Severn Trent (SVT) H2 2025 (Q&A) earnings summary

Executive summary

• Strong operational performance in the final year of AMP7, with best-ever results in supply interruptions, leakage, and internal sewer flooding, positioning well for AMP8.

• Confident guidance to double earnings over the next three years, underpinned by 59% RCV growth and robust revenue-enhancing ODI performance.

• Management emphasizes resilience to weather impacts and ongoing customer engagement on affordability and value for money.

Financial highlights

• Delivered £434 million in revenue-enhancing ODIs over the last five years, significantly outperforming initial targets.

• Maintained TOTEX overspend to just 1.1% despite inflation and external shocks.

• Bad debt ratio expected to remain within 1.8%–2.2% of household revenue, supported by high direct debit penetration.

Outlook and guidance

• EPS guidance is benchmarked against UK and international utilities, with confidence in delivery due to strong RCV growth and hedging strategies.

• Bill increases are front-loaded, with a 15% real-term rise in year one of AMP8, then tapering off in subsequent years.

• Guidance for £25 million in ODIs for the year ahead, with expectations for strong performance in leakage and spills.