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30 OCU Group Annual report and financial statements 2026
Operational review continued United Kingdom market review
Water & Environmental A broader design-to-maintenance offer, aligned to a long-duration investment cycle centred on resilience, environmental performance and renewal of ageing assets.
FY26 progress The Water & Environmental market progressed from capability build-out towards more integrated delivery during FY26. Long-standing clean water and network maintenance activity was complemented by expanded wastewater, process and mechanical and electrical scope. With Yorkshire Water, strong performance on clean water infrastructure supported an extension into wastewater non-infrastructure design and build. With Dŵr Cymru Welsh Water, the Group brought together pressurised pipelines, waste capital delivery, high and low‑voltage engineering and maintenance across a wider framework relationship. United Utilities remained an important source of activity as the Vyrnwy Aqueduct Modernisation Programme (VAMP) advanced. VAMP is a practical example of how the Group develops a self-delivery model. In FY26, OCU completed 7.3 km of complex large diameter slip-lining works using direct resource and OCU’s 200-tonne pipe pusher. We also commenced enabling works on the remaining c.23.0 km to be delivered in FY27 and FY28.
The acquisition of Valmech in November 2025 added heat network installation and mechanical engineering capability. This is an emerging adjacency rather than a material established market for OCU. The near‑term priority is to integrate the capability, build relevant delivery evidence and pursue opportunities where mechanical, electrical and civil scope can be combined without moving beyond the Group’s risk appetite. “The strongest evidence of progress is the scope clients now ask us to undertake. We are no longer bringing a single delivery discipline to the table. Across United Utilities, D ŵ r Cymru Welsh Water, and Yorkshire Water we are combining design, network delivery, specialist plant, electrical engineering and process knowledge. That breadth gives clients more certainty and gives our teams a stronger platform for the Asset Management Period 8 (AMP8) program.”
Our focus has been to deepen the capability around our existing water frameworks so that clients can access design, civil engineering, MEICA, process expertise, HDD and maintenance through one accountable delivery model. Within FY26, the addition of heat network capabilities has enhanced our ability to deliver environmental projects. Hugh McCrossan Managing Director, Water & Environmental
Adrian O’Sullivan Chief Operating Officer, OCU Utilities
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