Pennon Group

PNN · Main Market · Utilities · mcap £1,701m · 333.4p 7 open situations →

Pennon supplies water and wastewater services in the South West of England through South West Water, and water in Surrey and Sussex through SES Water. It earns regulated returns set by Ofwat and is investing heavily in water resources, treatment works and storm overflows.

Target	Promise	Said	Status
2025
2025	Deliver 2025 commitments, including EPA 4 star status by 2025	2 Oct 2023	✗ Missed
	“Road map to achieve EPA 4 star in 2025” Also stated 25 Mar 2024 · 21 May 2024 How it developed 2 Oct 2023 Said “we expect to see further improvements to performance and remain confident in achieving our 2025 commitments” 25 Mar 2024 Said “overall 4 star EPA status is now reprofiled for 2025” 21 May 2024 Said “Road map to achieve EPA 4 star in 2025” 10 Jun 2026 ✗ Missed “Disappointingly, our provisional assessment for the 2025 EPA rating is 1* as pollution incidents, although improved, were still above target” Result Targets later reset to retaining 2 star; Mar 2026 update cited net ODI penalties, and FY26 results cited £42m of operational penalties. “Disappointingly, our provisional assessment for the 2025 EPA rating is 1* as pollution incidents, although improved, were still above target”10 Jun 2026 · Final Results
2026
31 Mar 2026	Net neutral ODI position in Wastewater Services in 2025/26	27 Nov 2025	✗ Missed
	“we are targeting to achieve a net neutral Outcome Delivery Incentive (ODI) position in Wastewater Services this year” How it developed 27 Nov 2025 Said “we are targeting to achieve a net neutral Outcome Delivery Incentive (ODI) position in Wastewater Services this year” 10 Jun 2026 ✗ Missed “Exceptional storms and sustained rainfall coupled with a step up in targets and penalty rates from the beginning of the new regulatory cycle created...” Result Mar 2026 expected net ODI penalties; FY26 results cited £42m of operational penalties. “Exceptional storms and sustained rainfall coupled with a step up in targets and penalty rates from the beginning of the new regulatory cycle created operational pressures across water and wastewater for 2025/26, resulting in a net operational ODI penalty of c.£42.0 million”10 Jun 2026 · Final Results
Today · 22 Oct 2026
2030
31 Mar 2030	Deliver record c.£3.2bn K8 capital investment to 2030	29 Jan 2025	✗ Missed · target changed
	“capital expenditure increasing from an expected K7 (2020-2025) outturn of c.£1.9bn, to a record c.£3.2bn” Also stated 3 Jun 2025 How it developed 29 Jan 2025 Said “capital expenditure increasing from an expected K7 (2020-2025) outturn of c.£1.9bn, to a record c.£3.2bn” 3 Jun 2025 Said “In targeting 7% RORE - we will be delivering for all - and sharing that performance with customers through WaterShare” Result Oct 2026 plan raised AMP8 investment to about £3.6bn, funded by a £550m rights issue. 7 Oct 2026 · Strategic Update
31 Mar 2030	Deliver c.7% RORE, including in FY26	29 Jan 2025	✗ Missed
	“Targeting K8 7% Return on Regulated Equity, underpinned by efficient financing for FY 2025/26” Also stated 26 Sep 2025 · 27 Nov 2025 · 10 Mar 2026 How it developed 29 Jan 2025 Said “targeting c.7% Return on Regulated Equity (RORE), within Ofwat's expected RORE ranges” 26 Sep 2025 Said “We are on track to deliver our 7% RORE target, supported in-year by efficient financing costs” 27 Nov 2025 Said “Targeting K8 7% Return on Regulated Equity, underpinned by efficient financing for FY 2025/26” 10 Mar 2026 Said “7% RORE targeted over K8, with financing and capex efficiencies for FY26 partially offset by net ODI penalties” 10 Jun 2026 ✗ Missed “2025/26 Return on Regulated Equity (RoRE) of 6.7%, with outperformance on financing and totex partly offset by ODI penalties.” Result FY26 RoRE was 6.7%, below 7%, with £42m operational penalties; Mar 2026 profitability at lower end of expectations. “2025/26 Return on Regulated Equity (RoRE) of 6.7%, with outperformance on financing and totex partly offset by ODI penalties.”10 Jun 2026 · Final Results
31 Mar 2030	Grow rebased dividend per share by CPIH annually to March 2030	29 Jan 2025	✗ Missed · target changed
	“rebased dividend per share growing in absolute terms, by CPIH inflation from and in respect of the current financial year ending 31 March 2025 and each financial year thereafter to 31 March 2030” Also stated 29 Jan 2025 How it developed 29 Jan 2025 Said “rebased dividend per share growing in absolute terms, by CPIH inflation from and in respect of the current financial year ending 31 March 2025 and each...” 29 Jan 2025 Said “Pennon intends to grow this rebased dividend per share, in absolute terms, by CPIH inflation from and in respect of the current financial year ending 31...” Result Oct 2026 rebased dividend to about £125m for FY26/27, a cut of about 30% per share, then CPIH growth from that level. 7 Oct 2026 · Strategic Update
31 Mar 2030	Grow regulated capital value over 40% across AMP8 (earlier 34%)	10 Jun 2026	✗ Missed · target changed
	“total investment programme is expected to deliver RCV growth of over 40% across AMP8” Also stated 7 Oct 2026 · 7 Oct 2026 How it developed 10 Jun 2026 Said “creating a 34% growth in RCV over AMP8” 7 Oct 2026 ↻ Changed / dropped “The total investment programme is expected to deliver RCV growth of over 40% across AMP8, a step up from the 34% set out at the start of the AMP” 7 Oct 2026 Said “total investment programme is expected to deliver RCV growth of over 40% across AMP8” 7 Oct 2026 ↻ Changed / dropped “This is expected to deliver growth in the RCV of its regulated water businesses of over 40% across AMP8, a step up from the 34% set out at the start of the AMP.” 7 Oct 2026 Said “expected to deliver growth in the RCV of its regulated water businesses of over 40% across AMP8” Result Target raised from 34% to over 40% in Oct 2026 alongside higher investment. “The total investment programme is expected to deliver RCV growth of over 40% across AMP8, a step up from the 34% set out at the start of the AMP”7 Oct 2026 · Strategic Update “This is expected to deliver growth in the RCV of its regulated water businesses of over 40% across AMP8, a step up from the 34% set out at the start of the AMP.”7 Oct 2026 · Rights Issue
2030	Deliver £4.5bn totex plan for 2025-30	29 Nov 2023	✗ Missed · target changed
	“£4.5 billion totex plan for 2025-30, assuming 12% efficiency” Result Final Determination gave £4.5bn SWW totex, but capex plan rose to £3.2bn then about £3.6bn with a £550m rights issue. 7 Oct 2026 · Strategic Update