United Utilities holds guidance as it seeks backing for £1 billion investment plan

United Utilities Group PLC (LSE:UU.) maintained its 2026/27 financial guidance and regulatory return targets as it outlined plans for around £1 billion of additional infrastructure investment across the North West.

The water company continues to target regulatory returns of 10% to 11% during AMP8, with operational performance in line with expectations.

United Utilities remains on track to invest around £2 billion in 2026/27 and approximately £11.5 billion across AMP8, supporting compound growth of about 10% in its regulated asset base.

Alongside the trading update, the group submitted its response to Ofwat’s 2026 Cost Change Draft Decision, seeking support for £1.026 billion of expenditure.

The proposed investment would strengthen network resilience, expand water and wastewater capacity and support housing and industrial development across the North West.

United Utilities had originally submitted £1.068 billion of proposals, while Ofwat’s draft decision allowed £958 million. Its revised response includes £615 million for growth projects, £318 million for asset health and £93 million relating to the Windermere large gated scheme.

Within the growth programme, £191 million of strategic infrastructure investment would progress through a gated funding mechanism, while another £79 million of asset-specific infrastructure would be funded directly.

If approved, the latest proposals would represent around £1.2 billion towards United Utilities’ £2.5 billion AMP8 re-opener capital expenditure guidance. Ofwat’s final decision is expected in December 2026.