Severn Trent (SVT) H1 2025 (Q&A) earnings summary

Executive summary

• Achieved strong financial and operational performance in H1 2024/25, with PBIT and EPS growth, sector-leading environmental and customer outcomes, and over 900 interventions to reduce spills.

• Maintained 4* EPA status for the fifth consecutive year and delivered net ODI rewards of around £420m across AMP7.

• Record capital investment, forecasting at the upper end of £1.3–£1.5bn for the year, with early progress on AMP8 commitments and supply chain resources secured.

• Improved customer service, with a Trustpilot score of 4.8/5 and a 40% reduction in complaints over AMP7.

• Engagement with regulators and government, emphasizing the need for certainty and long-term clarity for the sector.

Financial highlights

• PBIT up 21% year-over-year to £297.8m; adjusted EPS up 95.3% to 58.0p; group EBITDA increased 11% to £523.6m.

• Group turnover rose 4.5% to £1,217.7m; regulated water and wastewater EBITDA up 13% to £510.6m.

• Interim dividend of 48.68p declared, with full-year guidance of 121.71p, in line with CPIH-linked policy.

• Adjusted net debt increased to £7,665.4m; economic regulated gearing at 58.6%; shadow regulated gearing at 60.6%.

• Effective cost of interest reduced to 4.4%, with a 30% reduction in finance costs versus prior half-year.

Outlook and guidance

• Expect to deliver over £100m net ODI reward pre-sharing for FY25, with cumulative AMP7 ODI rewards of £420m nominal.

• Capital investment for FY25 set at £1.3–£1.5bn, the largest annual programme to date.

• Regulated water and wastewater turnover and RCV both expected to grow year-over-year; closing AMP7 RCV forecast at £13.6bn.

• Dividend growth to continue in line with CPIH; board to review policy after final determination.

• Anticipation of more regular (at least quarterly) public reporting on spills.