SSE (SSE) H1 2025 earnings summary

Executive summary

• Adjusted operating profit rose 24% year-on-year to £860.2m, driven by strong performance in networks and renewables, with over 95% of profits from these segments.

• Adjusted EPS increased 34.6% to 49.8p, in line with expectations, and interim dividend was raised 6% to 21.2p per share.

• CEO announced intention to retire in 2025, with a succession process underway to ensure a smooth transition.

• Over £1.3bn invested in H1, with ~90% focused on electricity networks and renewables; major projects like Viking wind farm and Shetland HVDC link completed.

• Safety performance improved, with a 30%+ reduction in contractor injury rates and over 6,000 employees trained since April 2024.

Financial highlights

• Adjusted operating profit up 24.1% to £860.2m; reported operating profit up 40.1% to £902.8m year-over-year.

• Adjusted net income rose to £544.8m; reported profit after tax was £618.5m.

• Adjusted net capex investment reached £1.3bn, with 94% of debt at fixed rates.

• Net debt and hybrid capital stood at £9.8bn as of 30 September 2024.

• Interim dividend declared at 21.2p per share, with commitment to 5–10% annual growth to FY27.

Outlook and guidance

• Confidence maintained in delivering adjusted EPS of 175–200p by FY27, underpinned by a five-year, £20bn CapEx plan, with 80% of CapEx already delivered or committed.

• Full-year adjusted operating profit expectations unchanged; specific EPS guidance for FY25 to be provided later.

• Networks and renewables expected to deliver significant earnings growth, with regulated networks targeting >15% gross RAV CAGR.

• Capex for the year expected to rise to ~£3bn; net debt/EBITDA ratio to remain at the lower end of 3.5–4.0x range.

• Final FY25 performance will depend on market conditions, plant availability, and weather.