REG - Severn Trent PLC - Annual Results for the year ended 31 March 2026

Severn TrentAnnouncement

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RNS Number : 9868E  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 EPS(1)                        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 return(2) 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 gearing(3) 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 incentives(4) earned of £73 million(5) (£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 million(5) (£40 million in 2022/23 prices) of total
             performance incentives in FY27.
 ·           Reaffirming guidance of over £300 million(6) total performance incentives to
             2030.
 ·           Cost base resilience with 90% of our energy costs(7) 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 (http://www.severntrent.com) and here:

http://www.rns-pdf.londonstockexchange.com/rns/9868E_1-2026-5-19.pdf
(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  +44 (0) 748 450 8198
 Head of Investor Relations

 Faye Stringer               Severn Trent Plc  +44 (0) 758 302 6677
 Investor Relations Manager

 Media
 Ed Orlebar                  Cardew Group      +44 (0) 773 872 4630
 Press Office                Severn Trent Plc  +44 (0) 247 771 5640

 

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