National Grid (LSE: NG) now expects underlying earnings per share to grow 15% to 16% in 2026/27 after a first half of record investment and higher profit. The utility, which has a large UK electricity transmission business, published its half-year results before the London open, and the shares were trading higher in early trade.
At 8:13am the shares stood at 1,283.5p, up 18.5p or 1.46% on yesterday’s close of 1,265.0p. They opened slightly lower, at 1,263.5p, and have ranged from 1,258.5p to 1,287.0p. That is a delayed quote, not a close. Yesterday’s close was 10.8% above the end-2025 level and 9.6% below the closing high of 1,400p on the 2nd of March.
The guidance is measured from a base of 78.0p in 2025/26. The five-year framework targets underlying EPS growth of 8% to 10% a year and a capital plan of at least £70bn.
“This first half progress further strengthens our confidence in delivering the five-year framework we set out in March.”
Zoë Yujnovich, chief executive
Underlying EPS for the six months to 30 September was 36.5p, against 29.8p a year earlier, a rise of 22%. Underlying operating profit rose 13% at constant currency to £2,591m, and underlying pre-tax profit rose 18% to £1,958m.
UK Electricity Transmission underlying operating profit was £1,227m against £846m, the first-year impact of the new RIIO-T3 price control. Statutory pre-tax profit of £1,730m, against £826m, was helped by one-off gains, including £142m on a Uniphore stake and £86m linked to Community Offshore Wind, which National Grid sold in August.
Capital investment rose 33% to £6,707m, with UK Electricity Transmission up 71% to £2,888m. The company expects about £13.5bn of capex this year and says about 80% of the £70bn programme has its supply chain and delivery secured.
The interim dividend rises 4% to 16.97p from 16.35p. It goes ex-dividend on the 19th of November and is paid on the 12th of January. The policy is to grow it in line with UK CPIH inflation.
Net debt is rising. It was £48.6bn at 30 September, £4.4bn higher than at 31 March, and National Grid expects it to rise by about £4bn from that level during 2026/27. Regulatory gearing is forecast at about 65%, from 61% in 2025/26. Management hosts a webcast at 9:30am today, and the next results are due on the 13th of May.