Interim Results

This announcement contains inside information under Article 7 of the Market Abuse Regulation (EU) No 596/2014, as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").

SSE plc: Interim Results
for the six months ended 30 September 2025

12 November 2025

Highlights

A transformational £33bn five-year investment plan announced separately today will see a significant increase in the Group's exposure to UK electricity networks, driving long-term value creation with attractive regulatory asset value and earnings growth.

Interim results in line with expectations, reflecting typical seasonal averages and with full year performance expectations remaining unchanged.

Adjusted capital investment increased by 22% to £1.6bn, predominantly in SSEN Transmission where four of the eleven major projects are now under construction.

Martin Pibworth, Chief Executive, said:

"Today's transformational investment plan will help build a cleaner, more secure and more affordable energy system. Upgrading the UK electricity network offers a once-in-a-generation opportunity for accelerated investment that is underpinned by secure UK Government regulatory frameworks. It will unlock much-needed growth across the wider economy and support thousands of jobs over the course of the plan. Our focused, disciplined and comprehensively funded investment plan will improve lives, whilst creating sustainable value for our shareholders and society for decades to come."

1 Comparative financial information has been restated, please see note 2.5 to the Interim Financial Statements

2 Reported net debt excludes equity classified hybrid capital, see Alternative Performance Measures section

Financial performance

·      Adjusted Earnings Per Share of 36.1 pence, in line with our expectations and consistent with typical seasonality in half year results.

·      Regulated Networks contributed around two thirds of adjusted operating profits, including:

§ Increasing investment and associated allowed revenues in SSEN Transmission, where adjusted operating profit almost doubled.

§ Distribution operating profits lower than comparative period as guided given the non-recurring inflation adjustment in the prior period, with the business continuing to deliver strong operational performance.

·      Capacity additions delivered by SSE Renewables were offset by less favourable weather and lower hedged prices as expected, with adjusted operating profits (18)% lower than the prior period.

·      Lower operating profits in Energy Customer Solutions as expected, with a bad debt provision release in the comparative period combined with less seasonal fluctuation in wholesale prices meaning a greater proportion of profits are expected to be generated in the second half of the year.

·      Reported operating profit of £634.2m also reflects lower re-measurement gains on forward energy derivatives and exceptional items including £(56.8)m relating to the Group Operating Model and Efficiency Review.

·      Adjusted taxation rate decreased to 9.4%, reflecting tax relief on increasing investment programme.

·      Adjusted capital investment increased by 22% to £1.6bn, predominantly in SSEN Transmission which increased 87% to £702.5m whilst SSEN Distribution increased 29% to £381.1m.

·      Adjusted net debt and hybrid capital at £11.4bn, in line with expectations given increasing investment.

·      Declared an interim dividend of 21.4 pence, being one third of the 2024/25 full year dividend.

Strategic delivery

Networks

·      All major consent applications now submitted across the eleven ASTI and LOTI Transmission projects¹.

·      Four of these eleven major projects now consented and under construction.

·      Supply chain fully in place for ASTI and LOTI projects following signing of EGL3 agreements.

·      Distribution delivery accelerating as business prepares for proactive strategic investment in ED3.

Renewables                                                            

·      Full completion of 101MW Yellow River onshore wind farm in Ireland.

·      Construction progressing well at Dogger Bank with turbine installation at Phase A remaining on track for completion by the end of 2025.

·      Consent received for the 4.1GW Berwick Bank offshore windfarm, clearing way for entry into upcoming auction rounds.

Flexibility

·      Significant summer maintenance programme completed with all assets successfully returning to service.

·      Final investment decision taken at the 170MW Platin Power Station in Ireland, underpinned by an attractive capacity market contract.

Financial outlook

·      SSE's balanced portfolio of assets and resilient business mix has an increasing exposure to a strong, predictable regulated asset base that continues to create sustainable long-term value.

·      Reflecting this, the Group reaffirms the individual performance expectations for each Business Unit for 2025/26 and 2026/27 as set out on page 8. Consistent with the approach taken in prior years, SSE will look to give specific adjusted Earnings Per Share guidance for 2025/26 later in the financial year.

·      Full year 2025/26 capex is expected to increase to over £3bn, with the net debt to EBITDA ratio expected to be within a 3.5 - 4.0x range, before adjusting for today's proposed placing.

·      In line with SSE's dividend plan, it is expected that the dividend per share will increase by between 5-10% this financial year.

The transformational £33bn five-year investment plan, also announced today, further outlines a significant increase in the Group's exposure to UK electricity Networks which will drive long-term value creation with attractive regulatory asset value and earnings growth.

¹ASTI: Accelerated Strategic Transmission Investment, LOTI: Large Onshore Transmission Investment

Results presentation

SSE will present these interim results and its strategic update on Wednesday 12 November at 08:00am UK time. The presentation will be available to replay. You can join the webcast by visiting sse.com and following the links on the homepage or investor pages; or directly.

This will also be available as a teleconference, for which participants can register to receive a unique pin code and conference call number.

Key Performance Indicators

1 Comparative financial information has been restated, please see note 2.5 to the Interim Financial Statements

1 Includes pumped storage, battery energy storage systems, biomass and constrained-off wind in GB

2 Prior period comparators restated to reflect data refinement. Transmission and distribution connected capacity within the SSEN Transmission Network area, includes pumped storage and battery storage.

3 Direct, indirect and induced Gross Value Added and jobs supported, from PwC analysis

Investor Timetable

Contact Details

The person responsible for making this Announcement on behalf of the Company is Liz Tanner, Group General Counsel and Company Secretary.

Group Financial Review

Financial performance for the six months ended 30 September 2025

The financial information set out in this Interim Results Statement has been prepared in accordance with the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority and UK adopted IAS 34 Interim Financial Reporting. The interim financial information is unaudited but has been formally reviewed by the Group's statutory auditor and its report to the Company is set out after the Interim Financial Statements.

In order to present the financial results and performance of the Group in a consistent and meaningful way, SSE applies a number of adjusted accounting measures throughout this financial report. The definitions SSE uses for adjusted measures are explained in the Alternative Performance Measures section of this document.

1 Comparative financial information has been restated, please see note 2.5 to the Interim Financial Statements

2 Excludes Treasury shares of 4.6m in September 2025 and 3.0m in September 2024

Segmental adjusted EBITDA results are included in note 5 to the Interim Financial Statements.

Group Operating Profit

The Group delivered robust operating financial performance in the period, in line with typical seasonal averages, and therefore consistent with our expectations for full year operating profits. The results included an increased relative contribution from regulated electricity Networks, which comprised around two thirds of total adjusted operating profit, and was consistent with the growing investment principally in SSEN Transmission.

Within electricity networks SSEN Distribution profitability more than halved, as the prior period included a non-recurring inflation adjustment, but this was partly offset by profits almost doubling for SSEN Transmission reflecting the increased investment. Profitability in SSE Renewables was impacted by less favourable weather conditions and lower hedged prices whilst SSE Thermal saw half-year adjusted operating losses reduce as the flexible thermal fleet benefited from stronger reliability. Energy Customer Solutions operating profits decreased, reflecting a bad debt provision release which benefited profits in the prior period, combined with less seasonal fluctuations in wholesale prices meaning a greater proportion of profits are expected to be generated in the second half of the year.

Reported operating profit, in addition to the movements above, includes both the net re-measurement on forward energy derivatives which are unrelated to underlying operating performance, as well as exceptional items and other financial items which are excluded from adjusted results on the basis they are materially non-recurring, uncontrollable or exceptional. Reported operating profit decreased by (30)% compared to the prior period, largely reflecting a lower net-remeasurement gain on forward energy derivatives in addition to an increase in exceptional restructuring costs associated with the Group's Operating Model and Efficiency Review and related restructuring programmes. These movements are partially offset by the increase in profitability of SSEN Transmission, which is fully consolidated within reported operating profit.

Further detail on operating profit performance can be found in the Business Unit Operating Review.

Net finance costs

SSE's adjusted net finance costs - which excludes coupons on hybrid bonds classified as equity - were broadly flat in the period. Whilst adjusted net debt has increased by around 16% compared to the comparative period end, the resulting increase in interest costs have been offset by an increase in capitalised interest due to the increased capital expenditure in the period.

Reported net finance costs, which excludes SSE's share of interest in Joint Ventures and Associates, were £(47.9)m compared to £(56.9m) in the previous period reflecting increased capitalisation as noted above.

Taxation

SSE considers being a responsible taxpayer a core element of being a responsible member of society. SSE seeks to pay the right amount of tax on its profits, in the right place, at the right time, and was the first FTSE 100 company to have been awarded the Fair Tax Mark. October 2024 marked the tenth consecutive year that SSE has achieved Fair Tax Mark accreditation.

SSE's adjusted current tax rate for the period, based on adjusted profit before tax, is 9.4%, as compared with 13.2% for the same period last year on the same basis, and after discrete items. The decrease in rate is largely driven by increased capital allowances on capital expenditure in the period.

The Government's Corporate Tax Roadmap, published in October 2024, confirmed that first-year capital allowance rates of 100% (full expensing) and 50% (special rate), which replaced the existing rates of 18% (main rate) and 6% (special rate) respectively for qualifying capital expenditure, will remain to the end of the current parliament. These significantly increase the amount of capital allowances available on SSE's capital investment programme.

Profit after tax and Earnings Per Share

Adjusted profit after tax was (25)% lower relative to the prior half year, reflecting the movements in adjusted operating profit and net finance costs outlined above, partly offset by the lower adjusted current tax rate.

Reported profit after tax reflects the movements in reported operating profit and net finance costs outlined above and reflects a reported current tax rate of 26.0%. The higher reported current tax rate reflects an increase in deferred tax arising as a result of differences in accounting and tax bases that give rise to potential future accounting credits or charges. Within the reported tax charge, deferred tax increased by 26% on prior period, mainly due to the increase in the Group's capital investment programme.

Reflecting the movements above, adjusted Earnings Per Share was (29)% lower relative to the prior period at 36.1 pence with reported EPS decreasing by (45)% to 26.4 pence.

Interim dividend

SSE believes that dividends should be sustainable and based on earnings performance, while also enabling the longer-term growth prospects of its assets and operations. To that end, SSE's dividend plan is designed to balance income to shareholders with the appropriate funding for an accelerated growth plan that will ultimately create greater value and total return for shareholders over the long term.

As part of this plan, the Group has moved to a formulaic approach to calculating interim dividends which will be one-third of the prior year full dividend, reflecting the inherent seasonality of the business. Therefore, for 2025/26, an interim dividend of 21.4 pence has been declared, being one-third of the 2024/25 full year dividend of 64.2 pence. The Board will continue to announce their final dividend recommendation in May, as part of the Full Year Results announcement, which is expected to reflect an increase of between 5 - 10% on 2024/25.

Capital expenditure programme

1 Comparative financial information has been restated, please see note 2.5 to the Interim Financial Statements

During the six months ended 30 September 2025, SSE's adjusted investment, capital and acquisitions expenditure totalled £1,570.1m, compared to £1,292.1m in the prior period. The increased investment was driven mainly by SSE's regulated electricity networks divisions, with lower overall deployment of capital across SSE's other businesses, and no acquisitions expenditure.

Further detail on the capital expenditure in the period can be found in the Business Unit Operating Review.

Financial Outlook

Financial outlook for 2025/26

The first half of the SSE's financial year has seen the Group deliver robust operating financial performance, in line with our expectations and consistent with typical seasonality. As such, the Group reaffirms the individual performance expectations for each Business Unit for the 2025/26 financial year as previously set out in May 2025:

SSEN Transmission - it is expected that adjusted operating profit will be more than 1.5 times higher than 2024/25, reflecting increased allowed revenue generated by continued investment growth in this business.

SSEN Distribution - anticipates that adjusted operating profit will be less than half of 2024/25, as allowed revenue is expected to decrease by around £400m following a one-off inflation cost recovery in 2024/25.

SSE Renewables - is expected to deliver higher adjusted operating profit than 2024/25, given the capacity additions such as Dogger Bank A and a full year contribution from Viking alongside broadly similar merchant power prices.

SSE Thermal and Gas Storage - with the step up in contracted Capacity Market payments starting in financial year 2026/27, it is expected that the adjusted operating profit for these businesses will be similar to 2024/25, assuming similar market conditions to 2024/25.

Energy Customer Solutions - as income from legacy wind farm PPAs starts to unwind, it is expected that the adjusted operating profit for these businesses will be lower than 2024/25.

These expectations remain subject to normal weather conditions, current market conditions and plant availability.

Consistent with the approach taken in prior years, SSE will look to give specific adjusted Earnings Per Share guidance later in the financial year.

With capital expenditure and investment continuing to ramp up during the first six months of the year, the full year capex is expected to significantly increase to over £3bn, with the net debt to EBITDA ratio expected to be within a 3.5 - 4.0x range, before adjusting for today's proposed placing.

Financial outlook for 2026/27

Given the continued progress made in the strategic execution of this investment plan, the Group reaffirms the individual performance expectations for each Business Unit for the 2026/27 financial year as previously set out in May 2025:

SSEN Transmission - it is expected that adjusted operating profit will be significantly higher than 2025/26, reflecting increased allowed revenue generated by continued investment growth in this business.

SSEN Distribution - anticipates that adjusted operating profit will be at similar levels to 2025/26.

SSE Renewables - is expected to deliver similar levels of adjusted operating profit as 2025/26 as continued increases in capacity offsets lower merchant power prices.

SSE Thermal and Gas Storage - it is expected that adjusted operating profit will be significantly higher than 2025/26, reflecting the step up in contracted Capacity Market payments and assuming similar market conditions to 2024/25.

Energy Customer Solutions - anticipated that the adjusted operating profit for these businesses will be at similar levels to 2025/26.

These expectations remain subject to normal weather conditions, current market conditions and plant availability.

After considering the strategic progress made, in addition to the current and forecasted market conditions, SSE continues to be highly confident about reaching its 175 - 200p adjusted Earnings Per Share guidance range for 2026/27, before adjusting number of shares in issue for today's proposed placing.

Transformation for Growth - Outlook to 2029/30

Alongside SSE's Interim Results was the separate announcement today of a transformational £33bn five-year investment plan to 2029/30, significantly increasing the Group's exposure to UK electricity Networks, and driving long-term value creation with attractive regulatory asset value and earnings growth.

This plan represents a trebling of investment over the five-year period, with around 80% or £27bn to be invested in regulated UK electricity Networks and around 20% or £6bn selectively in Renewables and system Flexibility projects:

·      SSEN Transmission (~67% or ~£22bn) delivering the RIIO-T3 investment programme which is critical to connecting renewables and removing existing constraints within the electricity transmission network. This investment, together with that from our 25% partner, is expected to increase gross RAV to around £30bn by the end of 2029/30 representing an ~30% CAGR.

·      SSEN Distribution (~15% or ~£5bn) delivering the remaining RIIO-ED2 investment programme in addition to anticipated strategic investment in ED3. This investment is expected to increase gross RAV to between £9 - 10bn by the end of 2029/30 representing a ~10% CAGR.

·      SSE Renewables (~12% or ~£4bn) delivering its existing construction programme together with highly disciplined investment into exciting growth options. This focus on financial discipline and selective growth is expected to result in a targeted ~9GW of installed capacity by the end of 2029/30.

·      SSE Thermal and other businesses (~6% or ~£2bn) predominantly focused on flexible generation technologies and serving key customers.

The above investment plan includes ~£3bn of currently uncommitted capex across the SSE Renewables and SSE Thermal businesses. In allocating this capital, SSE will continue to apply its strict returns criteria for new energy projects to ensure attractive shareholder returns whilst ensuring strategic alignment with SSE's clean electricity focus.

The record programme of investment outlined above is expected to deliver industry-leading capital growth across the Group. In the Networks businesses, gross RAV is expected to more than treble to around £40bn and, with selective and disciplined investment, Renewables installed capacity is set to almost double to around 9GW by the end of the plan. This material capital growth will create significant long-term value for shareholders whilst unlocking wider economic benefits for society.

This programme is backed by a comprehensive funding strategy that maintains SSE's strong balance sheet alongside a continued commitment to strong investment grade credit ratings with net debt / EBITDA expected to remain below 4.5x throughout the course of the plan. In addition to expected operational cashflow generation and an increase in adjusted net debt and hybrid capital, a £2bn equity placing is being launched concurrently to today's announcement and around £2bn of targeted asset rotations are expected across the portfolio, aligned with investment needs across the five-year plan.

Investments made in Networks and selective Renewables and system Flexibility projects are expected to drive an uplift in earnings of around 50% over the plan, with an adjusted Earnings Per Share CAGR of between 7 - 9% delivering 225 - 250 pence in 2029/30. This growth is underpinned by ~80% of EBITDA being index linked in 2029/30, due to the upweighting in Networks investment, providing consistent, predictable and highly visible earnings as the business grows materially.

SSE is also continuing its existing sustainable and progressive dividend policy to 2029/30. This policy targets annual dividend per share growth of between 5 - 10% from an unaltered 64.2 pence 2024/25 baseline. SSE will retain the existing scrip dividend option for shareholders whilst also restricting earnings dilution from the scrip by capping take-up at 25% through a share buyback if necessary.

Supplemental Financial Information

Exceptional items and certain re-measurements

Exceptional items

SSE recognised an exceptional charge within continuing operations of £(57.5)m before tax in the current period. £(56.8)m of this relates to restructuring costs associated with Group's Operating Model and Efficiency Review and related restructuring programmes as noted below, and £(0.7)m reflects anticipated costs associated with the part-disposal of the Enerveo contracting business. Further detail on exceptional items can be found within note 6 and the definition of exceptional items can be found in note 2.3 of the Interim Financial Statements.

Group-wide operating model and efficiency review

During 2025, in line with SSE's commitment to capital and operational discipline, the Group commenced an Operating Model and Efficiency Review, intended to ensure that SSE has the right structures, resourcing and accountabilities to maximise the growth opportunities ahead. This review recognises that the timing, pace and returns from investment in each business will be different, reflecting both the changing macroeconomic environment as well as other external factors such as policy development, regulatory reform and consenting delays.

Since announcement, the Group has made strong progress on this review which is expected to continue into the 2026/27 financial year. A number of efficiency and cost control measures have already been taken across the Group to improve operational efficiency, increase organisational competitiveness and rebalance businesses for future growth. At present, we anticipate that targeted measures could result in around £200m of annual recurring efficiencies across the Group by 2027/28.

Certain re-measurements

Operating derivatives

SSE enters into forward purchase contracts (for power, gas and other commodities) to meet the future demands of its energy supply businesses and to optimise the value of its generation assets. Some of these contracts are determined to be derivative financial instruments under IFRS 9 and as such are required to be recorded at their fair value as at the date of the financial statements.

SSE reports the change in the fair value of these forward energy derivatives separately as this mark-to-market movement does not reflect the realised operating performance of the businesses in the period. The underlying value of these contracts is recognised as the relevant commodity is delivered, which for the majority of the position at 30 September 2025 is expected to be within the next eighteen months.

The change in the operating derivative mark-to-market valuation was an £11.7m positive movement from the start of the period, reflecting a £15.9m positive movement on fully consolidated operating derivatives including affiliate and commercial CfD contracts combined with a £(4.2)m negative share of movement on derivatives in jointly controlled entities, net of tax.

As in prior periods, the reported result does not include re-measurement of 'own use' hedging agreements which do not meet the definition of a derivative financial instrument under IFRS 9.

Commodity stocks held at fair value

Gas inventory purchased by the Gas Storage business for secondary trading opportunities is held at fair value with reference to the forward month market price. As trading churn during the half year has combined with relative stability in gas prices, the book value at period end is broadly aligned with the fair value. This assessment does not however account for any mark-to-market movement on forward contracted sales and therefore any valuation movement - or lack of movement - is not expected to reflect the final result realised by the business.

Financing derivatives

In addition to the movements above, a positive movement of £3.5m was recognised on financing derivatives in the period, including mark-to-market movements on cross-currency swaps and floating rate swaps that are classed as hedges under IAS 39. These hedges ensure that any fair value movement in net debt is predominantly offset by a movement in the derivative position. The positive movement was primarily driven by the weakening of Sterling which meant GBP/€ cross currency swaps have become less "out of the money".

These re-measurements are presented separately as they do not represent underlying business performance in the period. The result on financing derivatives will be recognised in adjusted profit before tax when the derivatives are settled.

Hedging position

The long-established approach to hedging followed by SSE looks to generally reduce its broad exposure to commodity price variation in advance of delivery. SSE continues to monitor market developments and conditions and periodically alters its hedging approach in response to changes in its exposure profile.

A summary of the hedging position for each of SSE's market-based businesses is set out below.

SSE Renewables - GB wind and hydro:

Energy output hedges are progressively established through the forward sale of either:

Electricity - where market depth and liquidity allow;

Gas and carbon equivalents - recognising that spark spread exposures remain; or

Gas equivalents only - recognising that carbon and spark spread exposures remain.

This approach reflects that certain energy products have lower available forward market depth and liquidity. Whilst some basis risk or commodity exposure will remain, it facilitates the reduction of SSE Renewables' overall exposure to potentially volatile spot market outcomes.

The table below notes both the proportion of hedges and prices of those hedges for electricity and for gas alone. Due to market liquidity in later periods, there are no gas and carbon equivalent hedges in place.

¹ Where gas trades have been used as a proxy for electricity, a constant 1MWh:69.444 th conversion ratio has been applied.

² This same ratio has been used to convert gas hedge price into electricity £MWh and therefore no assumptions have been made on either spark or carbon.

The table above excludes any volumes and income under separate contracts such as CfDs, ROCs and Balancing Mechanism activity. No hedging activity is undertaken for assets in early-stage construction, with hedging activity gradually built up over the construction period as greater certainty over operational dates is received.

SSE's established approach seeks to minimise the volumetric downside risk for renewable energy output by targeting a hedge of less than 100% of its anticipated wind energy output for the coming 12 months. The targeted hedge percentage is reviewed and adjusted as necessary to reflect any changes in market and wind capture insights. Forward hedges for both wind and hydro are progressively established over a 36-month period, although the extent of hedging activity will depend on the available market depth and liquidity.

Target hedge levels are achieved through the forward sale of either electricity or a combination of gas or carbon equivalents as outlined above. Any non-electricity forward contracts will be converted into electricity hedges ahead of delivery, which may lead to increases or decreases in the average hedge price achieved.

SSE Thermal:

Hedging for the flexible thermal fleet is by its nature dynamic, changing as market values vary with a constant process of re-optimisation to accrue future value for the Thermal fleet. At negative spark spreads this hedge volume is therefore likely to be very low; and at higher prices the hedge will be much larger.

At all times the Thermal portfolio offers the wider group protection from price spikes, renewables shortfall or asset availability issues and therefore provides material risk management value to the Group.

Gas Storage:

The assets are commercially operated to optimise value arising from changes in the spread between summer and winter prices, market volatility and plant availability.

SSE Business Energy:

Sales to contract customers are hedged: at point of sale for fixed contract customers; upon instruction for flexi contract customers; and on a rolling hedge basis for tariff customers.

SSE Energy Markets:

This business provides the route to market and manages the execution for all of SSE's commodity trading outlined above (spark spread, power, gas and carbon). This includes monitoring market conditions and liquidity and reporting net Group exposures. The business operates under strict position limits and VAR controls.

There is some scope for position-taking to permit this business to manage around shape and liquidity and providing market insight whilst taking optimisation opportunities. This is contained within a total daily VAR limit of £9m.

Financial management and balance sheet

1 Comparative financial information restated, please see note 2.5 to the Interim Financial Statements.

2 Net debt represents the Group adjusted net debt and hybrid capital.  EBITDA represents the full year Group adjusted EBITDA, less £153.3m at March 2025 for the proportion of adjusted EBITDA from equity-accounted Joint Ventures relating to project financed debt.

3 The average debt maturity assumes Hybrids are refinanced on their first call date

Maintaining a strong balance sheet

A key objective of SSE's long-term approach to balancing capital investment, debt issuance and securing value and proceeds from disposals is to maintain a strong net debt/EBITDA ratio. SSE calculates this ratio based on a methodology that it believes best reflects its activities and commercial structure, in particular to securing value and protecting our balance sheet through prudent risk sharing by using Joint Ventures and non-recourse project financing.

SSE is committed to maintaining the existing strong balance sheet and considers that a 4.5x net debt/EBITDA ratio is comfortably within the thresholds required to maintain existing strong investment grade credit ratings. Reflecting the strength of SSE's balance sheet, the net debt/EBITDA ratio at 31 March 2025 was 3.2x and it is expected that this ratio will remain below 4.5x throughout the course of the Group's investment plan to 2029/30.

Adjusted net debt and hybrid capital

SSE's adjusted net debt and hybrid capital was £11.4bn at 30 September 2025, an increase of £1.2bn from 31 March 2025. With no significant acquisitions or divestments in the period, the debt movement predominantly relates to our capital investment programme, with operating cash flows partially offset by the final dividend payment.

Debt summary as at 30 September 2025

SSE plc together with its subsidiary, Scottish Hydro Electric Transmission (SHET) plc, issued £2.2bn of new long-term debt and Hybrid capital in the six months to September 2025 whilst also continuing to roll short-term Commercial Paper at similar levels to March 2025. The debt issues include:

·      In June 2025 SSE plc issued a total of €1.3bn (£1.1bn) hybrid bonds (i) €800m callable in September 2030 with a coupon of 4.0% and (ii) €500m callable in June 2033 with a coupon of 4.5%, resulting in a weighted average cost of 4.19%. The intent is to use the proceeds to replace SSE's £600m hybrid capital security issued in 2020, which has a first coupon reset date of 14 April 2026. The three-month issuer par call on this hybrid means it can be called from 14 January 2026.

·      In September 2025 SHET plc issued a €750m (£647m) 8-year green bond maturing November 2033 with a coupon of 3.375% and an all-in GBP cost of 5.20% once swapped back to Sterling.

·      In September 2025 SHET plc "tapped" its existing €850m September 2032 bond for an additional €100m (£87m) which is swapped back to Sterling at a fixed rate of 5.06%.

Over the next twelve months there is £1.2bn of medium- to long-term debt and £1.2bn of short-term debt maturing.

Hybrid bonds summary as at 30 September 2025

Hybrid bonds are a valuable part of SSE's capital structure, helping to diversify SSE's investor base, supporting credit ratings and providers of senior debt, as their 50% equity treatment by the rating agencies is positive for credit metrics. A summary of SSE's hybrid bonds as at 30 September 2025 can be found below:

¹ Sterling equivalents shown reflect the fixed exchange rate on date of receipt of proceeds and is not subsequently revalued.

² All-in rate reflects coupon on bonds plus any cost of swap into sterling which currently only applies to July 2020 Hybrid

A table detailing coupon payments on existing hybrids is shown below:

¹ Coupon payments on €2.8bn of hybrid bonds remain denominated in Euros and are therefore subject to foreign exchange adjustments.

Summarising cash and cash equivalents

At 30 September 2025, SSE's adjusted net debt included cash and cash equivalents of £0.4bn, which is lower than the £1.1bn at March 2025 due to timing of new debt issues and repayment of maturing debt resulting in a lower surplus cash position being held.

Cash collateral is only required for forward commodity contracts traded through commodity exchanges, with the level of cash collateral either provided or received depending on the volume of trading through the exchanges, the periods being traded and the associated price volatility.

At 30 September 2025, £115m of net cash collateral deposited on the commodity trading exchanges (March 2025: £73m net held). The increase in cash collateral posted reflects a decrease in the "in the money" trading positions held by the Group and higher initial margin requirements due to increase in exchange trading.

Short-term funding

SSE had £3.25bn (gross of the Minority Interest in SHET plc) of committed bank facilities in place at 30 September 2025 to ensure the Group has sufficient liquidity to allow day-to-day operations and investment programmes to continue in the event of disruption to Capital Markets preventing SSE from issuing new debt for a period of time. These facilities are set out in the table below.

The revolving credit facilities can also be utilised to cover short-term funding requirements. There was £340m drawings on the SHET plc Syndicated Revolving Credit Facility and no drawings on the SSE plc or the SHET plc Term Loan facilities as at 30 September 2025. Both the Syndicated Revolving Credit Facilities have one-year extension options and are classified as sustainability linked with interest rate and fees paid dependant on various ESG-related metrics being achieved.

The SHET plc £250m term loan facility, once drawn, becomes a 5-year term loan with a 1-year extension option. This was fully drawn with proceeds received on 2 October 2025.

Maintaining a prudent treasury policy

SSE's treasury policy is designed to maintain a prudent and flexible funding position. Cash from operations is first used to finance regulatory and maintenance capital expenditure and then dividend payments, with investment and capital expenditure for growth financed by a combination of cash from operations, bank borrowings, and bond issuance.

SSE borrows as required on different interest bases with financial instruments being used to achieve the desired out-turn interest rate profile. At 30 September 2025, 92% of SSE's borrowings were at fixed rates.

Borrowings are mainly in Sterling and Euros to reflect the underlying currency denomination of assets and cash flows within SSE. All other foreign currency borrowings are swapped back into either Sterling or Euros. Transactional foreign exchange risk arises in respect of procurement contracts, fuel and carbon purchasing, commodity hedging and energy portfolio management operations, and long-term service agreements for plant. SSE's policy is to hedge any material transactional foreign exchange risks using forward currency purchases and/or financial instruments. Translational foreign exchange risk arises in respect of overseas investments; hedging in respect of such exposures is considered on a case-by-case basis.

Operating a Scrip Dividend Scheme

As part of the Group's dividend plan to 2029/30, take-up from the Scrip Dividend Scheme is capped at 25%. This cap is implemented by means of a share repurchase programme, or 'buyback', following payment of the final dividend. The scale of any share repurchase programme would be determined by shareholder subscription to Scrip Dividend Scheme across the full year, taking into account the interim and final dividend elections. Overall Scrip Dividend take-up for the 2024/25 financial year was 9.7%, and therefore no buyback was required.

Principal Joint Ventures and Associates

SSE's financial results include contributions from equity interests in joint ventures ("JVs") and associates, all of which are equity accounted. The details of the most significant of these are included in the table below. This table also highlights the non-recourse project finance debt within each Joint Venture, in proportion to SSE's equity ownership. The total proportion of external non-recourse project finance debt was around £3.8bn at 30 September 2025.

¹ Greater Gabbard, a 504MW offshore wind farm, is proportionally consolidated and reported as a Joint Operation with no loans outstanding.

² For accounting purposes, £320m of the £967m of SSE shareholder loans advanced to Seagreen Wind Energy are classified as equity.

Pensions

In the six months to 30 September 2025, the surplus across SSE's two pension schemes decreased by £10.6m, from £501.8m to £491.2m. The overall decrease in the net pension scheme asset is mainly driven by the valuation of the SSE Southern scheme which decreased by £9.0m primarily due to actuarial losses of £21.8m offset by the contributions to the scheme of £13.3m.

The Scottish Hydro Electric scheme has partially insured against volatility in its pensioner members through the purchase of 'buy-in' contracts meaning that the Group is protected from volatility relating to a significant proportion of the liabilities. During the period the scheme's surplus remained stable with a minor decrease of £1.6m.

Additional information on employee pension schemes can be found in note 17 to the Interim Financial Statements.

Sustainability and Safety Summary

1 Includes pumped storage, battery energy storage systems, biomass and constrained-off wind in GB

2 Prior period comparators restated to reflect data refinement. Transmission and distribution connected capacity within the SSEN Transmission Network area, includes pumped storage and battery storage

3 Direct, indirect and induced Gross Value Added and jobs supported, from PwC analysis

Measuring performance against SSE's 2030 Goals

SSE's sustainability strategy underpins its transition to net zero and long-term value creation. SSE's four 2030 Goals, directly linked to the United Nations' Sustainable Development Goals, ensure it tackles the challenge of climate change in a way that is fair and just for workers and communities.

Cut carbon intensity by 80% to 61gCO2e/kWh: The scope 1 GHG intensity of electricity generated in the six months to 30 September 2025 fell to 200gCO2e/kWh from 207gCO2e/kWh in the same period in 2024. This was due to increased renewables output as a result of increased capacity, coupled with a decrease in output from SSE's thermal fleet owing to maintenance outages. While this represents a slight reduction, it should be noted it does not represent a full year of performance. As previously outlined, in the context of the current market and policy environment, SSE's carbon intensity goal is on target but with risk.

Increase renewable energy output fivefold to at least 50TWh a year: Performance during the period remained broadly unchanged year-on-year at 5.4TWh as less favourable weather conditions offset the increased capacity from initial generation of Dogger Bank A and delivery of Yellow River wind farms. As previously outlined, given the challenging market and policy environment, SSE is unlikely to meet its ambitious goal of 50TWh of renewable generation output by 2030.

Enable low-carbon generation and demand with at least 20GW of renewable generation capacity within SSEN Transmission's licence area: As of 30 September 2025, SSE's transmission network had 10.7GW of installed renewable capacity connected, having surpassed its RIIO-T2 target of 10GW by 2026 last year. The slight increase in renewable capacity connected since full year reflects an increase in large embedded renewable generation schemes at the distribution level. 

Champion a fair and just energy transition: SSE continued with its strategy to share value with communities through the energy transition, with SSEN Transmission launching the second round of its Regional Community Benefit Fund, making £2m available to communities across the north of Scotland. SSE tracks the proportion of its workforce that has moved from high-carbon roles to a low-carbon career - a key indicator of a just transition in action. The October 2025 all-employees survey shows that 28% of employees have made this transition.

Safety performance: SSE's combined employee and contractor TRIR remains steady at 0.16, even as contractor hours have nearly doubled since 2022. Around 11,000 people have completed immersive safety training since April 2024, supporting stronger safety behaviours

Business Operating Review

SSEN Transmission

SSEN Transmission operates one of the fastest growing regulated electricity networks in the world. It owns, operates and develops the high voltage electricity transmission system in the north of Scotland and its islands and is owned 75% by SSE plc and 25% by Ontario Teachers' Pension Plan Board. All references to performance indicators relate to 100% of the business unless otherwise stated.

1 Excludes 25% minority interest

2 Estimated and subject to outturn of annual regulatory process

3 Prior period comparator restated to reflect data refinement. Transmission and distribution connected capacity within the SSEN Transmission Network area, includes pumped storage and battery storage.

Financial performance

Adjusted operating profit, which is presented net of the business's 25% non-controlling interest, increased by 85% to £292.1m from £157.5m in the prior period. Revenue growth is driven by increasing allowances agreed with the regulator to fund increasing investment. In addition, the prior period included a one-off negative timing adjustment relating to tax relief.

Reported operating profit increased to £389.5m compared to £210.0m as a result of all of the movements above but reflecting that non-controlling interests are fully consolidated for all profit metrics under IFRS.

Net capex totalled £702.5m - an increase of 87% on the comparative period - and included £103m on the Argyll and Kintyre 275kV upgrade with progress made on site preparatory works and £93m on the Orkney High Voltage Alternating Current system where the two substation compounds have made significant progress. Meanwhile £58m was delivered on the EGL2 subsea HVDC being jointly delivered with National Grid, where the onshore Peterhead Convertor Station is under construction. Most remaining capex was delivered across the other ASTI (Accelerated Strategic Transmission Investment) and LOTI (Large Onshore Transmission Investment) large capital projects.

Operational delivery

SSEN Transmission remains on track for the full reward in 2025/26 through Ofgem's 'Energy Not Supplied' annual incentive, underpinning the business's ambitious goal of zero interruptions to homes and businesses.

The capital investment programme continues at pace to increase network capacity, with the north of Scotland forecast to have the capability to meet 20% of GB electricity demand within 2030 clean power targets, unlocking the homegrown power to deliver energy security and deliver economic growth.

Work to connect Shetland's electricity distribution network to the Shetland HVDC link is nearing completion, with energisation to follow the conclusion of SSEN Distribution's 'Shetland Standby Project' in 2026.

The East Coast 400kV upgrade continues to make good progress between Kintore and Kincardine. Following the publication of the NESO's Beyond 2030 plan in March 2024, several sections will now be replaced with higher capacity conductors than previous planned. This change in scope is expected to move the completion and full energisation of these upgrades to 2027.

Strategic progress

SSEN Transmission's Pathway to 2030 programme to build and reinforce network infrastructure in the north of Scotland, continues to make good progress. The programme constitutes 11 major projects, six onshore and five offshore, and has secured all regulatory approvals of need through Ofgem's LOTI Uncertainty Mechanism and ASTI framework. All major LOTI planning consents have been secured, while all major ASTI consents have been submitted, with several positive decisions already received. Project development and associated delivery cost estimates across the portfolio have matured and the latest estimated lifetime costs to deliver the 11 projects has increased to £28bn. This reflects the prevailing supply chain cost environment and refined project design following extensive engagement with the supply chain and local communities on the plans for these projects.

The Argyll and Kintyre 275kV reinforcement, Orkney subsea link and Skye reinforcement projects are now being delivered. Following a temporary suspension of works at Dounreay West substation alongside delays securing necessary permits for cable installation in Caithness, completion of the Orkney link, planned for the end of 2028, remains under review. Argyll and Skye remain on track for 2029 energisation.

The Eastern Green Link 2 project, the first of several planned subsea links to be jointly delivered with National Grid Electricity Transmission, marked a year in construction in September 2025. The project remains on track for completion in 2029, with the Peterhead converter station platform now complete and significant progress made on cable-related enabling works.

Construction works commenced at the existing New Deer substation in September 2025, which forms part of the Beauly-New Deer-Peterhead 400kV ASTI scheme.

The Netherton Hub, a major new substation and converter station development west of Peterhead, was consented by Aberdeenshire Council in September 2025, with Greens substation, also in Aberdeenshire, receiving consent in October 2025. Also in October 2025, Scottish Ministers consented the Alyth-Tealing and Tealing-Westfield reconductoring projects which will see the capacity of this/these existing overhead lines uprated from 275kV to 400kV. These positive consenting decisions represent major milestones and momentum for the Pathway to 2030 programme.

All outstanding ASTI substation consent decisions are expected before the end of the year, with all remaining Section 37 overhead line decisions due in summer 2026, in line with the Scottish Government's 52-week Priority Applications for Transmission Infrastructure guidance.

Supply chain framework agreements are in place with key manufacturing capacity slots secured across all projects, and a Supply Chain Forum established to coordinate timely and efficient project delivery. SSEN Transmission has established dedicated procurement delivery teams to oversee execution and maintain dialogue with supply chain partners to ensure alignment with cost and programme expectations. Strategic relationships with key contractors are also maintained at executive level, enabling proactive resolution of challenges and alignment on delivery priorities.

Elsewhere, work to progress Eastern Green Link 3 (EGL3) continues, including reaching preferred bidder status with the supply chain for both the HVDC cable and converter station. In September 2025, Ofgem launched a consultation on proposed changes to the EGL3 delivery date to December 2033. This follows required changes in scope to the onshore infrastructure in Lincolnshire.

SSEN Distribution

SSEN Distribution, operating under licence as Southern Electric Power Distribution plc (SEPD) and Scottish Hydro Electric Power Distribution plc (SHEPD), serves more than 3.9m homes and businesses across central southern England and the north of Scotland. The business serves some of the most diverse and unique geographies across the UK, spanning more than 75,000km², and keeps customers and communities connected while developing the flexible electricity network vital to achieving net zero.

RAV, Customer minutes lost and Customer interruptions figures estimated and subject to outturn of annual regulatory process

Financial performance

Adjusted operating profit decreased by 63% to £127.9m compared to £346.3m in the prior period. This large decrease is expected and driven by a non-recurring timing effect in the prior period, predominantly for cost inflation across 2022 - 2024, which significantly increased prior period allowed revenues.

Reported operating profit decreased to £115.8m compared to £346.3m in the prior period, reflecting the movements above in addition to £(12.1)m of exceptional restructuring costs.

£381.1m capex invested represents a 29% increase on the same period in 2024/25, as the business ramps up delivery of an ambitious RIIO-ED2 investment programme. £137m was delivered in the north, covering a continuation of subsea cable investment and pole mounted transformer replacements. Whilst in the south, expenditure of £244m also includes pole mounted transformer replacements in addition to reinforcement work at Iver in West London, Fleet-Aldershot in Hampshire and Bramley-Thatcham near Reading.

Operational delivery

SSEN Distribution has completed the second year of the five-year RIIO-ED2 price control which runs until March 2028 and includes £3.6bn of baseline expenditure (2020/21 prices). It is expected that significant levels of additional funding will be triggered under Uncertainty Mechanisms (UMs), in the period. This is allied with a business transformation programme aimed at improving efficiency.

SSEN's ability to react to severe weather events remains a core strength. In August, an unusually severe summer storm, Floris, impacted SHEPD causing more than 460 faults. Despite being the most significant named summer storm ever experienced by SSEN, and triggering an 'exceptional event' classification in the regulatory licence, power was restored to more than 98% of the 72,000 impacted customers within 48 hours.

Overall Customer Satisfaction scores have increased in both SHEPD and SEPD compared to the same period last year, with the 9.0/10 score achieved being SSEN's best half-year performance since Ofgem's Broad Measure Incentive was launched in 2015. This follows improvement across several customer facing KPIs including Time to Connect and Time to Quote, both of which have improved significantly year-on-year and are better than Ofgem targets. Unpredictable and extreme weather events did however have an adverse impact on Customer Interruptions and Customer Minutes Lost performance, including the impact of the extended summer heatwave.

Strategic progress

Over the six-month period, SSEN has accelerated its large capital delivery programme as it seeks to balance network optimisation with growing the asset base, whilst maximising the benefits of the £1.45bn of holistic Capital Delivery Agreements that have been established with the supply chain. Work started on a major upgrade to Oxford's electricity infrastructure as part of a £200m programme, as well as a £155m project to support economic growth and decarbonisation in Southampton. Large capital projects are also being delivered in Dorset, West London and Aberdeenshire.

As the ED2 price control progresses, there is now greater visibility and confidence in the outcomes of Uncertainty Mechanism processes. Between April and September, nearly £80m in additional funding has been secured through Uncertainty Mechanisms related to investment in subsea infrastructure and cyber security. This takes the total investment approved during the ED2 period to more than £215m (2020/21 price base). A further £885m (2020/21 price base) of Uncertainty Mechanism requests are currently being assessed by Ofgem. This includes a Load Related Expenditure application submitted at the end of October 2025, which requests additional funding of more than £725m (2020/21 price base) to enable SSEN to deliver requested and forecast network developments over the remainder of RIIO-ED2, and to support early ED3 mobilisation. Further submissions are planned in the coming months.

SSEN Distribution remains the only DNO to publish Strategic Development Plans, publicly consulted long-term network strategies at a local level to support community priorities to 2050 and underpin investment planning. These are now in place for every Grid Supply Point (GSP) in the two Distribution licence areas. Allied to this, the business unit's Distribution System Operator (DSO) function secured an increased return of £5m in Ofgem's DSO Incentive in 2024/25 through improved stakeholder survey scores and the independent panel assessment of its performance. This is a significant uplift on the £2m return from the prior year.

Significant work is under way to develop an ambitious, stakeholder-led plan for the ED3 price control for 2028 to 2033, where SSEN has been a leading voice calling for a shift in regulatory approach. In May, SSEN became the first DNO to publish its Emerging Thinking on ED3 and more recently, Ofgem published its Sector Specific Methodology Consultation for the price control. This shows a high level of ambition aligned to greater strategic investment in distribution networks, but with further work required to ensure appropriate calibration of incentives and sufficient allowances to enable successful delivery. 

SSE Renewables

SSE Renewables is a leading developer and operator of renewable energy generation, focusing on onshore and offshore wind, hydro and battery storage across the UK and Ireland, and in carefully selected international markets.

1. Capacity and output based on 100% of wholly owned sites and share of joint ventures

2. Contracted capacity includes sites with a CfD, RESS contract, eligible for ROCs, or contracted under REFIT (CfD contracts may be still to commence)

3. Onshore wind output includes 584GWh of compensated constrained-off generation in HY2025/26 and 420GWh in HY2024/25; Offshore wind output includes 522GWh of compensated constrained-off generation in HY2025/26 and 731GWh in HY2024/25.

4. Biomass capacity of 15MW and output of 34GWh in HY2025/26 and 28GWh HY2024/25 is excluded, with the associated operating profit or loss reported within SSE Thermal.

Financial performance

Adjusted operating profit decreased by 18% to £275.6m from £335.6m in the prior period. Whilst output was supported by generation from initial commissioning at Dogger Bank A and the delivery of Yellow River, this was offset by less favourable weather conditions than the prior period. These volumes were delivered in a lower hedged price environment which has reduced operating profit, with weighted average prices around 20% lower than the prior period.

Reported operating profit decreased 28% to £193.6m from £270.5m in the prior period. This reflects the above and other movements including the impact of movements in the fair value of derivatives and a decrease in the Joint Venture / associate share of interest and tax.

A total of £352.2m was invested during the period, including £69m of equity for Dogger Bank Offshore Wind Farm as installation and commissioning of turbines continues. Meanwhile at SSE's onshore windfarms in Scotland, £39m was invested at Strathy South and £16m was incurred progressing Aberarder. £33m of capex was delivered in Southern Europe, with progress being made at several onshore wind projects across Spain and Italy. On battery energy storage system projects, £51m was incurred in progressing the delivery of Ferrybridge, Fiddlers Ferry and Monk Fryston.

Operational delivery

Onshore wind volumes increased from the same period last year due to contribution from increased capacity and strong operational availability, partly offset by lower average wind speeds and wind variability, and grid outages.

In offshore wind, output from initial capacity commissioning at Dogger Bank A (1,200MW, SSE share 40%) was partly offset by an unplanned OFTO transmission outage at Beatrice (588MW, SSE share 40%) lasting 14 weeks which is now restored, resulting in a marginal increase in generation output on the same period last year. In hydro, production decreased due to lower average precipitation compared to the same period last year.

Strategic progress

Offshore, turbine installation and commissioning at Dogger Bank A continues and is on track for completing turbine installation by the end of 2025. Foundations and offshore cables on Dogger Bank B (1,200MW, SSE share 40%) are complete and turbine installation will begin straight after installation completes on phase A. On Dogger Bank C (1,200MW, SSE share 40%), installation of transition pieces is expected to complete imminently with offshore cable laying ongoing and due to complete by mid-2026.

Onshore, Yellow River wind farm (101MW) in Ireland, which benefits from a 16.5-year RESS 3 contract, entered full commercial operations in October following transmission upgrade works over the summer to provide a permanent grid connection. Also this month, pre-construction works have started on the contracted Drumnahough wind farm (58MW, SSE share 50%).

In Scotland, construction is ongoing on Aberarder (50MW) and Strathy South (208MW) wind farms, both of which are fully contracted under AR5 contracts.

In England, the 150MW Ferrybridge Battery Energy Storage System (BESS) project is approaching completion while battery installation continues at Monk Fryston BESS (320MW) and Fiddlers Ferry (150MW).

In northern Spain, Jubera Wind Farm (64MW) is also approaching completion, while in southern Italy commissioning is underway at the combined Castel Favorito and Masseria la Cattiva (17MW) wind farm. SSE Renewables continues to selectively build out its international pipeline, subject to strict hurdle rates, with final investment decisions taken on 52MW of new onshore wind capacity at three sites in southern Italy and northern Spain. 

Turning to hydro, asset improvement works to repower Lochay power station (45MW) continue. This £70m investment will extend the plant's useful life by at least 40 years.

In July 2025, the Scottish Government granted offshore array consent for Berwick Bank wind farm (4.1GW), clearing the way for its entry into upcoming auction rounds. In August, a seabed lease to progress Dogger Bank D (1.45GW, SSE share 50%) was finalised with the Crown Estate.

SSE is reviewing the financial parameters of Ofgem's confirmed cap and floor ahead of a decision this month on whether to progress Coire Glas pumped storage hydro project (1.3GW) through the second phase of the scheme.

SSE Thermal and Gas Storage

SSE Thermal owns and operates conventional flexible thermal generation and gas storage in GB and Ireland. It is developing options for lower carbon power generation and hydrogen storage, while maintaining its existing flexible and efficient fleet which continues to play a critical role in the transition to net zero.

1 Comparative information has been restated, please see note 2.5 to the Interim Financial Statements

2 Capacity is wholly owned and share of joint ventures, and reflects Transmission Entry Capacity.

3 Output is based on SSE 100% share of wholly owned sites and 100% share of Marchwood PPAs due to the contractual arrangement.

4 Gas -fired Output includes 56GWh Oil-fired output

Financial performance

The net adjusted operating loss for SSE Thermal and Gas Storage improved to a £(21.8)m loss compared to a £(37.8)m loss in the prior period. With stronger reliability across the period, thermal generation returned to profitability despite the usual significant outage programme undertaken across the summer months. In Gas Storage, the adjusted operating loss is expected to reverse in the second half of the financial year, as physical sale contracts are delivered in a market environment demonstrating stronger spreads.

Reported operating profitability decreased to loss of £(45.0)m compared to £(35.1)m in the prior period, which in addition to the movements above, predominantly reflects a £(22.8)m exceptional impairment on standalone hydrogen development projects associated with the Group's Operating Model and Efficiency Review.

Operational delivery

Thermal power plants continue to provide back-up to an increasingly renewables-led system. Revenues accrued through the Capacity Market, Balancing Mechanism and other ancillary contracts are increasingly important, when compared to intrinsic baseload spark spread. We continue to see periods of strong price volatility on delivery, providing strong value opportunities for SSE Thermal's flexible assets.

SSE Thermal delivered a significant summer outage programme across its flexible generation fleet, with all assets successfully returning to service before the end of October. An extended outage at Great Island limited its operation through August and September, offset by additional market value captured earlier in the summer, and the asset was successfully returned to full service in mid-September.

Managing availability responsibly remained a key priority, this was emphasised by the variation in market volatility seen in the period. High volatility on delivery in May, June and August was offset by weaker volatility in April and July. Higher levels of volatility on delivery have continued in September and October. 

SSE's gas storage assets continue to be an important risk management tool for the Group's generation portfolio. With the reversal of inverted summer/winter spreads, Atwick and Aldbrough have been available for injection and withdrawal in the first half of the year. More favourable market conditions for gas storage assets (with stronger market spreads available) have enabled Cavern Eight at Atwick to be returned to service at the beginning of October.

Strategic progress

Investment is planned across a number of years to build in additional longevity and resilience across the fleet. The continued need for flexible thermal assets like Keadby 2, Medway and Peterhead, and the enduring role of the Capacity Market, has been underlined in recent policy updates from UK Government.

In Ireland, preparatory works continue at the 300MW Tarbert Next Generation power station with full construction due to commence later this year. The station has secured €335m of revenues through a 10-year capacity agreement. A final investment decision on Platin, a 170MW power station in County Meath, was taken in July, also underpinned by a 10-year Capacity Market agreement, with a total value of around €250m. Early construction works has commenced at Platin and, together, these projects represent a total investment of to up to €600m.

In the UK, there is government recognition of the need for new-build dispatchable capacity, like hydrogen to power. While a dedicated Hydrogen to Power Business Model is intended to be the enduring route to market, the UK Government is consulting on Capacity Market changes that could facilitate earlier investment in hydrogen ready power stations. These proposed changes could support investment in Keadby and Ferrybridge Next Generation power stations, with both being developed as hydrogen capable. A Development Consent Order (DCO) application for Keadby has been accepted for examination by the Planning Inspectorate. Statutory consultation is complete ahead of a Ferrybridge DCO application.

The UK Government Comprehensive Spending Review included development funding to progress carbon capture and storage (CCS) in Scotland. SSE Thermal is working with Scottish Cluster partners and UK Government to develop a programme of work, with Peterhead Carbon Capture power station the proposed anchor project for the CCS infrastructure.

For gas storage, the next phase of the UK Government Hydrogen Allocation Round 2 is expected for shortlisted projects, including Aldbrough Hydrogen Pathfinder, before the end of the calendar year, with successful projects expected to be announced in early 2026.

The UK Government has also confirmed funding to develop the first regional hydrogen transport and storage network, providing a potential investment opportunity for Aldbrough Hydrogen Storage.

Energy Customer Solutions

Energy Customer Solutions is SSE's shop window to the non-domestic market in GB and the whole energy supply market on the island of Ireland, with dedicated energy experts as key account managers pulling together the best of SSE into powerful combined propositions.

Backed by the Group's generation assets it provides a growing suite of energy products and distributed energy solutions that remove complexity for customers on the journey to net zero.

SSE Airtricity

Financial performance

Adjusted operating profit declined by 47% to £37.4m from £70.6m in the prior period. The prior period benefited from higher wind income, while the current period reflects a modest decline in customer numbers.

Reported operating profit decreased to £35.7m compared to £70.6m in the prior period, reflecting the movements above in addition to exceptional restructuring costs associated with the Group's Operating Model and Efficiency Review.

Operational delivery

Market competition has increased over the first half of the year with a modest decline in customer numbers combined with lower wind revenue compared to prior period.

In September 2025, SSE Airtricity announced that it would increase tariffs by an average of 9.5% for electricity customers in the Republic of Ireland (RoI) and 4% for customers in Northern Ireland. Since the energy crisis it has had a range of customer supports in place and continues to support customers directly as well as work with charity partners to provide support to the most vulnerable.

The business also continues to deliver its one-stop-shop retrofit programme in RoI, with currently around 15% market share of the solar and retrofit markets.

Strategic delivery

Energy affordability and customer vulnerability continues to be a key concern for energy stakeholders in Ireland and SSE Airtricity is positively engaging with government, particularly its energy affordability taskforce, on policy proposals to improve the market for consumers.

The business currently provides around 85% of the energy by volume used by data centres and will continue to target the technology and pharmaceutical sectors where strong growth is expected.

SSE Business Energy

1 Comparative financial information has been restated, please see note 2.5 to the Interim Financial Statements

Financial performance

Adjusted operating losses of £(8.9)m were recognised compared to £36.3m profit in the previous period, mainly driven by one-off benefits recognised in the prior period relating to bad debt releases while the current period reflects lower customer numbers and less seasonal fluctuation in wholesale prices resulting in a more even distribution of profits across the year, with profitability expected to recover in the second half.

Reported operating profitability decreased to £(8.1)m loss compared to £36.3m profit in the prior period, reflecting the movements above in addition to restructuring costs incurred during the period.

Operational delivery

Over the last six months, Business Energy has faced challenging market conditions with lower volumes of energy sold.

The reduction in market share reflects the lagged impact of the decision to taper customer gains not for nine months to January 2025 to enable the business to stabilise the Evolve billing system. All business operations have resumed, with a focus on offers directly to large customers and Third-Party Intermediaries (TPIs), maintaining a value over volume discipline.

The business continues to build its Corporate Power Purchase Agreement (CPPA) customer book with total GB volumes locked in via CPPA's increasing to 1.05TWh, with up to seven years duration.

Strategic progress

Over the coming months the introduction of market-wide half hourly settlement will be one of the biggest set of changes to the energy supply market for many years. While SSE Business Energy supports the aims of improved customer data, product innovation and greater demand flexibility, the scale of change brings risks that will require close and careful management. The business will continue to work with Ofgem on the implementation of half hourly settlement ahead of the May 2027 deadline for migration.

The UK Government's focus on growth and particularly AI Growth Zones, is an opportunity to leverage strong relationships the business has with combined authorities, other public bodies and the technology sector to develop innovative sustainable solutions for data centres.

SSE Energy Markets

SSE Energy Markets commercially optimises all of SSE's market-based Business Unit assets, securing value by trading and managing volatility through active risk management. This involves trading the principal commodities to which SSE's asset portfolios are exposed, namely power (baseload and other products); gas; and carbon (emissions allowances) and the spreads therein.

1 Comparative financial information has been restated, please see note 2.5 to the Interim Financial Statements.

Financial performance

Adjusted operating profit decreased by 48% to £6.7m from £12.9m in the prior period. While SSE Energy Markets continues to drive significant value for the energy-exposed businesses through its trading activities, the business itself generates a relatively low level of baseline operating earnings through these services. The decrease in profitability during the period is mainly driven by lower margin on optimisation activities given lower levels macro volatility and greater compression of market spreads.

Reported operating profit decreased to £9.2m compared to £78.1m in the prior period. In addition to the operating profit movements above, this predominantly reflects a lower level of net remeasurement gains on forward commodity derivatives compared to the prior period. These IFRS 9 re-measurements exclude any re-measurement of 'own use' contracts and are unrelated to underlying operating performance.

Operational delivery

In the first half of the year SSE Energy Markets has continued to play a pivotal role in navigating energy market volatility, managing risk and ensuring the Group's market-based Business Units capture and maximise value. This covers all trading periods, with decisions being made from one centre of excellence. The value Energy Markets secures for SSE's asset portfolio continues to be reported against individual Business Units.

Strategic progress

SSE Energy Markets has maintained its focus on optimisation activities and position taking - both subject to SSE's strict position limits and value at risk (VAR) controls - and contracting for third party Power Purchase Agreement (PPA) and route-to-market contracts.

At 30 September 2025 the business has contracted for 2.8GW of CfD-backed route-to-market contracts, of which around 2.0GW are either wholly owned or joint venture contracts secured through competitive tenders with the remaining balance contracted with third party developers. The business continues to originate contracts across multiple geographies and technologies to support the development of renewable assets.

The business continues to gradually increase the volumes it is trading in European power and gas markets. This deepens understanding of the global energy complex, and is critical as the Group develops, constructs, and operates assets in carefully selected international markets.