Severn Trent (LON:SVT) Announces Quarterly Earnings Results

Severn Trent (LON:SVT) issued its earnings results on Wednesday. The company reported GBX 179.80 earnings per share (EPS) for the quarter, Digital Look Earnings reports. The business had revenue of GBX 283.10 billion during 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 1.2%

SVT opened at GBX 3,048 on Wednesday. The company has a quick ratio of 0.73, a current ratio of 1.43 and a debt-to-equity ratio of 601.64. The firm has a 50 day moving average price of GBX 3,112.09 and a 200-day moving average price of GBX 2,965.35. Severn Trent has a twelve month low of GBX 2,381 and a twelve month high of GBX 3,335. The stock has a market capitalization of £9.18 billion, a price-to-earnings ratio of 29.08, a PEG ratio of 4.69 and a beta of 0.56.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the stock. UBS Group reaffirmed a “sell” rating and issued a GBX 2,700 target price on shares of Severn Trent in a report on Monday. JPMorgan Chase & Co. boosted their price objective on shares of Severn Trent from GBX 2,975 to GBX 3,225 and gave the company a “neutral” rating in a report on Monday, April 13th. Six equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Severn Trent currently has a consensus rating of “Reduce” and a consensus target price 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.