Severn Trent (SVT) H1 2026 (Q&A) earnings summary

Executive summary

• Achieved strong first-half financial performance with revenue up 18%, PBIT up 57%, and adjusted EPS up 74% year-over-year, driven by higher tariffs, consumption, and record capital investment of £769m.

• Maintained top-rated environmental status for a sixth consecutive year, with 90% of ODIs on track and significant progress in leakage, pollution, and storm overflow reduction.

• Upgraded ODI guidance to at least £40m net reward in FY26, reflecting strong operational performance.

• Asset base grew 13% to £15.4bn, supporting long-term growth.

• Leadership transition underway, with outgoing CEO expressing confidence in the new CEO and senior team.

Financial highlights

• Group turnover reached £1,436.9m, up 18% year-over-year; PBIT was £466.2m, up 56.5%; adjusted EPS grew 74% to 101.0p in H1 2025.

• Invested £769m in the first half; over £900m new debt raised at spreads 80bps below regulatory allowance.

• Regulatory return around 13% this year; interim dividend of 50.40p in line with policy.

• Regulated gearing at 61.5% as of 30 September 2025, with a target of 60%-65% by FY30.

• £500 million in capital efficiencies identified, supporting further investment and stable credit ratings.

Outlook and guidance

• Projecting to double adjusted EPS by FY28, with growth weighted towards FY26.

• Upgraded ODI outperformance guidance to at least £40m for FY26; regulatory return expected around 13%.

• Capital investment for FY26 set between £1.7bn–£1.9bn; regulated gearing expected to remain between 60%-65% by FY30.

• Infrastructure Services EBITDA targeted to double to £100m by FY30.

• Dividend policy to grow annually by CPIH.