Severn Trent (SVT) H2 2026 (Q&A) earnings summary

Executive summary

• Delivered strong annual results with 64.5% year-on-year earnings growth, £73 million in ODI outperformance, and upgraded FY28 EPS guidance to at least 250p, supported by robust cost efficiencies and revenue growth.

• Invested £1.9bn, driving 13% regulatory asset base growth, and provided £127m in bill support to 330,000 households while maintaining high environmental standards.

• Maintained a clear stance on equity, confirming no further equity raise is planned before 2030.

Financial highlights

• Achieved £73 million in ODI outperformance, with 78% of metrics rated green, and delivered half a billion pounds of ODI upside since 2021.

• Revenue increased 16.6% to £2.8bn, and profit before interest and tax rose 45.9% to £861m.

• Adjusted earnings per share grew 64.5% to 184.4p, and dividend per share increased 3.5% to 126.02p.

• Capital investment reached £1.9bn, up 16.7% year-over-year.

• Raised £1.8 billion in new debt at tight spreads, below sector allowance.

Outlook and guidance

• Upgraded FY28 EPS guidance to at least 250p, underpinned by strong ODI and cost performance.

• FY27 revenue guidance around £2.9bn, with operating costs expected to rise 7–9%.

• Capital investment guidance for FY27 is £2.2bn–£2.5bn.

• Guidance of at least £2.50 EPS is robust to inflation scenarios.

• Committed to at least £50 million ODI outperformance for the next year, despite rising targets.