SSE PLC (LSE:SSE) has reaffirmed its earnings guidance after reporting strong progress across its electricity networks and renewables businesses in its first-quarter trading update. The utility highlighted a significant increase in infrastructure investment alongside higher renewable generation, as it continues to execute its long-term growth strategy.
Network investment accelerates
SSE’s regulated networks division invested £0.9 billion during the first quarter, representing an 83% increase compared with the same period last year.
The company said construction continues to advance on its major ASTI and LOTI electricity transmission projects, while investment in its distribution network also increased ahead of the planned submission of its ED3 business plan in December.
The higher level of spending forms part of SSE’s wider £33 billion investment programme aimed at expanding and modernising the UK’s electricity infrastructure.
“Since announcing our £33bn investment programme to unlock the enormous growth opportunity of U.K. electricity networks, we are continuing to see real progress as we work to deliver the plan, and in doing so we are underpinning compounding, long-term earnings growth and creating significant value for investors,” Barry O’Regan, CFO of SSE, said.
Renewable generation strengthens
SSE Renewables increased electricity generation by 31% year over year during the first quarter, benefiting from more favourable weather conditions and additional generating capacity coming online.
The stronger operational performance supported the company’s confidence in its financial outlook, despite the seasonal importance of the winter months for energy production.
Management maintained its adjusted earnings per share guidance of between 168p and 193p for the 2026/27 financial year, while leaving its longer-term target of 225p to 250p for 2029/30 unchanged.
The company said the guidance issued in May remains valid, although performance will continue to depend on factors including weather conditions, energy markets and plant availability.
Board strengthened with National Grid veteran
SSE also announced the appointment of John Pettigrew as an independent non-executive director, effective from 1 December.
Pettigrew joins the board after more than three decades at National Grid, where he held a range of senior strategic, operational and regulatory leadership positions.
The appointment adds further industry experience to the board as SSE continues to expand its electricity infrastructure and renewable energy portfolio.
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