Severn Trent Plc · LSE:SVT
Severn Trent — FY2026 Earnings Presentation
34 slides from Severn Trent's earnings presentation, May 20, 2026
Slide 1: Full Year Results 2025/26
Full Year Results 2025/26 20 May 2026 Expanding treatment capacity with our new Waste Treatment Works in Wanlip, Leicestershire
Slide 2: Disclaimers
DISCLAIMERS Cautionary statement regarding forward-looking statements This document contains statements that are, or may be deemed to be, 'forward-looking All written or verbal forward-looking statements, made in this document or made statements' with respect to Severn Trent's financial condition, r
Slide 3: Agenda
AGENDA 1. Overview 2. Financial performance and outlook 3. Operational delivery 4. Growth outlook James Jesic Chief Executive Officer 3
Slide 4: Delivering for all stakeholders
OVERVIEW DELIVERING FOR ALL STAKEHOLDERS Customers Environment Shareholders Environmental improvements Green on c.80% of customer Invested £1.9bn with a 41% reduction in average performance measures, delivering driving 13% regulatory asset base spills and 35% reduction in £73m1 of incentive reward g
Slide 5: Investment case for Severn Trent Plc
OVERVIEW INVESTMENT CASE FOR SEVERN TRENT PLC Sustained investment delivering foreseeable long-term asset base growth Inflation-linked regulatory framework with highly visible and predictable revenues Witches Oak Water Treatment Works, Derbyshire Performance-led culture driving operational excellenc
Slide 6: Agenda
AGENDA 1. Overview 2. Financial performance and outlook 3. Operational delivery 4. Growth outlook Helen Miles Chief Financial Officer 6
Slide 7: FY26 financial highlights
FINANCIAL PERFORMANCE AND OUTLOOK FY26 FINANCIAL HIGHLIGHTS FY26 FY25 Increase Regulatory asset base: £15.4bn Revenue £2.8bn £2.4bn 16.6% Regulatory return: 17.2% PBIT £861m £590m 45.9% Adjusted earnings 184.4p 112.1p 64.5% per share Total performance £73m1 incentives: Dividend per 126.02p 121.71p 3
Slide 8: 45% PBIT increase in regulated business
FINANCIAL PERFORMANCE AND OUTLOOK 45% PBIT INCREASE IN REGULATED BUSINESS £18m £36m £378m £100m £36m £21m £11m £860m £849m £850m £586m FY25 Core Revenue Operating Cost Energy Price Investment Other Pricing Drought Costs Bad Debts FY26 Efficiency Costs Effects 8
Slide 9: Resilience in energy
FINANCIAL PERFORMANCE AND OUTLOOK RESILIENCE IN ENERGY …and expanding solar generation in Green Power to self Resilience in energy costs… generate around 75% of Group energy needs by 2030 Expansion of solar generation in Green Severn Trent Water energy costs Power fully hedged for FY27 and around 90
Slide 10: Disciplined financing approach supporting earnings growth
FINANCIAL PERFORMANCE AND OUTLOOK DISCIPLINED FINANCING APPROACH SUPPORTING EARNINGS GROWTH Pension deficit of £21m, £2.4bn in cash and undrawn Debt mix 64% fixed and 22% 63.6% regulated gearing expect to be fully funded by committed facilities index-linked 2030 £1.8bn debt raised this year, 66 bps
Slide 11: Growing efficiently is a priority
FINANCIAL PERFORMANCE AND OUTLOOK GROWING EFFICIENTLY IS A PRIORITY Targeting around £150m total operating cost …and locked in around 40% of our £500m efficiencies by 2030, with £36m delivered in FY26… capital efficiency target Plug and Play Removing cost of failure £103m through right-first-time ap
Slide 12: Multiple levers for double-digit returns
FINANCIAL PERFORMANCE AND OUTLOOK MULTIPLE LEVERS FOR DOUBLE-DIGIT RETURNS Execution excellence delivering 6.3% 3.5% 2.1% Return % 4.8% 0.2% 17.2% 1.0% 0.3% 13.7% 11.6% 5.3% Base Return Outstanding Performance Retail Financing 1 Notional RoRE 2, 3 Gearing Actual RoRE RCV Inflation FY26 Regulatory Re
Slide 13: Track record of delivering our commitments
FINANCIAL PERFORMANCE AND OUTLOOK TRACK RECORD OF DELIVERING OUR COMMITMENTS Consistently scaled up capital …with leading operational …and five years of EPS growth to investment… outperformance… FY28 Annual Capital Investment Cumulative annual performance Annual Adjusted EPS (£m) incentive reward1 s
Slide 14: Track record of attractive returns
FINANCIAL PERFORMANCE AND OUTLOOK TRACK RECORD OF ATTRACTIVE RETURNS Severn Trent Water Regulatory Return (nominal) 17.2% 14.2% 3.5% 10.4% 5.3% 2.5% 13.7% 8.9% 7.9% AMP6 average AMP7 average FY26 Actual RoRE RCV inflation Source: Severn Trent Water Annual Performance Report 2020, Ofwat’s Monitoring
Slide 15: Guidance and outlook
FINANCIAL PERFORMANCE AND OUTLOOK GUIDANCE AND OUTLOOK FY26 FY27 Guidance Turnover £2.6bn Around £2.9bn Regulated Water and Operating costs & IRE £1.3bn 7% - 9% higher Wastewater Total performance £73m At least £50m incentives 1 Infrastructure Services EBITDA £55m 10% - 20% higher Net finance costs2
Slide 16: Agenda
AGENDA 1. Overview 2. Financial performance and outlook 3. Operational delivery 4. Growth outlook James Jesic Chief Executive Officer 16
Slide 17: Our priorities
OPERATIONAL DELIVERY OUR PRIORITIES Maintaining operational momentum Building on our strong track record Delivering long-term asset base growth Taking a strategic approach to growth Driving innovation Artificial Intelligence (AI) boosting performance Improving customer centricity Aligning the organi
Slide 18: Resilience in water
OPERATIONAL DELIVERY RESILIENCE IN WATER Supplying record levels of water with lowest ever leakage… …and investing for the future 98% of customers with Annual leakage down Water quality a second source of 23% over the past five complaints better than supply years regulatory target Around £500m renew
Slide 19: Delivering leading performance in waste
OPERATIONAL DELIVERY DELIVERING LEADING PERFORMANCE IN WASTE Driving environmental improvements… …and delivering for customers Highly confident of EPA 4* for 21% reduction £1bn invested this year seventh year for 2025 in customer complaints in asset upgrades and improving resilience 20% reduction 12
Slide 20: Accelerating programme delivery
OPERATIONAL DELIVERY ACCELERATING PROGRAMME DELIVERY £1.9bn investment delivered this year… …with scalable delivery Technology advancements Lower programme delivery risk Scalable solutions across over 2,000 projects this year Regulatory £0.1 bn compliance Asset £0.1 bn maintenance £0.5 bn Strong rel
Slide 21: Leveraging AI to enhance performance
OPERATIONAL DELIVERY LEVERAGING AI TO ENHANCE PERFORMANCE Investment Optimisation Using scenario modelling and data to inform efficient investment decisions Capital Design & Routing Optimised pipe routes, balancing cost, engineering constraints, and environmental impact Asset Optimisation Reducing u
Slide 22: Agenda
AGENDA 1. Overview 2. Financial performance and outlook 3. Operational delivery 4. Growth outlook James Jesic Chief Executive Officer 22
Slide 23: Year one reopener submission
GROWTH OUTLOOK YEAR ONE REOPENER SUBMISSION Investing in waste resilience Increasing our sewage capacity Increasing sewer relining activity to provide £199m Additional sewage treatment capacity to support resilience in our waste network growth £72m £588m1 Sewer inspections £15m Surveying our sewers
Slide 24: Taking a strategic approach to growth
GROWTH OUTLOOK TAKING A STRATEGIC APPROACH TO GROWTH Year one reopener Asset class Our asset base submission Factors we will consider Relining 172km and inspecting 9,800km of Sewers 93,057km Unlocking future asset renewal business cases sewers, enabling AI driven analysis Bill impact including perfo
Slide 25: Confident delivery of our investment case
GROWTH OUTLOOK CONFIDENT DELIVERY OF OUR INVESTMENT CASE Sustained investment delivering foreseeable long-term asset base growth At least 60% regulated asset base growth between 2025 and 2030 Inflation-linked regulatory framework with highly visible and predictable revenues Over half of our total ex
Slide 26: Appendix
APPENDIX 26
Slide 27: EBITDA
EBITDA¹ 31 March 2025 31 March 2026 Variance Variance £m £m £m % 1,032 Regulated Water and Wastewater 1,334 302 29 47 Business Services 55 8 17 21 Operating Services and Other 26 5 24 23 Green Power 24 1 4 3 Property Development 5 2 67 (20) Corporate and other (15) 5 25 (1) Consolidation adjustments
Slide 28: Net finance costs
NET FINANCE COSTS 31 March 2025 31 March 2026 Income Gross Income Gross statement Capitalised interest statement Capitalised interest charge interest incurred charge interest incurred £m £m £m £m £m £m 164 103 267 Cash interest (including accruals) 202 150 352 10 – 10 Net pension finance cost 7 – 7
Slide 29: Adjusted earnings per share
ADJUSTED EARNINGS PER SHARE 31 March 31 March Variance Variance 2025 2026 £m % £m £m 590 Profit before interest and tax 861 271 46 (244) Net finance costs (302) (58) (24) 346 Adjusted profit before tax 559 213 62 (1) Current tax in relation to prior years (3) (2) (200) 1 Tax at the adjusted effectiv
Slide 30: Adjusted net debt
ADJUSTED NET DEBT 31 March 2025 31 March 2026 Variance Variance £m £m £m % (785) Bank loans (785) – – (8,798) Other loans (10,087) (1,289) (15) (111) Lease liabilities (104) 7 6 1,045 Net cash and cash equivalents 788 (257) (25) 23 Fair value accounting adjustments 4 (19) (83) 10 Exchange on currenc
Slide 31: Fair value of debt
FAIR VALUE OF DEBT 1 31 March 2025 31 March 2026 Variance Variance £m £m £m % (784) Floating rate debt 2 (778) 6 1 (6,097) Fixed rate debt (7,252) (1,155) (19) (1,703) Index-linked debt (1,720) (17) (1) (8,584) (9,750) (1,166) (14) 1,045 Net cash and cash equivalents 788 (257) (25) 71 Loans due from
Slide 32: Gross debt mix
GROSS DEBT MIX Fixed Floating Index-linked £2.9bn Mar-26 64% 14% 22% £2.7bn Mar-25 66% 10% 24% 32
Slide 33: Debt maturity
DEBT MATURITY 1,000 900 800 700 600 £m 500 400 300 200 100 0 Debt FY26 Funding 33
Slide 34: Gearing and credit ratings
GEARING AND CREDIT RATINGS 31 March 2025 Adjusted net debt/RCV 31 March 2026 62.7% Regulated Gearing1 63.6% 31 March 2025 31 March 2026 Severn Trent Water Severn Trent Plc Severn Trent Water Severn Trent Plc Outlook Baa1 Baa2 Moody's Baa1 Baa2 Stable BBB+ BBB Fitch BBB+ BBB Stable 1. Based on Severn