Severn Trent (SVT) H2 2025 earnings summary

Executive summary

• Achieved record operational and financial performance, including sector-leading ODI rewards of £150 million for the year and £434 million over five years, and sector-leading environmental results.

• Delivered £1.7 billion in capital investment, positioning for AMP8's £15 billion totex program and 59% RCV growth by 2030.

• Maintained environmental leadership with five consecutive years of four-star EPA status and lowest spill count in the sector.

• Secured an outstanding business plan with Ofwat, doubling capital investment for the next regulatory period.

Financial highlights

• Adjusted EPS grew 41% year-over-year to 112.1p, driven by regulated business growth and lower interest costs, with outlook to double by 2028.

• Capital investment increased 40% year-on-year to a record £1.7 billion, totaling nearly £5 billion over five years.

• Regulated PBIT increased 22% to £586 million; EBITDA up 12.6% to £1,058.5 million.

• Real return on regulated equity (RoRE) reached 9.7% for the year and 9.1% cumulatively over AMP7, more than double the base return.

• Proposed full-year dividend of 121.71p, in line with policy.

Outlook and guidance

• Adjusted EPS expected to double between FY25 and FY28, supported by strong visibility and control over key earnings drivers.

• Technical guidance for FY 2026 includes turnover around £2.6 billion and operating costs up to 12% higher, with capital investment between £1.7–1.9 billion.

• At least £25 million ODI reward expected in FY26, with further growth anticipated.

• Dividend to grow annually by CPIH, with FY26 dividend set at 126.02p.

• RCV projected to grow by 59% during AMP8, fully equity financed.