Severn Trent PLC

Latest Results (29.03.2026):

Severn Trent PLC — Q4 FY2025 (year to 31 March 2025): a record year with strong financial, operational and environmental performance. Group revenue was £2,426.7m (+3.8% y/y), PBIT £590.2m (+15.3%), profit before tax £320.1m (+59%), and adjusted basic EPS 112.1p (+41%). The company delivered a record £1.67bn of capital investment, grew Regulatory Capital Value (RCV) to £13.7bn, and reaffirmed guidance that adjusted EPS should double by 2027/28 versus FY25, while maintaining regulated gearing of 62.7% and stable credit ratings.

Key financials

Revenue £2,426.7m; PBIT £590.2m; profit before tax £320.1m. Basic EPS 76.6p, adjusted basic EPS 112.1p. Net finance costs fell to £243.9m. FY25 delivered strong RoRE — 9.7% in real terms for the year (9.1% over the five-year regulatory period).

Capital investment & RCV

Record cash capex £1,673.5m (≈+40% y/y); accelerated >£450m of AMP8 investment; closing RCV £13.7bn (RCV growth of 59% targeted by 2030 per regulatory outcome reference). FY26 capex guidance £1.7–£1.9bn and advance work on ~£4.1bn of AMP8 projects.

Earnings outlook

Severn Trent PLC projects adjusted EPS to double in the three years to 2027/28 (from 112.1p in FY25), with earnings growth weighted towards 2025/26. The company also guides to operational outperformance of £300m (net of tax, in 2027/28 prices) across five years and flags potential PCD outperformance of up to £50m.

Operational & performance incentives

FY25 ODI performance pre-sharing quoted at £150m (record year); AMP7 total ODIs £434m (pre-tax, post-sharing, nominal). 83% of performance commitments met or exceeded; best-ever results on leakage, supply interruptions and internal sewer flooding. Early AMP8 progress: 1,800 interventions and 66% fewer spills in the first four months of 2025 vs 2024, targeting at least a 25% reduction on average spills this year.

Environmental leadership

Achieved Environment Agency four-star “industry-leading” rating for five consecutive years and confident of a sixth. Record renewable generation 912 GWh (+11%). Committed £400m Pollutions Incident Reduction Plan and £1.1bn of investment to significantly improve river health (aim to reduce Severn Trent’s RNAGS share from 10.8% to below 2% by 2030).

Balance sheet & financing

Adjusted net debt £8,545.3m (up from £7,187.9m); regulated gearing 62.7%. Average effective interest cost 4.3% (effective cash cost 3.4%). Credit ratings affirmed (Moody’s Baa2; S&P BBB; Fitch BBB). Liquidity: c.£1.0bn cash and committed facilities through Sept 2026; average debt maturity ≈13 years.

Dividends & shareholder returns

Full-year dividend 121.71p (up 4.2%); proposed final dividend 73.03p payable 15 July 2025. Board indicates FY26 dividend of 126.02p in line with CPIH-linked policy.

Key risks & outlook

Board calls out principal risks — health & safety, asset resilience, supply chain and capital delivery, regulatory change, climate/environmental risks and people/culture. Management outlook stresses a strong start to AMP8, sustained capital delivery, continued cost and energy management, and an EPS growth profile weighted to 2025/26.