Severn Trent on course to meet targets with improved leakage efforts

Severn Trent PLC on Thursday said it expects to perform in line with guidance, with investment plans on track, alongside expected ‘improvements in leakage’.

In a trading update covering its financial year up to Wednesday, the water utility, which operates in areas including the Midlands and Wales, said financial performance for the financial year remains ‘on track, and we expect to perform in line with guidance.’

The Coventry, England-based company said this includes delivering at least £25 million in outcome delivery incentives in the financial year, which runs to March 31, 2026.

‘We anticipate the main contributors of our operational outperformance to be improvements in leakage, driven by increased proactive work to find and fix leaks, and our continued efforts to bring down storm overflow spills,’ the firm said in a statement.

In March, Severn Trent said it expects adjusted earnings per share to double in the financial three-year period to March 2028 from 112.1 pence in the financial year that ended this past March.

Severn Trent said it is ‘firmly on track’ to achieve its target to reduce average spills to below 18 this year. In the first six months of calendar 2025, 2,000 storm overflow interventions have contributed to an average spills performance of around five, the firm said, down 65% year-on-year.

In addition, Severn Trent said it has invested around £360 million in its capital programme, up 19% year-on-year, leaving it on track to deliver between £1.7 billion and £1.9 billion of capital expenditure in the current financial year. In financial 2025, Severn Trent made capital investment of £1.67 billion.

Shares in Severn Trent were down 0.9% to 2,637.00 pence per share in London on Thursday morning.

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