Severn Trent (SVT) H2 2025 earnings summary

Executive summary

• Achieved record operational and financial performance, including £150 million ODI reward, £1.7 billion capital investment, and sector-leading environmental results, with five consecutive years of four-star EPA status and lowest average storm overflow spills.

• Delivered strong operational and environmental leadership, significant progress in leakage reduction (16.8%), supply interruptions, and wastewater performance, supported by innovation and insourcing.

• Secured an outstanding business plan with Ofwat, doubling capital investment for the next period and positioning for AMP8's £15 billion totex program and 59% RCV growth by 2030.

Financial highlights

• Capital investment increased 40% year-on-year to a record £1.7 billion, totaling nearly £5 billion over five years.

• Adjusted EPS grew 41% year-over-year to 112.1p, driven by regulated business growth and lower interest costs, with outlook to double by 2028.

• Real return on regulated equity (RoRE) reached 9.7% for the year and 9.1% cumulatively over AMP7, with nine consecutive years of outperformance.

• Proposed full-year dividend of 121.71p, in line with policy.

• Regulated PBIT increased 22% to £586 million; EBITDA up 12.6% to £1,058.5 million.

Outlook and guidance

• Adjusted EPS expected to double between FY25 and FY28, supported by high visibility on revenue and cost control.

• FY26 turnover guided at around £2.6 billion, with operating costs up to 12% higher and capital investment between £1.7–1.9 billion.

• At least £25 million ODI reward expected in FY26, with further growth anticipated.

• RCV projected to grow by 59% during AMP8, fully equity financed, with nominal RCV expected to reach £21.7 billion by 2030.

• Dividend to grow annually by CPIH, with FY26 dividend set at 126.02p.