Severn Trent PLC (LSE:SVT) topped the FTSE 100 leaderboard with a 3% rise after upgrading its 2028 adjusted earnings per share outlook to at least 250p, up from a previous target of 224p, after delivering what chief executive James Jesic called another year of exceptional growth.
The company invested £1.9 billion in the year to March 2026, increasing its capital spending by more than 60% over two years and driving a 13% increase in its regulatory asset base to £15.4 billion.
Revenue rose 16.6% to £2.83 billion, while profit before interest and tax climbed 45.9% to £861 million, helped by operational leverage and efficiency gains.
Adjusted earnings per share jumped 64.5% to 184.4p.
Severn Trent said it plans to invest between £2.2 billion and £2.5 billion in the current financial year, with a further 13% increase in the regulatory asset base to £17.4 billion expected.
The group earned £73 million in performance incentives during the year, ahead of expectations, and is reaffirming guidance of more than £300 million in total performance incentives through to 2030.
Operationally, the company reduced pollution incidents by 35%, cut leakage by 8% and lowered sewer flooding events by 12%, with artificial intelligence contributing to efficiency and customer experience improvements.
Storm overflow spills fell 41% year on year, with the company accelerating delivery of its performance commitment in that area from the second year of the current regulatory period.
Severn Trent raised £1.8 billion in debt financing during the year at 66 basis points below the regulatory allowance for the cost of new debt, while providing £127 million in bill support for around 330,000 households.
The board proposed a total ordinary dividend of 126.02p per share, up 3.5% in line with its policy of increasing the payout by at least the consumer prices index, including housing costs, each year.
The company's infrastructure services division remains on track to deliver around £100 million in EBITDA by the 2030 financial year.
The shares, up 10% year-to-date, were changing hands for 3,096p in early trading on Wednesday.
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