SSE Unveils Transformational £33bn Five-Year Investment Plan in Interim Results

SSE’s half-year scorecard and the £33bn plan to rewire Britain

SSE’s interim results land alongside a genuinely big call: a £33 billion five-year investment plan aimed squarely at UK electricity networks, with selective spend in renewables and flexibility. The near term numbers are softer, as guided, but the strategy leans into long-lived, regulated assets with inflation protection and visibility of earnings.

Key numbers at a glance

Metric (six months to 30 Sep 2025)	2025	2024	Movement
Adjusted operating profit	£655.0m	£860.2m	(24)%
Adjusted profit before tax	£521.5m	£724.7m	(28)%
Adjusted EPS	36.1p	50.7p	(29)%
Adjusted investment & capex	£1,570.1m	£1,292.1m	+22%
Adjusted net debt & hybrid capital	£11.4bn	£9.8bn	(16)%
Interim dividend	21.4p	21.2p	+0.2p
Adjusted tax rate	9.4%	13.2%	Lower

What’s driving the half-year result

Two thirds of adjusted operating profit came from regulated networks, which is exactly where SSE is pointing the bus for the next five years. Within that:

• SSEN Transmission adjusted operating profit almost doubled to £292.1m on higher allowed revenues as investment ramps. Gross RAV rose to £8,132m (from £6,359m).
• SSEN Distribution fell to £127.9m, as flagged, due to a non-recurring inflation adjustment that boosted last year’s comparator. RAV grew to £6,093m.
• SSE Renewables delivered £275.6m, down 18%, reflecting less favourable weather and lower hedged prices, partly offset by new capacity including Dogger Bank A first output and the 101MW Yellow River wind farm.
• Thermal and Gas Storage posted a smaller overall loss of £(21.8)m, with Thermal turning a £14.5m profit and Gas Storage at £(36.3)m, expected to reverse in H2.
• Energy Customer Solutions was lower year-on-year: Business Energy at a £(8.9)m adjusted loss and Airtricity at £37.4m, reflecting normalisation after prior-period benefits.

On a reported basis, operating profit was £634.2m, including £(56.8)m exceptional costs from the Group Operating Model and Efficiency Review, and lower remeasurement gains on energy derivatives versus last year.

The transformational £33bn plan to 2029/30

Here’s the meat of the update. SSE will invest around £33bn over five years, trebling the prior run-rate and tilting the Group further towards predictable, regulated returns.

• ~80% or ~£27bn into UK electricity networks.
• ~20% or ~£6bn selectively into Renewables and system Flexibility.

Where the capital goes

• SSEN Transmission: ~£22bn (about 67%) to deliver RIIO-T3, connecting renewables and relieving constraints. Gross RAV targeted at ~£30bn by 2029/30, an ~30% CAGR.
• SSEN Distribution: ~£5bn (about 15%) across ED2 and anticipated ED3, taking gross RAV to £9–10bn by 2029/30, ~10% CAGR.
• SSE Renewables: ~£4bn (about 12%) to complete the current build-out and fund disciplined growth, targeting ~9GW installed by 2029/30.
• SSE Thermal and other: ~£2bn (about 6%) focused on flexible generation technologies and key customers.

The plan includes ~£3bn of currently uncommitted capex across Renewables and Thermal to be allocated against strict returns criteria.

What SSE says this should deliver

• Group networks gross RAV more than trebling to about £40bn.
• Adjusted EPS CAGR of 7–9% to 225–250p in 2029/30, with around 80% of EBITDA index linked by then.
• A progressive dividend growing 5–10% per year from the 2024/25 baseline of 64.2p, with the scrip option retained and capped at 25% via buyback if needed.

Funding, balance sheet and the new equity

The shopping list is large, so funding matters. SSE expects to combine operational cash flow, a step-up in adjusted net debt and hybrid capital, targeted asset rotations of around £2bn, and a concurrent equity raise.

• An institutional placing to raise approximately £2bn was approved on 11 November 2025.
• New hybrids of €1.3bn were issued in June. SHET plc also issued a €750m green bond and tapped a 2032 euro bond for €100m in September.
• Average cost of debt at period end was 4.14%, c.92% fixed, with average maturity 5.9 years.
• Net debt to EBITDA is expected to remain below 4.5x throughout the five-year plan. For 2025/26, capex is set to exceed £3bn with net debt to EBITDA guided to 3.5–4.0x before the placing.

My take: the placing brings some near-term dilution, but it lowers financing risk on a once-in-a-generation networks build. The 5–10% dividend growth target through 2029/30 is maintained, which is important for income investors weighing dilution vs growth.

Operational progress worth noting

• All major consent applications now in across the 11 ASTI and LOTI transmission projects, with four already consented and under construction. Supply chain capacity is secured following EGL3 agreements.
• Dogger Bank A remains on track to complete turbine installation by end 2025, B foundations and cables are complete, and C installation is advancing.
• Berwick Bank, the 4.1GW offshore project, received consent, paving the way for auction entry.
• Final investment decision taken for the 170MW Platin Power Station in Ireland under a 10-year capacity contract.

Outlook and guidance

• Business unit expectations for 2025/26 and 2026/27 reaffirmed. Specific adjusted EPS guidance for 2025/26 will come later this year.
• For 2026/27, SSE remains highly confident in reaching the 175–200p adjusted EPS range, before adjusting shares for the placing.
• Dividend per share expected to rise by 5–10% this financial year. Interim dividend confirmed at 21.4p.

Why this matters for investors

The positives

• Pivot to regulated networks with accelerating RAV growth typically means steadier, inflation-linked returns.
• Transmission profits and RAV are already stepping up as projects move into construction.
• Tax-efficient investment supports cash generation, with the adjusted tax rate down to 9.4% due to capital allowances.
• Clear funding roadmap, long-dated largely fixed-rate debt and maintained investment-grade metrics.

The watch-outs

• Near-term earnings are lower year-on-year and comparisons remain tough given last year’s one-offs in Distribution and Renewables hedging.
• Execution risk across 11 major transmission projects is real. Consenting, supply chain inflation and delivery timetables need tight control.
• Equity placing brings dilution. Management is targeting a higher earnings base and 5–10% dividend growth to offset this over time.
• Weather and market pricing will continue to influence Renewables until more of the new capacity and contracts bed in.

Bottom line from Josh

This update is all about the long game. The interim numbers are fine and broadly as flagged, but the £33bn plan reframes SSE as a networks-led, inflation-linked compounder with meaningful upside if it executes. In my view, the mix of rising RAV, index-linked earnings and a progressive dividend is attractive, albeit with short-term EPS dilution from the placing and the usual big-project risks. For patient investors who want exposure to the UK’s grid build-out and offshore wind pipeline, this is a credible, well-funded plan that could create durable value.