grid in October. When fully operational by FY27, the renewable energy portfolio will generate the equivalent of 40% of group consumption.
Following the planned retirement of Davy, the board has begun the search process for a new chief executive. Half-year results will be announced on 27 November 2025.