Preliminary Results

SSE plc: Preliminary Results

28 May 2026

Highlights

·      Record year delivering £3.6bn capital investment, as construction programme gains momentum

·      Financial results towards the upper end of guidance, reflecting strong operational performance

·      Resilient business mix means no immediate impact from macro volatility on performance outlook

·      Delivery of fully-funded £33bn investment plan to 2030 well under way

·      Earnings targets of between 168 - 193 pence for 2026/27 (adjusted for equity issuance) and between 225 - 250 pence for 2029/30 remain unchanged

·      Recommend a final dividend of 47.3 pence, resulting in a full year dividend of 68.7 pence, a 7% increase on the prior year, reflecting the strategic progress made

Martin Pibworth, Chief Executive, said:

"This year has demonstrated the strength and resilience of SSE's integrated model. We met all our financial and operational targets and delivery of our fully-funded £33bn investment plan to 2030 - focusing on Networks, Renewables and Flexibility - is well under way. That investment is central to long‑term value creation. It is reducing the UK's exposure to volatile global energy markets and providing more stable, predictable returns through the energy transition, while supporting economic growth and cutting bills for consumers.

"By operating our business efficiently and optimally, while accelerating electrification and building energy infrastructure to unlock homegrown renewables, we are strengthening energy security and lowering system costs over time. With record levels of capital investment in line with our plan and strong momentum across the Group, we are well placed to deliver sustainable growth and value creation for our shareholders while helping to build a more affordable and secure energy system for the UK."

¹ Comparative financial information has been restated, please see note 2.3 to the Summary Financial Statements

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

Financial performance

·      Adjusted Earnings Per Share of 153.5p, towards the upper end of guidance and reflecting continued strong operational performance during a period of macro-economic uncertainty.

·      Regulated Networks contributed around 40% of adjusted operating profits, including:

§ Increasing investment and associated allowed revenues in SSEN Transmission, with adjusted operating profit around 75% higher than prior year.

§ Distribution operating profits around 54% lower than prior year as expected given the non-recurring inflation adjustment in the prior year.

·      Capacity additions delivered by SSE Renewables were partially offset by less favourable weather conditions throughout the course of the year combined with lower hedged prices as expected, with adjusted operating profits around 4% higher than the prior year.

·      Operating profits across the Flexibility businesses were lower as expected, as market conditions, outages and lower volumes meant that adjusted operating profits were around 15% down on prior year.

·      Reported operating profit of £1,889m reflects a net £(157.7)m re-measurement charge, £(84.7)m group restructuring costs and £(77.9)m net asset impairments.

·      Adjusted taxation rate decreased to 9.6%, reflecting tax relief on increasing investment programme.

·      Adjusted capital investment increased by over 20% to £3.6bn, predominantly in SSEN Transmission.

·      Adjusted net debt and hybrid capital at £10.1bn, in line with expectations given increasing investment, with 3.3x net debt / EBITDA

·      Recommend a final dividend of 47.3 pence, taking full year dividend to 68.7 pence or 7% increase on prior year.

Strategic delivery

Networks

·      Construction under way on five of the 11 major Transmission projects, representing around one third of transmission investment plan spend.

·      Around 75% of major transmission consents have now been received, with remainder in progress.

·      Transmission supply chain fully secured and delivering on projects under construction, as employee base continues to grow with >20% increase over the year.

·      Distribution RIIO-ED3 business plan under development, due for submission in December 2026, setting the foundation for decades of expected growth.

Renewables                                                            

·      Construction progressing at Dogger Bank with turbine installation stage at Phase A completed in February 2026, and strong installation progress on Phase B with 20 turbines installed to date.

·      Success in UK Allocation Round 7 for 1.4GW Berwick Bank Phase B project, with the remaining 2.7GW of capacity expected to be eligible for the accelerated Allocation Round 8 auction later this calendar year.

·      150MW Ferrybridge Battery Energy Storage System entered full operation in March 2026.

Flexibility

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

Financial outlook

·      SSE's increasing exposure to regulated, index-linked earnings provides embedded financial resilience in periods of significant macro-economic, political or regulatory uncertainty.

·      Accordingly, the Group reiterates adjusted EPS expectations for both 2026/27 of between 168 - 193 pence (adjusted for equity issuance and increased number of shares) and 2029/30 of between 225 - 250 pence.

·      Full year 2026/27 capex is expected to significantly increase to over £5bn, with net debt continuing to be comfortably within the Group's recently reaffirmed strong investment grade credit ratings.

Key Performance Indicators

1 Comparative financial information has been restated, please see note 2.3 to the Summary 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

Results presentation

SSE will present these full year results on Thursday 28 May 2026 at 09:00am 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. Participants can register for a pin code and conference call number for an accompanying teleconference. News releases and announcements are made available on sse.com/investors and you can register for Regulatory News Service alerts at sse.com/investors/regulatory-news/regulatory-news-alerts.

Investor Timetable

Group Financial Review

Financial performance for the year ended 31 March 2026

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

1 Comparative financial information has been restated, please see note 2.3 to the Summary Financial Statements

2 Excludes Treasury shares of 3.3m in March 2026 and 4.9m in March 2025

Segmental EBITDA results are included in note 6 to the Summary Financial Statements. For detailed Business Unit financial performance commentary, please refer to the Business Operating Review.

Group operating profit

The Group delivered strong operating performance over the course of the year. This included an increased profit contribution from SSEN Transmission which grew by around 75% on the prior year reflecting the strong growth in investment across the transmission network. Elsewhere within Networks, profitability in SSEN Distribution was significantly lower as expected given the previous year included a large non-recurring inflation adjustment to revenues.

For Renewables, profitability increased by around 4% reflecting increased output from new capacity partially offset by mixed weather conditions and lower hedged prices.

Across Flexibility, SSE Thermal saw modestly lower profits than prior year which reflected market conditions and outage programmes across the fleet. And Energy Customer Solutions profits decreased, reflecting both lower wind related revenues combined with lower volumes sold.

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 items which are excluded from adjusted results on the basis they are materially non-recurring, uncontrollable or exceptional. Reported operating profit decreased by 4% compared to the prior year, reflecting a lower net asset impairment charge partially offset by a higher net-remeasurement charge on forward energy derivatives and group restructuring charges. These movements include an increase in profitability of SSEN Transmission, which is fully consolidated within reported metrics.

Net finance costs

Our adjusted net finance costs - which exclude coupons on hybrid bonds classified as equity - were lower this year. The year-on-year increase in the cost of debt, as lower cost maturing debt has been replaced by more expensive newly issued debt, has been more than offset by an increase in capitalised interest resulting from increased capital expenditure activity in the year.

Reported net finance costs, which excludes our share of interest in Joint Ventures and Associates, were £(51.6)m compared to £(111.3)m in the previous period reflecting the increased capitalisation as noted.

Taxation

SSE is one of the UK's biggest taxpayers, and in the Total Tax Contribution survey published in November 2025 was ranked 16th out of the 100 Group of Companies in 2025 in terms of taxes borne (those which represent a cost to the company, and which are reflected in its financial results). 

We consider being a responsible taxpayer to be a core element of our social contract with the societies in which we operate and we seek to pay the right amount of tax, in the right place, at the right time. While we have an obligation to shareholders, customers and other stakeholders to efficiently manage our total tax liability, we do not seek to use the tax system in a way it is not meant to operate or use tax havens to reduce tax liabilities. 

SSE was the first FTSE 100 company to be Fair Tax Mark accredited and we have now been accredited for 11 years. 

In December 2025, we published our "Talking Tax 2025: fair tax for a clean energy transition" report. We did this because building trust with stakeholders on issues relating to tax is important to the long-term sustainability of the business. We won PwC's Building Public Trust Award for Tax Reporting in the FTSE 350 for the fourth consecutive year in November 2025 for the quality of our tax reporting.

In the year, SSE paid £424.9m of profit taxes, property taxes, environmental taxes and employment taxes in the UK, compared with £592.1m in the previous year. The decrease in total taxes paid was primarily due to less corporation tax being paid on UK profits. This was because of higher capital allowances on the Group's record level of capital expenditure. In addition, less Electricity Generator Levy was paid due to lower electricity generation prices.

As with other key financial indicators, our focus is on adjusted profit before tax and, in line with that, we believe that the adjusted current tax charge on that profit is the tax measure that best reflects underlying performance. SSE's adjusted current tax rate, based on adjusted profit before tax, was 9.6%, compared with 13.9% in 2024/25 on the same basis. The decrease in rate is primarily due to higher UK capital allowances under full expensing on the Group's capital investment programme.

Profit after tax and Earnings Per Share

Adjusted profit after tax was (0.8)% lower relative to the prior year, reflecting the movements in adjusted operating profit, partly offset by the lower adjusted current tax rate and lower adjusted net finance costs.

Reported profit after tax reflects the movements in reported operating profit and net finance costs outlined above in addition to a reported current tax rate of 24.3%. 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 15% on prior year, mainly due to the increase in our capital investment programme.

Reflecting the movements above, and the increased number of shares following the November 2025 equity issuance, adjusted Earnings Per Share was (5)% lower relative to the prior year at 153.5 pence with reported Earnings Per Share decreasing by (2)% to 105.5 pence.

Final dividend

We believe that dividends should be sustainable and based on earnings performance, while also enabling the longer-term growth prospects of our assets and operations. To that end, the dividend plan to 2029/30 is designed to balance income to shareholders with the appropriate funding for a transformational growth plan that will ultimately create greater value and total return for shareholders over the long term.

In line with that dividend plan and reflecting the strategic progress made to deliver sustainable earnings growth, we have announced a final dividend of 47.3 pence for payment on 17 September 2026. This amounts to a 2025/26 full year dividend of 68.7 pence, representing an increase of 7% on the prior year.

Capital expenditure programme

1 Comparative financial information has been restated, please see note 2.3 to the Summary Financial Statements

During the year ended 31 March 2026, adjusted investment, capital and acquisitions expenditure totalled £3,585.6m, compared to £2,910.4m in the prior year. The increased investment was driven mainly by our regulated electricity networks divisions, with lower overall deployment of capital across the other businesses, and no acquisitions expenditure.

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

Financial Outlook

Financial outlook for 2026/27

SSE's unique mix of assets across Networks, Renewables and Flexibility has been carefully selected to provide a diverse and resilient business mix that will perform in periods of significant macro-economic, political or regulatory uncertainty. With increasing investment into assets underpinned by regulated and index-linked earnings, our financial resilience is expected to grow as the long-term strategic investment plan is delivered.

Given this resilience, we confirm the individual performance expectations for each Business Unit for the 2026/27 financial year as follows:

·    SSEN Transmission - It is expected that adjusted operating profit will be significantly higher than 2025/26, reflecting increased allowed revenue generated by continued acceleration of investment.

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

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

·    SSE Thermal - It is expected that adjusted operating profit will be significantly higher than 2025/26, reflecting the step up in contracted Capacity Market payments.

·     Energy Customer Solutions - We anticipate that the adjusted operating profit for these businesses will be lower than 2025/26 reflecting the continued unwind of wind related income.

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

Given the strong strategic progress made in the year, and after considering the impact of current and forecast market conditions, we continue to reiterate our 168 - 193 pence adjusted Earnings Per Share guidance range (being the original 175 - 200p target, adjusted for the dilutive impact of the £2bn equity raise completed in November 2025 resulting in an increased number of shares).

With capital expenditure and investment continuing to ramp up in line with the long term investment plan, full year capex is expected to significantly increase to over £5bn, in line with the phasing of the £33bn investment plan announced in November 2025, with net debt continuing to be comfortably within our recently reaffirmed strong investment grade credit ratings.

Outlook to 2029/30

Transformational five-year investment programme

In November 2025, we announced a transformational £33bn five-year investment plan to 2029/30, significantly increasing 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 alleviating 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 investment plan includes around £3bn of currently uncommitted capex across the SSE Renewables and SSE Thermal businesses. In allocating this capital, we continue to apply strict returns criteria for new energy projects to ensure attractive shareholder returns whilst ensuring strategic alignment with our clean electricity focus.

Industry-leading capital growth

The record programme of investment outlined above is expected to deliver industry-leading capital growth. 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.

Resilient funding strategy

This programme is backed by a comprehensive funding strategy that maintains our 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 an increase in adjusted net debt and hybrid capital and a £2bn equity placing which was completed in November 2025, around £2bn of targeted asset rotations are expected across the portfolio, aligned with investment needs across the five-year plan.

Outlook to 2029/30

Investments made in Networks and selective Renewables and system Flexibility projects are expected to drive a significant uplift in earnings, with an adjusted Earnings Per Share CAGR of between 10-13% from 2025/26 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.

A sustainable and progressive dividend policy

We are also committed to continuing our 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. We have continued to 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

We recognised an exceptional charge within continuing operations of £162.6m before tax in the current period. £84.7m of this relates to Group restructuring costs (including £21.8m of asset impairments) with a further £77.9m charge for UK onshore wind projects affected by grid connection delays, partially offset by valuation uplifts across Gas Storage and Triton Power.

Further detail on exceptional items can be found within note 7 and the definition of exceptional items can be found in note 4.2 of the Summary Financial Statements.

Group-wide operating model and efficiency review

During 2025, in line with SSE's commitment to capital and operational discipline, we 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 is now largely complete, with the exception of the ongoing SSEN Distribution transformative change programme. Actions taken as a result of this review are expected to deliver recurring efficiency and cost control savings across the Group.

Certain re-measurements

Operating derivatives

SSE enters into forward purchase contracts (for power, gas and other commodities) to meet the future demands of the 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.

We report 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 year. The underlying value of these contracts is recognised as the relevant commodity is delivered, which for the majority of the position at 31 March 2026 is expected to be within the next 18 months.

The change in the operating derivative mark-to-market valuation was an £(168.1)m negative movement from the start of the period, reflecting a £(152.0)m negative movement on fully consolidated operating derivatives including affiliate and commercial Contracts for Difference (CfDs) combined with a £(16.1)m negative share of movement on derivatives in jointly controlled entities, net of tax.

As in prior years, 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 for secondary trading opportunities is held at fair value with reference to the forward month market price. Given the low level of gas storage held at year end, combined with trading churn, the book value of commodity stocks were broadly in line with fair value.

Financing derivatives

In addition to the movements above, a positive movement of £17.9m was recognised on financing derivatives in the year, 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 Sterling weakness on cross-currency swap contracts.

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

Hedging position

Our long-established approach to hedging looks to generally reduce broad exposure to commodity price variation in advance of delivery. We continue to monitor market developments and conditions and periodically alter our hedging approach in response to changes in exposure profile.

SSE Renewables

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.

Note: where gas and carbon trades have been used as a proxy for electricity, a constant 1MWh:69.444 th and 1MWh:0.3815 te/MWh conversion ratio between commodities has been applied. These same ratios have been used to convert underlying commodity prices 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, Renewables Obligation Certificates (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.

Our 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 SSE Thermal assets. 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 Company.

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 Value at Risk (VAR) limit of £9m.

Financial management and balance sheet

1 Comparative financial information restated, please see note 2.3 to the Summary Financial Statements.

2 Net debt represents the Group adjusted net debt and hybrid capital.  EBITDA represents the full year Group adjusted EBITDA, less £157.4m at March 2026 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 our 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. We calculate this ratio based on a methodology that best reflects our 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.

We have the capacity (if required) to exceed a 4.5x net debt/EBITDA ratio, whilst remaining above the equivalent ratios required for a strong investment grade credit rating. Reflecting the strength of the Group's balance sheet, the net debt / EBITDA ratio at 31 March 2026 was 3.3x and it is expected that this ratio will trend upwards as our significant investment programme is delivered.

Adjusted net debt and hybrid capital

SSE's adjusted net debt and hybrid capital was £10.1bn at 31 March 2026 which is consistent with the £10.1bn at 31 March 2025. Cash inflows from the £2bn equity placing in November 2025 and strong operating cashflows have been offset by our capital investment programme, dividend and interest payments.

Debt summary

SSE plc together with its subsidiary, Scottish Hydro Electric Transmission (SHET) plc, issued £2.5bn of new long-term debt and hybrid capital in the year to March 2026 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 €1.3bn (£1.1bn) dual tranche equity accounted hybrid bonds being a €800m (£0.7bn) hybrid bond at 4.00% and a €500m (£0.4bn) hybrid bond at 4.50%, both of which remain denominated in Euro. 

·      In September 2025 Scottish Hydro Electric Transmission plc issued a €750m (£647m) eight-year Eurobond 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 Scottish Hydro Electric Transmission plc raised €100m (£86m) by increasing the size of its existing Eurobond repayable on September 2032, with a coupon of 3.375% and an all-in GBP cost of 5.06% once swapped back to Sterling.

·      In October 2025 Scottish Hydro Electric Transmission plc executed a £250m 5-year term loan with a 1-year extension option at a cost of SONIA +75bps.

·      In February 2026 Scottish Hydro Electric Transmission plc issued a1.5bn NOK (£113m) 10-year private placement maturing 11 February 2036 with a coupon of 4.98% and an all-in GBP cost of SONIA +125bps once swapped back to Sterling

·      On 27 March 2026, SSE plc executed a €400m (£346m) 2-year Floating Rate Note at a cost of EURIBOR + 47bps which has been swapped to Sterling at a cost of SONIA +75bps. Proceeds from the Floating Rate Note were received on 7 April 2026.

Over the next 12 months there is £1.2bn of medium- to long-term debt and £0.5bn of short-term debt maturing. SSE had access to £6.5bn (gross of the Minority Interest in SHET plc) of committed bank facilities at 31 March 2026.

Hybrid bonds summary

Hybrid bonds are a core part of our capital structure, helping to diversify the 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 31 March 2026 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 31 March 2026, we had cash and cash equivalents of £1.5bn, which is higher than the £1.1bn at March 2025 due to timing of new debt issues and the £2bn equity raise which has resulted in a higher surplus cash position being held during the second half of the financial year.

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 31 March 2026 the collateral balance and other deposits were a net liability (i.e. collateral received) of £246m (2025: £63m net liability). The collateral movement in the current year reflects an increase in the variation margin on 'in the money' positions due to higher commodity prices partially offset by increase in initial margins following an increase in volatility.

Short-term funding

We had £6.5bn (gross of the Minority Interest in SHET plc) of committed bank facilities in place at 31 March 2026 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 the issuance of new debt for a period of time. The below table sets out the facilities that have been entered as at 31 March 2026:

In addition to the facilities set out in the table above, SSE plc signed a commitment letter on 31 March 2026 which gives us the right to enter a £1.5bn committed facility between 31 March 2026 and 30 June 2026.

The revolving credit facilities can also be utilised to cover short-term funding requirements. There were no drawings on any of the committed facilities at 31 March 2026. 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.

Maintaining a prudent treasury policy

Our 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 31 March 2026, 92% of 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. Our 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 subscription to the 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.

Joint Venture and associate non-recourse project financing

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 31 March 2026.

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, £324m of the £972m of SSE shareholder loans advanced to Seagreen Wind Energy are classified as equity.

Pensions

In the year to 31 March 2026, the Group's pension surplus decreased by £42.0m, from £501.8m to £459.8m, primarily due to actuarial loss of £80.7m offset by the contributions to the schemes.

The SSE Southern scheme's surplus decreased by £52.6m in the year due primarily to a £78.6m actuarial loss, offset by contributions to the scheme of £25.6m. The Scottish Hydro Electric scheme is partially insured against volatility in its pensioner members through the purchase of 'buy-in' contracts meaning a significant portion of scheme liabilities are protected from volatility. During the year the Scottish Hydro Electric scheme's surplus increased by £10.6m.

Additional information on employee pension schemes can be found in note 15 to the summary 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 third-party analysis.

Measuring performance against SSE's 2030 Goals

SSE's sustainability strategy supports the five year investment plan, underpinning the transition to net zero and driving long-term value creation. SSE's four 2030 Goals, directly linked to the UN 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%: SSE's scope 1 GHG intensity of electricity generated in 2025/26 was 194gCO2e/kWh, compared to 218gCO2e/kWh last year, and the lowest SSE has recorded. This reflects increased renewables output from new assets alongside lower thermal generation due to maintenance outages. While SSE's carbon intensity has reduced by 37% since 2017/18, as outlined last year, in the context of the current market and policy environment, SSE's carbon intensity goal is on target but with risk.

Renewable Output goal: Output during the year increased to 14.5TWh primarily driven by increased capacity from initial commissioning of Dogger Bank A and Yellow River which was partially offset by mixed weather conditions particularly in hydro. As outlined in the full year, 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 goal: As of 31 March 2026, SSE's north of Scotland Transmission network had 10.8GW of installed renewable capacity connected, having surpassed its RIIO-T2 target of 10GW by 2024. The slight increase in renewable capacity connected since last 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 society through the energy transition. In 2025/26, SSE contributed £10.84bn to UK and Ireland GDP - up from £8.68bn last year and our highest contribution since 2018/19 (adjusted for current prices). We also supported 88,350 jobs across the UK and Ireland, up significantly from 67,190 in 2024/25. 2024/25 was a record year for community investment, with nearly £25m awarded through SSE's community funds, supporting over 300 local communities.

Safety performance: SSE's combined employee and contractor TRIR remained steady at 0.17, compared to 0.16 the previous year. Over 14,000 employees and contract partners have completed immersive safety training since it was introduced in 2022, supporting stronger safety behaviours.

Business Operating Review

SSEN Transmission

SSEN Transmission operates one of the fastest growing regulated electricity networks in Europe. 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 74% to £562.6m from £322.5m in the prior year. Revenue growth is driven by allowances agreed with the regulator to fund increasing investment, a proportion of which is returned in the corresponding financial year. This investment has been funded by SSEN Transmission and its shareholders and is quoted before debt interest and tax payments are deducted. In addition, the prior year included a one-off negative timing adjustment relating to tax relief.

Reported operating profit increased to £750.1m compared to £430.0m as a result of the movements above but reflecting that non-controlling interests are fully consolidated for all profit metrics under IFRS.

Net capex totalled £1,717.6m, an increase of 80% on the comparative year, supporting the UK's grid upgrade, and included £219m on the Orkney link project where major substation progress has been made, and £212m on the Argyll and Kintyre upgrade where substation and overhead line work has progressed. Capex of £137m was invested at the Eastern Green Link 2 (EGL2) project where Peterhead converter station work has advanced and the manufacturing of the submarine cable is under way. Remaining capex was delivered primarily across the other large capital projects.

Operational delivery
SSEN Transmission continues to deliver sector-leading operational performance, securing the full reward through Ofgem's 'Energy Not Supplied' incentive, the third year the business has achieved this throughout the RIIO-T2 price control, underpinning its goal of zero interruptions to homes and businesses.

Delivery of the capital investment programme has continued at pace during the year. With progress on the 11 major projects detailed below, other progress in the year included the Kergord to Gremista 132kV connection and Gremista Grid Supply Point, which was completed in April 2026. Full energisation will follow completion of SSEN Distribution's 'Shetland Standby Project', anticipated later in 2026.

The East Coast 400kV upgrade between Kintore and Kincardine also continues to make good progress.  Several sections will be replaced with higher capacity conductors than initially planned, with completion and full energisation of this programme now expected in 2027.

In March 2026, SSEN Transmission confirmed its acceptance of Ofgem's Final Determination for the RIIO-T3 period, which commenced on 1 April 2026, recognising it as an investable and deliverable settlement overall. 

Delivering on key consents
Our 11 major projects, six of which are onshore and five offshore, continue to make good progress.

SSEN Transmission is sensitive to the views of the communities hosting its major projects, which is why, based on one of the largest public consultation exercises Scotland has ever seen, substations have been relocated and routes have been altered. The business is also providing new community benefit funding - projected to be over £100m - alongside supporting the delivery of 1,000 new homes.

With all regulatory approvals of need secured and supply chain frameworks for delivery in place, securing all necessary planning consents remains a top priority. Of the 34 major consents required, 25 have been secured. These includes five substation sites, two overhead lines and two marine licence consents achieved during 2025/26.

All outstanding consent decisions are expected within the next 12 months. This includes four substation consents that have been appealed to the Scottish Government following refusal by local Planning Authorities, decisions that went against the independent expert advice of Planning Authority planning officers. 

Cambushinnie substation was previously approved by Perth and Kinross Council, but following legal challenge that decision was rescinded. The Cambushinnie consent is expected to be re-determined by Perth and Kinross Council this Summer.

Delivering on construction
Timely delivery on all 11 major projects remains a priority - including those which are classed as ASTI projects.  These remain on track to be delivered in line with their regulatory licence output dates - starting with EGL2 in 2029. 

In Argyll, the first steel lattice tower on the 9km Creag Dhubh-Inveraray overhead line has been erected, with all earthworks and the main substation buildings at Creag Dhubh also complete ahead of the electrical installation works.

The Orkney link has also made strong progress, with major earthworks and steelworks complete at Dounreay and Finstown substations.

Early construction works have progressed on the Skye Reinforcement.

The EGL2 project, the first subsea link to be jointly delivered with National Grid Electricity Transmission, marked 18 months in construction in March 2026, with significant progress at both the Peterhead and Wren Hall sites.

Following receipt of its marine licence in November 2025, the Spittal-Peterhead HVDC link became the fifth major project to enter construction.

On the Eastern Green Link 3 (EGL3) project, contracts have been signed with key supply chain partners including Hitachi Energy for the HVDC convertor stations and NKT for manufacture and installation of the 690km cable.

Longer-term opportunities
In summer 2026, NESO is expected to update its second transition Centralised Strategic Network Plan (tCSNP), Beyond 2030. This is expected to identify and progress further onshore reinforcements and subsea links for delivery during the next decade.

SSEN Distribution

SSEN Distribution, operating under licence as Southern Electric Power Distribution plc (SEPD) and Scottish Hydro Electric Power Distribution plc (SHEPD), serves around 4m homes and businesses across two licence areas in central southern England and the north of Scotland.

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

Financial performance

Adjusted operating profit decreased by 54% to £335.3m compared to £736.0m in the prior year. This large decrease was expected and driven by a non-recurring timing effect in the prior year predominantly for cost inflation from 2022 to 2024, which significantly increased prior year allowed revenues.

Reported operating profit decreased to £296.9m compared to £736.0m in the prior year, reflecting the movements above in addition to £(38.4)m of exceptional restructuring costs.

Capex investment of £851.8m increased by 34% compared with the prior year, reflecting the continued delivery aligning with the RIIO-ED2 investment plan. In the north, £288m was invested, including commencement of major subsea cable works at Loch A'Choire and Skye-Uist, pole-mounted transformer replacements, and other network reinforcement work. In the south, £520m of investment supported pole- mounted transformer replacements and key network reinforcement schemes at Iver (West London), Fleet-Aldershot (Hampshire) and Bramley-Thatcham (near Reading).

Operational delivery
SSEN Distribution has completed the third year of the RIIO‑ED2 price control period, which runs to March 2028 and includes £3.6bn of baseline expenditure (2020/21 prices), while more than £157m in additional funding has been secured through Uncertainty Mechanisms so far.

Overall customer satisfaction scores have increased compared with 2024/25 to a reward position in 2025/26 with a score of 9.05/10. This represents SSEN Distribution's strongest performance since Ofgem introduced the Broad Measure Incentive in 2015. Improvements in Time to Connect and Time to Quote also exceeded Ofgem targets. However, storms in the north of Scotland affected Customer Interruptions and Customer Minutes Lost.

Storm Floris was the most significant summer storm the business has ever faced and was classed as a Category Two exceptional event, affecting almost 85,000 customers. Power was restored to 98% of customers within 48 hours. October's Storm Amy was an exceptional '1-in-20' event, making it the third-most damaging named storm in the north of Scotland on record. Supplies were restored within six days, a day earlier than Storm Eowyn in January 2025, despite Amy causing around 100 more faults.

SSEN Distribution gained £1m in reward through the Consumer Vulnerability Incentive. Almost 400,000 tailored Power Cut Plans have been sent to customers and - in an industry first - the business has delivered the first of 20,000 home battery packs to medically-dependent Priority Services customers most in need.

The business's Distribution System Operator function earned an over £5m return through Ofgem's DSO Incentive in 2024/25, up from £2m the previous year, reflecting better stakeholder feedback and panel assessment.

Strategic progress
SSEN Distribution continues to make strong progress against its RIIO‑ED2 plan while laying the foundations for ED3. The capital delivery programme has accelerated, including completion of a £38m project to install and energise five new subsea cables connecting Scotland's islands.

A new £950m framework has been established to support long-term subsea upgrades, complementing £1.4bn of existing Capital Delivery agreements for on-land infrastructure. These are enabling major upgrades such as £155m in Southampton, £100m in Swindon and £20m in south-west Dorset.

More than £150m of additional funding has been secured in 2025/26 through Uncertainty Mechanisms, including £77m for the Hebrides and Orkney (HOWSUM) re‑opener to support economic growth and increase capacity. A further £80m relates to subsea infrastructure and cyber security. Ofgem is assessing an additional ~£770m of UM requests, including ~£725m in Load-Related Expenditure to support network development through the remainder of ED2 and early ED3 mobilisation.

Connections remain a priority, with ramped offers giving a proportion of requested capacity to customers to help manage increasing demand over time. The business continues to support NESO's Connections Reform programme, meeting all deadlines and guiding customers through the process. For domestic customers seeking to connect, a new 'self-serve' tool has already generated initial cost estimates in as little as two minutes for 2,928 customers, while the advent of smartphone video surveys is further improving customer experience.

SSEN Distribution plays a leading role in developing the Electricity Networks Sector Growth Plan, which focuses on maximising the benefits to the wider economy of ongoing electrification and decarbonisation, through the creation of more sustainable UK-based supply chains and new skilled jobs.

RIIO-ED3 Price Control
Strategic Development Plans, now published for the entirety of SSEN Distribution's licence areas, underpin long-term planning to 2050 and will inform the ED3 business plan, which is due for submission in December 2026. A period of extensive engagement is currently under way as the ED3 plan is formed.

Ofgem's Sector Specific Methodology Decision sets out the important role for DNOs in enabling the benefits of increased electrification and supporting economic growth, through a combination of increased network investment supported by flexibility. It further outlines a number of financial considerations which will require detailed assessment, development and decision, including potential adjustments to the Totex Incentive Mechanism (TIM) and options to reduce gearing to address inflation impacts, alongside confirmation of the "enhanced coordinator" role for DNOs in the rollout of low-carbon technologies.

Through ED3 and beyond, SSEN Distribution is facing into a multi-decade growth opportunity. To optimise the business for delivery, work continues on a transformative change programme that is taking cost out of the business and putting it into the systems, tools and processes needed to excel over the long term.

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. Total renewable generation capacity is increased by 297MW.  This principally reflects 101MW from Yellow River wind farm, Littleton solar farm 31MW and Ferrybridge BESS 150MW.

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

4. Onshore wind output includes 1.7TWh of compensated constrained-off generation in 2025/26 and 1.3TWh in 2024/25; Offshore wind output includes 1.4TWh of compensated constrained-off generation in 2025/26 and 1.7TWh in 2024/25.

5. Biomass capacity of 15MW and output of 78GWh in 2025/26 and 69GWh 2024/25 is excluded, with the associated operating profit or loss reported within SSE Thermal.

Financial performance

Adjusted operating profit increased by 4% to £1,076.4m from £1,038.8m in the prior year. Earnings reflected higher output delivered into a lower hedged price environment, with 2025/26 hedge prices around 20% lower than the prior year. Output was supported by generation from initial commissioning at Dogger Bank A (1.2GW, SSE share 40%) and the delivery of Yellow River (101MW), partially offset by mixed weather conditions particularly in hydro.

Reported operating profit increased by 17% to £725.3m from £617.6m in the prior year. This reflects the above and other movements including restructuring costs associated with the Group's Operating Model and Efficiency Review and a non-cash impairment of £155.8m relating to Aberarder (50MW) and Strathy South (208MW) onshore wind farms in Scotland, reflecting construction programmes impacted by delayed grid access.

Capex of £739.0m was invested during the period, including £157m of equity for Dogger Bank. Meanwhile £146m was invested in onshore wind in Scotland and Ireland. £48m of capex was delivered in Southern Europe, with progress made at onshore wind projects across Spain and Italy. On Battery Energy Storage System (BESS) projects, £96m was incurred in progressing the delivery of Derrymeen, Ferrybridge, Fiddlers Ferry and Monk Fryston.

Operational delivery
Onshore wind volumes increased by 13% from 6.0TWh to 6.8TWh, reflecting increased capacity including the addition of Yellow River. This was partially offset by variable weather conditions and increased levels of system-driven curtailment in Ireland alongside planned and unplanned maintenance including an ongoing outage at Hadyard Hill.

In offshore wind, output increased by 18% from 3.9TWh to 4.6TWh driven by ongoing turbine commissioning work at Dogger Bank A. Hydro production decreased by 5% from 2.9TWh to 2.8TWh reflecting mixed precipitation across the year.

In the GB T-4 Capacity Market auction (2029/30 delivery year) SSE Renewables secured one-year agreements for 935MW of de-rated capacity across hydro (925MW) including 137MW for Sloy hydro scheme and 10MW of onshore wind at a clearing price of £27.10/kW.

In Ireland's T-4 auction, a one-year agreement for 20MW of de-rated onshore wind capacity for delivery year 2029/30 was secured at a clearing price of €135.5/kW.

Strategic progress
SSE Renewables continues to progress the delivery of Dogger Bank wind farm (3.6GW, SSE share 40%). Following the completion of turbine installation at Dogger Bank A in February 2026, commissioning continues and is expected to be substantially complete by the end of calendar year 2026. Turbine installation is progressing strongly at Dogger Bank B (1.2GW, SSE share 40%) with the installation run-rate far exceeding that achieved on the first phase, resulting in 20 turbines currently installed and first power achieved in early March. On Dogger Bank C (1.2GW, SSE share 40%) installation of transition pieces was completed in November 2025, marking the successful installation of foundations across all three phases. When fully complete Dogger Bank will be capable of producing 6% of UK current demand, delivering substantial value for consumers from this nationally significant infrastructure.

Berwick Bank wind farm, consented in July 2025 for up to 4.1GW of offshore capacity, represents the potential of further critical infrastructure delivery by SSE for the UK, contributing to long-term energy security and clean power targets. If built to its full potential capacity, Berwick Bank could become the world's largest offshore wind farm on completion. In January 2026, Berwick Bank B secured a valuable route to market via a 20-year contract for 1.4GW of offshore capacity at a competitive strike price for consumers of £89.49/MWh through CfD Allocation Round 7. A final investment decision is expected in 2027.

The UK's intention to run Allocation Round 8 in the second half of 2026 is a positive step for the energy transition. As with AR7, ambition on capacity will be critical to sustaining offshore delivery and value for consumers. In April 2026, further information on the offshore planning consent application for Arklow Bank Wind Park 2 (800MW) was submitted to Ireland's statutory planning body and a determination is anticipated by the end of the year. In May 2026, North Falls (up to 900MW, SSE share 50%) was granted development consent for its offshore array.

Onshore wind construction at Aberarder and Strathy South in Scotland has been impacted by delayed grid access, resulting in the reported non-cash impairment. Construction continues at the RESS4-contracted Drumnahough wind farm in Ireland (58MW, SSE share 50%).

In England, Ferrybridge BESS (150MW) and Littleton solar (31MW) entered commercial operations in March 2026. Battery installation continues at the Monk Fryston (320MW) and Fiddlers Ferry (150MW) BESS projects. In Northern Ireland, following a final investment decision in December 2025, construction has started on the Derrymeen BESS (100MW) project.

In Southern Europe, Jubera wind farm (64MW) in Spain entered commercial operations in May 2026 and construction of a further 72MW of onshore wind capacity is under way at sites in Spain and Italy.

In hydro, repowering of Lochay power station (45MW) to extend its useful life by at least 40 years continues. The first of the two new turbine generating units is currently being installed and is expected to be commissioned later this year. The Coire Glas pumped storage hydro project (1.4GW) has progressed to the Project Assessment stage of Ofgem's Cap and Floor scheme for long-duration electricity storage, with the minded-to decision on successful projects expected in summer 2026.

SSE Thermal

SSE Thermal owns and operates conventional flexible thermal generation in GB and Ireland and gas storage in GB. 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 2025/26 reporting merges SSE Thermal and Gas Storage segments. Comparative performance has been restated.

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 profit for SSE Thermal fell slightly to £195.4m compared to £211.4m in the prior year. This decrease was largely driven by lower market performance, due to lower plant availability and periods of low volatility.

Reported operating profitability increased to £243.0m compared to £195.3m in the prior year. This reflects the movements above including restructuring costs associated with the Group's Operating Model and Efficiency Review, non-cash impairment reversals of £48.5m relating to operational Gas Storage assets and £29.4m relating to the carrying value of the Group's investment in Triton Power.

Operational delivery

SSE Thermal's overriding objective is to maintain commercial availability of its existing fleet and develop investment options to support security of supply into the 2030s and beyond. Flexible power stations continue to secure value through a diversified stack of revenues, including the Capacity Market, intrinsic forward spark spread, the Balancing Mechanism and other ancillary contracts.

SSE applies rigorous commercial discipline through any auctions and remains confident that the value of SSE Thermal assets will be realised through this approach. Keadby 1 Power Station secured a provisional Capacity Market agreement for 686MW de-rated electricity generation capacity, running from 1 October 2029 to 30 September 2030. Agreements were not taken for Peterhead, Medway, Burghfield and Chickerell power stations due to the non-commerciality of the clearing price. These assets remain contracted to 30 September 2029, with options to secure agreements in future auctions. SSE Thermal assets in Ireland secured agreements for 543MW of de-rated capacity, valued at a total of around €288m, including a five-year agreement for Great Island.

SSE Thermal delivered a successful summer outage programme across the flexible generation fleet. However, unplanned outages at Keadby 2, Medway and Great Island impacted availability outside of the summer period.

SSE Thermal's gas storage assets remain an important risk management tool for the Group's generation portfolio, with fast-cycle assets an important part of a resilient energy system. Favourable summer/winter spreads enabled injection and withdrawal in the first half of the year. Cavern Eight at Atwick returned to service at the beginning of October 2025, delivering additional value.

Strategic progress
Construction is under way at the 300MW Tarbert Next Generation power station, targeting full commercial operation from October 2027. The station has secured €335m of revenues through a 10-year capacity agreement. Final investment decision was taken on Platin, a 170MW power station in County Meath, in July 2025, and preparatory works are under way with full site mobilisation expected in the coming months, targeting full commercial operation from October 2028. This project is also underpinned by a 10-year capacity agreement, with a total value of around €250m. An amendment to the planning consent was since secured to enable Platin to run on natural gas as well as sustainable biofuels. A further 10-year capacity agreement was secured to support this at a value of around €20m.

SSE Thermal has developed shovel-ready programmes to extend the lives of its existing, wholly-owned CCGTs in GB. Subject to securing multi-year Capacity Market agreements, these investments would help ensure that existing generation assets remain ready to respond to system need, providing the enduring flexibility which is critical to enabling a renewables-led system.  

In the UK, further detail is pending on the mechanisms to procure new-build dispatchable capacity, including the Hydrogen to Power Business Model, any adaptations to the Capacity Market and further allocation of Dispatchable Power Agreements for CCS projects. These options could support investment in SSE Thermal's flexible generation pipeline, including Keadby Next Generation and Ferrybridge Next Generation, Keadby CCS and Peterhead CCS. For Peterhead CCS, SSE is continuing to work with Scottish Cluster partners and UK Government to agree a programme of funded development work.

During the course of 2025, SSE reviewed its hydrogen development strategy and, in response to material policy delays to the roll-out of low-carbon hydrogen, took the decision to pause its standalone hydrogen production projects. Near-term efforts are focused on enabling hydrogen in the Humber region, and SSE Thermal's role as an offtaker or low-carbon hydrogen for future hydrogen-to-power projects.

Energy Customer Solutions

Energy Customer Solutions delivers a range of energy products and services to the non-domestic market in GB and both the domestic and non-domestic markets in the island of Ireland. It creates routes to market including Corporate Power Purchase Agreements and green supply contracts and offers energy solutions and distributed energy products that stabilise costs, provide speed to power and reduce carbon emissions.

1 Segmental reporting for SSE Airtricity and Business Energy have been merged for 2025/26. Comparative performance has been restated.

Financial performance

Adjusted operating profit declined by 29% to £136.9m from £192.1m in the prior year primarily driven by lower wind related revenues and lower supply volumes. This was partially offset by improved debt performance and operational efficiencies. The year saw lower customer numbers, reflecting tighter market competition and a decision to focus on stabilisation of the new billing system in GB.

Reported operating profit decreased to £136.2m compared to £189.2m in the previous year, reflecting the movements above.

Operational delivery
In the last 12 months an acceleration in the development of data centres has created opportunities for Energy Customer Solutions (ECS). In Ireland, where the data centre sector is well established, energy sold to the data centre sector increased by 4TWh to 6TWh, taking the total power supplied to domestic and non-domestic customers on the island to 10.6TWh. SSE Airtricity now supplies around 80% of the energy to data centres in Ireland.

In GB, where data centre build-out is less advanced, the focus has been on building strategic relationships with key market players, for example through the delivery of a private network solution to a Microsoft data centre development in South Wales and the expansion of network capacity to Europe's largest data centre conurbation in Slough.

ECS's supply businesses have faced difficult market conditions over the last year. SSE Airtricity saw modest customer losses after reluctantly deciding to increase tariffs by an average of 9.5% from October (4% Northern Ireland), balanced with customer support initiatives. Business Energy saw a reduction in customer numbers due to market competition and the knock-on impact of previously paused sales.

Energy affordability remains a key concern in both GB and Ireland with governments implementing policy measures to support customers. ECS continues to engage with governments and other stakeholders to influence policy direction, as well as providing a range of supports to customers.

ECS has supported customers to electrify and decarbonise their homes and businesses in the last year. Notable achievements include installing solar panels on 400 homes of medically vulnerable people in Ireland at no cost; and in GB, an agreement with Transport for London to partner on delivery of solar developments that will partially power the London Underground, with potential for future expansion.

Strategic progress
The growing data centre sector will be an area of focus for ECS over the coming year both in Ireland, where a long-awaited Large Energy Users policy has essentially lifted a de facto moratorium on new facilities, and in GB, where strong growth of the sector is expected in the UK Government's AI Growth Zones.

Energy Customer Solutions is exploring 'speed to power' opportunities with data centre hyperscalers and large data centre developers that face challenges securing grid connections, including bridging solutions, private networks and behind-the-meter generation.

SSE's existing and future pipeline of assets across SSE Renewables and SSE Thermal, as well as existing relationships held by ECS, are strategic strengths as the sector looks for partners to help develop large-scale energy solutions.

With global energy cost volatility potentially continuing, SSE Airtricity and SSE Business Energy are prepared for some challenges first few months of the financial year. Experience of previous global energy volatility has informed planning, and engagement with governments and regulators continues to help shape consumer support measures. ECS seeks to support all customers, particularly those that are vulnerable, and will continue to offer tariff options that provide customers with choices to suit their circumstances.

SSE Energy Markets

SSE Energy Markets optimises all of SSE's market‑based assets by trading across key commodity markets -power, gas and carbon -and managing associated market risks to secure and enhance long‑term value.

Financial performance

Adjusted operating profit increased by 44% to £43.2m from £30.0m in the prior year. In addition to this relatively low level of baseline operating earnings, SSE Energy Markets' trading activities also drive significant value for the energy-exposed businesses. The increase in profitability is mainly driven by optimisation trading on commodity positions and an increase in volume and margin achieved on green certificate sales.

Reported operating loss increased to £(145.8)m compared to a loss of £(42.9)m in the prior year. Despite favourable movements noted above, reported operating results include a higher value of net remeasurement losses on forward commodity derivatives relative to the previous year. These IFRS 9 re-measurements exclude any re-measurement of 'own use' contracts and are unrelated to underlying operating performance.

Operational delivery

SSE Energy Markets has remained central to managing market volatility, mitigating risk and maximising value for the Group's market based Business Units. Operating as a single centre of excellence across all trading periods, it secures value for SSE's asset portfolio, which continues to be reported within individual Business Units.

Strategic progress

The business has continued to focus on optimisation activities and position taking, all within SSE's strict position limit and Value at Risk (VAR) controls, while also contracting third party Power Purchase Agreements and wider route to market services.

At the full-year, SSE Energy Markets held 2.9GW of CfD-backed route-to-market contracts, of which 2.4GW were third party including 15-year agreements with two low-carbon solar farms. It also added 1.3GW of Combined Heat and Power (CHP) and Open Cycle Gas Turbine (OCGT) sites from Triton Power to its portfolio this year. The business continues to originate contracts and execute structured products to optimise the SSE portfolio.

Trading activity in European power and gas markets continued to grow steadily, deepening insight into the global energy complex. This capability is increasingly important as the Group develops, constructs and operates assets in carefully selected international markets. SSE Energy Markets will continue to add value to the Group by providing a long-term view on market fundamentals to inform SSE's strategic and investment decision making.

Immediate priorities for the business include the commencement of third-party, large-scale battery energy storage systems (BESS) contracts in 2026, and development of systematic trading functionality, using deep analytics to maximise value for the Group's portfolio.