SSE (LON:SSE) Issues Quarterly Earnings Results

SSE (LON:SSE) posted its quarterly earnings data on Thursday. The company reported GBX 153.50 EPS for the quarter, Digital Look Earnings reports. SSE had a net margin of 8.59% and a return on equity of 7.09%. The firm had revenue of GBX 1,018.65 billion for the quarter.

Here are the key takeaways from SSE’s conference call:

• SSE said it met its overriding safety goal of no life-changing injuries, with injury rates broadly flat despite a sharp rise in contractor hours as investment accelerated.
• The company delivered FY 2026 EPS of GBP 1.535, toward the top end of guidance, while also posting a record GBP 3.6 billion of capital expenditure for the year.
• Management reaffirmed the long-term growth plan, including targets of GBP 2.25-GBP 2.50 EPS by 2030 and around 80% of earnings linked to inflation, supported by regulated networks and a strong balance sheet.
• Transmission remains the main growth engine, with 80% higher transmission CapEx, about 75% of consents already approved, and construction underway on five major projects in the north of Scotland.
• There were some headwinds in parts of the portfolio, including lower distribution earnings after prior-year inflation catch-ups, mixed renewables weather conditions, and weaker flexibility earnings from outages and soft market spreads.

SSE Stock Down 0.9%

Shares of LON:SSE opened at GBX 2,408 on Thursday. The stock has a market capitalization of £29.03 billion, a price-to-earnings ratio of 27.71, a price-to-earnings-growth ratio of 3.06 and a beta of 0.62. SSE has a 1-year low of GBX 1,597 and a 1-year high of GBX 2,767.50. The company’s fifty day moving average is GBX 2,568.17 and its two-hundred day moving average is GBX 2,423.81. The company has a debt-to-equity ratio of 81.00, a quick ratio of 0.50 and a current ratio of 0.97.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on SSE shares. Jefferies Financial Group boosted their target price on shares of SSE from GBX 2,510 to GBX 3,060 and gave the stock a “buy” rating in a research report on Wednesday, March 18th. JPMorgan Chase & Co. lifted their price target on SSE from GBX 2,580 to GBX 2,925 and gave the stock an “overweight” rating in a research note on Wednesday, April 1st. UBS Group reissued a “neutral” rating and issued a GBX 2,350 price objective on shares of SSE in a report on Friday, May 22nd. Finally, Deutsche Bank Aktiengesellschaft upped their price objective on SSE from GBX 2,850 to GBX 2,900 and gave the company a “buy” rating in a research note on Friday, April 24th. Five equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, SSE has a consensus rating of “Moderate Buy” and a consensus target price of GBX 2,606.57.

SSE Company Profile

SSE is a leading generator of renewables and flexible energy in the GB and Ireland markets, and one of the world’s fastest-growing electricity networks companies.

This includes onshore and offshore wind farms, hydro, electricity transmission and distribution networks, power stations, carbon capture and hydrogen, solar and batteries, as well as providing energy products and services for businesses and other customers.

SSE’s more than 14,000 employees are dedicated to delivering cleaner, more secure energy and ensuring a just transition to a net zero future.