Highlights:

  • Underlying EPS rose 6% to 29.8p in H1, with FY26 guidance modestly higher despite exchange rate headwinds.
  • GBP 60 billion five-year investment plan is now secured, including major partnerships in the UK and US.
  • Key projects, including Wave 1 ASTI developments and Smart Path Connect in New York, are progressing as planned, supporting operational growth.

National Grid plc (LSE:NG) has released its half-year results for FY25/26, highlighting ongoing progress against strategic objectives. Underlying earnings per share (EPS) rose to 29.8p, up 6% from the prior year, supported by higher investment in regulated businesses. The Group confirmed an interim dividend of 16.35p per share, representing 35% of last year’s full-year dividend. National Grid also reported significant advancements in key projects, regulatory approvals, and the execution of its five-year GBP 60 billion investment programme.

Financial Performance

National Grid reported an underlying EPS of 29.8p, up 6% compared with the prior year. Statutory EPS remained steady at 12.6p. The increase in underlying operating profit reflects higher investment across the Group’s regulated businesses. Interim dividend payments were set at 16.35p, representing 35% of the previous year’s full dividend. The Group’s financial outlook remains aligned with expectations, underpinned by operational performance and regulatory approvals.

Strategic Initiatives and Investment

The Group continued to advance its long-term strategy, supporting UK Government AI Growth Zones and preparing to connect 19 GW of additional demand under RIIO-T3. More than 75% of National Grid’s GBP 60 billion five-year investment plan has now been secured. Key agreements in H1 include:

  • GBP 8 billion Electricity Transmission Partnership for substation construction in the UK.
  • GBP 12 billion HVDC framework for civil works across the UK.
  • Over USD  3 billion in capital works partnerships in New England, US, covering the next five years.

Additionally, National Grid achieved its three-year target of GBP 100 million cumulative synergies from the UK Electricity Distribution acquisition six months ahead of schedule. Portfolio streamlining continued with the divestment of National Grid Renewables and an agreed sale of Grain LNG.

Progress on Key Projects

Construction is advancing on all six Wave 1 ASTI projects in the UK. Planning applications for Wave 2 projects, including Norwich to Tilbury and Sea Link, were accepted by the UK Planning Inspectorate. In the US, the Smart Path Connect project is set to energise more than 100 miles of transmission lines in upstate New York in December 2025. The Group also replaced 208 miles of leak-prone pipeline across US gas networks.

Regulatory Approvals

National Grid secured multiple regulatory approvals during H1, including the NIMO three-year electricity and gas rate case, and USD  600 million for the Electric Sector Modernization Plan in Massachusetts. Responses to Ofgem’s Draft Determination for RIIO-T3 indicated that investments could avoid GBP 12 billion in constraint costs, equivalent to GBP 40 per year for consumers. Approximately 75% of the US five-year investment plan has also received regulatory approval.

Outlook

The Group expects underlying EPS growth in line with a 6–8% CAGR from the FY24/25 baseline of 73.3p. Total cumulative capital investment over the five-year period is projected at around GBP 60 billion, with group asset growth of roughly 10% CAGR. Regulatory gearing is expected to rise toward mid-60% by March 2029 and trend to the high 60% range by the end of RIIO-T3. Operational performance in FY25/26 is expected to remain strong across all business units.