Severn Trent FY26 Conference Call Feedback

Research evidence excerpt

Severn Trent FY26 Conference Call Feedback

C A Z E N O V E Europe Equity Research

20 May 2026

Severn Trent Neutral

SVT.L, SVT LN

FY26 Conference Call Feedback Price (19 May 26):3,012p

Price Target (Mar-28):3,225p

The conference call mainly focused on the quantum of reopeners, guidance European Utilities & Clean Energy

ACupgrade, and drivers of ODI outperformance/opex efficiency. Overall, we believe Pavan Mahbubani, CFA

today’s results and EPS upgrade further support the company’s track record of (44-20) 7134-3056

growth & value creation. pavan.mahbubani@jpmorgan.com

J.P. Morgan Securities plc

• Reopeners: Management highlighted the £600m reopeners filed this month Javier Garrido

mainly focuses on asset health, including renewals of water storage tanks and (34-91) 516-1557

investment in waste resilience. They noted bill impact is a key consideration javier.x.garrido@jpmorgan.com

(alongside incentive rewards/returns) in their approach to the reopener J.P. Morgan Securities plc

submissions. They also noted they met the conditions for in-period funding for Samanvitha Theegela

asset health and are in continued discussions with the regulator. (91-22) 6157-5846

samanvitha.theegela@jpmchase.com

• AI & Efficiencies: Management highlighted multiple benefits from AI across J.P. Morgan India Private Limited

weather prediction, sewage pumping optimisation and route selection for Mukund Verma

cross-country pipelines, helping design processes become faster. They are now (44-20) 7742-4181

targeting ~£150m of operating cost efficiencies by 2030, on top of the £500m mukund.verma@jpmorgan.com

capital efficiency target, with £36m delivered in FY26 and 40% of the capital

target already locked in. Specialist Sales contact details: