Severn Trent Plc (LON:SVT) has announced the following trading update for the period to 10 February 2026.
We have established strong momentum in the first year of this regulatory period and are on track to meet our environmental and operational targets. Our financial performance is in line with expectations.
Thanks to the benefits of insourcing and scaling our programme early, we expect to deliver towards the top end of our capital investment guidance range of £1.7 billion – £1.9 billion, our highest-ever year.
We remain on track to deliver at least £40 million of reward from outcome delivery incentives (ODIs)1 and price control deliverable (PCD)2 performance, expecting to achieve all PCD milestones and associated reward this year.
We continue to drive further improvements in our year-on-year environmental performance and are confident of earning the highest possible 4-star Environmental Performance Assessment (EPA)3 for a record seventh consecutive year.
James Jesic, Chief Executive, Severn Trent Plc, said:
“This has been a quarter of delivery in a period of strong growth, and I am proud of the contributions of the whole team. Having taken the reins as CEO, I’m meeting every Severn Trenter face to face, and it’s brilliant to see the level of energy and focus the organisation has on delivering for our customers and communities.
“With our capital programme well underway, we remain on track to deliver on environmental targets and meet the financial guidance set out at our interim results. We have welcomed the Government’s White Paper as a step in the right direction and look forward to further clarity on timing and implementation in the Transition Plan expected later this year.”
Financial calendar
We will announce our full-year results for FY26 on 20 May 2026, and our Annual General Meeting will be held on 9 July 2026.
Footnotes
1. ODI: Outcome Delivery Incentive. A framework made up of outcomes, measures, targets and incentives which provides companies with rewards for achieving stretching performance targets and compensates customers if performance is below performance targets.
2. PCD: Price control deliverables (‘PCD’s) set out Ofwat’s expectations for delivery specifically on expenditure programmes, funded through defined expenditure allowances.
3. EPA: The industry standard measure of the environmental performance of water and sewerage companies (‘WaSCs’), and 4-star represents the highest rating achievable.
