Financial review

Revenue

Revenue of €1,837m for the year to 31 December 2025, was €231m higher compared to 2024. Government subvention income of €1,243m in respect of domestic water billing was €104m higher than prior year. Commercial revenue was €595m, which is €128m higher than 2024, due to higher non-domestic revenue of €61m, and higher customer connection revenues of €67m.

The increase in non-domestic revenue of €61m is due to higher tariffs resulting from the Commission for Regulation of Utilities’ (CRU) decision, following public consultation, on new water and wastewater tariffs.

Customer connections charges are received in advance, recognised as deferred revenue on receipt and recognised as revenue as the performance obligation is completed. The uplift of €67m in 2025 in new connections revenue is driven by increased activity in the external market.

Operating costs

Operating costs of €1,188m increased by €132m compared to 2024, in line with growth and compliance requirements as we transform our operations under the framework for the future delivery of water services.

Cost increases in 2025 include;

• higher payroll costs due to increased average headcount year on year as transformation progressed,
• increased operational costs due to Uisce Éireann response to Storm Éowyn and other incidents,
• increased compliance costs, including higher levels of sampling, road opening licences & road reinstatements,
• increased regulatory charges and rates, driven primarily by five year property valuation process,
• increased electricity costs driven by market prices, and increased demand at treatment plants,
• higher cost of servicing and maintaining a growing asset base, and
• increased activity required to service a growing organisation.

These increases were offset by a reduction in Local Authority agreement costs as people and services transfer into Uisce Éireann as part of the implantation of the framework for the future delivery of water services.

Operating costs were managed through a mix of significant cost containment measures, robust hedging strategy, commercial contract negotiations and efficiency programs.

Depreciation

Depreciation and amortisation of €242m has increased compared to prior year due to the growth in capital investment.

Surplus/ profit before income tax

Surplus/ profit before tax increased by €75m to €396m for 2025 due to higher EBITDA of €100m, partially offset by higher depreciation charges of €25m. Uisce Éireann’s surplus/ profit is reinvested to fund critical infrastructure projects.

Infrastructure assets and capital expenditure

2025 saw Uisce Éireann deliver the highest level of investment in water and wastewater services totalling €1,431m, compared to €1,372m in 2024. This level of investment enables Uisce Éireann to make necessary, multi-generational improvements to water and wastewater infrastructure. It is targeted at enhancing health and quality of life, protecting the environment, benefiting communities and is critical for growth and development across Ireland.

Net debt and cash flows

The net debt position at 31 December 2025 was €647m (total borrowings and other debt of €1,024m, less cash and cash equivalents of €377m), compared to €597m in the prior year.

In 2025, capital investment funding requirements (€1,328m in cash outlay terms) were partially met by the capital contribution funding received from Government of €801m, resulting in a residual capital investment funding requirement of €527m. The positive operating cash flows of €685m was utilised to meet this residual capital funding requirement.

Financial deposits net cash movement of €199m primarily relate to €160m in respect of fixed term deposits and a €39m net cash movement in respect of third party collateral. Through effective cash management, Uisce Éireann placed €160m of its own funds on deposit for periods exceeding three months, capitalising on a strong liquidity position and elevated interest rates, while still ensuring that short‑term liquidity requirements were fully maintained.

The above resulted in closing cash and cash equivalents at year end of €377m.

Capital resources

As at 31 December 2025, Uisce Éireann held;

• total drawn borrowings of €999m (excludes lease liabilities of €26m),
• undrawn National Treasury Management Agency (NTMA) working capital facility of €350m,
• €377m of cash and cash equivalents, and
• €160m of fixed term deposits.

As at 31 December 2025, €999m of State loan facilities have been provided by the Minister for Finance for capital expenditure attributed to the non-domestic sector. These facilities are now drawn down.

In the Government’s 2025 Budget, it was announced that €1bn of funding would be provided by the Minister for Finance to support the capital investment included in the approved SFP 2025-2029. In 2025, €514m was provided to fund capital investment, with the balance of €486m to be provided over the period 2026-2028.

In July 2025, the Government published its updated National Development Plan for 2026-2030 with a record capital funding allocation to Uisce Éireann of €11.7bn. The €486m is in addition to this, bringing the total Exchequer capital funding allocation to €12.2bn over the period. The National Development Plan provides unprecedented multi-year funding certainty, with funds of €4.5bn available on request to Uisce Éireann. 

Uisce Éireann has committed to ensuring that the NTMA working capital facility remains undrawn on 31 December each calendar year, unless Uisce Éireann has obtained prior Ministerial agreement to utilise the facility. The facility is scheduled to mature in October 2026, and discussions have commenced with the NTMA regarding its renewal. Uisce Éireann also has a €10m uncommitted overdraft facility to help manage its daily banking requirements.

At 31 December 2025, the weighted average interest rate on the Company’s portfolio of outstanding borrowings was 1.83% (2024: 1.83%) and the average maturity of its debt was 6.61 years (2024: 7.61 years).

Treasury governance

The responsibility for treasury activity and its performance rests with the Board, which exercises its responsibility through regular review. The Audit and Risk Committee provides oversight of the risk and control environment on behalf of the Board. Uisce Éireann has complied with the requirements and conditions of the Minister for Finance under the Financial Transactions of Certain Companies and Other Bodies Act, 1992. The Uisce Éireann treasury function is not operated as a profit centre and treasury positions are managed in a risk averse manner. All treasury transactions have a valid underlying business reason and speculative positions are strictly prohibited. Further details of our treasury governance financial risk management policies are set out in the Financial Statements note 22.

Economic regulation

The CRU's draft determination for Revenue Control 4 (RC4), issued in November 2025, is subject to a public consultation process. Uisce Éireann has responded to this consultation. The final decision on RC4 is expected to be published in Q2 2026.