Should I buy Severn Trent stock in 2025?
Is it the right time to buy Severn Trent?
ScoreSevern Trent PLC, one of the UK’s leading water and wastewater service providers, is currently trading at approximately 2,703p with a robust average daily trading volume of around 753,480 shares. The stock has displayed steady growth over the past year, rising more than 12%, and has recently drawn attention for its record annual results and the regulatory approval of a £14.9 billion investment plan extending through 2030. Notably, Severn Trent achieved a 41% surge in adjusted earnings per share in its latest annual report, surpassing market expectations and reinforcing investor confidence. Despite some short-term technical consolidation captured by technical indicators, market sentiment remains optimistic, buoyed by the company’s stable, regulated business model and commitment to infrastructure modernisation. As a defensive stock in the UK utilities sector, Severn Trent benefits from essential demand for its services and a growing focus on renewable energy production. The consensus among more than 12 national and international banks sets a target price of about 3,514p, reflecting strong conviction in its medium- and long-term prospects. At current levels, Severn Trent presents a noteworthy prospect for those seeking reliable income and structural growth within a defensive sector.
- ✅Record annual earnings; adjusted EPS up 41% year-on-year in 2025.
- ✅£14.9 billion investment plan approved, boosting infrastructure and long-term asset value.
- ✅Attractive dividend yield of 4.45% with commitment to inflation-linked growth.
- ✅Monopolistic position with a stable customer base of 4.7 million households.
- ✅Leader in renewable energy generation, with 66% energy self-sufficiency.
- ❌High debt ratio typical for sector, making sensitivity to interest rates worth monitoring.
- ❌Recent technical indicators suggest possible short-term consolidation or volatility.
Score- ✅Record annual earnings; adjusted EPS up 41% year-on-year in 2025.
- ✅£14.9 billion investment plan approved, boosting infrastructure and long-term asset value.
- ✅Attractive dividend yield of 4.45% with commitment to inflation-linked growth.
- ✅Monopolistic position with a stable customer base of 4.7 million households.
- ✅Leader in renewable energy generation, with 66% energy self-sufficiency.
Is it the right time to buy Severn Trent?
- ✅Record annual earnings; adjusted EPS up 41% year-on-year in 2025.
- ✅£14.9 billion investment plan approved, boosting infrastructure and long-term asset value.
- ✅Attractive dividend yield of 4.45% with commitment to inflation-linked growth.
- ✅Monopolistic position with a stable customer base of 4.7 million households.
- ✅Leader in renewable energy generation, with 66% energy self-sufficiency.
- ❌High debt ratio typical for sector, making sensitivity to interest rates worth monitoring.
- ❌Recent technical indicators suggest possible short-term consolidation or volatility.
Score- ✅Record annual earnings; adjusted EPS up 41% year-on-year in 2025.
- ✅£14.9 billion investment plan approved, boosting infrastructure and long-term asset value.
- ✅Attractive dividend yield of 4.45% with commitment to inflation-linked growth.
- ✅Monopolistic position with a stable customer base of 4.7 million households.
- ✅Leader in renewable energy generation, with 66% energy self-sufficiency.
- What is Severn Trent?
- The Severn Trent Stock Price
- Our full analysis on the Severn Trent stock
- How to buy Severn Trent stock in the UK?
- Our 7 tips for buying Severn Trent stock
- The latest news about Severn Trent
- FAQ
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of the Severn Trent share for over three years. Every month, hundreds of thousands of users in the UK trust us to analyse market trends and identify the best investment opportunities. Our analyses are for informational purposes only and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Severn Trent.
What is Severn Trent?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United Kingdom | Severn Trent operates as a key UK water utility with strict local and national regulation. |
| 💼 Market | London Stock Exchange (LSE) | Listed on the LSE, providing easy access and liquidity for GB-based investors. |
| 🏛️ ISIN code | GB00B1FH8J72 | Unique ISIN code identifies Severn Trent shares for global investors. |
| 👤 CEO | Liv Garfield | CEO Liv Garfield has overseen major investment and record-breaking financial results. |
| 🏢 Market cap | £8.415 billion | A stable large-cap status, reflecting the company’s essential, regulated services. |
| 📈 Revenue | £2,426.7 million (2025) | Revenue grew 3.8% this year, driven by regulated price increases and customer growth. |
| 💹 EBITDA | £1,069.3 million (2025 est.) | Strong EBITDA signals operational resilience in a capital-intensive sector. |
| 📊 P/E Ratio (Price/Earnings) | 35.54 (TTM) / 14.51 (forward) | High current P/E, but lower forward P/E highlights earnings growth potential after investments. |
The Severn Trent Stock Price
The price of Severn Trent stock is rising this week. Severn Trent is trading at 2,703.00p, up 23.00p in the last 24 hours and gaining 1.73% over the week. The company’s market capitalisation is currently £8.415 billion, with an average three-month trading volume of 753,480 shares. Its Price/Earnings Ratio stands at 35.54, the dividend yield is a solid 4.45%, and the stock’s beta is a low 0.34. The steady uptrend, stable yield, and defensive market profile highlight Severn Trent’s value for UK investors seeking reliability and growth potential.
Our full analysis on the Severn Trent stock
Our review of Severn Trent’s latest financial results and its three-year share performance brings together financial indicators, technical signals, market data, and competitive intelligence, synthesised with proprietary algorithms for a comprehensive investment perspective. These insights enable a deep analysis of value drivers and risk mitigants. So, why might Severn Trent stock once again become a strategic entry point into the regulated UK utilities sector in 2025?
Recent performance and market context
Severn Trent shares have displayed steady upward momentum in 2025, now trading at 2,703.00p, up 1.73% this week and 12.17% year-on-year. Market capitalisation stands at £8.415 billion, reflecting the company’s position as a cornerstone of the UK’s water and wastewater sector. The stock’s defensive nature is underpinned by robust results: annual revenue rose 3.8% to £2.43 billion, and consensus analyst targets highlight continued upside potential, with a 2,848.50p projection. Key positive events—record results, a 41% rise in earnings per share, and regulatory approval for a £14.9 billion infrastructure plan—have strengthened investor sentiment despite global macroeconomic volatility.
Technical analysis
From a technical perspective, Severn Trent’s short-term setup suggests healthy yet consolidating conditions. The price is slightly below its 20-, 50-, 100-, and 200-day moving averages—indicating a recent pause after strong gains. The RSI (14), currently at 42.44, is in neutral territory and signals consolidation rather than risk of overbought weakness, while the MACD (-13.0) reflects this ongoing digestion. Key support has formed in the 2,675–2,701p range, protecting against deeper short-term pullbacks. Immediate resistance stands between 2,712–2,807p; a decisive move above these levels could drive renewed momentum. For investors, such a technical context offers an excellent opportunity to accumulate positions near support ahead of likely bullish reversals.
Fundamental analysis
Severn Trent’s fundamentals justify renewed interest for both defensive and growth-oriented investors. In the twelve months to March 2025, revenue reached £2,426.7 million (+3.8% on 2024), underpinned by robust PBIT (£590.2 million, +15.3%) and net profit (£229.4 million). Notably, headline earnings per share rose over 50%, far surpassing analyst forecasts. The current P/E ratio of 35.54 (falling to 14.51 forward) highlights elevated valuations following strong performance, but projected earnings growth and an attractive 4.45% yield provide meaningful compensation. Severn Trent’s strengths are anchored in its highly defensive, regulated monopoly, a customer base of 4.7 million homes, and sector leadership in renewable energy generation (66% self-sufficiency). Long-term infrastructure investment of £14.9 billion, regulatory certainty, and progressive dividends further reinforce a resilient and innovative profile poised for future expansion.
Volume and liquidity
Sustained turnover supports market confidence, with an average daily volume of 753,480 shares and a substantial market float. This liquidity promotes transparent price discovery and enables both institutional and retail investors to build, adjust, or exit positions efficiently. A freely traded structure reduces pricing distortions and supports continuous, dynamic valuation—benefits that are crucial for investors seeking stability and tradability in UK utilities.
Catalysts and positive outlook
A suite of bullish catalysts is driving optimism around Severn Trent’s prospects:
- Regulatory clarity and stability: The final approval of a £14.9 billion investment plan through 2030 ensures clear growth pathways, underwritten by the UK’s supportive regulatory framework.
- Rising earnings and dividends: Analyst consensus projects strong growth, with adjusted earnings per share expected to double between 2025 and 2028.
- Energy transition leadership: Severn Trent’s pioneering renewable energy initiatives (generating 912 GWh, up 11% YoY) tie directly into regulatory rewards and ESG preferences.
- Defensive attributes: As a monopolistic water utility with essential services, the group’s revenues are resilient even in turbulent economic climates.
- Strategic innovation: New technologies and digital infrastructure investments add operational efficiencies and improve customer outcomes.
Further upside stems from sector-wide tailwinds: ongoing demand for water infrastructure, cost inflation pass-through capability, and a political landscape that remains supportive of utility investment and sustainability mandates.
Investment strategies
Severn Trent’s profile favours a range of investment horizons. For short-term traders, the current technical pullback to strong support zones may offer attractive entry points ahead of expected bullish reversals, particularly as macro sentiment turns and new infrastructure milestones approach. Medium-term investors will find reassurance in regulatory clarity, robust capital expenditure cycles, and the company’s ability to deliver progressive dividend growth. Long-term investors stand to benefit from Severn Trent’s unmatched market stability, its defensible regulated position, and the prospect of multi-decade capital appreciation driven by sustainable water management, innovation, and population growth in its catchment areas. Accumulating shares during periods of consolidation—especially as the price aligns with key technical levels or before earnings updates—seems to represent an excellent opportunity to capture both consistent yield and future capital gains.
Is it the right time to buy Severn Trent?
The convergence of regulatory certainty, healthy earnings momentum, and progressive dividend policy sets Severn Trent apart as a robust, income-generating investment opportunity. A compelling blend of structural defensiveness, rapid profit growth, and sustainable innovation underpins a case for renewed optimism. While short-term technical signals suggest current consolidation, medium- and long-term prospects are strongly underpinned by favourable sector dynamics, historic investment approvals, and Severn Trent’s powerful positioning in the market. For investors seeking a balanced combination of resilience, visibility, and upside, Severn Trent appears poised to enter a promising new phase—making now an opportune time to revisit and seriously consider adding this quality stock to a diversified portfolio.
Severn Trent stands as a model of stability and upside potential in the evolving utilities sector, offering investors a unique blend of secure income, impressive growth prospects, and essential infrastructure exposure at a time when visibility and dependability are increasingly valued by the market.
How to buy Severn Trent stock in the UK?
Buying Severn Trent stock online is straightforward and secure when using a regulated UK broker. Investors have two main options: buy Severn Trent shares directly (spot/cash buying), becoming a shareholder, or trade Contracts for Difference (CFDs) to speculate on price movements. Both methods offer flexible access for all levels of experience. For a detailed broker comparison, simply refer to the section further down this page.
Cash buying
When you buy Severn Trent shares for cash, you own the actual shares and benefit from dividends and long-term growth. This involves paying a fixed commission per order, typically £5–£10 per trade, with all transactions in GBP. This method is ideal for those seeking stable income and direct shareholder rights.
Gain scenario
If the Severn Trent share price is £27.03, you can buy around 36 shares with a £1,000 stake, including a brokerage fee of around £5.
✔️ Gain scenario:
If the share price rises by 10%, your shares are now worth £1,100. Result: +£100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD trading allows you to speculate on Severn Trent’s price movements without owning the shares. You simply trade on the difference in price and can use leverage to increase your exposure. Main costs include the spread (the broker’s margin) and overnight financing fees for positions held longer than a day.
Gain scenario
You open a CFD position on Severn Trent shares, with 5x leverage using a £1,000 deposit.
This gives you a market exposure of £5,000.
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +£400 gain, on a bet of £1,000 (excluding fees).
Final advice
Before you invest, always compare the fees, account types, and conditions offered by different brokers to ensure they suit your goals and risk tolerance. The selection between cash buying or CFDs will depend on your preferred strategy and investment objectives. For more insights, refer to the comprehensive broker comparison further down this page.
Compare the best brokers in the UK!Compare brokersOur 7 tips for buying Severn Trent stock
| 📊 Step | 📝 Specific tip for Severn Trent |
|---|---|
| Analyze the market | Assess trends in the UK utilities sector and look for regulatory changes or investment plans impacting Severn Trent. |
| Choose the right trading platform | Opt for a UK-regulated broker offering the London Stock Exchange with competitive fees for seamless Severn Trent transactions. |
| Define your investment budget | Determine an appropriate amount to invest, considering Severn Trent’s stability but also diversifying your portfolio. |
| Choose a strategy (short or long term) | Favour a long-term approach to benefit from Severn Trent’s essential service profile and dividend growth policy. |
| Monitor news and financial results | Keep track of Severn Trent’s annual results, investment programmes, and upcoming dividend dates for informed decisions. |
| Use risk management tools | Set stop-loss levels and review regularly, especially given utilities sector sensitivity to interest rate changes. |
| Sell at the right time | Consider taking profits after major investment milestones or when share prices approach analyst target levels. |
The latest news about Severn Trent
Severn Trent delivered record annual results with EPS up 41%, surpassing analyst expectations. The company’s full-year report, released 31 March 2025, showed a robust revenue increase to £2,426.7 million (+3.8% year-on-year) and profit before interest and tax up to £590.2 million (+15.3%). Net profit reached £229.4 million, and adjusted earnings per share surged to 112.1p, far exceeding market forecasts and underlining the strength of its core operations in the UK regulated water sector.
Regulators granted final approval to Severn Trent’s £14.9 billion infrastructure investment plan for 2025–2030. In the first week of July, Ofwat and relevant authorities officially endorsed Severn Trent’s long-term investment programme, unlocking significant capital for modernisation of water and wastewater infrastructure in the Midlands and Wales. This approval provides exceptional earnings and operational visibility, reinforcing long-term confidence for UK investors.
Severn Trent shares have shown resilient performance, gaining 1.73% over the past week and 12.17% over 12 months. Despite short-term technical consolidation, market sentiment remains positive, supported by the stock’s defensive profile, record capital allocation, and a consistently stable customer base of 4.7 million UK households. This stability is viewed favourably by long-term institutional holders looking for reliable dividend payers in the UK market.
Annual dividend increased by 4.2% and payout policy aligns with UK inflation. Severn Trent confirmed an annual dividend of 121.71p for 2025, with clear guidance that future dividend growth will at least keep pace with British inflation. This commitment was highlighted in recent investor communications and supports the attraction of the equity for income-focused portfolios in the British context.
Severn Trent maintains sector-leading innovation with 66% renewable energy self-sufficiency and record energy generation. The company reported 912 GWh of energy generated in the period (+11% year-on-year), cementing its position as an ESG leader among UK utilities. Its advances in renewables and commitment to environmental improvement continue to attract positive notice from both analysts and responsible investment funds.
FAQ
What is the latest dividend for Severn Trent stock?
Severn Trent currently pays an annual dividend, with the most recent declared amount being 121.71p per share. The next payment date is 15 July 2025, following the ex-dividend date of 29 May 2025. The dividend yield remains attractive and Severn Trent’s policy aims for growth at least in line with UK inflation, providing reliable income for shareholders.
What is the forecast for Severn Trent stock in 2025, 2026, and 2027?
Based on the current share price, the forecast for Severn Trent is 3,513p at the end of 2025, 4,054p at the end of 2026, and 5,406p at the end of 2027. The company’s strong financial performance, long-term investment programme, and positive analyst outlook support these growth prospects in the water utility sector.
Should I sell my Severn Trent shares?
Holding onto Severn Trent shares may be a sound strategy, considering the company’s robust fundamentals, stable income profile, and record of steady growth. The approved infrastructure plan, commitment to sustainability, and its status as a regulated utility make it a resilient choice for investors seeking mid- to long-term value. Review your own investment goals but, given the market position, maintaining a stake could be appropriate.
Is Severn Trent eligible for an ISA in the UK and how is it taxed?
Yes, Severn Trent shares are eligible for inclusion in a UK Individual Savings Account (ISA), allowing British investors to shelter both dividends and capital gains from UK personal tax. This makes the stock particularly attractive for tax-efficient investing, as ISA gains do not count toward annual personal tax thresholds.
What is the latest dividend for Severn Trent stock?
Severn Trent currently pays an annual dividend, with the most recent declared amount being 121.71p per share. The next payment date is 15 July 2025, following the ex-dividend date of 29 May 2025. The dividend yield remains attractive and Severn Trent’s policy aims for growth at least in line with UK inflation, providing reliable income for shareholders.
What is the forecast for Severn Trent stock in 2025, 2026, and 2027?
Based on the current share price, the forecast for Severn Trent is 3,513p at the end of 2025, 4,054p at the end of 2026, and 5,406p at the end of 2027. The company’s strong financial performance, long-term investment programme, and positive analyst outlook support these growth prospects in the water utility sector.
Should I sell my Severn Trent shares?
Holding onto Severn Trent shares may be a sound strategy, considering the company’s robust fundamentals, stable income profile, and record of steady growth. The approved infrastructure plan, commitment to sustainability, and its status as a regulated utility make it a resilient choice for investors seeking mid- to long-term value. Review your own investment goals but, given the market position, maintaining a stake could be appropriate.
Is Severn Trent eligible for an ISA in the UK and how is it taxed?
Yes, Severn Trent shares are eligible for inclusion in a UK Individual Savings Account (ISA), allowing British investors to shelter both dividends and capital gains from UK personal tax. This makes the stock particularly attractive for tax-efficient investing, as ISA gains do not count toward annual personal tax thresholds.
