Severn Trent Plc · LSE:SVT
Severn Trent — Q2 2026 Earnings Presentation
34 slides from Severn Trent's earnings presentation, Nov 19, 2025
Slide 1: Half Year Results 2025/26
Half Year Results 2025/26 19 November 2025 Valve tower at Carsington Reservoir, Derbyshire
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: Liv Garfield, Chief Executive
LIV GARFIELD Chief Executive 3
Slide 4: Half Year Highlights
HALF YEAR HIGHLIGHTS Upgrading ODI 4* EPA status guidance to 13% confirmed for a asset base growth to at least £40m record sixth net reward £15.4bn consecutive year this year in FY26 On track for Halving average storm c. 90% overflow spills in of performance 2025 to measures around 13 4
Slide 5: Helen Miles, Chief Financial Officer
HELEN MILES Chief Financial Officer 5
Slide 6: Half Year Financial Highlights
HALF YEAR FINANCIAL HIGHLIGHTS £769m 74% Interim dividend investment in the first half adjusted 50.40p first half EPS growth in line with policy Over £900m new debt raised, Regulatory Return of c. 80bps around 13% lower than this year allowance 6
Slide 7: 59% Increase in Regulated Water and Wastewater PBIT
59% INCREASE IN REGULATED WATER AND WASTEWATER PBIT £18m £6m £39m £10m £6m £215m £467m £295m HY25 Turnover Drought Costs Efficiency Pricing Effects Investment Costs Bad Debt HY26 7
Slide 8: Targeting at Least £500m of Capital Efficiencies in AMP8
TARGETING AT LEAST £500M OF CAPITAL EFFICIENCIES IN AMP8 Direct Procurement Securing preferential rates Smart Solutions On sub-£10m projects Value Engineering Innovative technologies Plug and Play Standardisation and modular systems Plug and Play: Lower Moor Treatment Works Contingency Reinvestment
Slide 9: Delivering Long-Term Value
DELIVERING LONG-TERM VALUE Nominal Regulated Capital Value (£bn) Regulatory Return of around 13% this year 25 14.2% c. 13% 20 10.4% 5.3% c. 3% 15 2.5% 10 8.9% c. 10% 5 7.9% 0 AMP6 average AMP7 average FY26 forecast AMP4 AMP5 AMP6 AMP7 AMP8 RoRE RCV inflation Source: Regulatory Capital Value Updates
Slide 10: Confidence in Sustained Outperformance
CONFIDENCE IN SUSTAINED OUTPERFORMANCE Average AMP7 Regulatory Return AMP7 ODIs vs Totex 2% Severn Trent Water 14.2% 1% ODIs out/(under) performance 0% -1% 5.8% -2% Better performance -3% Better performance -4% 0% 1% 2% 3% 4% 5% 6% 7% 8% Totex overspend Severn Trent Water Other WASC average Other WA
Slide 11: Maintaining Our Financial Strength
MAINTAINING OUR FINANCIAL STRENGTH Over £900m debt issued this year, c. 80bps 61.5% regulated gearing and outlook of Pension expected to be fully funded in lower than regulatory allowance 60%-65% at FY30 AMP81 90% Raising new debt at narrower spreads Lowest regulated gearing of the WASCs Severn Tren
Slide 12: AMP8 Derisked with 54% of Our Totex Protected
AMP8 DERISKED WITH 54% OF OUR TOTEX PROTECTED Source: Office for National Statistics. Construction Output Pricing Index vs inflation 145 77% Enhancement costs protected 135 125 115 105 95 Jan-14 Jan-16 Jan-18 Jan-20 Jan-22 Jan-24 CPIH COPI Infrastructure index 38% Base costs protected 15 year gilt r
Slide 13: Sustained and Significant Growth
SUSTAINED AND SIGNIFICANT GROWTH Growing more than ever before… …more than our peers… …and increasing value for shareholders Nominal RCV growth per AMP Nominal RCV CAGR – AMP8 Nominal equity RCV 60% 10% £7.7bn - £8.8bn 8% £5.1bn 29% SVT Average SVT Other listed WASCs SVT FY25 FY30 AMP5-AMP7 AMP8 Ran
Slide 14: Infrastructure Services: Doubling EBITDA to £100m in FY30
INFRASTRUCTURE SERVICES: DOUBLING EBITDA TO £100M IN FY30 Complements Additional returns Cash positive for the regulated business enhance EPS growth Group Businesses Current Green Power Operating Services Property Development Complementary Acquisitions Watertight Industrial Water Jetting Systems 14
Slide 15: Guidance and Outlook
GUIDANCE AND OUTLOOK FY25 FY26 Turnover £2.25bn Around £2.6bn Regulated Water and Wastewater Operating costs & IRE £1.2bn 5% - 8% higher Upgraded ODI outperformance £68m At least £40m Upgraded STW Reg Return 11.9% Around 13% New guidance Net finance costs £244m 25% - 30% higher Updated Group Capital
Slide 16: Liv Garfield, Chief Executive
LIV GARFIELD Chief Executive 16
Slide 17: Creating Value from Growth
CREATING VALUE FROM GROWTH Asset base Performance investment culture Insourced Fast start to workforce AMP8 Work in progress at Wanlip Waste Treatment Works 17
Slide 18: Fast Start to AMP8 Investment Programme
FAST START TO AMP8 INVESTMENT PROGRAMME Capital investment since the start of AMP7 (£bn) Confidence in AMP8 delivery 80% of enhancement schemes contracted by March 2027 1.7 - 1.9 1.7 Thousands of capital projects in AMP8 1.2 Plug and Play assets can be deployed across multiple projects 0.7 0.6 0.6 O
Slide 19: Consistently Outperforming in Water
CONSISTENTLY OUTPERFORMING IN WATER Hitting leakage target for eighth consecutive year… Megalitres per day leakage since the start of AMP7 No-dig technology used on around half of communication pipe repairs Around half of our network remotely pressure- controlled this year Reduction of bursts of ove
Slide 20: Leading Spills Programme
LEADING SPILLS PROGRAMME Average storm overflow spills c. 27% reduction YoY with like-for-like £1.5bn storm overflow investment by 2030 weather conditions to approach world-leading spill levels c. 50% reduction YoY Significant opportunity beyond 2030 getting all storm overflows to 10 spills Jan to O
Slide 21: On Track for 100% of Waste and Environment Targets
ON TRACK FOR 100% OF WASTE AND ENVIRONMENT TARGETS 20% reduction in pollutions YTD On track for all other waste and environment ODIs 234 – Jan to Dec Ofwat target External Serious 220 Biodiversity sewer flooding pollutions Discharge Sewer Internal 176 Waste GHGs permit collapses sewer flooding compl
Slide 22: Six Consecutive Years of EPA 4*
SIX CONSECUTIVE YEARS OF EPA 4* Environment Agency EPA ratings 1 1 1 1 1 1 1 2 2 4 7 8 8 6 6 4 2019 2020 2021 2022 2023 2024 Source: Environment Agency Environmental Performance Assessment (EPA) 2019-2024. Severn Trent Water Other companies with 4* Non-4* companies Self-reporting of pollutions WINEP
Slide 23: Customers, Communities and Colleagues
CUSTOMERS, COMMUNITIES AND COLLEAGUES Delivering for customers Giving back to our communities Accelerated AMP8 investment to deliver early customer benefits Second place in 2025 Social Mobility Index Frontloaded capital programme to fast-track improvements c. 15,000 attendees at our employability ev
Slide 24: Long-Term Value Creation
LONG-TERM VALUE CREATION 1 Early and sustained investment 60% asset base growth in AMP8 2 Top operational performance At least £300m of AMP8 outperformance 3 Strong financial growth EPS doubling between FY25 and FY28 4 Creating shareholder value Long-term growth beyond AMP8 River Avon, Warwick 24
Slide 25: Appendix
APPENDIX
Slide 26: Technical Guidance 2025/26
TECHNICAL GUIDANCE 2025/26 Regulated Water and Wastewater FY25 Year-on-year Turnover Around £2.6 billion including HS2 related income. £2.25bn ▲ Operating costs & IRE 5% - 8% higher year-on-year including continued investment in operational performance and increases in national insurance and pay. £1
Slide 27: Outlook Statement
OUTLOOK STATEMENT Our long-term earnings outlook remains unchanged. We project Group adjusted EPS to double in the 3-year period to 2027/28, from 112.1 pence in 2024/25, benefitting from regulated revenue growth including ODI outperformance, continued cost management, and our strategic approach to f
Slide 28: EBITDA
EBITDA¹ H1 2024 H1 2025 Variance Variance £m £m £m % 510.6 Regulated Water and Wastewater 704.2 193.6 37.9 24.4 Infrastructure Services 21.3 (3.1) (12.7) 13.0 Operating Services and Other 11.8 (1.2) (9.2) - Network Services (1.3) (1.3) n/a 10.5 Green Power 9.4 (1.1) (10.5) 0.9 Property Development 1
Slide 29: Net Finance Costs
NET FINANCE COSTS H1 2024 H1 2025 Income Gross Income Gross statement Capitalised interest statement Capitalised interest charge interest incurred charge interest incurred £m £m £m £m £m £m 79.9 43.0 122.9 Cash interest (including accruals) 95.4 72.0 167.4 5.0 – 5.0 Net pension finance cost 3.4 – 3.
Slide 30: Adjusted Earnings Per Share
ADJUSTED EARNINGS PER SHARE H1 2024 H1 2025 Variance Variance £m £m £m % 297.8 Profit before interest and tax 466.2 168.4 56.5 (124.6) Net finance costs (161.2) (36.6) (29.4) 0.6 Share of current year profit/(loss) of joint venture (1.6) (2.2) (366.7) 173.8 Adjusted profit before tax 303.4 129.6 74.
Slide 31: Adjusted Net Debt
ADJUSTED NET DEBT 31 March 2025 30 September 2025 Variance Variance £m £m £m % (784.7) Bank loans (787.4) (2.7) (0.3) (8,798.0) Other loans (9,844.2) (1,046.2) (11.9) (111.1) Lease liabilities (113.7) (2.6) (2.3) 1,044.8 Net cash and cash equivalents 1,449.2 404.4 38.7 23.1 Fair value accounting adj
Slide 32: Fair Value of Debt
FAIR VALUE OF DEBT 1 31 March 2025 30 September 2025 Variance Variance £m £m £m % (783.8) Floating rate debt 2 (779.8) 4.0 0.5 (6,096.8) Fixed rate debt (7,164.6) (1,067.8) (17.5) (1,703.4) Index-linked debt (1,647.4) 56.0 3.3 (8,584.0) (9,591.8) (1,007.8) (11.7) 1,044.8 Net cash and cash equivalent
Slide 33: Debt Maturity Profile
£m 0 100 300 400 500 600 800 900 200 700 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 FY39 FY40 DEBT MATURITY PROFILE FY41 FY42 FY43 FY44 Debt FY45 FY46 FY47 FY48 FY26 Funding FY49 FY50 FY51 FY52 FY53 FY54 FY55 FY56 FY57 FY58 FY59 FY60 FY61 FY62 FY63 FY64 FY65 FY66 FY67 FY68 FY69
Slide 34: Gearing and Credit Ratings
GEARING AND CREDIT RATINGS 31 March 2025 Adjusted net debt/RCV 30 September 2025¹ 62.7% Regulated gearing 61.5% 31 March 2025 30 September 2025 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 o