SSE announced a GBP 2 billion equity raise to fund grid investments, exceeding market expectations. The firm plans to invest GBP 33 billion over 2026-30, with 80% going to networks and 12% to renewables. SSE set a 2030 EPS guidance range of GBX 225-GBX 250, driving a fair value estimate increase by 8%.

The equity raise will have a neutral impact, with SSE extending its dividend growth target and net debt remaining manageable. The firm aims for GBP 200 million in cost savings by 2028. SSE’s 2030 EPS estimate is GBX 217, with a 30% CAGR in the transmission grid’s regulated asset value. Shares are up 12% post-announcement.

Read more at Morningstar: SSE: Shares Soar on Limited Equity Raise and Strong 2030 Guidance