Severn Trent Raises Earnings Forecast After Beating Expectations

Thursday, May 21, 2026

Severn Trent increased its earnings forecast to at least 250p per share by 2028 after reporting a profit before interest and tax of £861 million for the fiscal year ending March 31. The company’s improved financial outlook follows better operational performance and a 41 percent reduction in storm overflow discharges, alongside a 3.5 percent dividend increase.

Severn Trent has revised its earnings forecast upward after surpassing market expectations for the fiscal year ending March 31. The UK-based water company now anticipates adjusted earnings per share to reach at least 250p by 2028, an increase from its previous target of 224p.

The company reported a profit before interest and tax of £861 million for the year, driven in part by improved operational performance and a significant reduction in sewage spills. Severn Trent said that discharges from storm overflows decreased by 41 percent compared to the prior year, reflecting progress in managing environmental impacts.

In addition to the earnings upgrade, Severn Trent announced a 3.5 percent rise in its dividend, now set at 126.02p per share. The company emphasized its commitment to delivering value to shareholders while advancing efforts to enhance sustainability and operational efficiency across its network.