SSE has reported a strong year of operational and financial performance, delivering earnings at the top end of guidance and a record investment year, but the results came with a market concern around renewables targets.

The Perth-headquartered energy group said results came in towards the upper end of guidance, supported by strong contributions from its transmission business, where profits rose by around 75% year-on-year as investment in the electricity grid accelerated.

The company also increased its full-year dividend by 7% to 68.7p per share and reaffirmed its medium and long-term earnings targets.

The year saw a record £3.6bn of capital investment as it ramps up its £33bn programme to expand electricity networks, renewable generation and energy flexibility infrastructure across the UK.

CEO Martin Pibworth said: "This year has demonstrated the strength and resilience of SSE’s integrated model. We met all our financial and operational targets and delivery of our fully-funded £33bn investment plan to 2030 is well under way. “With record levels of capital investment in line with our plan and strong momentum across the group, we are well placed to deliver sustainable growth and value creation for our shareholders while helping to build a more affordable and secure energy system for the UK."

SSE said its diversified portfolio across networks, renewables and thermal generation leaves it well positioned to withstand economic and market uncertainty, with no immediate impact from recent macroeconomic volatility on its outlook.

The investment programme, announced in November 2025, will see around £27bn directed towards regulated electricity networks and a further £6bn invested in renewables and flexibility projects. SSE expects annual capital expenditure to exceed £5bn as delivery gathers pace.

However, the company acknowledged that it is now unlikely to meet its 2030 renewable energy capacity target due to challenging market conditions, policy uncertainty and delays in grid connections.

As a result, SSE’s share price fell after today’s results, trading around £23.98 to £24.12, down roughly 0.7% to 1.3% on the day.

Commenting on the results, Russ Mould, investment director at AJ Bell said: "The good news for shareholders and the rest of us is that the company’s major spending programme is progressing to plan. Management’s decision to deliver a meaningful hike in the dividend is a show of confidence in the outlook as it sticks with medium-term guidance."

Mould added: "While the pressure on earnings from variable weather conditions is a reminder of one of the main drawbacks of renewables – namely their short-term unpredictability – management’s decision to deliver a meaningful hike in the dividend is a show of confidence in the outlook as it sticks with medium-term guidance."

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