London, 26 November 2025 — FTSE 100 water utility Severn Trent Plc (LON: SVT) is trading close to its 52‑week high as investors absorb a packed news flow: a planned CEO handover, bumper half‑year results, a fresh interim dividend and the long‑term consequences of Ofwat’s PR24 price review on bills and investment.
At Wednesday’s close, Severn Trent shares were changing hands at roughly 2,845p, up about 1.3% on the day, according to closing data from Hargreaves Lansdown. Hargreaves Lansdown That puts the stock within touching distance of its recent 52‑week peak just below 2,850p, and well above a 12‑month low near 2,320p. Marketwatch With a market capitalisation a little over £8.4bn, the group remains one of the UK’s most valuable regulated utilities. Companies Market Cap
Over the past five years, shareholders have seen total returns of around 39%, according to recent analysis of the stock’s performance. Yahoo Finance
Key takeaways for 26 November 2025
- Share price: SVT closed around 2,845p, near its 52‑week high, valuing the company at just over £8.4bn. Hargreaves Lansdown
- Leadership: Chief executive Liv Garfield will step down after 11 years; insider James Jesic becomes CEO on 1 January 2026. Reuters
- Results: For the six months to 30 September 2025, revenue rose 18%, operating profit before interest jumped 57%, and adjusted EPS surged 74% to 101p. Severn Trent
- Dividend: An interim dividend of 50.4p per share has been declared (ex‑dividend 27 November 2025, payable 12 January 2026). Severn Trent
- Regulation: Ofwat’s latest price review means Severn Trent’s average household bill is set to rise from £398 to £583 (2024/25 to 2029/30), funding major environmental investment. Ofwat
- Environment: Severn Trent Water has secured a record sixth consecutive four‑star environmental rating from the Environment Agency — the only water company at this top level in the latest report. Severn Trent
- Today’s regulatory deadlines: 26 November is the closing date for public comments on a Severn Trent Services permit in Kent and on an Ofwat consultation affecting Severn Trent’s area in Mansfield. Gov
Severn Trent share price today: SVT trades near recent highs
Severn Trent’s share price has continued the upward trend seen since its mid‑November results. At the close on 26 November 2025, Hargreaves Lansdown quotes a sell price of 2,844p and a buy price of 2,847p, up 37p (around 1.3%) on the previous session. Hargreaves Lansdown
Recent market data show SVT’s 52‑week trading range at roughly 2,323–2,847p, meaning the stock is currently near the top of its one‑year band. Marketwatch On some measures the share price is now only about 1–2% below its recent high. London Stock Exchange API
Using an estimated full‑year dividend of a little over 120p per share and the current share price, Severn Trent is offering a cash yield in the region of 4–4.5%, broadly in line with third‑party dividend data that quote a 4.4% yield. Investing.com India
CEO transition: Liv Garfield out, James Jesic in
The most eye‑catching corporate news this month is the upcoming CEO change.
On 19 November, Severn Trent announced that Liv Garfield will step down as chief executive and from the board at the end of 31 December 2025, after 11 years in the role. OTC Markets
Key points from the succession plan:
- New CEO: Long‑time insider James Jesic, currently Capital and Commercial Services Director and managing director of Welsh subsidiary Hafren Dyfrdwy, will become CEO and join the board on 1 January 2026. OTC Markets
- Transition period: Garfield will remain with the group until 31 March 2026 to support the handover. OTC Markets
- Track record: Under Garfield, Severn Trent’s shares have risen by around 50%, and she has overseen the company’s largest ever investment programme, currently put at £15bn between 2025 and 2030. Reuters
Garfield’s leadership has also attracted scrutiny. A Guardian investigation into water‑industry pay earlier this year found that UK water CEOs earned an average of £1.1m in 2024–25, highlighting Garfield as the highest‑paid with a package of about £3.3m. The Guardian Campaigners have questioned such awards against a backdrop of sewage‑pollution concerns, even as Severn Trent’s environmental scores have outperformed peers.
The Times has also noted that Garfield’s departure will reduce the already small number of female FTSE 100 CEOs, underlining the wider debate on gender diversity in top UK corporate roles. The Times
Half‑year 2025/26 results: EPS up 74% and guidance raised
Alongside the CEO announcement, Severn Trent published robust interim results for the six months to 30 September 2025. Severn Trent
Highlights from the company’s half‑year report:
- Revenue: £1,436.9m (up from £1,217.7m, +18% year‑on‑year).
- Profit before interest and tax (PBIT): £466.2m (vs £297.8m, +57%).
- Adjusted EPS:101.0p (vs 58.0p, +74%).
- Basic EPS: 75.7p (vs 47.2p, +60%).
- Net finance costs: £161.2m (vs £124.6m, +29%), reflecting higher interest rates.
- Capital investment: £769.0m (vs £665.9m, +16%).
- Regulated gearing: 61.5%, slightly lower than at the March year‑end. Severn Trent
The company says it is upgrading guidance for outcome‑delivery incentive (ODI) outperformance in FY26, now expecting at least £40m of net ODI rewards versus previous expectations of around £25m. It also reiterates a target to double adjusted EPS between FY25 and FY28, driven by a rapid expansion in its regulated asset base (RAB) and efficiency gains. Severn Trent
According to Reuters, statutory profit before tax for the first half climbed to roughly £308m, from about £192m a year earlier, underlining the strength of the rebound. Reuters
Dividend update: 50.4p interim, ex‑dividend 27 November
Income investors are focused on the new interim dividend:
- Amount:50.40p per share, up about 3.5% from last year’s interim payout of 48.68p. Severn Trent
- Ex‑dividend date:27 November 2025.
- Record date: 28 November 2025.
- Payment date:12 January 2026. Severn Trent
Dividend‑calendar data and broker screens currently imply a trailing yield of roughly 4.4%, based on recent share prices. Investing.com India
Severn Trent’s published dividend policy continues to emphasise reliable, inflation‑linked growth, stating that distributions are designed to grow at least in line with UK CPIH over the 2020–25 period, within the constraints of the regulated balance sheet. Severn Trent
Ofwat PR24: higher bills in exchange for huge investment
The 2024 price review (PR24) sets the framework for water and sewerage bills from 2025 to 2030. Ofwat’s final determinations, published late last year and elaborated in sector guidance updated through 2025, are a major driver of Severn Trent’s outlook. Ofwat
For Severn Trent Water, Ofwat’s customer‑facing summary highlights:
- Average household bill: rising from £398 in 2024/25 to £583 by 2029/30 — an increase of about 47% before inflation.
- Storm overflows: target to cut spills by 49% versus 2021 levels, supported by around £2bn of investment.
- Nutrient pollution: more than £1bn earmarked to reduce nutrient loads entering rivers.
- Leakage: planned 16% reduction in leakage over the five‑year period. Ofwat
Across England and Wales, Ofwat says the sector will quadruple investment compared with previous five‑year plans, with an average bill increase of about £31 a year to fund stricter environmental and service‑quality requirements. Ofwat
For Severn Trent, this means:
- A much larger regulated capital value (RCV) by 2030. TIKR analysis of the company’s PR24 plan suggests real RCV could rise by about 31%, from £12.4bn to more than £16.2bn, supported by an AMP8 totex programme of roughly £12.9bn. Tikr
- Rising regulated earnings potential, but also increased political and regulatory scrutiny around bills and performance, especially on sewage spills and river health.
Environmental performance: sixth straight four‑star EPA rating
In October 2025, Severn Trent announced that Severn Trent Water had once again achieved the highest possible four‑star rating in the Environment Agency’s Environmental Performance Assessment (EPA) for 2024. Severn Trent
Key points:
- This is the sixth consecutive year Severn Trent Water has held four‑star status — the longest such run of any water company. Severn Trent
- The Environment Agency’s latest sector report confirms that Severn Trent was the only water and sewerage company to secure the top rating in the most recent assessment. Gov
For investors, the EPA rating is important because Ofwat’s new powers allow it to clamp down on dividends and executive bonuses where companies cannot show strong delivery for customers and the environment. Ofwat Severn Trent’s consistent top‑tier status gives it a stronger story to tell regulators and stakeholders, even as the broader sector faces intense criticism over pollution.
Today’s regulatory and operational news (26 November 2025)
While there was no new RNS announcement from Severn Trent itself on 26 November, the day is notable for a series of regulatory deadlines and operational updates around the group:
1. Environment Agency permit consultation closes
The Environment Agency is today closing a public consultation on a permit application involving Severn Trent Services (Water and Sewerage) Limited at Chilmington Green Water Recycling Centre near Ashford, Kent (postcode TN26 1HH). Gov
The permit concerns a revised discharge point for secondary‑treated sewage effluent into a tributary of the River Beult, with a proposed volume of 927 cubic metres per day. Following concerns about flood risk at the originally proposed location, Severn Trent Services put forward a new discharge point downstream; the consultation runs until 26 November 2025. Gov
2. Ofwat NAV consultation involving Severn Trent’s area
Also closing today is an Ofwat consultation on a proposal to vary appointments so that ESP Water Limited becomes the water and sewerage provider for a new development at Water Lane, Mansfield, currently within Severn Trent Water’s region. Ofwat
The document sets a deadline of 17:00 on 26 November 2025 for representations. While Severn Trent would remain involved through bulk supply and discharge agreements, the change would see ESP Water directly serve around 372 planned household customers at the site. Ofwat
NAV (new appointment and variation) cases like this matter because they can slightly chip away at incumbents’ customer bases, but they also create new wholesale‑style revenue opportunities via bulk‑supply deals.
3. Local network work and incident updates
On its operational incident map, Severn Trent reports that repairs to a burst water main affecting parts of Warwickshire (B92/B93) were completed in the early hours of 26 November 2025, with supplies back to normal. Severn Trent Water
Such local issues are routine for a large network operator, but the company’s ability to resolve them quickly feeds into customer‑service metrics and ODI rewards under the regulatory regime.
4. Recruitment drive across the Midlands
Severn Trent’s careers site lists a cluster of new jobs posted on 26 November 2025, including maintenance technicians in Worcestershire, distribution operatives in Birmingham and Nottinghamshire, and a tanker fleet team manager role. Severntrent
The breadth of new roles suggests the company continues to scale up its operational and bioresources capability as it prepares for the heavy AMP8 investment cycle.
Long‑term growth story: heavy capex, steady cashflows, rising scrutiny
A recent deep‑dive from investment‑research platform TIKR argues that Severn Trent enters 2026 with one of the largest forward investment agendas in UK utilities, underpinned by a long list of statutory environmental obligations and resilience projects. Tikr
Their analysis, based on company plans and consensus estimates, points to:
- Revenue rising from about £2.47bn in 2025/26 to more than £3.1bn by 2029/30.
- Operating profit north of £1bn by later in the decade.
- Real RCV growth of around 31% by 2030. Tikr
For investors, the bull case centres on:
- Inflation‑linked, regulated cashflows.
- A visible multi‑year capex pipeline that can support earnings and dividend growth.
- A strong delivery record on ODIs, financing and environmental metrics compared with peers. Severn Trent
The bear case focuses on:
- Political risk: big bill increases at a time of cost‑of‑living pressure make water companies easy targets for politicians and campaigners. Ofwat
- Regulatory risk: Ofwat now has explicit powers to limit dividends and bonuses if performance disappoints. Ofwat
- Financing risk: higher interest rates have already pushed net finance costs up nearly 30% year‑on‑year, and the group is running a large, long‑term debt programme under its €12bn Euro Medium Term Note (EMTN) framework. Severn Trent
What today’s picture means for Severn Trent investors
Putting it all together, as of 26 November 2025:
- The share price is strong, trading close to the top of its 52‑week range.
- The earnings and dividend story is positive in the near term, with sharp EPS growth and a comfortably covered interim payout. Severn Trent
- Leadership risk is in focus, but the incoming CEO is a long‑tenured internal candidate intimately involved in the group’s investment and environmental programmes. OTC Markets
- The regulatory backdrop is both supportive (huge allowed investment, incentives for outperformance) and demanding (higher standards, tougher scrutiny on bills, pollution and pay). Ofwat
For existing or potential shareholders, the big question is whether the current valuation — near 12‑month highs and on a mid‑20s price‑earnings multiple according to several market data providers Yahoo Finance — adequately reflects the balance between long‑term regulated growth and the mounting political and environmental expectations facing the water industry.
As always, this article is informational only and not investment advice. Anyone considering buying or selling SVT shares should do their own research and, if needed, seek regulated financial advice.
