Pennon Group has announced that it is on track to return to profitability in its current financial year.

In the year to April 2025, the FTSE 250 water utility firm recorded a pre-tax loss of £35.1m, which was partially attributed to a parasite outbreak in the drinking water in Devon.

However, in the period from 1 April to 25 September, the company said it had made a "strong return to profitability", with its EBITDA anticipated to increase by around 60% year-on-year.

Although Pennon reported that high demand for clean water over the summer has been offset in revenues by increased mater optants and profiling of tariffs to smooth customer bills, which has deferred revenue into 2026/27, it is on track to deliver its return on retained earnings target of 7%.

Pennon, which is the parent company of South West Water, stated that this was supported by efficient financing costs, while efficiencies in delivering its capital programme are "more than offsetting other cost pressures".

Group chief executive officer at Pennon Group, Susan Davy, said: "We're driving real improvements for our customers and communities whilst delivering a return to strong profitability. Despite the pressures of a hot summer, we've maintained resilient water supplies and continued to improve services for our customers.

"Whilst there is more to do, our pollution reduction plans are delivering tangible benefits, halving the number of pollutions and spills from storm overflows, reducing our impact on the environment."

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