Severn Trent (LON:SVT) Announces Quarterly Earnings Results

Severn Trent (LON:SVT) issued its quarterly earnings data on Wednesday. The company reported GBX 179.80 earnings per share (EPS) for the quarter, Digital Look Earnings reports. The company had revenue of GBX 283.10 billion for the quarter. Severn Trent had a net margin of 13.10% and a return on equity of 20.35%.

Here are the key takeaways from Severn Trent’s conference call:

• Severn Trent reported a strong year of operating and financial performance, with PBIT up 46% to GBP 861 million and adjusted EPS up 64.5%, driven by regulated revenue growth, acquisitions, and efficiencies.
• The company upgraded its 2028 earnings guidance to at least GBP 2.50 from GBP 2.24, reflecting confidence in its outlook and continued execution against its investment plan.
• Management highlighted record investment and asset growth, with the regulatory asset base rising 13% to GBP 15.4 billion and a plan to grow it further to GBP 17.4 billion next year before reopeners.
• The company emphasized its environmental and operational outperformance, including lower spills and pollution, all-time low leakage, and a seventh straight year on track for EPA 4-star status.
• Severn Trent said it has a strong balance sheet and financing position, including liquidity through at least August 2027, regulated gearing at 63.6%, and 90% hedged energy needs for the next three years.

Severn Trent Trading Up 1.0%

LON:SVT opened at GBX 3,130 on Friday. Severn Trent has a 52 week low of GBX 2,381 and a 52 week high of GBX 3,335. The firm has a 50 day moving average of GBX 3,111.97 and a 200 day moving average of GBX 2,969.54. The company has a quick ratio of 0.73, a current ratio of 1.39 and a debt-to-equity ratio of 596.63. The stock has a market capitalization of £9.42 billion, a price-to-earnings ratio of 29.87, a PEG ratio of 4.69 and a beta of 0.56.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on SVT shares. Jefferies Financial Group reissued a “buy” rating and issued a GBX 3,220 price objective on shares of Severn Trent in a research note on Thursday. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a GBX 3,300 price objective on shares of Severn Trent in a research note on Thursday. JPMorgan Chase & Co. boosted their price objective on shares of Severn Trent from GBX 2,975 to GBX 3,225 and gave the stock a “neutral” rating in a research note on Monday, April 13th. Finally, UBS Group reissued a “sell” rating and issued a GBX 2,700 price objective on shares of Severn Trent in a research note on Monday. One investment analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of GBX 3,075.57.

Severn Trent Company Profile

As one of Britain’s largest water companies, we supply fresh, clean drinking water to over nine million people across our region – around two billion litres every day. Once used, we collect, clean, and treat the water before safely returning it to the environment. We are one of only three listed water stocks in the UK, offering a valuable combination of reliable earnings, long-term asset growth, and inflation-linked dividends. The UK’s regulatory model provides a high degree of certainty over five-year periods.