Severn Trent Set For Q1 Trading Update: Investors Eye Delivery On Record Investment Plan

Severn Trent will publish its first-quarter trading update for the 2026/27 financial year on Thursday, 9 July, the first scheduled market update since chief executive James Jesic unveiled a bullish set of full-year results in May.

At those FY26 results, published on 20 May, Jesic hailed “another year of exceptional growth,” reporting revenue up 16.6% to £2.83bn, PBIT up 45.9% to £861m, and adjusted EPS up 64.5% to 184.4p, on the back of record capital investment of £1.9bn — more than 60% higher than two years ago.

Management used the update to raise its 2028 adjusted EPS guidance to “at least 250p,” from 224p previously, while confirming plans to invest a further £2.2bn-£2.5bn in FY27 and reaffirming its target of over £300m in performance incentives through to 2030.

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The board also lifted the full-year dividend 3.5% to 126.02p, in line with its AMP8 policy of CPIH-linked growth. Thursday’s update should show whether that investment and delivery momentum has continued into the new financial year.

Shares in the water utility have been volatile in recent months, swinging between roughly 2,812p and 3,220p since early May, and last closed at 3,002p, near the 50-day moving average of 3,014p and comfortably within a 52-week range of 2,282p-3,254p.

Analyst opinion remains split. The average Wall Street price target sits around 3,228p, with Morgan Stanley (Equal Weight, 3,500p) and RBC (Sector Perform, 3,450p) more bullish, while Citi has turned more cautious with a 2,879p target, reflecting debate over valuation versus execution risk on the AMP8 investment programme.