SSE plc, the Perth-based electricity infrastructure giant, said on Wednesday that “momentum continues” behind delivery of its five-year, £33 billion investment plan, with a number of projects of “critical” national importance reaching “delivery, planning and policy milestones.”
The news came as SSE published trading statement updates on strategic progress and operational performance for the nine-month period ending December 31, 2025, and provided guidance for 2025/26 full-year earnings.
Among the updates was news that its the 75%-owned subsidiary SSEN Transmission has signed a £1 billion, 12-year bank facility backed by an £800 million financial guarantee from the UK Government’s National Wealth Fund in addition to a £500 million, 19-year bank facility guaranteed by the Swedish Export Credit Agency (EKN).
“SSE expects that 2025/26 adjusted Earnings Per Share will be between 144 – 152 pence, reflecting strong operational performance against mixed weather conditions,” said SSE.
“Previously reported Business Unit operating profit expectations remain unchanged.
“The regulated networks businesses have delivered a 64% increase in investment compared to the first nine months of last year as strategic delivery accelerates. Around £1.8bn was invested in networks as construction gathers pace on the major ASTI and LOTI projects in Transmission, while Distribution continues to progress investment through its baseline plan and Uncertainty Mechanisms.
“Generation output from SSE Renewables over the first nine months was 7% higher than the same period in prior year, reflecting the ongoing increase in capacity from its construction programme against mixed weather conditions.
“Guidance remains subject to factors such as weather, market conditions and plant availability over the remainder of the year. An update on actual performance will be provided in SSE’s Notification of Closed Period statement on 2 April 2026.”
On its “strategic progress” SSE said: “Five transmission planning decisions have been secured since November. SSEN Transmission now has 25 of the 34, or three quarters of the major consents required to fulfil its licence condition to deliver the 11 major projects that reinforce the grid in the north of Scotland. Securing the remaining consents will be a focus for the business for the remainder of this calendar year.
“Following receipt of its final consent, the Spittal-Peterhead link became SSEN Transmission’s fifth major project to fully enter construction. The project comprises a 203km 2GW subsea High Voltage Direct Current cable and two convertor stations. The cables for the project, and cabling for the planned Western Isles link, have been secured through the awarding of a €2bn contract, SSEN Transmission’s biggest ever, to NKT.
“SSE welcomed improvements to baseline total expenditure within the RIIO-T3 Final Determination. The Group also noted updates to Ofgem’s proposed financial parameters and incentive regime, and it continues to assess the overall investability of the package ahead of the deadline for accepting the price control, on 3 March.
“SSEN Transmission has signed a £1bn, 12-year Bank Facility backed by an £800m financial guarantee from the UK Government’s National Wealth Fund in addition to a £500m, 19-year Bank Facility guaranteed by the Swedish Export Credit Agency (EKN). These facilities provide an important source of longer-dated funding diversification as investment gathers pace.
“Berwick Bank B offshore wind farm will now progress towards Final Investment Decision after securing a 20-year contract for 1.4GW in last month’s CfD Allocation Round 7. This opens a valuable route to market for a world-class project at a competitive strike price for consumers of £89.49/MWh.
“Turbine installation is nearing completion on Dogger Bank A, with the 95th and final turbine set to be installed in the next available weather window. Installation will then immediately commence on the second phase, Dogger Bank B. Commissioning work continues on Dogger Bank A and is expected to be complete later this calendar year.”
SSE chief financial officer Barry O’Regan said: “Since announcing our £33bn investment programme to unlock the enormous growth opportunity presented by the transformation of electricity networks, our focus has been on accelerating investment and delivering the plan that will create compounding, long-term earnings and value for investors.’
“We are encouraged by recent steps from government and regulators – from positive signals on the upcoming transmission price control to the success of AR7 and updated ambitions for offshore wind – which highlight the value of SSE’s integrated business model and will ultimately help deliver a cleaner, secure and more affordable energy system.”
REACTION:
Aarin Chiekrie, equity analyst, Hargreaves Lansdown: “SSE continues to deliver for investors, with full-year underlying earnings per share set to land in line with market forecasts, somewhere between 144-152p per share. Performance got a helping hand from its Renewables segment, with these clean energy assets delivering a 7% increase in output over the first three quarters, thanks to capacity additions which offset some challenging weather conditions.
“More flexible gas-fired plants are still part of the energy mix. They complement the renewables segment well and are on hand to plug any shortfalls in energy output when adverse weather comes along.
“Looking to the future, the group’s £33bn five-year investment plan announced back in November shouldn’t be overlooked by investors. Within this, around £27bn of funds are set to be put to work building out its UK Network infrastructure. Progress is well underway, and that should see Networks grow its share of the group’s operating profit from around 40% today to around 60% by the end of the plan.
“Electricity Networks is a very attractive space to be in. SSE’s willingness to pounce on the opportunity should be commended, as it will help the UK handle rising energy demand. Not only that, but it also offers SSE highly defensible growth and valuable protection against shifts in macroeconomic and political conditions, such as a potential future pullback in government support for renewables.
“Hopes are high that today’s investments can help drive high-single-digit annual earnings growth over the coming years. Alongside a solid balance sheet and a respectable forward dividend yield of around 3%, SSE looks like a great name if investors are looking to add some defensive growth to their portfolios.”