SSE (SSE) H2 2025 earnings summary

Executive summary

• Achieved strong full-year results with record adjusted operating profits in both networks and renewables, each exceeding £1 billion for the first time.

• Adjusted EPS of 160.9p, in line with guidance, and a 7% increase in the full-year dividend to 64.2p.

• ~90% of EBIT and investment focused on networks and renewables, supporting the clean energy transition.

• Safety performance improved, with the lowest combined total recordable injury rate in three years and 257 safe days achieved.

• Transition in leadership as Martin Pibworth becomes Chief Executive Designate.

Financial highlights

• Adjusted operating profit of £2,419m, stable year-over-year; reported operating profit of £1,962m, down from £2,608m due to exceptional items.

• Adjusted net income of £1,768m, with EPS at 160.9p; net finance costs increased to £281m due to higher debt and project finance.

• Capex reached £2.9bn, up 20% from the previous year, with 44% higher investment in networks and 9% lower in renewables.

• Full-year dividend of 64.2p, up 7% year-over-year.

• Net debt/EBITDA at 3.2x, with adjusted net debt and hybrid capital at £10.2bn.

Outlook and guidance

• Targeting adjusted EPS of 175-200p by FY27, with 13-16% CAGR, driven by networks and renewables.

• 85% of FY27 earnings expected from networks and renewables; ~70% of FY27 EBITDA underpinned by regulated, inflation-linked contracts.

• FY27e net debt/EBITDA expected to be ~4x, maintaining strong investment grade ratings.

• Dividend growth of 5-10% per annum to FY27.

• FY26 guidance: Transmission and Renewables EBIT expected to be significantly higher, Distribution EBIT to be lower due to one-off inflation catch-up in FY25.