Severn Trent PLC, a UK-based water utility company, reported strong financial performance for the six months ending September 30, 2025. Key highlights include
**Financial Performance**
* **Revenue Growth** Revenue increased by 18% to £1.44 billion, driven by tariff increases and higher consumption during a dry summer.
* **Profitability** Profit before interest and tax (PBIT) rose by 57% to £466.2 million, and adjusted earnings per share (EPS) grew by 74% to 101.0 pence.
* **Investment** Severn Trent invested a record £769 million in the first half, with a 13% growth in its regulatory asset base to £15.4 billion.
**Operational Highlights**
* **Environmental Performance** Severn Trent achieved a sixth consecutive year of top-rated environmental performance, earning a four-star rating from the Environment Agency.
* **Leakage Reduction** The company is on track to meet its leakage reduction target for the eighth consecutive year.
* **Storm Overflow Spills** Severn Trent expects to halve storm overflow spills to around 13 in 2025, beating its 2030 target.
**Strategic Initiatives**
* **AMP8 Investment Program** Severn Trent is making a strong start to its largest-ever investment program, AMP8, with a focus on storm overflows, leakage, and pollution reduction.
* **Infrastructure Services** The company is targeting £100 million in EBITDA from its Infrastructure Services division by 2030, driven by growth in network services, green power, and property development.
* **Customer Focus** Severn Trent is committed to delivering value to customers, with initiatives to support vulnerable households and improve customer experience.
**Future Outlook**
* **Earnings Growth** Severn Trent expects to double its adjusted EPS in the three-year period to 2028, driven by regulated revenue growth, cost management, and strategic financing.
* **Regulatory Environment** The company welcomes the Independent Water Commissions report, which emphasizes greater stability for shareholders and long-term growth opportunities.
* **Sustainability** Severn Trent is committed to sustainable financing, with an updated Sustainable Finance Framework that aligns with international principles and enhances impact reporting.
**Key Metrics**
* **Regulated Gearing** 61.5% (compared to 62.7% at March 31, 2025)
* **Interim Dividend** 50.40 pence per share, up 3.5%
* **Capital Investment** £769 million in the first half, with a total investment of £1.7-£1.9 billion expected for the full year.
In summary, Severn Trent PLC demonstrated strong financial and operational performance in the first half of 2025, driven by its strategic focus on investment, sustainability, and customer value. The company is well-positioned for long-term growth, supported by a favorable regulatory environment and a commitment to innovation and sustainability.
| Metric | 2025 (H1) | 2024 (H1) | Change |
|---|---|---|---|
| Revenue (£m) | 1,436.9 | 1,217.7 | 18.0% |
| PBIT (£m) | 466.2 | 297.8 | 56.5% |
| Net Finance Costs (£m) | 161.2 | 124.6 | 29.4% |
| Adjusted EPS (pence) | 101.0 | 58.0 | 74.1% |
| Basic EPS (pence) | 75.7 | 47.2 | 60.4% |
| Interim Dividend per Share (pence) | 50.40 | 48.68 | 3.5% |
| Capital Investment (£m) | 769.0 | 665.9 | 15.5% |
| Regulated Gearing (%) | 61.5 | 62.7 | -1.9% |
| Adjusted Net Debt (£m) | 9,149.8 | 7,665.4 | 19.4% |