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UK water utility supplying drinking water and wastewater services in South West England (South West Water).
UK water utility supplying drinking water and wastewater services in South West England (South West Water).
Customers pay regulated bills set under rules from Ofwat, which sets what the company may earn on its asset base over five-year periods in return for investment and service targets, so earnings follow how efficiently it builds and operates against those allowances. It sold its Viridor waste business in 2020 to concentrate on water.
In one line: A UK regulated water utility, akin to American Water Works.
Moat: wide (regulatory licence, installed base, scale). Regulated regional water monopoly with a licensed franchise territory and fixed infrastructure.
Headquarters: Exeter, UK · Founded: 1989 · Employees: 4,000
Size Pennon (PNN.L) is a United Kingdom Utilities company (Water Utilities) with a market value of $3.18B, the 129th largest of 363 United Kingdom companies the cockpit tracks. Shares closed at £342.20 on 6 Nov 2026.
Performance Over six months the shares fell 35.1%, against -5.6% for the median peer and +3.6% for the United Kingdom market (cap-weighted) — lowest of 14 in its peer set.
Growth Revenue grew 23.2% over the last twelve months (peer median +4.2%); the operating margin is 25.3% (peer median 23.7%).
Valuation It trades at 13.3× forward earnings against a peer median of 10.8× (6th most expensive of 12).
Capital Return on invested capital runs 2.5 points below its cost of capital (6.6% WACC).
Next results Next results expected around 1 Dec 2026 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | £1.29B | £1.29B | £1.05B | £908M | £797M |
| Revenue growth | — | +23% | +15% | +14% | — |
| Gross profit | £928M | £928M | £658M | £584M | £507M |
| EBITDA | £518M | £515M | £334M | £338M | £261M |
| Net income | £91.5M | £91.5M | -£57.9M | -£9.50M | £100,000 |
| Free cash flow | -£253M | -£253M | -£558M | -£399M | -£169M |
| Capital expenditure | £638M | £638M | £669M | £599M | £331M |
| Total debt | n/a | £4.90B | £4.55B | £4.02B | £3.13B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Pennon PNN.L | $3.18B | -35% | +23% | 25% | 13.3× | n/a |
| Severn Trent SVT.L | $13.4B | +6% | +17% | 30% | 16.3× | n/a |
| United Utilities UU..L | $15.4B | +12% | +22% | 41% | 14.7× | n/a |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | PNN.L | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -7.8% | +1.8% | 2nd lowest of 14 |
| 6-month return | -35.1% | -5.6% | lowest of 14 |
| Distance from 52-week high | -43.5% | -14.9% | 2nd lowest of 14 |
| Revenue growth (TTM) | +23.2% | +4.2% | 3rd highest of 14 |
| Operating margin | 25.3% | 23.7% | 6th highest of 14 |
| Forward P/E | 13.3× | 10.8× | 6th most expensive of 12 |
| ROIC minus cost of capital | -2.5 pp | -0.6 pp | 3rd lowest of 14 |
| EV / EBITDA | 13.3× | 14.0× | 4th cheapest of 7 |
| Net debt / EBITDA | 8.7× | 4.4× | most indebted of 7 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Pennon PNN.L | United Kingdom | $3.18B | -35% | +23% | 25% | 13.3× | n/a | n/a |
| California Water Service CWT | United States | $3.21B | +17% | +7% | 21% | 19.0× | n/a | n/a |
| Chengdu Xingrong Environment 000598.SZ | China | $3.27B | +7% | +1% | 29% | 10.3× | -8.2% | +10.8% |
| Beijing Capital Eco-Environment Protection 600008.SS | China | $3.09B | -8% | -8% | 21% | 10.8× | 0.3% | -0.4% |
| H2O America HTO | United States | $3.04B | +9% | +4% | 21% | 22.5× | n/a | n/a |
| Chongqing Water 601158.SS | China | $3.01B | -6% | +1% | 14% | 22.6× | -5.0% | +3.5% |
| American States Water AWR | United States | $3.57B | +17% | +13% | 32% | 23.9× | 9.3% | +6.2% |
| Zhongshan Public Utilities 000685.SZ | China | $2.36B | -8% | -11% | 11% | 6.2× | 9.9% | +16.2% |
| Jiangxi Hongcheng Environment 600461.SS | China | $1.69B | -17% | -11% | 24% | 9.1× | -10.2% | +2.6% |
| Indium Target Advanced Materials (Harbin) 000711.SZ | China | $1.54B | -27% | +46% | -4% | n/a | n/a | n/a |
| Guangdong Investment 0270.HK | Hong Kong | $6.81B | 0% | +25% | 38% | 10.8× | -1.8% | -4.1% |
| Middlesex Water MSEX | United States | $1.15B | +16% | +9% | 31% | 21.7× | n/a | n/a |
| Guangdong Shunkong Development 003039.SZ | China | $1.12B | -16% | +6% | 25% | n/a | 4.3% | +12.5% |
| China Water Affairs 0855.HK | Hong Kong | $823M | -22% | -11% | 25% | 5.8× | -0.6% | 0.0% |