LONDON, May 14, 2026, 13:11 BST
SSE PLC raised its full-year profit outlook, after a shift in accounting treatment at Neos Networks reined in loss recognition. Investors get a clearer—though not cash-linked—boost as they wait for results May 28. The Perth-based group, focused on power networks and renewables, now sees adjusted earnings per share in the 149p-154p range, up from the 147p-152p it indicated in April. That accounting tweak should tack on 1.9p to adjusted earnings metrics, but prior reports won’t be restated, the company said.
Timing is key here. SSE wants shareholders on board as it pushes through a major grid-build, and when May results hit, investors will be watching debt, cash flow and progress just as closely as profits.
Adjusted earnings per share—management’s preferred profit gauge—excludes what the company calls distortion from one-off items. In this case, the boost stems from SSE’s Neos equity dropping to zero, which, under IAS 28 rules for associates and joint ventures, bars the group from recording any more Neos losses.
Big picture stays the same. Back in April, SSE predicted capital investment around £3.5 billion for 2025/26, with adjusted net debt and hybrid capital just topping £10 billion as of March 31. Networks spending was on track to jump about 60% from last year. Renewable generation’s headed for 14.5 terawatt hours—give or take a 10% rise.
SSE plans to streamline its reporting, trimming the number of business segments it reports on from ten to seven. The company is also set to tweak its alternative performance measures, or APMs—numbers it defines that sit alongside official accounts—so that these now account for non-controlling interests. SSE made clear that this shift in how debt is disclosed leaves 2025/26 adjusted EPS forecasts untouched.
SSE shares gained 0.7% to 2,467p in London afternoon dealings, changing hands between 2,455p and 2,475p during the session, Investing.com data showed. Not a dramatic rally—the market had largely anticipated the company’s pivot to regulated electricity networks.
Back in February, ahead of the most recent guidance update, Morningstar’s Tancrede Fulop called SSE “fairly valued” following a 53% surge in the stock since early September 2025. He maintained a 2,480p fair value target and highlighted networks investment as the key force behind earnings growth. Morningstar
The grid angle matters, too. National Grid—SSE’s bigger UK networks counterpart—fell short of profit forecasts Thursday, hit by elevated storm-repair expenses in the U.S., but stuck to its guidance. Even so, shares climbed. Reuters noted the firm’s ongoing shift toward regulated electricity and gas networks.
SSE isn’t straying from its strategy. Back in November, the company laid out a £33 billion, five-year investment push—roughly 80% of that is headed for regulated UK electricity infrastructure. That includes about £22 billion for transmission upgrades in northern Scotland, plus another £5 billion for distribution networks. Chief Executive Martin Pibworth described the massive build as a “once-in-a-generation opportunity” to overhaul the UK’s electricity grid. SSE
The risk section isn’t buried. This guidance bump is just accounting, not actual cash. Higher-for-longer rates, supply snags, project delays, or lackluster renewable generation all threaten returns. The company’s stepping up investment, but it’s also got over £10 billion in adjusted net debt and hybrid capital on the books.
Rates remain a key factor here. In April, the Bank of England kept its Bank Rate at 3.75% after an 8-1 split—only one member pushed for a hike to 4%. The central bank also flagged that ongoing Middle East energy-price risks could sway future moves. On Polymarket, contracts showed an 86.5% probability the rate would stay put at the June meeting, dropping to 67% for July, pointing to traders’ skepticism about near-term relief for capital-heavy infrastructure companies.
On May 28, it comes down to a pointed but broad question: can SSE deliver sufficient operating cash flow and regulatory drive to push a minor EPS bump to the sidelines? The accounting twist has shifted the band. Still, the wires build remains the core of the story.
