Severn Trent (SVT) H1 2025 earnings summary

Executive summary

• Achieved strong financial and operational performance in H1 2024/25, with PBIT up 16.7%–17% and adjusted EPS nearly doubling year-on-year, driven by regulated business growth and environmental initiatives.

• Delivered over 900 interventions in the spills program, significant progress on storm overflow reduction, and maintained 4* EPA status for a fifth consecutive year.

• Record capital investment, forecasting at the upper end of £1.3–£1.5bn for the year, with RCV expected to reach £13.6bn at AMP7 end.

• Provided £200m in customer support, donated 1% of profits to community causes, and improved customer service with a Trustpilot score of 4.8/5.

• Positioned for AMP8 with supply chain contracts secured, accelerated investment, and a fully equity-financed plan.

Financial highlights

• Group turnover rose 4.5% to £1,217.7m, with regulated water and wastewater EBITDA up 13.4% and PBIT up 16.7%–17%.

• Adjusted EPS increased 95.3% to 58.0p, and interim dividend set at 48.68p, in line with policy.

• Adjusted net debt at £7,665.4m, economic regulated gearing at 58.6%, and over £2bn in liquidity.

• Net finance costs fell 30% year-on-year, with an effective rate of 4.4%.

• Operational cash flow increased to £541.9m.

Outlook and guidance

• Guidance unchanged: regulated revenues up, costs down, and over £100m in net ODI rewards expected for FY25.

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

• Draft Determination supports at least 28% real RCV growth in AMP8, rising to 40% with inflation.

• 2024/25 dividend set at 121.71p, growing in line with CPIH.

• Business Services EBITDA expected lower year-on-year due to energy prices; group interest charge to fall.