SSE plc (LSE:SSE) reported a strong third-quarter performance, supported by a sharp increase in regulated networks spending and higher renewable generation output. Investment in networks rose 64% year on year to £1.8 billion, while renewable generation increased by 7%, helping the group maintain its adjusted earnings per share guidance of 144–152 pence for the 2025/26 financial year despite mixed weather conditions.
The company said it is making rapid progress on its £33 billion “Transformation for Growth” programme, having now secured around three quarters of the key consents required for major transmission projects. SSE has moved a fifth large transmission scheme into full construction, put new bank facilities in place backed by state guarantees, and continued to advance flagship offshore wind developments including Berwick Bank B and Dogger Bank. Management said these milestones reinforce SSE’s pivotal role in the UK’s energy transition and underpin its long-term earnings growth ambitions.
Looking ahead, SSE’s outlook is anchored by its large-scale strategic investment plan and supportive technical indicators. These positives are tempered by concerns around financial performance, particularly cash flow dynamics, as well as a relatively elevated valuation. Even so, recent corporate actions and guidance from management point to a clear strategic direction, supporting a constructive long-term view.
More about SSE plc
SSE plc is a UK-based energy company focused on regulated electricity networks and renewable power generation. Its portfolio includes onshore and offshore wind, hydro and flexible thermal generation, with a strong emphasis on expanding transmission infrastructure in the north of Scotland and growing its low-carbon energy assets.
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