SSE (GB:SSE)
LSE:SSE
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SSE (SSE) AI Stock Analysis

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GB:SSE

SSE

(LSE:SSE)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
2,202.00p
▼(-1.08% Downside)
SSE's overall stock score is driven by a strong earnings call that outlines a transformative investment plan with significant growth potential. The technical analysis supports a positive trend, though caution is advised due to overbought signals. Financial performance is mixed, with concerns about cash flow management, but valuation metrics are reasonable, providing a balanced outlook.
Positive Factors
Transformational Investment Plan
The investment plan positions SSE for significant growth in the energy sector, enhancing its infrastructure and market position, which is crucial for long-term sustainability and competitiveness.
Earnings and Dividend Growth
Projected earnings and dividend growth indicate strong future profitability and shareholder returns, supporting financial stability and investor confidence over the long term.
Strong Transmission Growth
Focused investment in transmission projects enhances SSE's infrastructure capabilities, supporting long-term operational efficiency and capacity to meet growing energy demands.
Negative Factors
Renewables Challenges
Challenges in the renewables segment, such as reduced hedge prices, can impact profitability and hinder growth in a key strategic area, affecting long-term sustainability.
Lower Distribution Profits
Lower distribution profits highlight potential vulnerabilities in revenue streams, which could affect overall financial performance and strategic flexibility.
Cash Flow Management Concerns
Negative free cash flows indicate potential liquidity issues, which could constrain SSE's ability to finance operations and investments, impacting long-term financial health.

SSE (SSE) vs. iShares MSCI United Kingdom ETF (EWC)

SSE Business Overview & Revenue Model

Company DescriptionSSE plc engages in the generation, transmission, distribution, and supply of electricity. It generates electricity from water, gas, coal, oil, and multi fuel. The company distributes electricity to approximately 3.8 million homes and businesses across the north of the central belt of Scotland and central southern England; and owns, operates, and develops high voltage electricity transmission system in the north of Scotland and remote islands. It also produces, stores, distributes, and supplies gas. In addition, it engages in the electricity and utility contracting, telecommunications, energy trading, insurance, and property holding businesses, as well as provides maintenance services. The company was formerly known as Scottish and Southern Energy plc and changed its name to SSE plc in September 2011. SSE plc was incorporated in 1989 and is based in Perth, the United Kingdom.
How the Company Makes MoneySSE generates revenue through multiple channels, primarily from the sale of electricity and gas to residential and business customers. Key revenue streams include regulated income from its gas distribution network, competitive income from energy supply to customers, and revenue from energy generation, particularly from its renewable energy projects. SSE also engages in energy trading and has partnerships with other energy firms and organizations to enhance its operational capabilities and market reach. Additionally, government incentives and subsidies for renewable energy projects contribute to its earnings, supporting its strategic focus on sustainability and green energy initiatives.

SSE Earnings Call Summary

Earnings Call Date:Nov 12, 2025
(Q2-2026)
|
% Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
The earnings call highlighted a robust and transformative investment plan with significant growth potential, particularly in networks. Despite some challenges in renewables and other segments, the overall strategic direction and financial stability suggest a positive outlook.
Q2-2026 Updates
Positive Updates
Transformational Investment Plan
SSE announced a GBP 33 billion investment plan focused on networks, with a 25% CAGR in the regulatory asset base expected by 2030. This positions SSE as one of the fastest-growing electricity network companies globally.
Earnings and Dividend Growth
SSE projects adjusted EPS of 225p to 250p by 2030, with a sustainable and progressive dividend policy increasing by 5% to 10% annually.
Strong Transmission Growth
Around 90% of investment in Transmission will be spent on major projects and business-as-usual investments, reflecting supply chain inflation.
Financial Performance Stability
The group delivered a GBP 655 million adjusted operating profit, in line with seasonal averages, and an adjusted EPS of 36.1p.
Operational Progress
Significant progress made in constructing 4 of 11 major transmission projects and strong advancements in Dogger Bank construction, with 88 out of 95 turbines installed.
Negative Updates
Renewables Challenges
A 20% decrease in hedge prices led to reduced adjusted operating profits for the period, and unfavorable weather conditions impacted capacity.
Lower Distribution Profits
Distribution profits were lower due to a nonrecurring inflation adjustment in the prior period, although operational performance remained strong.
Flexibility Segment Decline
Adjusted operating profits fell due to lower volumes and a bad debt release in the previous period.
Company Guidance
In a recent call, SSE outlined a significant investment plan focusing on growth in the U.K. energy sector. The company announced a GBP 33 billion investment, with 80% allocated to networks, aiming for a compound annual growth rate of 25% in the regulatory asset base by 2030. SSE expects earnings per share to reach between 225p to 250p by 2030. The plan is fully funded, with 90% of funding from operational cash flows and increased debt, while the remaining 10% will come from equity placing and asset disposals. The company also emphasized a 5% to 10% annual dividend growth, projecting a strong balance sheet with net debt to EBITDA below 4.5x. Additionally, SSE plans to achieve GBP 200 million in annual cost efficiencies by FY '28.

SSE Financial Statement Overview

Summary
SSE presents a mixed financial picture. While the income statement shows periods of strong profitability, there is inconsistency in revenue and margins. The balance sheet is moderately leveraged, offering stability but with room for improvement in equity levels. Cash flow management appears to be a concern with recent negative free cash flows, which could impact future liquidity if not addressed.
Income Statement
72
Positive
SSE has shown fluctuating revenue with a peak in 2023, followed by a decrease in 2024 and 2025. The gross profit margin has been inconsistent, but the net profit margin was notably strong in 2022 and 2021. The EBIT and EBITDA margins have also varied, indicating some volatility in operational efficiency.
Balance Sheet
68
Positive
The company's balance sheet reflects a moderate debt-to-equity ratio, indicating leverage but not excessively so. The return on equity showed strength in 2022 but declined in 2025. The equity ratio suggests a balanced capital structure but could benefit from higher equity levels.
Cash Flow
65
Positive
SSE's cash flow statement shows fluctuating free cash flow, which turned negative in 2025, indicating potential cash management challenges. The operating cash flow to net income ratio has been robust except for 2023, suggesting solid cash generation relative to net income.
BreakdownTTMDec 2024Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue10.13B10.46B10.13B12.49B8.70B6.83B
Gross Profit3.86B4.35B3.86B1.93B1.74B2.10B
EBITDA3.29B3.67B3.23B189.10M4.32B3.30B
Net Income1.19B1.71B1.19B-158.00M3.03B2.28B
Balance Sheet
Total Assets30.36B28.27B30.36B27.14B25.76B21.59B
Cash, Cash Equivalents and Short-Term Investments1.09B1.04B1.09B1.21B1.13B1.60B
Total Debt10.60B9.13B10.60B10.94B10.19B10.88B
Total Liabilities17.67B16.47B17.67B17.91B17.64B16.38B
Stockholders Equity12.06B11.05B12.06B8.58B8.08B5.21B
Cash Flow
Free Cash Flow-212.40M1.35B-654.20M-360.90M121.40M593.30M
Operating Cash Flow2.48B3.86B2.48B1.46B1.58B1.77B
Investing Cash Flow-3.32B-2.86B-3.32B-2.96B-744.90M443.70M
Financing Cash Flow896.20M-784.50M896.20M1.35B-1.38B-778.70M

SSE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2226.00
Price Trends
50DMA
1847.09
Positive
100DMA
1818.07
Positive
200DMA
1708.52
Positive
Market Momentum
MACD
107.99
Negative
RSI
73.19
Negative
STOCH
84.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SSE, the sentiment is Positive. The current price of 2226 is above the 20-day moving average (MA) of 1993.33, above the 50-day MA of 1847.09, and above the 200-day MA of 1708.52, indicating a bullish trend. The MACD of 107.99 indicates Negative momentum. The RSI at 73.19 is Negative, neither overbought nor oversold. The STOCH value of 84.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SSE.

SSE Risk Analysis

SSE disclosed 12 risk factors in its most recent earnings report. SSE reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

SSE Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£56.78B18.567.87%3.99%-9.52%35.74%
73
Outperform
£20.81B17.459.92%2.85%1.78%-50.72%
68
Neutral
£2.41B-36.04-4.44%6.79%15.42%-406.43%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
65
Neutral
£8.21B-35.94-5.95%2.89%-4.82%-123.58%
61
Neutral
£8.19B30.9220.43%4.40%15.76%254.82%
60
Neutral
£8.34B36.1712.73%4.48%3.78%50.18%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SSE
SSE
2,226.00
595.36
36.51%
GB:CNA
Centrica
167.10
50.23
42.98%
GB:PNN
Pennon Group plc
502.50
79.33
18.75%
GB:SVT
Severn Trent
2,715.00
108.11
4.15%
GB:UU
United Utilities
1,178.00
123.86
11.75%
GB:NG
National Grid
1,172.00
233.10
24.83%

SSE Corporate Events

Business Operations and StrategyPrivate Placements and Financing
SSE Raises £2 Billion to Fund Strategic Energy Investments
Positive
Nov 12, 2025

SSE plc has successfully completed a non-pre-emptive equity issue, raising approximately £2.0 billion through the placement of 97,916,637 new ordinary shares. This capital will support SSE’s £33 billion five-year strategic investment plan aimed at transforming the energy system. The equity issue included participation from institutional investors, retail investors, and company directors, with shares priced at a 3.8% premium to the previous closing price. The move is expected to bolster SSE’s market position and accelerate its investment in sustainable energy solutions.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £2200.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
SSE Launches Retail Share Offer to Fund Strategic Investment Plan
Neutral
Nov 12, 2025

SSE PLC has announced a conditional retail offer of new ordinary shares through RetailBook, targeting both existing shareholders and new investors. This initiative is part of a broader equity issue that includes a non-pre-emptive placing and a subscription by the executive management team and certain directors. The proceeds from this equity issue will support SSE’s five-year strategic investment plan for FY26-30. The retail offer is designed to give retail investors an opportunity to participate in line with Pre-Emption Group guidelines, with priority given to existing shareholders. The offer is conditional on the successful completion of the placing and the admission of the new shares to the London Stock Exchange.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £2200.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and Strategy
SSE Unveils £33 Billion Investment Plan to Transform UK Electricity Network
Positive
Nov 12, 2025

SSE plc has announced a significant £33 billion investment plan aimed at transforming the UK electricity network by 2030. This plan will focus on increasing the company’s regulated asset value and earnings through investments in electricity networks, renewables, and system flexibility, supported by secure UK Government regulatory frameworks. The initiative is expected to position SSE as a top-tier European utility, driving substantial economic growth and job creation while delivering sustainable value for shareholders.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £2200.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
SSE Announces £2 Billion Equity Issue to Fund £33 Billion Energy Infrastructure Investment
Positive
Nov 12, 2025

SSE plc has announced a £2 billion equity issue to fund its £33 billion investment plan for FY26-30, aimed at transforming the UK electricity network. This plan will significantly increase SSE’s regulated asset base and earnings, positioning it as a leading electricity infrastructure company in Europe. The investment will focus on regulated UK electricity networks and renewables, supported by secure regulatory frameworks, and is expected to drive economic growth and job creation while maintaining SSE’s strong balance sheet and credit ratings.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £2200.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
SSE Unveils £33 Billion Investment Plan Amid Steady Interim Results
Positive
Nov 12, 2025

SSE plc announced a transformational £33 billion five-year investment plan aimed at enhancing its exposure to UK electricity networks, promising long-term value creation and earnings growth. The interim results for the six months ended September 2025 were in line with expectations, with a notable increase in capital investment, particularly in SSEN Transmission projects. Despite a decrease in operating profit and earnings per share compared to the previous year, the company remains optimistic about its strategic investments, which are expected to drive economic growth and job creation while supporting a cleaner energy system.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £2200.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and Strategy
SSE Aligns Management Interests with Shareholders through Share Incentive Plan
Positive
Nov 7, 2025

SSE plc announced the purchase and award of ordinary shares under its all-employee Share Incentive Plan. This transaction involved several directors and persons discharging managerial responsibilities (PDMRs), with shares being acquired at a price of GBP £19.1466. The announcement reflects SSE’s commitment to aligning the interests of its management with those of its shareholders, potentially enhancing stakeholder confidence in the company’s governance and operational strategies.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £2425.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Regulatory Filings and Compliance
SSE plc Updates on Voting Rights and Capital Structure
Neutral
Nov 3, 2025

SSE plc has announced an update on its voting rights and capital structure as of November 3, 2025. The company reported an issued share capital of 1,112,533,024 ordinary shares, including 3,494,395 shares held in treasury, which do not carry voting rights. Consequently, the total number of voting rights stands at 1,109,038,629. This information is crucial for shareholders to determine their reporting obligations under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £2152.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and Strategy
SSE PLC Announces Director Share Acquisition Under Employee Incentive Plan
Neutral
Oct 9, 2025

SSE PLC announced a transaction involving the purchase and awarding of ordinary shares under its Irish all-employee Share Incentive Plan. This transaction, conducted on behalf of Director Barry O’Regan, involved the acquisition of 18 shares, comprising both partnership and matching shares, at a price of €20.775639 per share. The move is part of the company’s regular quarterly share purchase initiative, demonstrating SSE’s ongoing commitment to employee investment and engagement.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £21.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and Strategy
SSE Aligns Leadership Interests with Shareholders through Share Incentive Plan
Positive
Oct 7, 2025

SSE plc announced the purchase of ordinary shares and the awarding of matching shares to its directors and persons discharging managerial responsibilities (PDMRs) as part of its all-employee Share Incentive Plan. This transaction, conducted on the London Stock Exchange, reflects the company’s commitment to aligning the interests of its leadership with its shareholders, potentially impacting the company’s governance and stakeholder engagement positively.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £21.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
SSE plc Reports Steady Half-Year Earnings and Strategic Progress
Neutral
Oct 2, 2025

SSE plc announced its expectation to report a half-year adjusted Earnings Per Share between 33 and 37 pence, consistent with seasonal averages, while maintaining its full-year performance outlook. The company is accelerating its network business delivery, with a significant increase in investments, despite facing unfavorable weather conditions impacting renewable energy output. SSE is progressing with its NZAP Plus investment program and has secured major consents for key projects, positioning itself strongly for future growth. Total capital expenditure is expected to reach £1.5bn, with adjusted net debt and hybrid capital around £11.5bn.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £21.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Regulatory Filings and Compliance
SSE Announces Total Voting Rights and Capital Update
Neutral
Oct 1, 2025

SSE plc has announced its total voting rights and capital as of September 30, 2025. The company has issued 1,112,528,692 ordinary shares, with 4,581,343 held in treasury, resulting in 1,107,947,349 voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £21.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and StrategyDividendsRegulatory Filings and Compliance
SSE plc Reinvests Dividends into Shares for Directors and PDMRs
Positive
Sep 22, 2025

SSE plc announced the reinvestment of cash dividends into shares for directors and persons discharging managerial responsibilities (PDMRs) under its all-employee Share Incentive Plan. This move, conducted through Computershare Investor Services, aligns with the Market Abuse Regulation and reflects SSE’s ongoing commitment to employee investment in the company. The transactions, executed on the London Stock Exchange, highlight SSE’s focus on aligning the interests of its management with those of its shareholders, potentially impacting the company’s market positioning and stakeholder relations positively.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £2175.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Delistings and Listing ChangesDividends
SSE PLC Announces Additional Share Listing on London Stock Exchange
Neutral
Sep 16, 2025

SSE PLC has announced an application for the listing and admission of 1,369,268 ordinary shares on the London Stock Exchange. These shares are part of the Company’s Scrip Dividend Scheme related to the final dividend for the year ending 31 March 2025. The new shares will hold the same status as existing shares and are expected to be admitted on 18 September 2025, potentially impacting shareholder value and market perception.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £2175.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
SSE PLC Aligns Management Interests with Shareholders through Share Incentive Plan
Positive
Sep 9, 2025

SSE PLC announced that it has executed a transaction involving the purchase and awarding of ordinary shares to its directors and persons discharging managerial responsibilities (PDMRs) under its all-employee Share Incentive Plan. This move, compliant with the Market Abuse Regulation, signifies the company’s commitment to aligning the interests of its management with those of its shareholders, potentially enhancing stakeholder confidence and reinforcing its market position.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £2175.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and StrategyDividends
SSE plc Announces Scrip Dividend Election for 2025
Neutral
Aug 28, 2025

SSE plc announced that 23,080 shareholders have opted to receive their final dividend for the year ending 31 March 2025 in the form of a Scrip dividend, covering 58,951,063 ordinary shares. This decision reduces the company’s cash dividend funding by £25,348,957. The Scrip dividend uptake was 9.7%, below the 25% cap, so no share buy-back will occur. Consequently, 1,369,268 new ordinary shares will be issued, increasing the issued share capital by 0.12%. This move reflects SSE’s strategic approach to managing its financial resources and shareholder value.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £1973.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
SSEN Transmission Issues €750m Green Bond to Boost Scotland’s Energy Network
Positive
Aug 26, 2025

SSEN Transmission, a subsidiary of SSE plc, has successfully issued a €750 million green bond in the Euro bond market, marking its second issuance. This bond, maturing in 2033, will finance critical infrastructure as part of a £22 billion investment program aimed at upgrading the transmission network in Scotland, supporting the UK’s 2030 net zero targets. The issuance strengthens SSE’s position as a leader in green finance, with a total of £5.5 billion in outstanding green bonds, and highlights its commitment to financial discipline and sustainable energy infrastructure.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £1973.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 12, 2025