London, June 23, 2026, 12:04 BST
SSE shares fell about 1.1% to 2,320 pence in late-morning London trading on Tuesday, underperforming a roughly 0.4% decline in the FTSE 100 as expectations for higher interest rates weighed on capital-heavy companies. The stock opened at 2,350 pence and briefly reached 2,360 pence before retreating.
The pressure comes as SSE enters the most expensive phase of its £33 billion investment programme. Capital expenditure—spending on networks, wind farms and other long-lived assets—is expected to exceed £5 billion in the financial year ending March 2027.
Higher bond yields can make utility dividends less attractive and raise financing costs for companies carrying large investment plans. Traders were pricing about two quarter-point increases from the U.S. Federal Reserve by year-end and at least one Bank of England increase in December. A basis point is one-hundredth of a percentage point.
MUFG strategist Lee Hardman said the rise in U.S. yields was creating “a more challenging backdrop for risk assets in the near term.” Global equities also weakened, while the two-year U.S. Treasury yield traded near a 16-month high. Reuters
The move was not confined to SSE. National Grid declined about 0.7% to 1,212 pence, while Centrica lost roughly 0.8% to 171.45 pence. The parallel falls suggested that broader rate and sector pressures were playing a part.
SSE reported adjusted operating profit of £2.24 billion for the year through March, down 8%, while investment rose 23% to almost £3.6 billion. Adjusted earnings were 153.5 pence a share, and the company proposed a 47.3-pence final dividend, taking the full-year payout to 68.7 pence.
Regulated electricity networks supplied about 40% of group operating profit. Transmission profit jumped 75% as SSE expanded infrastructure needed to move renewable power, while its renewable-generation business posted a 4% increase and flexible power operations declined 15%.
SSE retained adjusted earnings targets of 168 to 193 pence a share for the current financial year and 225 to 250 pence for 2029-30. Chief Executive Martin Pibworth has described the investment programme as “central to long-term value creation.” Investegate
Jefferies analyst Ahmed Farman said when the plan was announced that it brought “clarity on the balance sheet and the company’s growth outlook.” SSE is funding the programme through operating cash, debt and a £2 billion equity raise announced last year. Reuters
But the selloff could deepen if borrowing costs remain high, construction expenses rise or major grid projects encounter regulatory and planning delays. A fall in yields would ease that pressure, while weak wind conditions or lower power prices could still weigh on generation earnings.
Investors next face SSE’s annual meeting and first-quarter trading statement on July 16. The proposed final dividend is due to trade without entitlement from July 23, subject to shareholder approval, giving the market its next tests of spending execution and income support.
