Annual Results for the year ended 31 March 2026

Severn Trent PLC

20 May 2026

 

20 May 2026

Severn Trent Plc ("Severn Trent" or "the Company")

Preliminary Announcement of Annual Results

£1.9 billion of capital invested with performance incentives ahead of expectations and upgraded earnings outlook

James Jesic, Chief Executive, said:

 "This has been another year of exceptional growth. We have invested £1.9 billion to deliver long-term benefits for our Severn Trent Water customers, increasing the scale of our investments by over 60% in two years. Our unique strength of internal capabilities coupled with strong supply chain relationships have enabled acceleration of investment delivery and growth in our water and wastewater infrastructure. 

"I understand how vital it is we deliver for the local communities we serve and the responsibility we have to the people, businesses and public services depending on us for their water and wastewater services every day. More broadly, we are helping around 330,000 households with their bills and reaching over 15,000 people through employability support programmes.

"We continue to deliver meaningful outcomes for over 9 million people, while maintaining exceptional water quality standards and enabling economic growth in our region. Our investments are driving environmental improvements, including a 41% year-on-year reduction in average spills from storm overflows. There is more to do, and with the strength of our performance culture, I am excited by our ability to deliver for all stakeholders on the opportunities ahead."

Group Financial Performance - FY26	31 March 2026	31 March 2025	Increase
Revenue	£2,831m	£2,427m	16.6%
PBIT	£861m	£590m	45.9%
Net finance costs	£302m	£244m	23.8%
Adjusted EPS1	184.4p	112.1p	64.5%
Basic EPS	123.5p	76.6p	61.2%
Full year dividend per ordinary share	126.02p	121.71p	3.5%
Capital investment	£1,954m	£1,674m	16.7%

Financial highlights
·	Invested £1.9 billion driving a 13% increase in regulatory asset base to £15.4 billion.
·	PBIT growth of 45.9% driven by increased revenues, operational leverage and efficiencies.
·	Regulatory return2 of 17.2% from performance and indexation on our regulatory asset base.
·	£1.8 billion debt financing raised this year at 66bps below the regulatory allowance for the cost of new debt.
·	Regulated gearing3 of 63.6% (62.7% at 31 March 2025).

Operational highlights
·	Reduced pollutions by 35%, leakage by 8% and sewer floodings by 12% year-on-year, with AI contributing to efficiency, productivity and customer experience.
·	Total performance incentives4 earned of £73 million5 (£59 million in 2022/23 prices), including year one regulatory delivery targets for mains renewal and meter installations.
·	Accelerated delivery of storm overflow performance commitment from year two.
·	£127 million of bill support provided for around 330,000 households.

Outlook
·	Upgrading 2028 adjusted EPS outlook to at least 250p, from 224p.
·	Investing £2.2 - 2.5 billion in FY27 with regulatory asset base growth of 13% to £17.4 billion.
·	Targeting at least £50 million5 (£40 million in 2022/23 prices) of total performance incentives in FY27.
·	Reaffirming guidance of over £300 million6 total performance incentives to 2030.
·	Cost base resilience with 90% of our energy costs7 hedged to FY29, including 100% in FY27.
·	Infrastructure Services on track to deliver around £100 million EBITDA in FY30.

Footnotes to page 1 of this RNS

1.     Adjusted basic earnings per share (see note 9 for further detail).

2.     The return generated on actual regulated equity, calculated using average actual gearing applied to the Final Determination RCV. It encompasses the base return, outperformance, and the inflationary uplift to our regulatory asset base.

3.     The adjusted net debt of our regulated businesses expressed as a percentage of our regulatory asset base.

4.     Outcome Delivery Incentives ('ODIs') and Price Control Deliverables ('PCDs') combined (see glossary).

5.     In nominal prices, inflated to March 2026 CPIH.

6.     In forecast 2027/28 prices. Includes up to £50 million PCDs with the rest derived from ODI rewards. Equivalent to £250 million in 2022/23 prices. All figures are presented post tax.

7.     Regulated water and wastewater net wholesale energy costs.

Dividends

In line with our policy for AMP8 to increase the dividend by at least CPIH each year, the Board has proposed a final ordinary dividend of 75.62 pence per share for 2025/26 (2024/25: 73.03 pence per share). This gives a total ordinary dividend for the year of 126.02 pence per share (2024/25: 121.71 pence per share). The final ordinary dividend is payable on 15 July 2026 to shareholders on the register at 29 May 2026.

Full Unedited Text

In accordance with DTR 6.3.5 (1A), the full unedited final results for the year ended 31 March 2026 will shortly be available to download from the National Storage Mechanism. A copy is also available on the Company's website: www.severntrent.com and here:

http://www.rns-pdf.londonstockexchange.com/rns/9868E_1-2026-5-19.pdf

Preliminary Results Presentation and Webcast

A presentation of these results hosted by James Jesic, CEO, and Helen Miles, CFO, will be available on our website (severntrent.com) from 7.00am BST today, 20 May 2026.

We will be hosting a live Q&A session with James, Helen and our wider executive team at 9:00am BST today via video call which you can register for through our website.

Enquiries
Investors & Analysts
Nicola Whitehouse	Severn Trent Plc	[phone]
Head of Investor Relations
Faye Stringer	Severn Trent Plc	[phone]
Investor Relations Manager
Media
Ed Orlebar	Cardew Group	[phone]
Press Office	Severn Trent Plc	[phone]

 

END