Pennon Group, the owners of South West Water, has recorded a strong start to its financial year, returning to profitability after a previous loss.
For the half year ended 30 September 2025, the Exeter-based utilities company reported revenue of £658.1m, up from £527.2m a year earlier. Statutory pre-tax profits were £65.9m, reversing a loss of £38.8m from the prior year. These figures mark a significant early performance as the company begins the K8 regulatory period.
Susan Davy, group chief executive, highlighted the significance of the results. She said: “We have made a robust start to the first half of 2025/26 and the new K8 regulatory period. With a strong return to profitability and disciplined cost control, we are on track financially and growing sustainably.” The Pennon Group half year results underline both operational and financial progress.
The company has also made advances in its wastewater operations. Davy stated: “Focused on our customers’ priorities, we are delivering step change improvements in our wastewater business, with pollution incidents halved compared to last year. This reflects our operational focus and continued momentum of record capital investment over the last two years, thanks to the early mobilisation of our supply chain.” Investment and operational discipline have been highlighted as key drivers of improved performance.
Capital investment has been central to these improvements.
Davy further emphasised the company’s long-term plans, noting: “Our strong balance sheet and funding approach position us well to deliver our largest ever capital programme through K8, focused on the four priorities that matter most to our customers – ensuring the availability of safe, clean drinking water as summers become hotter and drier, tackling pollutions and storm overflows, protecting the environment and supporting customers to use less and save more.” The statement ties financial strength to future delivery of critical services, demonstrating the link between Pennon Group half year results and strategic planning.
She added: “As the only water company to have received three successive outstanding business plan ratings, we understand what we do each day really matters. That’s why my brilliant colleagues are firmly focused on ensuring we deliver on our five-year plan for the communities we serve, the places they call home, recognising there is always more to do.” The remarks stress ongoing responsibilities and continued operational focus.
The Pennon Group half year results show a combination of increased revenue, restored profitability, and operational improvements. The figures reflect early success in the K8 regulatory period, driven by capital investment, customer-focused initiatives, and disciplined cost management. While covering only the first six months, the results provide a clear indication of both current performance and the priorities guiding the business in the years ahead.
