Severn Trent PLC

Latest Results (10.05.2026):

Severn Trent PLC — results for the year to 31 March 2025 (financial year 2024/25; period ending Q4 2025). The company reported a record year driven by accelerated investment and strong operational outperformance: revenue £2,426.7m, PBIT £590.2m, adjusted EPS 112.1p (up 41.2%) and basic EPS 76.6p (up 50.2%). Severn Trent delivered a record £1.7bn of capital investment, grew its regulatory asset base (RCV) to £13.7bn, and set an earnings outlook targeting adjusted EPS to double by 2027/28 while guiding higher AMP8 investment and operational outperformance over the next five years.

Headline financials

Revenue £2,426.7m (+3.8% y/y), PBIT £590.2m (+15.3% y/y), adjusted basic EPS 112.1p (+41.2%) and basic EPS 76.6p (+50.2%). Full-year dividend 121.71p (+4.2%).

Capital investment & RCV

Record capital investment of £1,673.5m in FY25 (cash capex £1,538.0m). Regulatory Asset Base (RCV) increased to £13.7bn after midnight adjustments, reflecting accelerated AMP8 spend and transition expenditure.

Operational outperformance & ODIs

FY25 performance incentives pre‑tax of £150m (equates to £68m post customer sharing in 2017/18 prices). Across AMP7 Severn Trent achieved £434m of ODI rewards (nominal, post‑sharing) and met or exceeded targets on ~83% of performance commitments.

Environment and storm overflows

Delivered 1,800 interventions and reported a 66% reduction in spills in the first four months of 2025 versus 2024; aiming for at least a 25% reduction to below an 18 average spills metric in 2025. Awarded five consecutive years of four‑star Environment Agency rating and record energy generation of 912 GWh (+11% y/y).

Balance sheet, debt and gearing

Adjusted net debt £8,545.3m (up from £7,187.9m). Regulated gearing 62.7%. Net finance costs fell to £243.9m (benefitting from lower inflation on index‑linked debt and capitalised interest), though average net debt rose with higher capex.

Returns and RoRE

Delivered strong returns: real actual RoRE 9.7% in FY25 and 9.1% across the five‑year regulatory period; Severn Trent Water notional RoRE reported 9.3% for the year, materially above the 4.0% base return.

Cashflow and shareholder returns

Operational cash flow £868.8m; free cash flow negative as capex stepped up. Final dividend proposed 73.03p (payable 15 July 2025), giving full‑year ordinary dividend 121.71p. Company reiterates dividend growth policy (CPIH‑linked).

AMP8 outlook and guidance

Guidance for AMP8: capital investment expected £1.7–£1.9bn in the next year; management projects adjusted EPS to double between FY25 (112.1p) and 2027/28, and guides to £300m operational outperformance across five years (net of tax, in 2027/28 prices).

Business segments & costs

Regulated Water & Wastewater PBIT £585.8m (up £106.2m). Energy costs fell sharply (weighted average electricity import price £214/MWh vs £347/MWh prior year), offsetting higher labour and hired/contracted costs as the business scaled up delivery.

Key risks & strategic themes

Company emphasises delivery risks around supply chain and capital programme, regulatory/legal uncertainty, climate and asset resilience. Strategy focuses on accelerated, modular investment, insourcing operations, and maintaining environmental leadership while expanding affordability support for customers.