Shares of SSE PLC edged higher in Wednesday trading, hovering close to recent record levels. The stock advanced 0.2% to 2,555 pence by mid-morning, after touching an intraday peak of 2,578 pence. This follows a session on Tuesday where the utility's stock closed at £25.50, marking a fresh 52-week high on above-average trading volume.
Earnings Forecast and Strategic Spending
In a recent trading update, SSE projected its adjusted earnings per share for the 2025/26 fiscal year to fall between 144 and 152 pence. The company highlighted a significant jump in capital expenditure within its regulated networks over the first nine months of the financial year. "Our focus remains on accelerating investment and delivering the plan that will create compounding, long-term earnings and value for investors," stated Chief Financial Officer Barry O'Regan.
Regulatory Landscape and Analyst Sentiment
The rally comes as SSE's ambitious spending plans intersect with a shifting regulatory environment. The UK's energy regulator, Ofgem, is implementing its RIIO-3 framework starting April 1, 2026, which will govern network returns through 2031. Analysts note this introduces a layer of uncertainty, as utilities with large grid investment programs must navigate the new rules. Despite the recent price surge, the average analyst price target for SSE sits at £25.26, slightly below Tuesday's close, while the consensus recommendation remains a "buy."
Market observers point to potential near-term pressures. "Regulations can hold back revenues in the near term—investments often go in first, cash flow takes a hit, and returns don't show up right away," noted an analyst at Hargreaves Lansdown. The inherent unpredictability of weather-dependent renewable generation adds another variable for investors to consider.
Corporate Activity and Upcoming Calendar
Recent filings revealed modest share purchases by several directors and senior managers under SSE's all-employee Share Incentive Plan, executed at a price of £25.106884 per share. Looking ahead, SSE's investor calendar indicates a closed period notification scheduled for April 2, with preliminary results for the year ending March 31 due for release on May 28.