SSE plc (LON:SSE) has announced its preliminary results for the year ended 31 March 2025
At the heart of the clean energy transition
· Investment plan delivering value with adjusted Earnings Per Share of 160.9p, in line with expectations:
§ Continuing strong financial and strategic performance from regulated Networks businesses, despite the impact from named storms and unsettled weather conditions.
§ Renewables capacity additions from Viking and a full year contribution from Seagreen drove an 18% increase in output, despite variable weather conditions.
§ Thermal profitability normalised, in line with expectations; strong performance from Energy Customer Solutions demonstrated its strategic importance to the Group.
§ Record £2.9bn adjusted capital investment, of which ~90% was delivered across Networks and Renewables.
§ Adjusted net debt and hybrid capital at £10.2bn, with 3.2x net debt / EBITDA.
§ Recommend a final dividend of 43.0 pence taking full-year dividend to 64.2 pence or 7% increase on prior year.
· Evolving investment programme delivering in complex operating environment:
§ Five-year investment expectations reduced by £3bn to around £17.5bn, reflecting financial discipline in a changing macro environment across the energy businesses and consent phasing in networks.
§ ~60% expected to be invested in regulated Networks, with ~30% allocated to Renewables.
§ Construction continues on all three phases of Dogger Bank offshore wind farm. On track with Phase A completion in the second half of 2025, with >50% of turbines installed.
§ All major substation consents submitted for ASTI and LOTI transmission projects, with remaining consents to be submitted in summer 2025. Construction ongoing at Eastern Green Link 2 ASTI project.
§ Completion of £1bn+ combined investment in 443MW Viking onshore wind farm in Shetland and associated subsea HVDC transmission cable, connecting the islands to the GB grid for the first time.
§ Clearly defined pathway to delivering 2026/27 adjusted Earnings Per Share of 175 – 200p.
| FINANCIAL SUMMARY | Adjusted | Reported | |||||
| Mar 2025 | Mar 2024 | % mvmt | Mar 2025 | Mar 2024 | % mvmt | ||
| Operating profit (£m) | 2,419.2 | 2,426.4 | – | 1,962.2 | 2,608.2 | (25%) | |
| Profit before tax (£m)1 | 2,138.2 | 2,200.9 | (3%) | 1,850.9 | 2,495.1 | (26%) | |
| Earnings per share (p)1 | 160.9 | 160.9 | – | 108.2 | 156.7 | (31%) | |
| Investment, capital & acquisitions (£m) | 2,910.4 | 2,476.7 | 18% | 3,837.0 | 3,285.6 | 17% | |
| Net Debt and Hybrid Capital (£bn)2 | (10.2) | (9.4) | 9% | (9.5) | (8.1) | 17% | |
1 Alternative Performance Measures have been simplified to no longer adjust for interest on net pension assets, resulting in adjusted EPS increasing by 1.9 pence in 2024/25 and 2.4 pence in 2023/24.
2 Reported net debt excludes equity accounted hybrid capital, see Alternative Performance Measures Section.
Alistair Phillips-Davies, Chief Executive, said:
“SSE continues to prove the benefits of a portfolio that is built to withstand risk and uncertainty and a strategy that is focused on creating sustainable value. We have met our financial goals for the year and evolved our investment plans to reflect the changing world around us – leaning into the opportunities presented in networks and redoubling our capital discipline across our energy businesses.
“We are particularly well placed to contribute to future energy systems in our home markets built on renewables, networks and flexibility. This opportunity, alongside our balance sheet strength and the increased proportion of index-linked revenue we anticipate, gives us every confidence in our FY27 target of 175-200p earnings per share and sustainable growth to 2030 and beyond.”
Highlights: Focused on delivering value creation
Strong financial performance, underpinned by regulated networks and renewables growth
· Regulated Networks and Renewables contributed around 90% of adjusted operating profits, reflecting:
§ Strong operational performance from SSEN Transmission, with lower profitability due to one-off true-up benefits in the prior year.
§ One-off cost recoveries through the regulatory price control for SSEN Distribution, where operational performance was also strong in exceptional storm conditions and variable weather.
§ Around 18% increase in output for SSE Renewables, reflecting increased operational capacity combined with a hedged price environment around 30% higher than the prior year.
§ In line with guidance, SSE Thermal and Gas Storage delivered £211.4m of operating profit, reflecting a return towards lower spark spreads and lower market volatility.
§ Energy Customer Solutions continued to see supply margins return to more sustainable levels while delivering tariff reductions to customers in 2024/25 as energy prices stabilised.
· Reported operating profit of £1,962.2m includes exceptional charges totalling £(309.7)m. The majority of this charge relates to a £249.5m non-cash impairment of the Group’s investment in the Southern Europe Renewables pipeline. This impairment reflects sector-wide delays to permitting and grid connections, which has meant the build-out has been slower than originally planned.
· Adjusted net finance costs increased over the course of the year reflecting the generally higher level of adjusted net debt and interest-bearing non-recourse project financing in the year.
· Adjusted taxation rate decreased to 13.9%, driven by “full expensing” capital allowance tax relief.
· Strength of balance sheet maintained alongside the strong investment grade credit rating, with 91% of debt fixed at average cost of 3.99% and an average maturity of 5.6 years.
· We are closely monitoring developments in global trade tariff arrangements, however given our diversified supply chains, we do not currently anticipate any material impact on our business or financial results.
Disciplined approach to delivery, with focus on efficiency and competitiveness
· Full energisation of Shetland HVDC link and completion of associated 443MW Viking wind farm both delivered in August 2024, representing an investment of over £1bn.
· Construction commenced on Eastern Green Link 2 (EGL2), a 2GW subsea HVDC being jointly delivered with National Grid, which is the UK’s single largest electricity transmission project.
· All major substation consents now submitted for ASTI and LOTI transmission projects, with all remaining consents to be submitted in summer 2025, following the Scottish Government’s 52-week decision target.
· Major distribution projects are accelerating, with framework agreements worth ~£1.5bn having been agreed with delivery partners.
· Continuing to progress 3.6GW Dogger Bank offshore wind farm with completion of Dogger Bank A expected in the second half of 2025. Construction on Dogger Bank B progressing well, with all 95 monopiles installed, and blade and turbine manufacturing at advanced stages. A second installation vessel has been contracted and is expected to be on site in the second quarter of 2026. Equity returns across all three phases remain comfortably in line with hurdle rates.
· Completion of the 40MW Tummel Bridge hydropower station refurbishment, whilst reaching a final investment decision to repower 45MW Lochay hydropower station – extending both plants working life by at least 40 years.
· Success in the UK’s sixth Contract for Difference auction (AR6) with 130MW Cloiche onshore wind farm and success in Ireland’s fourth Renewable Electricity Support Scheme auction (RESS 4) with 60MW Drumnahough onshore wind farm Joint Venture.
· Secured agreements in both the GB and Irish T-4 capacity auctions at strong prices, with the SSE Thermal fleet now fully contracted out to 2029 and triggering an extension to GB fleet end of life assumptions.
· Entered commercial operations on Slough Multifuel – a 55MW Joint Venture – ahead of schedule and backed by a 15 year capacity contract, with steam produced being re-used on the Slough Trading Estate.
· Taken a final investment decision on 300MW Tarbert Next Generation power station in Ireland, with construction commencing during 2025 ahead of planned completion by the end of 2027.
Key Performance Indicators
| Financial Performance | Adjusted | Reported | |||
| Mar 2025 | Mar 20241 | Mar 2025 | Mar 2024 | ||
| Operating profit £m | 2,419.2 | 2,426.4 | 1,962.2 | 2,608.2 | |
| EBITDA £m | 3,349.3 | 3,295.6 | 2,738.3 | 3,333.1 | |
| Profit before tax £m | 2,138.2 | 2,200.9 | 1,850.9 | 2,495.1 | |
| Earnings per share (EPS) pence | 160.9 | 160.9 | 108.2 | 156.7 | |
| Full year dividend per share (DPS) pence | 64.2 | 60.0 | 64.2 | 60.0 | |
| Investment, capital and acquisitions £m | 2,910.4 | 2,476.7 | 3,837.0 | 3,285.6 | |
| Net debt and hybrid capital £m | 10,186.7 | 9,435.7 | 9,513.9 | 8,097.8 | |
| SSEN Transmission RAV – £m (100% basis) | 7,171 | 5,676 | |||
| SSEN Distribution RAV – £m | 5,737 | 5,301 | |||
| SSE Total Electricity Networks RAV – £m (100% basis) | 12,908 | 10,977 | |||
1 Comparative financial information has been restated, please see note 2.3 to the summary financial statements
| Performance against 2030 Goals | Mar 2025 | Sep 2024 | Mar 2024 | |
| Cut carbon intensity by 80% | ||||
| – Scope 1 GHG intensity (gCO2e/kWh) | 218 | 207 | 205 | |
| Increase renewable energy output fivefold | ||||
| – Renewable generation output (TWh)1 | 13.3 | 5.4 | 11.2 | |
| Enable low-carbon generation and demand | ||||
| – Renewables connected in SSEN Transmission network area (GW) | 10.9 | 10.6 | 9.3 | |
| Champion a fair and just energy transition | ||||
| – Contribution to GDP UK (£bn / €bn)2 | 7.88/0.95 | – | 5.86/1.043 | |
| – Jobs supported in UK and Ireland2 | 62,000/5,190 | – | 50,380/4,4504 | |
1 Includes pumped storage, battery energy storage systems, biomass and constrained-off wind in GB
2 Direct, indirect and induced Gross Value Added and jobs supported, from PwC analysis
3 Figures for 2023/24 have been restated to reflect post year-end adjustments to data
4 The methodology updated to align to published government multipliers and savings rates where available also had a small impact on the results
| Safety Performance | Mar 2025 | Sep 2024 | Mar 2024 |
| Total Recordable Injury Rate per 100k hours (SSE & contract partners) | 0.16 | 0.16 | 0.20 |
Investor Timetable
| 2025 Annual Report and Sustainability Report published on sse.com | 13 June 2025 |
| AGM and Q1 Trading Statement | 17 July 2025 |
| Final ex-dividend date | 24 July 2025 |
| Record date | 25 July 2025 |
| Scrip reference pricing days | 24-30 July 2025 |
| Scrip reference price confirmed and released via RNS | 31 July 2025 |
| Final date for receipt of scrip elections | 21 August 2025 |
| Final dividend payment date | 18 September 2025 |
| Notification of Closed Period | Around 30 September 2025 |
| Interim results for the six months ended 30 September 2025 | 12 November 2025 |
