Equity Snap: SSE (SSE LN): Investment programme on track, strong renewables output

Research evidence excerpt

Equity Snap: SSE (SSE LN): Investment programme on track, strong renewables output

16 July 2026

Equity Snap: SSE (SSE LN) Equities Multi-Utilities

Investment programme on track, strong renewables

output United Kingdom

◆ Networks capex up 83% YoY and on track for GBP5bn Charles Swabey*

spend; Renewables output benefits from weather and Global Utilities & Renewables Analyst

HSBC Bank plc

capacity additions charles.swabey@hsbc.com

+44 20 3268 3954

Meike Becker*

SSE (SSE LN, GBp2,468, Buy, TP GBp3,000) Senior Global Utilities & Renewables Analyst

(Priced as of 15 Jul 2026)

meike.becker@hsbc.com

+44 20 7991 6441

Headline. The company’s 1Q Trading Statement showed it making good progress on

delivery of its five-year, GBP33bn investment programme and on track to deliver a

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

record GBP5bn of investments in FY27. Small positive for Renewables earnings, with not registered/ qualified pursuant to FINRA regulations

the company noting "favourable weather" in 1Q, that combined with new capacity

additions has boosted output 31% YoY. SSE affirms the financial expectations for

FY27 with an adj. EPS guidance range of 168-193p. Adj. EPS guidance for FY30 of

225-250p remains unchanged.

Networks. Investment programme accelerating as planned, with capex up 83% YoY,

with a total of GBP0.9bn invested across Transmission and Distribution. Good

progress on project delivery with construction starting on the Netherton Hub near

Peterhead and HVDC converter stations across several subsea projects. The

company expects transmission earnings to significantly step-up YoY in FY27

reflecting the start of the new price control and a higher asset base.

Renewables. Small positive for Renewables, with the company noting "favourable