Should I buy United Utilities stock in 2025?

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At HelloSafe, our expert has been tracking the performance of United Utilities for over three years. Every month, hundreds of thousands of users in the UK trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by United Utilities.

What is United Utilities?

United Utilities Stock Price

The price of United Utilities stock is stable this week. The current share price stands at 1,119.00p, with a minor 24-hour change of -1.00p (-0.09%). The company’s market capitalisation is £7.64 billion and the average daily trading volume over the past three months is 1.96 million shares. United Utilities is trading at a P/E Ratio of around 28.7, with a dividend yield between 4.5% and 4.6%, and a relatively low beta ranging from 0.41 to 0.54. This profile signals low volatility and continued appeal for income-focused UK investors.

Our Full Analysis of United Utilities Stock

We have thoroughly reviewed United Utilities’s latest financial results alongside its stock performance over the past three years. By combining proprietary algorithmic analysis with financial and technical indicators, peer benchmarking, and market dynamics, we aim to provide a rigorous, opportunity-focused assessment of this dominant UK utility. So, why might United Utilities stock once again become a strategic entry point into the regulated water utilities sector in 2025?

Recent performance and market context

United Utilities has demonstrated remarkable resilience and a steadily positive trajectory: the stock has appreciated by over 13% in the last twelve months, outpacing several major UK sector peers. Even with a stable current share price of 1,119.00p, United Utilities continues to attract institutional attention. Multiple key events have reinforced sentiment, notably the final acceptance in January 2025 of the AMP8 regulatory framework by Ofwat, which secures significant capital investments and increased revenue certainty for the next five years. Both sector and macro trends favour its profile, as utility stocks benefit from the UK’s sustained population growth, environmental priorities, and infrastructure renewal policies—drivers that reinforce predictable demand for United Utilities’ core services.

Technical analysis

Recent technical signals on United Utilities highlight an attractive entry environment for medium-term investors. The 14-day RSI has fluctuated in the 32–48 zone, recently approaching levels that typically suggest oversold conditions—a potential precursor to bullish reversals. While short-term moving averages (20, 50, 100, and 200 days) are marginally below spot price, signalling a brief period of consolidation, the stock consistently finds robust support near 1,115p. MACD readings have shown mixed divergence, indicating the end of a pullback phase and hinting at emerging upside momentum. The long-term price trend remains intact above historic support levels, presenting a technical scenario from which a new uptrend could logically emerge. Key resistance at 1,152p and the 1,183p annual high offer natural targets for renewed buying interest.

Fundamental analysis

From a fundamental perspective, United Utilities stands out for its robust revenue growth (+9.1% to £2.15 billion in FY25) and an exceptional surge in net profit to £264.7 million—a 109% increase from last year. The company’s margin improvements, with profitability more than doubling to 12.3%, demonstrate excellent operational leverage and the successful execution of cost and efficiency initiatives. At a P/E ratio just below 29, United Utilities is in line with its high-quality utility peers, justified by its transparent revenue streams and generous dividend yield of nearly 4.6%. Importantly, the stability conferred by the newly agreed regulatory terms, AMP8, delivers rare earnings visibility through 2030—an advantage rare in equity markets. Its position as the UK’s largest regulated water utility, supported by a 122,000 km network and a dominant northern England footprint, further cements its economic moat. Ongoing strategic investments—over £1 billion annually—are strengthening infrastructure, digitalization, and environmental capacity, ensuring long-run competitiveness and compliance with increasingly strict ESG mandates.

Volume and liquidity

Trading volume for United Utilities remains dependably high, with an average of 1.96 million shares exchanged daily and a free float close to the full issued capital. This sustained liquidity has several positive implications: it reflects confidence from both institutional and retail investors, supports tighter bid-ask spreads, and allows substantial positions to be established or liquidated efficiently. The institutional holding of 86% underscores deep market trust in the company’s long-term prospects and valuation support for current and future share price levels.

Catalysts and positive outlook

• AMP8 regulatory cycle: With Ofwat approving United Utilities’ largest ever capital investment plan, the group enters a phase that could drive a substantial step-up in both infrastructure quality and allowed returns on equity.
• Significant infrastructure investments: From 2025 through 2030, United Utilities will modernise and expand critical water and sewerage assets, creating long-term value and capacity to meet UK population and urbanisation trends.
• Focus on ESG and sustainability: The group’s leadership in environmental compliance and sustainable water management places it at the forefront of one of the market’s most attractive themes, potentially improving its rating among institutional investors.
• Favourable tax and regulatory backdrop: As a component of the LSE and a key ISA and SIPP-eligible stock, United Utilities offers both income and tax efficiency to UK-based investors.
• Digital transformation: Deployment of advanced network monitoring, leakage management, and AI-driven asset management is expected to reduce costs and boost operational resilience over time.

With these drivers, United Utilities seems well placed to benefit from sector consolidation, policy tailwinds, and sustainable demand growth.

Investment strategies

The current market environment presents opportunities for both tactical and strategic positions in United Utilities. For short-term traders, the proximity to technically significant support levels allows for clear stop placement and the potential to capture bounce-back moves off recent lows. Those seeking medium-term positioning could benefit from holding ahead of key milestones—such as full-year results or Ofwat updates—that may act as catalysts for upward price action. For the long-term investor, United Utilities appears especially attractive: its predictable cash flows, strong dividend history, and defensive, regulated business model offer a compelling compounder opportunity as the group invests for growth and stability through 2030. Investors might consider gradual accumulation during periods of short-term weakness or technical consolidation, with a focus on the 1,115–1,120p range as a core entry point. Targeting the analyst consensus of 1,217p within 12 months appears reasonable based on current earnings visibility, while a move toward the 1,450p level is plausible should infrastructure projects and regulatory tailwinds continue to exceed expectations.

Is it the right time to buy United Utilities?

United Utilities combines the best of both worlds: robust long-term growth potential, thanks to record capital deployment and regulatory clarity, and attractive defensive qualities through steady dividends and resilient earnings. Its proven ability to adapt to new regulatory demands, strong brand, and leading market share set it apart from sector peers. Technical indicators and sustained trading activity provide additional confirmation that the stock may be entering a new bullish phase. With the UK’s infrastructure modernisation cycle accelerating and environmental targets rising up the national agenda, United Utilities seems to represent an excellent opportunity for investors seeking solid returns, stability, and medium- to long-term upside. For those seeking a blend of reliability and growth within the essential infrastructure space, United Utilities deserves renewed consideration as a core portfolio position.

How to buy United Utilities stock in the UK?

Buying United Utilities stock online is straightforward and secure when you use a regulated broker in the UK. You have two main choices: buying shares outright (spot/purchase for cash), or trading Contracts for Difference (CFDs), which let you speculate on price moves with leverage. Both can be managed easily from your desktop or smartphone, allowing for transparency and flexibility. Below, you’ll find a broker comparison to help you make an informed choice.

Spot buying

When you buy United Utilities shares for cash, you become a shareholder and can benefit from dividends and capital growth. This is the traditional investment method, usually involving a fixed commission for each order (often around £5–£10 with UK brokers).

Gain scenario

For example, if the United Utilities share price is £11.19, you could buy about 89 shares with a £1,000 stake, including a brokerage fee of approximately £5.

If the share price rises by 10%, your shares would be worth about £1,100.

Result: +£100 gross gain, or +10% return on your investment.

Trading via CFD

CFD trading lets you speculate on United Utilities share price movements without owning the shares. With CFDs, you can use leverage, meaning you only deposit a fraction of the total position size. Note that trading CFDs involves fees: spreads (the difference between buy and sell price) and overnight funding if you hold the position for more than a day.

Gain scenario example

Suppose you open a £1,000 CFD position on United Utilities with 5x leverage. This gives you market exposure worth £5,000.

If the stock price rises by 8%, your position earns 8% × 5 = 40%.

Result: +£400 profit on your £1,000 outlay (fees not included).

Final advice

Before getting started, it’s important to compare brokers: fees, available features, and trading conditions can differ significantly. Whether you choose to buy shares outright or trade with CFDs depends on your investment goals and risk appetite—see our comparison further down the page to guide your final decision.

Our 7 tips for buying United Utilities stock

The latest news about United Utilities

United Utilities secured crucial Ofwat approval for its AMP8 investment programme supporting long-term growth. UK regulator Ofwat confirmed in January the final determination for United Utilities’ business plan covering 2025–2030. This approval allows a significant increase in capital investment, enabling the company to modernise water and wastewater networks across North West England and improve service resilience for local customers.

Recent financial results confirm strong growth in revenue and profitability for the last reported period. United Utilities posted annual revenues of £2.15 billion, up 9.1% year on year, with net profit more than doubling to £264.7 million. These robust figures reflect effective management, improved operational performance, and the company’s ability to deliver under the UK’s regulated environment despite sector challenges.

Dividend yields remain attractive, reinforcing United Utilities’ appeal to income-focused UK investors. The company currently offers a dividend yield between 4.54% and 4.63%, supported by its stable and essential service model. This strong yield is well above the FTSE 100 average, solidifying United Utilities’ reputation as a dependable choice for long-term portfolio income within the GB market.

Long-term growth prospects are driven by demographic trends and national sustainability priorities. With market sentiment positive due to the new regulatory framework, United Utilities is set to benefit from increased infrastructure spending, favourable environmental, social, and governance (ESG) trends, and forecast population growth in the North West. The company’s leading regional position strengthens its outlook.

United Utilities’ regulated status ensures revenue visibility and resilience against broader economic volatility. Its monopoly in one of the UK’s most populous regions, combined with a regulated structure, provides predictable cash flows and risk-mitigation for shareholders—essential factors for analysts assessing defensive stock options in the current UK market environment.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.