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SSE Ramps Up Capital Investment Amid Fiscal 2026 Earnings, Dividend Growth

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SSE Ramps Up Capital Investment Amid Fiscal 2026 Earnings, Dividend Growth

SSE (SSE.L) on Thursday delivered financial results toward the upper end of its guidance and record capital investment for fiscal 2026, mainly in its electricity transmission business.

The British utility reported an increase in attributable profit for the 12 months ended March 31 to 1.21 billion pounds sterling from 1.19 billion pounds a year ago, with revenue growth to 10.19 billion pounds from 10.13 billion pounds. Adjusted EPS was 1.535 pounds, near the upper end of guidance, mirroring its strong operational performance.

SSE recommended a final dividend of 0.473 pound per share, taking the full-year payout to 0.687 pound per share, up from 0.642 pound per share a year earlier. The dividend will be paid Sept. 17 to shareholders on record July 24.

Meanwhile, SSE's adjusted capital investment jumped 20% to 3.6 billion pounds, with delivery of its 33 billion-pound investment plan to 2030 "well under way." SSE Chief Executive Martin Pibworth called the investment "central to long‑term value creation" and would cut the UK's exposure to volatile global energy markets.

"With record levels of capital investment in line with our plan and strong momentum across the Group, we are well placed to deliver sustainable growth and value creation for our shareholders while helping to build a more affordable and secure energy system for the UK," Pibworth added.

Looking forward, the utility affirmed its adjusted EPS estimates of between 1.68 pounds and 1.93 pounds for fiscal 2027, and between 2.25 pounds and 2.50 pounds for fiscal 2030. It also expects to raise its capital expenditure for fiscal 2027 to over 5 billion pounds.

RBC Capital Markets, which rated the stock outperform with a price target of 30.25 pounds, expressed positive sentiment after the results. "Given the +2p/sh accounting change announced earlier this month, consensus may be slightly lagging however SSE still at the top end of the guided range for FY26 and forward targets reaffirmed with consensus for FY27 broadly at the midpoint of the updated guidance range (post equity)."

SSE's shares dropped over 1% in London at midday.

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