SSE Reports Record Capital Investment and Strong Preliminary Results

SSE preliminary results 2026: record £3.6 billion investment keeps the long-term growth story intact

SSE’s latest preliminary results are a classic case of short-term earnings looking a bit softer while the long-term machine gets bigger and stronger. The headline number is the record £3,585.6 million of adjusted investment and capital expenditure, up 23%, as SSE ramps up construction across electricity networks, renewables and flexible generation.

That matters because SSE is not pitching itself as a steady, low-growth utility any more. It is trying to become one of the main builders of the UK and Ireland’s power infrastructure, and this update says that plan is very much in motion.

Key SSE results numbers retail investors need to know

Metric	Mar 2026	Mar 2025	Change
Adjusted operating profit	£2,236.6 million	£2,419.2 million	-8%
Adjusted profit before tax	£2,024.8 million	£2,144.5 million	-6%
Adjusted earnings per share	153.5p	161.3p	-5%
Adjusted investment and capital expenditure	£3,585.6 million	£2,910.4 million	+23%
Adjusted net debt and hybrid capital	£10.1 billion	£10.1 billion	Flat
Full-year dividend	68.7p	64.2p	+7%

Why SSE profits fell even though management says performance was strong

At first glance, lower profits and lower earnings per share do not scream “great year”. But the detail is more encouraging than the headline drop suggests.

SSE said adjusted earnings per share of 153.5p came in towards the upper end of guidance. That tells you trading was better than feared, especially given weaker weather in renewables, lower hedged power prices and softer conditions in flexibility businesses.

There is also a simple dilution effect from the £2 billion equity placing completed in November 2025. More shares in issue means earnings are spread across a bigger shareholder base, so even decent profit can translate into weaker earnings per share.

On the reported side, numbers were dragged down by a £157.7 million re-measurement charge, £84.7 million of restructuring costs and £77.9 million of net asset impairments. Re-measurements are mark-to-market accounting movements on derivatives, which means paper gains and losses on contracts rather than core trading performance.

SSEN Transmission was the star of SSE’s 2026 results

The biggest positive in these results is transmission. Adjusted operating profit at SSEN Transmission jumped to £562.6 million from £322.5 million, up 74%.

That is a huge move, and it reflects exactly why investors own SSE. Transmission assets are regulated, meaning returns are set under a framework with Ofgem, and SSE gets increasing allowed revenue as investment rises. In plain English, the more grid it builds, the more dependable earnings it should generate over time.

Construction is already under way on five of the 11 major transmission projects, and around 75% of major transmission consents have now been received. That is important because for infrastructure stories, planning and execution are everything.

SSE Renewables delivered growth, but weather and pricing remain a drag

SSE Renewables produced adjusted operating profit of £1,076.4 million, up 4% from £1,038.8 million. That is a respectable result given 2025/26 hedge prices were around 20% lower than the prior year.

Output improved, with total renewable generation rising to 14,507GWh from 13,206GWh. Offshore wind output rose 18% to 4,573GWh, helped by Dogger Bank A.

There is a catch though. SSE also admitted it is unlikely to meet its goal of 50TWh of renewable generation output by 2030. That is a meaningful reality check. The ambition is still huge, but the market and policy environment are clearly making delivery harder than planned.

Distribution and flexibility were weaker, but mostly for understandable reasons

SSEN Distribution saw adjusted operating profit fall sharply to £335.3 million from £736.0 million. That looks ugly, but SSE explicitly said this was expected because last year benefited from a large non-recurring inflation adjustment to revenues.

In other words, this is less a collapse in the underlying business and more a tough comparison. Investment there still rose to £851.8 million from £635.8 million, and the regulated asset base continues to grow.

Across flexibility, the picture was softer. SSE Thermal adjusted operating profit slipped to £195.4 million from £211.4 million, while Energy Customer Solutions dropped to £136.9 million from £192.1 million. Market conditions, outages, lower volumes and the unwind of wind-related income all played a part.

This is the less exciting side of the business mix, but it is worth noting SSE expects Thermal profits to be significantly higher in 2026/27 thanks to increased Capacity Market payments.

SSE dividend, debt and balance sheet: solid enough to support the growth plan

SSE is recommending a final dividend of 47.3p, taking the full-year payout to 68.7p, up 7%. That is a confident signal. Companies do not usually grow the dividend at that pace if they are worried about near-term cash strain.

Adjusted net debt and hybrid capital stayed at £10.1 billion, with net debt to EBITDA at 3.3x. That is higher than 3.1x last year, but still comfortably below the group’s stated plan threshold of 4.5x.

The really striking bit is that SSE managed to hold debt broadly flat despite record investment, helped by strong operating cash flow and the November equity raise. That suggests management is funding the expansion with a fair bit of discipline.

SSE guidance for 2026/27 and 2029/30 stays unchanged despite macro uncertainty

This is probably the market-moving takeaway. SSE kept its adjusted earnings per share target for 2026/27 at 168p to 193p and its 2029/30 target at 225p to 250p.

It also said 2026/27 capex is expected to increase significantly to over £5 billion. That is a serious ramp-up. Management is effectively saying: yes, we are spending harder, but no, we are not changing the earnings destination.

That is bullish. It also shows why SSE keeps talking about resilience from regulated, index-linked earnings. Those revenues are designed to be more predictable when politics, inflation or commodity markets get messy.

What matters most from SSE’s preliminary results for shareholders

• The earnings dip was real, but not a shock, and guidance remains intact.
• Transmission is growing fast and looks like the core profit engine.
• Renewables are expanding, though policy and grid delays remain a genuine frustration.
• The dividend is rising and the balance sheet still looks investable.
• The investment case is increasingly about asset growth and future regulated returns, not just this year’s profit line.

My take on SSE shares after these 2026 preliminary results

On balance, this reads as a positive update. Not a flawless one, because earnings per share fell, renewables targets look tougher, and there are still execution risks around grid connections and major project delivery.

But the bigger picture is that SSE is doing what it said it would do. It is investing heavily, getting key projects moving, growing its transmission platform fast, and sticking to earnings guidance while raising the dividend.

For retail investors, that makes this less about one year’s profit wobble and more about whether you believe SSE can turn a £33 billion plan into much larger long-term earnings. Based on this RNS, that story still looks firmly on track.