Water supply: 70%
Wastewater disposal: 25%
Other services: 5%

Top 3 markets:
United Kingdom: 90%
Ireland: 5%
Continental Europe: 5%

Severn Trent PLC generates the majority of its revenue from water supply, followed by wastewater disposal. The main market is the United Kingdom, where the company provides the majority of its services. Smaller portions of revenue come from Ireland and Continental Europe, where Severn Trent is also active, but to a significantly lesser extent.

Production Sites: United Kingdom

Severn Trent PLC is a leading water and wastewater company that operates mainly in the United Kingdom. The company does not produce physical products in the traditional sense, but provides services in the field of water supply and wastewater disposal. Severn Trent's main activities and infrastructures are located in the Midlands and parts of Wales, where they operate water treatment plants and wastewater treatment facilities.

Revenue Growth: Estimated 4-6% annually (2025-2028) Investment Volume: Over 2 billion GBP (2025-2030)

Severn Trent PLC pursues a growth strategy that is strongly focused on sustainability and infrastructure investments. The company plans to invest over 2 billion GBP in the next five years to modernize water infrastructure and increase efficiency. These investments are part of a comprehensive plan to meet rising regulatory requirements and reduce environmental impact.

Another focus of the strategy is on utilizing renewable energy and reducing carbon emissions. Severn Trent has set ambitious goals to become carbon neutral by 2030. This includes expanding projects for energy generation from wastewater and implementing new technologies to improve water quality.

Additionally, the company aims to expand its customer base through innovative services and improved customer care. This is intended to be achieved through digital transformation and the use of smart technologies to make water consumption more efficient and increase customer satisfaction.

Main raw materials: Chemicals for water treatment, pipe materials, pumps, and other infrastructure components

Countries of origin:

• Chemicals: Germany, Netherlands
• Pipe materials and pumps: USA, China

Severn Trent PLC is a leading company in the field of water supply and wastewater management. For the operation and maintenance of its infrastructure, the company imports various raw materials and materials. These include in particular chemicals for water treatment, which are mainly sourced from European countries such as Germany and the Netherlands.

In addition, Severn Trent sources pipe materials and pumps necessary for the maintenance and expansion of its supply networks. These materials are often imported from the USA and China, as these countries are leading in the production of high-quality infrastructure components.

These import strategies enable Severn Trent to ensure a reliable and efficient water supply by relying on high-quality materials from internationally recognized sources.

Market share: Approximately 8% of the British water market (2024)

EBITDA margin: 58% (2024)

Severn Trent PLC has a significant competitive advantage due to its strong market position in the British water supply sector. The company benefits from a regulated monopoly position in its region, enabling a stable and predictable cash flow.

The high EBITDA margin of 58% highlights the company's efficiency in cost control and profitability. Compared to other utility companies, Severn Trent demonstrates above-average profitability, attributed to effective operations management and infrastructure investments.

Additionally, Severn Trent continuously invests in sustainable practices and infrastructure improvements, enhancing operational efficiency and strengthening the trust of regulatory authorities and the public. This secures the company's competitive advantage in the long term.

Institutional Investor Share: approximately 70% (estimated for 2025)
Insider Buys/Sells: No significant transactions in the last year

The institutional investor share at Severn Trent PLC traditionally stands at around 70%, indicating the trust of large investment funds and institutional investors in the company's stability and growth potential.

In 2025, there were no significant insider buys or sells, suggesting a stable confidence from the company's management in its future development. Such transactions could otherwise be interpreted as an indicator of the leadership's expectations regarding the company's performance.

Market share of Severn Trent PLC: approximately 15% (2025, estimated)

Main competitors and their market shares:

1. United Utilities Group PLC: approximately 18%
2. Thames Water Utilities Limited: approximately 17%
3. Severn Trent PLC: approximately 15%
4. Yorkshire Water Services Limited: approximately 12%
5. Southern Water Services Limited: approximately 10%
6. Anglian Water Services Limited: approximately 9%
7. Scottish Water: approximately 8%
8. Welsh Water (Dŵr Cymru): approximately 6%

Moat of Severn Trent PLC:

Severn Trent PLC has a significant moat characterized by several factors. The most important aspect is the regulation of the water market in the United Kingdom, which creates high barriers to entry. This protects established companies like Severn Trent from new competitors.

Another advantage is the geographical location and existing infrastructure, which enables Severn Trent to operate more efficiently and reduce costs. Long-term contracts and customer loyalty through reliable services also strengthen the market position.

Compared to competitors, Severn Trent has a solid, but not insurmountable moat. United Utilities and Thames Water have similar advantages and are even stronger in some areas. Competitiveness heavily depends on the ability to implement innovations and efficiency improvements to reduce operating costs and increase customer satisfaction.

Revenue Growth: 4.8% (2024) EBITDA Margin: 58.2% (2024) Net Debt to EBITDA Ratio: 2.9 (2024)

Severn Trent PLC recorded a revenue growth of 4.8% in 2024. This indicates a moderate but stable growth rate, pointing to a continuous demand for the company's services. The EBITDA margin of 58.2% suggests strong operational efficiency, which is positive for the company's profitability.

The net debt to EBITDA ratio of 2.9 shows that the company has a relatively high level of debt, which is not uncommon in the utility sector as these companies often invest in long-term infrastructure projects. Such a debt ratio is sustainable as long as cash flows remain stable and interest coverage is ensured.

Overall, Severn Trent PLC could be a good investment, especially for investors interested in stable cash flows and a solid dividend yield. However, it is important to monitor the long-term debt strategy and regulatory framework that could impact future profitability.

Dividend Yield: 4.5% (estimated for 2025)
Dividend History: Continuous payout for over 10 years

Severn Trent PLC is known for its stable dividend policy. The company has consistently distributed dividends in recent years, indicating a reliable payout policy. The estimated dividend yield of 4.5% for 2025 reflects the company's commitment to providing its shareholders with consistent value.

The reliability of dividend payments is supported by the stable financial performance and the regulated nature of the water supply sector. This provides a certain level of security regarding future payouts, although external factors such as regulatory changes or economic fluctuations should always be taken into account.