Severn Trent PLC

Latest Results (12.02.2026):

Severn Trent PLC — Results for the year to 31 March 2025 (FY25, covering Q4 ended 31 March 2025): the company reports a record year driven by accelerated investment and strong operational delivery. Revenue rose to £2,426.7m, PBIT to £590.2m and adjusted basic EPS to 112.1p. Capital investment reached a record £1.67bn, regulatory asset value (RCV) grew to £13.7bn, and the Board proposes a full‑year dividend of 121.71p. Management also gives forward guidance that adjusted EPS is expected to double between 2025 and 2028 and reiterates substantial AMP8 investment plans.

Headline financials

Revenue £2,426.7m (+3.8% YoY); PBIT £590.2m (+15.3% YoY). Adjusted basic EPS 112.1p (+41.2% YoY); basic EPS 76.6p (+50.2% YoY). Full year dividend per ordinary share 121.71p (+4.2%).

Capital investment & RCV

Record cash capital investment £1,673.5m (up 39.5% YoY). Regulatory Asset Value (RCV) increased to £13.7bn after midnight adjustments, with AMP8 capital guidance of £1.7bn–£1.9bn for 2025/26 and a larger AMP8 programme under way.

Operational outperformance & incentives

FY25 ODI performance of £150m (pre‑tax, pre‑sharing) with AMP7 ODI rewards totalling £434m (pre‑tax, post‑sharing) over the period. Management guides to £300m operational outperformance across five years (net of tax, in 2027/28 prices) and expects further PCD/ODI upside in AMP8.

Environmental & service delivery

Sector‑leading environmental performance: five consecutive years of four‑star Environment Agency rating and strong storm overflow action — 1,800 interventions completed with early 2025 spills down c.66% year‑on‑year on priority sites and a target to reduce average spills by at least 25% in 2025.

Balance sheet & liquidity

Adjusted net debt £8,545.3m; regulated gearing 62.7% (31 Mar 2025). Net finance costs fell to £243.9m (down 13.4% YoY) aided by lower inflation on index‑linked debt and increased capitalised interest; credit ratings reaffirmed (Moody’s Baa2 / S&P BBB / Fitch BBB).

Returns & tax

Delivered strong returns: actual RoRE ~9.7% in FY25 (Severn Trent Water notional RoRE 9.3% for the year). Adjusted effective current tax rate near nil for the year (reflecting full expensing / capital allowances) though the effective total tax rate was 28.3% driven by non‑deductible items.

Outlook

Management guidance: adjusted EPS expected to double from 112.1p in FY25 to FY27/28, capital investment £1.7–1.9bn in 2025/26, dividend guidance for 2025/26 of 126.02p (policy: CPIH growth). Energy hedging in place for 2025/26 (~100% of expected wholesale electricity) and continued emphasis on delivering AMP8 early through accelerated procurement.