National Grid plc (LSE:NG.) is a FTSE 100 and FTSE 350 energy networks group that owns and operates electricity and gas transmission infrastructure in the UK and US. The stock is in focus following FY2025 results, the completion of a major rights issue and rebasing of its Dividend. This article explains the share price drivers, dividend, growth outlook and risks for UK investors.

Key takeaways

  • National Grid is a FTSE 100 and FTSE 350 constituent and one of the UK stock market’s largest regulated Utility names.
  • For FY2024/25, the company reported underlying EPS of 73.3p, up 2% and ahead of guidance, with statutory IFRS Earnings of £2,826m, up £610m or 28%.
  • The full-year dividend was 46.72p per share on a rebased basis, an increase of 3.21% versus the 45.26p rebased figure for FY2023/24.
  • A 2024 rights issue rebased the share count, with regulatory gearing falling to 61% at March 2025.
  • National Grid is in the early stage of the RIIO-T3 regulatory period for UK electricity and gas transmission, with a large multi-year Investment programme ahead.

Introduction: Why National Grid is in focus on the FTSE 350

National Grid plc (LSE: NG.) is one of the UK’s largest energy infrastructure companies and a heavyweight constituent of both the FTSE 100 and the wider FTSE 350. The group owns and operates large parts of the high-voltage electricity transmission network in England and Wales, as well as significant gas transmission Assets and utility businesses in the United States. National Grid is also a major holding for UK income investors, with a long-standing reputation as a defensive Blue-Chip dividend stock.

In 2025 and 2026, the National Grid share price has been shaped by the completion of a transformative rights issue, the rebasing of the Dividend per share to reflect the new larger share count, and the start of a record investment cycle linked to the energy transition. The FY2024/25 full-year results showed higher statutory earnings, modest underlying EPS growth and a dividend that continues to track UK Inflation. For UK investors watching FTSE 350 share price news, National Grid remains one of the most important utility stocks to understand.

Company overview: A core UK energy networks blue-chip

National Grid is a UK-headquartered, FTSE 100-listed energy networks company. Its core operations include UK electricity transmission, UK electricity distribution, US transmission and distribution networks in the north-east of the United States, and metering and ventures businesses. Following a series of strategic disposals and acquisitions over recent years, the group has rebalanced its portfolio towards electricity networks, reflecting the long-term direction of the energy transition.

National Grid trades on the Main Market of the London Stock Exchange under the ticker NG. and is one of the most widely held UK utility stocks, with substantial institutional ownership and a strong retail investor following. The company sits inside the FTSE 100 and therefore also in the FTSE 350. For UK investors looking at UK blue-chip shares and UK dividend stocks, National Grid is often grouped with other defensive names such as Severn Trent and United Utilities, although its profile is differentiated by its much larger size and significant exposure to the United States.

What happened: FY2025 results, rights issue and dividend rebase

The biggest event in National Grid’s recent history was the 2024 rights issue, which was used to fund an expanded Capital-investment/">Capital Investment programme aligned with the energy transition. Following completion of the rights issue, National Grid’s share count grew significantly, and as a result the dividend per share has been “rebased” to reflect the new structure of the company’s Equity base.

The FY2024/25 full-year results, published in May 2025, confirmed underlying EPS of 73.3p, up 2% year on year and ahead of guidance set out earlier in the year. Statutory IFRS earnings were £2,826m, an increase of £610m or 28% versus the prior year, reflecting both operational performance and the absence of certain prior-year charges. The full-year dividend was 46.72p per ordinary share, an increase of 3.21% compared with the rebased dividend per share of 45.26p for FY2023/24. According to the group, this is in line with the increase in average UK CPIH inflation for the year ended 31 March 2025, consistent with its established dividend policy.

The total dividend to shareholders for FY2023/24 (cash plus scrip) was £2,167m, equivalent to 58.52p per share before the rebase. The current rebased dividend per share figures reflect the additional shares issued in the rights issue, ensuring that the overall cash distribution can be sustained as the share base expands. Regulatory gearing reduced to 61% at March 2025 following the rights issue, with the group expecting gearing to trend back towards the high 60% range by the end of the current regulatory period.

Why it matters for UK investors

National Grid is one of the largest dividend payers in the FTSE 100 by aggregate cash distributions, making it a key building block for many UK income portfolios. Its scale, regulated Revenue model and strategic role in the UK energy system give it a defensive profile that contrasts with more cyclical sectors. At the same time, the rights issue and dividend rebase have introduced more complexity into the investment case, with investors needing to look beyond the headline dividend per share number to understand the underlying cash distribution and growth profile.

National Grid’s share price is also a barometer for sentiment on UK utilities and the wider FTSE 350 income market. Movements in long-term interest rates, expectations for UK and US inflation, and policy choices around the energy transition can all materially affect how the stock is valued.

Latest verified update

Recent verified updates for National Grid include the FY2024/25 results in May 2025, ongoing communication on the RIIO-T3 regulatory period for UK transmission networks, and half-year results for FY2025/26 published in line with the group’s usual reporting calendar. Investors should refer to the company’s Investor relations site and RNS announcements for the most current guidance, dividend declarations and any updates on financing or capital allocation.

Share price and investor sentiment

National Grid’s share price has been influenced by a combination of utility sector dynamics and company-specific events. The 2024 rights issue led to a significant adjustment in the share count, requiring per-share metrics to be recalibrated. The PDF snapshot from the London Stock Exchange constituent table shows a price of 1,251p, although the actual current National Grid share price will depend on real-time trading conditions.

Investor sentiment in 2025 and 2026 has been mixed. Supporters highlight the long-term opportunity in regulated electricity networks, the visibility of revenue under the regulatory framework, and the dependable dividend policy linked to inflation. Critics point to the recent equity raise, the long-term capital intensity of the energy transition and the impact of sustained higher interest rates on bond-proxy stocks. Without making specific forecasts, it is fair to say National Grid remains one of the most actively debated FTSE 350 stocks in the utility sector.

Sector and macro context: Energy transition, regulation and interest rates

National Grid sits at the heart of the UK’s energy transition. As the system operator and main owner of electricity transmission infrastructure in England and Wales, it has a central role in connecting new offshore wind farms, integrating storage and Demand-side flexibility, and reinforcing the grid to handle electrified heat and transport. The RIIO-T3 regulatory period sets the framework for how UK transmission businesses can earn returns on investment, including allowed returns on equity and Debt, performance incentives, and innovation funding.

Macro factors are also crucial. Higher interest rates affect the cost of debt for capital-intensive utilities and influence the valuation of long-duration cash flows. Inflation is built into the regulatory framework, with the dividend policy explicitly linked to CPIH. Currency moves matter because of the group’s US operations, where revenue and earnings are denominated in US dollars. UK political and policy decisions on net zero and energy bills can affect investor confidence in the regulatory environment.

Earnings, dividends, Balance Sheet and guidance

National Grid’s financial profile combines steady earnings growth with a high level of capital spending. According to publicly available results, the FY2024/25 underlying EPS of 73.3p was up 2% year on year and ahead of guidance, while statutory earnings benefited from comparatives. The rebased dividend per share of 46.72p reflects the larger share base after the rights issue, while the total Cash Dividend continues to be supported by the group’s regulated cash flows.

On the balance sheet, regulatory gearing fell to 61% at March 2025 thanks to the equity raise, providing headroom to fund the next phase of Capital Expenditure. Management has indicated gearing will trend back towards the high 60% range by the end of the current regulatory period, as investment is funded with a combination of operating Cash Flow, debt and limited additional equity.

Forward guidance from National Grid is typically updated alongside results and trading updates. Investors should follow the company’s own statements rather than rely on summarised figures from third-party platforms.

Broker, analyst and investor sentiment

National Grid is closely followed by Sell-Side analysts, ESG investors and large institutional shareholders globally. Sentiment has been shaped by the rights issue, the dividend rebase and the broader debate over capital allocation in the utility sector. Some commentators have raised questions about the long-term sustainability of dividend growth given the scale of capital spending, while others view the group as well-positioned to capture decades of network investment.

For specific ratings, price targets or institutional flow data, investors should consult their own Brokers or platforms such as Reuters, Bloomberg, the Financial Times, MarketWatch and Yahoo Finance UK. This article does not present specific broker ratings or price targets that cannot be independently verified.

Growth catalysts

Several catalysts could support National Grid’s investment case. The energy transition is driving Long-term Growth in regulated network investment, particularly in electricity transmission. The RIIO-T3 framework provides a structured opportunity to expand the regulated asset base, which is a key driver of long-term earnings growth for the company.

US operations also represent a significant growth platform, with substantial capital investment expected across the New York and Massachusetts network businesses. Successful execution on cost, delivery and regulatory engagement in both the UK and US would be supportive for the share price.

Risks and uncertainties

Risks include Regulatory Risk under RIIO-T3 and US state-level frameworks, financing risk in a higher Interest Rate environment, execution risk on a very large capital programme, and political risk if energy bills become a focus of policy debate. The recent rights issue has reset some of the financial metrics, but the long-term capital intensity of the Business means future capital raises or debt issuance remain possible.

Dividend risk is also part of the discussion. While the policy is linked to CPIH and the Board has emphasised continuity, dividends are not guaranteed and depend on regulatory outcomes, capital needs and cash flow generation.

What investors should watch next

UK investors monitoring the National Grid share price and FTSE 350 news may want to focus on upcoming earnings updates, dividend declarations and AGM commentary. RIIO-T3 final determinations and any updates from US state regulators are critical. Macroeconomic data, particularly UK CPIH inflation and Bank of England decisions, will also influence valuation.

Other items to track include the pace of energy transition policy, decisions on interconnector and offshore wind projects, and any further developments in the group’s strategic portfolio.

Conclusion

National Grid is a foundational FTSE 100 and FTSE 350 utility with a central role in the UK and US energy systems. FY2024/25 results show modest underlying EPS growth, higher statutory earnings and a dividend rebased to reflect the larger share base after the rights issue. The company is positioned for a long-term investment cycle linked to the energy transition, but faces real risks around regulation, financing and execution. For UK investors watching FTSE 350 share price news and UK dividend stocks, National Grid remains one of the most strategically important names on the London Stock Exchange.