After a 2025/26 dominated by volatility and uncertainty, it’s pleasing to be able to report a good set of financial results in line with what we told the market through the course of the year.

What we have achieved speaks to SSE’s strategic alignment with prevailing policy on the energy transition and our ability to create shareholder value in most market conditions.

A breakdown of the segmental contribution made across the Group in the face of mixed weather and macro uncertainty is detailed in the Financial Review in the 2026 Annual Report. But in summary, an increased contribution from our combined networks businesses – which accounted for 40% of adjusted operating profit – and the addition of new renewables capacity helped us to meet our projection of 153.5 Earnings Per Share for the year.

A record capex year

A 20% rise in capital expenditure to £3.6bn marks another record year for SSE spending on critical national infrastructure and highlights the good progress we are making on the £33bn investment plan we announced last autumn.

That plan upweights our exposure to regulated networks, particularly transmission, which delivered an 80% increase in investment year-on-year as our construction of mega projects in the north of Scotland gathers pace.

This is a bold and ambitious plan that will treble our investment over the five years to 2030. It breaks down to around 80% or £27bn to be spent on regulated electricity networks and the remainder allocated selectively across renewables and system flexibility projects. 

Given the market support we received for the plan in November, and the associated £2bn equity placing, it is particularly pleasing to be able to report such good early progress and the value it is creating, see pages 21 and 87 of the 2026 Annual Report.

The pressing need to reinforce the grid to unlock renewables is the single biggest growth opportunity right now, and accordingly, SSEN Transmission accounts for £22bn, or around 67%, of our spending plans.

 The visibility we have over grid reinforcement projects in the north of Scotland gives us every confidence that they will deliver a compound annual growth rate of 30% and take our RAV growth in SSEN Transmission to around £30bn. This growth is out to FY30, but we see potential for more to come beyond that as the system operator reassesses reinforcement needs in the next decade.

Aligned and agile

Our balanced mix of businesses and premium options drives immediate value today and promises growth for the future. SSE’s strategic focus on Networks, Renewables and Flexibility not only plays into the energy transition that is underway in our home markets; it also gives us resilience against macro-economic, political or regulatory uncertainty thanks to our unique mix of regulated and marketbased earnings.

We have deliberately positioned ourselves as a clean energy champion by aligning our strategy to the direction of government policy.

At the same time, we have retained the optionality and agility to pivot to where the value is – as can be seen in our regulatory networks focus – but also to adjust to any shifts in policy direction on the energy transition. 

Fit for the future

We have every confidence in our plan but recognise that its execution requires a relentless focus on delivery and operational excellence.

Over the course of the year, we have been realigning the Group behind our investment priorities, and part of that has been keeping momentum behind the operational improvements that came through an efficiency review launched in 2025.

This has meant some tough but necessary resourcing decisions and a cultural shift to a more commercially-minded SSE that is fit for the growth opportunities in front of us.

The efficiency review is now largely complete, with the exception of an ongoing transformative change programme in SSEN Distribution. Actions taken as a result of the Group review are expected to deliver recurring efficiency and cost control savings across SSE.

As detailed in the accounts, reported operating profit for the year reflects one-off exceptional charges associated with restructuring costs alongside impairment reversals and an asset impairment charge related to UK onshore wind projects that have been impacted by grid connection delays.

Disciplined delivery

Financial discipline guides everything we do, from the investment decisions we make to our commitment to maintaining a strong balance sheet.

Our debt levels remain low, with 92% secured at fixed rates, and leverage is stable at 3.3x net debt to EBITDA – well within the thresholds of our strong investment grade credit ratings, which were reaffirmed by ratings agencies after we announced our investment programme last year. Our investment plan includes a range of funding levers, including asset rotation options across the portfolio that will mainly be delivered towards the end of the plan as required.

As set out in the plan, we are also committed to a progressive dividend policy targeting annual growth between 5-10%. Consistent with that commitment, and in line with the returns achieved in the past year, we are recommending a 7% increase in dividends for the year. 

Looking ahead

The robustness of our planning can be seen in the earnings forecast we have for FY27 which is unchanged since 2023. We expect to meet an adjusted EPS target of 168 to 193p, consistent with the 175 to 200p range we had prior to the equity raise in November. Over the same period, we anticipate our record-breaking run for capital expenditure to continue at over £5bn for the year.

Looking further out to FY30, our guidance is also unchanged at 225 to 250p, underpinned by around 80% of EBITDA being index-linked in 2029/30 due to the upweighting of our investment in regulated networks.