Pennon Group: FY25/26 results ahead: A catalyst event?

Research evidence excerpt

Pennon Group: FY25/26 results ahead: A catalyst event?

Equity Research

European Utilities & Clean Energy

8 June 2026

Pennon Group

FY25/26 results ahead: A catalyst

event? First Look

PNN FY25/26 results on Wednesday. First results with CEO PNN.L/PNN LN OVERWEIGHT

POSITIVEKeith Haslett. We see upside pressure on RORE & expect EuropeanEnergy Utilities & Clean

visibility on first year delivery. Key focus are a potential re- Price Target GBp 670

opener & its funding, and any dividend impact following the Price (05-Jun-26) GBp 514 Potential Upside/Downside +30.4%

Source: Bloomberg, Barclays Research£2m Brixham fine. PNN remains the cheapest regulated

utility, OW

Dominic Nash, PhD

On Wednesday, June 10th, Pennon will report its FY25/26 results. +44 (0)20 3134 2364

dominic.nash@barclays.com

FY25/26 results could be a substantial catalyst, in our view. These will be Keith Haslett's first Barclays, UK

results as new PNN Group CEO. We expect to get a reflection of the first AMP8 year delivery as

Laura Marconiwell as clarity on the investment priorities going forward. Our estimates are ahead of BBG

+44 (0)20 3555 0762

consensus. We model underlying FY26 Group EBITDA of £561m and underlying Group operating

laura.marconi@barclays.com

profit at £361m vs BBG consensus at £532m and £333m, respectively. Barclays, UK

We see inflation-led upside risk to RORE. Both SVT’s and UU’s FY25/26 RORE outperformed Peter Crampton

our estimates, driven primarily by inflation-led financing outperformance (SVT's financing +44 (0)20 3555 0125

outperformance at 4.8%, UU's at 3.1%). We see a similar inflation tailwind for PNN’s FY RORE peter.crampton2@barclays.com

Barclays, UKand an increasing likelihood that its current c.7% real RORE guidance for AMP8 may be revised.

The re-opener amount is crucial...