LONDON, May 13, 2026, 13:02 BST
- SSE bumped its full-year adjusted earnings per share target to 149p-154p, up from the previous 147p-152p range, after it revised the accounting treatment for losses at Neos Networks.
- SSE reports full-year results May 28. Net debt plus hybrid capital? Still a touch above £10 billion, according to the company’s latest guidance.
- SSE shares slipped 1.29% to 2,448p, according to delayed Bloomberg data as of midday in London.
SSE PLC nudged its profit forecast higher just ahead of its full-year numbers, though the bump was driven by an accounting move linked to Neos Networks—not from fresh improvements in the business itself.
Perth, Scotland-based power generator and network operator now expects adjusted earnings per share for 2025/26 to land between 149p and 154p—a notch up from April’s forecast of 147p to 152p for the same profit measure, which excludes certain items.
That’s key for investors right now: they’re parsing not just how much SSE earns, but how those earnings stack up. The utility is pouring cash into the UK’s electricity grid, while rising borrowing costs at home have put its balance sheet under a sharper lens.
SSE has taken its equity investment in Neos Networks down to zero for the year, so it’s stopped booking any further losses under IAS 28—the standard covering associates and joint ventures. That tweak should lift adjusted earnings metrics by 1.9p.
The shift is mechanical, though not insignificant. For Neos, SSE reported that adjusted operating profit changes from a £17.9 million loss before the accounting tweak to a narrower £0.8 million loss after. Adjusted profit after tax goes from a £23.2 million loss to just £1.3 million in the red.
SSE also announced a handful of housekeeping tweaks. The company plans to tighten how it shows debt in its alternative performance measures—those company-specific figures reported alongside statutory accounts. Reporting segments get trimmed as well, dropping to seven from the previous 10. As part of this, SSE Thermal will now fold in the former gas storage business, and Energy Customer Solutions is set to cover both SSE Business Energy and SSE Airtricity.
The company said tweaking how it reports debt won’t shake up its 2025/26 outlook. Adjusted net debt plus hybrid capital should land just above £10 billion as of March 31. Capital investment? Still pegged near £3.5 billion.
SSE’s move comes as part of an even bigger push: a £33 billion capital plan spread over five years, announced in November. Roughly 80% of that will go into regulated electricity networks, with the balance targeting renewables and flexible generation. Back then, Chief Executive Martin Pibworth put it bluntly—“our world is rapidly electrifying.” SSE
Other players are caught up in the grid scramble, too. Ofgem’s RIIO-3 price-control scheme—covering network operator revenues—kicks in April 2026 and stretches through March 2031. The watchdog signed off on a £28 billion overhaul for the energy network, putting SSE and National Grid in the thick of the upgrade drive.
When SSE announced the plan, Jefferies analyst Ahmed Farman said it “brings clarity on the balance sheet,” according to Reuters. The piece also pointed out that National Grid turned to shareholders for investment cash as well, highlighting the capital squeeze facing European utilities as they look to shore up network funding. Reuters
The financing climate has turned tougher. UK 10-year gilt yields surged to 5.13% on Tuesday, marking their highest point since 2008, Reuters reported this week. Polymarket odds, meanwhile, had traders putting the likelihood of no Bank of England move in June at 83%. Still, they gave a 65% probability to a rate hike happening at some stage in 2026.
SSE’s growth plan could run into trouble if rates climb, projects hit snags, or renewable output lags. Back in April, the group projected renewable generation between 10% higher and 14.5 terawatt hours. Still, it flagged uneven weather—another sign not every earnings lever is within the core grid unit.
Investors will get their answers on May 28, when full-year numbers drop: what’s real operational profit, what’s accounting, and can SSE keep the build-out rolling without putting too much strain on the balance sheet?
