Severn Trent Raises Earnings Outlook and Exceeds 2026 Forecasts
Severn Trent's Financial Performance and Strategic Investments
May 20 (Reuters) - British water utility Severn Trent has upgraded its adjusted earnings forecast for 2028 and beat market expectations for fiscal 2026 on Wednesday, supported by improved operating performance, including fewer storm overflow spills.
The UK water sector faces mounting pressure to boost investment in ageing infrastructure and curb pollution, prompting utilities such as Severn Trent to ramp up spending and accelerate upgrades to sewage and water networks.
Key Financial Highlights
Upgraded Earnings Forecast
• The British utility has upgraded its 2028 adjusted earnings-per-share forecast to at least 250 pence, from previous outlook of 224 pence.
Environmental and Operational Improvements
• "Our investments are driving environmental improvements, including a 41% year-on-year reduction in average spills from storm overflows," CEO James Jesic said in a statement.
Profit and Dividend Performance
Profit Before Interest and Tax
• The water utility posted profit before interest and tax at 861 million pounds ($1.15 billion) for the year ended March 31, up from analysts' expectations of 847 million pounds, according to a company-compiled consensus.
Dividend Growth
• The company posted a dividend at 126.02 pence, a 3.5% increase year-on-year.
Additional Information
($1 = 0.7462 pounds)
(Reporting by Ankita Bora in Bengaluru; Editing by Sherry Jacob-Phillips)
