Anglian Water revenues were up 20% to £2.1 billion with operating profits up 28% to £636.3 million according to its results for the financial year 2025-26 – the first year of the AMP8 2025-30 investment programme.

Anglian said delivery was underpinned by strong financial performance, with increases to revenue and profits enabling the business to invest for the future.

The two key drivers of the revenue increase of £354 million were annual price increases as set out in Ofwat’s PR24 Final Determination and consumption up year on year as a result of the

extended periods of hotter than average temperatures in 2025 (£21 million).

Gross capital expenditure rose by 5.1% - up by £54.9 million from £1,081 million to £1,136 million. Compared to year 1 of AMP7, expenditure has more than doubled from £448 million. Capital investment during the period was equivalent to 178% of operating profit and 112% of operating cash flow, highlighting the extent of reinvestment being made to enhance services and infrastructure.

In line with the utility’s de-gearing plan, gearing has reduced from 71.2% to 69.7% as a result of strong growth in RCV and a £170 million equity injection from the wider group.

A dividend of £75 million was paid in December 2025 following the decision to defer the 2024/25 dividend. In line with Anglian’s dividend policy, the Directors have proposed a dividend for 2025/26 of £90 million to be paid in June 2026.

Commenting on the results, Chief Executive Officer, Mark Thurston, said:

“This year has been one of reset, mobilisation and renewed focus for Anglian Water, as we started delivering the most ambitious investment programme in our history and strengthened the business for the years ahead. This programme reflects our long-term responsibility to provide resilient water and wastewater services that support communities, protect the environment and enable sustainable growth across our region and ultimately deliver on our Purpose to bring environmental and social prosperity to the communities we serve…

“We have made a strong start to AMP8, investing £1.1 billion in capital delivery (£1.08 billion in 2024/25) as more than 1,100 new programmes and projects were mobilised during the first year. While this first year typically reflects mobilisation rather than peak construction, it represents a solid foundation and positions us well to accelerate delivery in the years ahead.

Operational highlights

During the year, Anglian Water worked on more than 1,100 capital projects, more than double the annual delivery rate achieved in AMP7 (2025-2030). Highlights include:

• 140.5km of new water mains to strengthen network resilience
• Over 316,000 smart meters installed to help customers manage water use and spot leaks earlier
• Progressed major infrastructure projects, including its strategic interconnecting water grid to secure future water supplies, with customers across the Ipswich and Colchester areas already benefitting from the new network

This year, the company met some, but not all, of its Performance Commitment Levels. In terms of Outcome Delivery Incentives, at the end of the first year of AMP8, the company is reporting a net penalty position of £10.5 million, with £52.86 million in reward and £63.36 million in penalties.

The net outcome of  -£10.5 million is a significant improvement on the prior year, where it netted out at -£41.5 million.

Anglian Water said the year-end ODI position represents a marked improvement on the prior year (net penalty of £41.5 million in 2024/25 (22/23 prices)), with rewards achieved across several areas including storm overflows, sewer flooding, unplanned outages, bathing water quality, biodiversity, customer experience and business demand

Anglian’s focus on operational resilience and environmental compliance contributed to a reduction in total pollution incidents, its best-ever storm overflow performance and record bathing water quality across the region. Total pollutions reduced by 66 to 371 (2024: 437). However, the company was disappointed to see an increase in serious pollution incidents, from seven (2024) to 12 (2025).

The water company says this is a key area of focus to build trust, and the business is working hard to improve its performance as it heads into the next year.

Looking ahead, Anglian Water says it will continue to invest at pace to secure water supplies, protect the environment and support growth across the region - including new reservoirs, expanded pipelines and long-term environmental improvements.

In May 2026 the water company submitted a Cost Change reopener proposal to Ofwat for approximately £345 million of additional investment across AMP8, focused on improving long-term asset health and supporting regional economic growth.

The proposed investment would support the resilience of the service the utility provides to customers and the environment, and support significant additional growth planned across the region during AMP8 and beyond. Anglian said much of this growth had accelerated following wider Government policy and planning decisions made since the submission of PR24 business plan, which reinforces the need for additional targeted investment.

Anglian Water will continue to work collaboratively with Ofwat on the proposals, with a draft response expected in August and a final determination anticipated by year end. The proposals are subject to Ofwat addressing concerns regarding the treatment and timing of RCV and revenue as part of the Cost Change proposals.