Severn Trent (LON:SVT) Releases Earnings Results

Severn Trent (LON:SVT) announced its quarterly earnings results on Wednesday. The company reported GBX 179.80 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 11.92% and a return on equity of 17.64%.

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 Stock Up 0.3%

Shares of LON:SVT opened at GBX 3,088 on Thursday. The firm has a fifty day moving average price of GBX 3,112.01 and a two-hundred day moving average price of GBX 2,967.37. The company has a debt-to-equity ratio of 601.64, a current ratio of 1.43 and a quick ratio of 0.73. Severn Trent has a one year low of GBX 2,381 and a one year high of GBX 3,335. The company has a market cap of £9.30 billion, a price-to-earnings ratio of 29.47, a PEG ratio of 4.69 and a beta of 0.56.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on SVT shares. JPMorgan Chase & Co. upped their price target on shares of Severn Trent from GBX 2,975 to GBX 3,225 and gave the company a “neutral” rating in a research note on Monday, April 13th. UBS Group restated a “sell” rating and set a GBX 2,700 price target on shares of Severn Trent in a research note on Monday. Six equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Severn Trent presently has an average rating of “Reduce” and a consensus price target of GBX 2,938.43.

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.