SSE (SSE) H1 2026 & Strategic Update earnings summary

Executive summary

• Announced a fully funded £33 billion investment plan to 2030, tripling prior spending and focusing 80% on regulated UK and Ireland energy networks and 20% on renewables and flexibility projects.

• Interim results to 30 September 2025 were in line with expectations, with a significant step-up in Transmission investment and earnings as projects reach construction phase.

• Two-thirds of EBIT and capex are allocated to Networks, reflecting the strategic focus on regulated infrastructure.

• Targeting adjusted EPS of 225–250p by FY2030, a 7–9% CAGR from FY2025 base, and extending a progressive dividend policy.

• Investment is underpinned by strong operational cash flows, targeted £2bn asset disposals, and a £2bn equity placing.

Financial highlights

• Adjusted operating profit for HY26 was £655m, down from £860m in HY25, mainly due to lower Distribution and Renewables earnings.

• Adjusted EPS for the period was 36.1p, down 29% year-over-year, with two-thirds of earnings from regulated networks.

• Interim dividend of 21.4p declared, one-third of FY25 dividend, with policy of 5–10% annual growth.

• Adjusted capital investment rose 22% to £1.6bn, mainly in Transmission, with four of eleven major projects under construction.

• Adjusted net debt and hybrid capital increased to £11.4bn, reflecting higher investment.

Outlook and guidance

• Reaffirmed FY2026 and FY2027 segmental guidance, with Transmission EBIT expected to be more than 1.5x higher in FY26 vs FY25.

• Adjusted EPS for FY30 targeted at 225–250p, with 7–9% CAGR from FY25 baseline of 160.9p.

• Dividend per share to increase 5–10% annually to FY2030, maintaining a progressive policy.

• Full-year 2025/26 capex expected to exceed £3bn, with net debt/EBITDA targeted at 3.5–4.0x.