Severn Trent earnings: results and guidance
Severn Trent's next results are due on November 18, 2026. Watch whether Severn Trent's investment pace is accelerating while financing costs remain manageable and liquidity is replenished.
What has Severn Trent guided for FY27?
Management targets at least 250p of adjusted EPS in FY28. It also plans £2,200–£2,500 million of capital investment in FY27.
Management’s promise is higher underlying earnings alongside the company’s largest investment programme. Adjusted basic earnings per share, or EPS, is profit attributed to each share after specified items are removed; it is not cash available for shareholders.
| Period | Low | High | Given on | |
|---|---|---|---|---|
| Turnover — Regulated Water and Wastewater | Year to Mar 2027 | 2,900 | 2,900 | May 20, 2026 |
| Operating costs & IRE — year-on-year increase (%) | Year to Mar 2027 | 7.0% | 9.0% | May 20, 2026 |
| Total performance incentives | Year to Mar 2027 | 50 | Jul 9, 2026 | |
| Capital investment | Year to Mar 2027 | 2,200 | 2,500 | Jul 9, 2026 |
| Dividend (pence) | Year to Mar 2027 | 130.50 | 130.50 | May 20, 2026 |
| Group adjusted basic EPS (pence) | Year to Mar 2028 | 250.00 | May 20, 2026 |
What do Severn Trent's last eight reported periods show?
Revenue, operating income, net income and diluted EPS all improved in the six months to March 2026. The September 2025 half also improved against its predecessor, which makes the annual recovery broader than one unusually strong closing period. Both comparisons benefited from the same new price settlement, however, so they do not establish that the growth will recur once that settlement enters the comparative year.
| 6 months to Mar 2026 | 6 months to Sep 2025 | 6 months to Mar 2025 | 6 months to Sep 2024 | 6 months to Mar 2024 | 6 months to Sep 2023 | 6 months to Mar 2023 | 6 months to Sep 2022 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1,394.1 | 1,436.9 | 1,209.3 | 1,217.7 | 1,172.9 | 1,165.3 | 1,103.3 | 1,061.8 |
| Operating income | 394.8 | 466.2 | 292.2 | 297.8 | 256.7 | 255.1 | 247.1 | 261.7 |
| Net income | 143.6 | 227.4 | 87.6 | 141.4 | 88.6 | 51.6 | 53.4 | 78.8 |
| EPS, diluted | 47.60 | 75.50 | 29.30 | 47.10 | 30.50 | 20.40 | 21.20 | 31.30 |
| Cash from operations | 610.5 | 654.5 | 358.1 | 554.9 | 306.4 | 506.9 | 244.4 | 504.9 |
| = Free cash flow | -735 | -310 | -721.6 | -244.4 | -546.7 | -67.5 | -305.1 | 132.6 |
What this means. Free cash flow is negative even when cash from daily business is positive because the company spent more on equipment, leases, and interest than it brought in.
What should I watch in Severn Trent's next results?
The 18 November 2026 interim results should show whether construction is accelerating, financing costs remain manageable and liquidity is being replenished. Progress against the FY27 performance-incentive target matters, but earned incentives and collected cash arrive at different times.
The £239 million consumer claim remains contingent, with the Supreme Court hearing listed for 8–9 February 2027. These events will test more than earnings: they will test compliance and cash.