Severn Trent PLC

Latest Results (10.09.2026):

Severn Trent PLC — first half of FY26 (six months to 30 September 2025): the company reports a strong start to AMP8 with material year-on-year earnings and investment growth. Revenue was £1,436.9m (+18%), PBIT £466.2m (+56.5%), and adjusted EPS 101.0p (+74.1%); Severn Trent has upgraded FY26 ODI guidance and reiterated medium-term growth targets while accelerating capital investment and maintaining strong environmental performance.

Key financial results

H1 turnover £1,436.9m (up 18%); PBIT £466.2m (up 56.5%); adjusted EPS 101.0p (up 74.1%); basic EPS 75.7p (up 60.4%). Interim dividend 50.40p (+3.5%).

Investment and regulatory asset growth

Capital investment £769.0m in H1 (+15.5%). Severn Trent expects RCV/regulatory asset base to grow ~13% in FY26 to about £15.4bn and guides FY26 capital investment of £1.7–£1.9bn.

Upgraded FY26 guidance

Outcome Delivery Incentives (ODIs) upgraded to at least £40m (previously at least £25m). Operating costs and infrastructure renewals now expected to be 5–8% higher year‑on‑year (previously up to 12%). Net finance costs now guided 25–30% higher (previously 20–25%) reflecting inflation; regulatory return forecast around 13%.

Financing and balance sheet

Raised over £900m of new debt in the financial year, including a €700m 12‑year Eurobond issued at a sector‑leading margin. Adjusted net debt £9,149.8m at 30 Sept 2025; cash and equivalents £1,449.2m; regulated gearing 61.5% (31 Mar 2025: 62.7%).

Cash flow and liquidity

Operational cash flow £625.7m; free cash flow negative at £331.0m in the period due to high capex. Cash flow funded to March 2027 including committed facilities; average debt maturity ~12 years.

Operational and environmental performance

Severn Trent reports industry‑leading environmental ratings (six consecutive years) and strong operational progress: on track to halve storm overflow spills to ~13 in 2025, continuing leakage reductions, and expects to meet ~90% of ODI targets and 100% of Price Control Deliverables (PCDs) this year.

Infrastructure Services and M&A

Infrastructure Services H1 turnover £99.9m (+11.0%) and EBITDA £21.3m (down 12.7%). Acquisitions (Industrial Jetting Water Systems and Watertight) completed 31 July 2025 added c. £5m revenue; target is to grow Infrastructure Services EBITDA to ~£100m by FY30 (2029/30).

Outlook and medium‑term targets

Severn Trent reiterates an objective to double Group adjusted EPS in the three‑year period to FY28 (from 112.1p in FY25). Regulated gearing expected 60–65% by FY30; long‑term returns and growth supported by AMP8 investment and regulatory incentives.

Dividends

Interim dividend declared 50.40p (payable 12 Jan 2026). FY26 dividend guidance shown in technical guidance is 126.02p (consistent with the AMP8 CPIH‑linked dividend policy).