Struggling utilities provider Thames Water has reported notable improvements in revenue and profitability, though its debt levels continue to rise.
For the six months ending 30 September 2025, the company posted revenue of £1.8bn, a 40 per cent increase compared with the same period last year. Losses of £189m were turned into a profit of £187m, largely driven by a 31 per cent increase in customer bills since April.
Despite the financial turnaround, net debt rose 12 per cent, from £15.7bn to £17.6bn. Talks are ongoing with creditors over a proposed rescue deal aimed at “deliver[ing] the turnaround, transformation and recapitalisation of Thames Water without recourse to taxpayers”.
Operationally, the company recorded a 20 per cent reduction in pollution incidents and an 11 per cent drop in water and waste complaints from customers during the six-month period.
Chris Weston, chief executive of Thames Water, said: “The first half of this year has been shaped by good progress across all areas of our operational transformation. Financial performance has improved with strong revenue growth, driven by the regulated price rise, good operational expenditure control, resulting in material EBITDA growth.”
Weston highlighted the company’s infrastructure programme, describing it as the “biggest upgrade in over 150 years” to improve assets and services for both customers and the environment. Capital investment rose 22 per cent to £1.3bn compared with the same period last year, funded in part by higher customer bills. This increase has also led to a rise in customer complaints.
In response, Thames Water has expanded social support schemes, with 515,348 households now benefiting from social tariffs. The company has also piloted an automatic enrolment scheme in London to assist customers in financial difficulty who may be unaware of their eligibility.
Weston added: “This progress has all been achieved as we also manage the recapitalisation of the business. We continue to work closely with stakeholders to secure a market-led solution that we believe is in the best interests of our customers and the environment. This in turn will allow the transformation of Thames to continue, a programme that will take at least a decade to complete and will restore the infrastructure and operations of the company.”
