UK's SSE beats FY adjusted EPS estimates, raises dividend
UK's SSE beats FY adjusted EPS estimates, raises dividend
Overview
UK energy infrastructure operator's preliminary FY adjusted EPS beat analyst expectations
Adjusted EBIT missed consensus; transmission profits rose but distribution and flexibility declined
Company lifted full-year dividend by 7% after record £3.6bln capital investment
Outlook
SSE reiterates 2026/27 adjusted EPS guidance of 168-193 pence
Company expects full-year 2026/27 capex to rise to over £5 bln
SSE maintains 2029/30 adjusted EPS target of 225-250 pence
Result Drivers
TRANSMISSION GROWTH - Adjusted operating profit in SSEN Transmission rose about 75% due to increased investment and allowed revenues
DISTRIBUTION DECLINE - SSEN Distribution profits fell about 54% as expected, due to the absence of a prior-year non-recurring inflation adjustment
RENEWABLES MIXED - Renewables profits rose about 4% as new capacity additions were partly offset by less favourable weather and lower hedged prices
Company press release: ID:nRSb9577Fa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Adjusted EPS | Beat | GBP 1.54 | GBP 1.50 (16 Analysts) |
FY Adjusted Operating profit | Miss | GBP 2.24 bln | GBP 2.27 bln (15 Analysts) |
FY Adjusted Net Debt and Hybrid Capital |
| GBP 10.1 bln |
|
FY Adjusted Pretax Profit |
| GBP 2.03 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the electric utilities peer group is "buy"
Wall Street's median 12-month price target for SSE PLC is GBp2,800.00, about 15.2% above its May 27 closing price of GBp2,430.00
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)