‘Enough to keep investors interested’: SSE charges up UK investment

SSE hailed a record year of investment as it aims to end UK dependence on global volatile energy markets.

The electricity infrastructure company invested £3.6bn in the 2025/26 financial year, up from £2.9bn the prior year, as it looks to ramp up the UK’s electricity grid and create lower energy bills.

The FTSE 100 group also doubled down on its goal to deliver £33bn in investment by 2030, primarily focusing on strengthening the electricity network in the north of Scotland.

The boost in investment contributed £9.7bn being added to the UK economy over the last year.

Martin Pibworth, chief executive of SSE, said:  “That… is reducing the UK’s exposure to volatile global energy markets and providing more stable, predictable returns through the energy transition, while supporting economic growth and cutting bills for consumers.

“By…accelerating electrification and building energy infrastructure to unlock homegrown renewables, we are strengthening energy security and lowering system costs over time.

Construction also got underway on five out of 11 “major transmission projects”, while its Dogger Bank project began installing wind turbines, with 20 as of May.

The group’s Ferrybridge battery storage system also entered full operation in March 2026.

Shares were largely unchanged in early trading at 2,429p, with shares up 8.8 per cent since January.

Slide in profits

But the sharp rise in investment offset potential profit growth, with profit before tax sliding six per cent to £2bn from £2.1bn the prior year.

The group credited the slide to its ongoing heavy investment, spending more than it made over the course of the financial year on revitalising energy infrastructure.

Its renewable arm saw a four per cent rise in profit to £1m, despite weaker weather.

While its renewables arm saw stable performance despite weaker weather, its flexibility arm, which manages power loads by temporarily altering when electricity is generated, reported a 13.4 per cent decline to £375.5m.

Duncan Ferris, investment writer at Freetrade, said: “For the moment, SSE’s energy transition plans and operations are on track, and the business appears to be bearing the weight of investment well.

“That’s just as well, as build out projects like SSE’s are an important part of the UK energy infrastructure puzzle.

“SSE will hope that the future potential of its grid buildout and increased dividend payments are enough to keep investors interested while the business prioritises investment over near-term earnings momentum.”

Earnings per share slipped to 153.5p from 161.3p the prior year, but remained at the upper end of guidance.

The Board recommended a final dividend of 47.3p, taking the full year dividend to 68.7p, a seven per cent rise.

Investment to increase

The group expects to increase its investment to over £5bn in the next financial year, in line with expectations, while anticipating profits to remain flat across its transmissions and renewables businesses.

Ferris questioned whether the ongoing investment and lack of substantial profit growth will be enough to keep investors interested in the company’s potential, as the UK continues its push towards relying on homegrown, renewable energy.

He added: “SSE will hope that the future potential of its grid buildout and increased dividend payments are enough to keep investors interested while the business prioritises investment over near-term earnings momentum.”