SSE Shares Higher After Strong Networks Performance

SSE (LON: SSE) shares were higher on Wednesday, up around 0.9%, after the company released its Q3 trading statement on February 4, 2026, reporting a strong increase in network investments and a slight uptick in renewables output despite mixed weather conditions.

The company's full-year adjusted earnings per share (EPS) guidance is 144-152 pence.

The utility company reported a 64% surge in investment in its regulated networks business compared to the same period last year, reaching approximately £1.8 billion.

This increase is attributed to the accelerated construction of major projects like ASTI and LOTI in Transmission, alongside ongoing investments in Distribution. Generation output from SSE Renewables saw a 7% increase, driven by new capacity additions offsetting weather-related challenges.

Momentum continues behind SSE's £33 billion Transformation for Growth plan. The company has secured approximately three-quarters of key transmission consents required for its projects in the north of Scotland. The Spittal-Peterhead link entered full construction, marking the fifth major transmission project underway.

Headline Numbers:

• EPS Guidance: 144-152 pence for FY2025/26.
• Network Investment: Rose by 64% year-over-year to £1.8 billion.
• Renewables Output: Increased by 7% year-over-year.

The company is making strides in its strategic infrastructure projects. Securing five transmission planning decisions since November, SSEN Transmission now holds 25 out of 34 major consents necessary to reinforce the grid in northern Scotland.

A €2 billion contract was awarded to NKT for subsea cables, marking SSEN Transmission's largest contract to date. SSE also welcomed improvements to baseline total expenditure within Ofgem’s RIIO-T3 Final Determination and is assessing the overall investability of the price control package.

SSE has also secured significant funding, including a £1 billion bank facility backed by an £800 million guarantee from the UK Government's National Wealth Fund, and a £500 million facility guaranteed by the Swedish Export Credit Agency (EKN).

Berwick Bank B offshore wind farm will proceed to Final Investment Decision, supported by a 20-year contract secured in CfD Allocation Round 7. Turbine installation on Dogger Bank A is nearing completion, with commissioning expected later this year.

Driver Breakdown:

• Network Investment: Accelerated investment in transmission and distribution projects.
• Renewables Capacity: Increased output from new wind and hydro facilities.
• Strategic Project Execution: Progress in securing consents and commencing construction on key projects.

Barry O'Regan, Chief Financial Officer, stated, “Since announcing our £33bn investment programme to unlock the enormous growth opportunity presented by the transformation of electricity networks, our focus has been on accelerating investment and delivering the plan that will create compounding, long-term earnings and value for investors.”

O'Regan continued, “We are encouraged by recent steps from government and regulators…which highlight the value of SSE's integrated business model.”