SSE released its Q3 fiscal 2026 trading statement, setting adjusted EPS guidance for the year at GBX 144-GBX 152. Despite unfavorable wind and hydro conditions affecting renewables output, network investments drove core earnings growth by 64% YoY. Shares are fairly valued after a 53% rally since September 2025.

Midpoint of SSE’s guidance range aligns with FactSet consensus but falls short of Morningstar’s estimate. Unfavorable weather conditions prompt a trim in 2026 estimates, but long-term outlook remains unaffected. Morningstar maintains a GBX 2,480 fair value estimate for SSE, a no-moat company.

SSE will update actual performance in the closed period statement on April 2, with fiscal 2026 results set for release on May 28. Morningstar’s analysis was originally published as a stock note, and the author does not own shares in any securities mentioned in the article.

Read more at Morningstar: SSE: Fiscal 2026 Guidance Set in Line With Expectations; Shares Fairly Valued