SSE (LON:SSE) Issues Quarterly Earnings Results

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

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 1.3%

Shares of SSE opened at GBX 2,399 on Thursday. SSE has a 52-week low of GBX 1,597 and a 52-week high of GBX 2,767.50. The company has a market capitalization of £28.92 billion, a PE ratio of 27.61, a price-to-earnings-growth ratio of 3.06 and a beta of 0.62. The stock has a fifty day simple moving average of GBX 2,568.17 and a two-hundred day simple moving average of GBX 2,423.81. The company has a quick ratio of 0.50, a current ratio of 0.97 and a debt-to-equity ratio of 81.00.

Wall Street Analyst Weigh In

SSE has been the subject of a number of research analyst reports. JPMorgan Chase & Co. upped their price objective on shares of SSE from GBX 2,580 to GBX 2,925 and gave the stock an “overweight” rating in a research report on Wednesday, April 1st. UBS Group reaffirmed a “neutral” rating and set a GBX 2,350 target price on shares of SSE in a research note on Friday, May 22nd. Deutsche Bank Aktiengesellschaft lifted their target price on shares of SSE from GBX 2,850 to GBX 2,900 and gave the stock a “buy” rating in a research note on Friday, April 24th. Finally, Jefferies Financial Group lifted 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 note on Wednesday, March 18th. Five investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, SSE has a consensus rating of “Moderate Buy” and an average target price of GBX 2,606.57.

About SSE

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.