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Investing.com -- Shares of SSE Plc (LON:SSE) fell more than 2% on Thursday after the energy company projected a decline in first-half earnings per share for the 2025-26 fiscal year.
The UK-based company forecast 1H25-26 EPS of 33p to 37p, in line with seasonal averages but placing the midpoint at roughly 23% of Jefferies’ full-year EPS estimate of 156p, which the brokerage described as “a small negative.”
The company said it expects full-year performance to remain broadly unchanged, though no formal guidance was provided.
First-half adjusted capital expenditure is projected to rise about 60% year-on-year to £1.1 billion, driven by the continued acceleration of Networks spending.
Total first-half capex is expected at roughly £1.5 billion, while net debt and hybrid capital are forecast at approximately £11.5 billion, slightly below Jefferies’ FY25/26 estimate of £11.8 billion.
In renewables, SSE reported strong output in the second quarter, which offset unfavorable weather conditions in the first quarter. The company expects total first-half renewable generation to reach around 5.3 TWh, down 2% year-on-year, with second-quarter output remaining flat at 2.8 TWh.
SSE also provided updates on its investment program. The company submitted the final major ASTI consent application and received planning permission for the Netherton Hub in Aberdeenshire.
Major consent was also secured for the Berwick Bank offshore wind farm, clearing the project for potential entry into the UK AR7 auction round.
Jefferies maintained its full-year EPS range for 2026/27 at 175p to 200p. Analysts described the first-half midpoint as “on the low end,” reflecting modest pressure on near-term earnings despite long-term capital deployment.
The company’s guidance reflects ongoing capital investments across networks and renewables, combined with weather-related volatility in output.
SSE reiterated that first-half performance aligns with typical seasonal trends, which usually see 20-30% of annual earnings in the first six months.