National Grid plc

National Grid reported underlying operating profit of GBP 5.7 billion for the full year, up from the prior year, and underlying EPS grew 8% at constant currency, in line with guidance. CapEx increased more than 20% to GBP 11.6 billion, driving asset growth of 10.9%; the dividend per share rose 3.8% in line with U.K. CPIH inflation. Andy Agg said cash generated from continuing operations was GBP 7.9 billion, up 15%, net cash outflow was GBP 6 billion, and net debt increased by GBP 2.8 billion to GBP 44.2 billion at constant currency. For the new five-year framework, the company expects to invest at least GBP 70 billion, with around 10% annual asset growth and underlying EPS CAGR of 8%-10%; for FY 2027, it expects CapEx to grow 10% to nearly GBP 13 billion and underlying EPS growth of 13%-15% from the FY 2026 baseline of GBP 0.78.

Zoë Yujnovich framed the quarter as evidence that the company has strong foundations and is building a more disciplined, higher-performing organization. She repeatedly emphasized that National Grid’s strategy is not a change in direction but a sharpening of execution, with a focus on “brilliant basics” and “big shifts” in leadership, technology, and external positioning. Her tone was confident and constructive, especially around long-duration growth from regulated networks, AI and data-center demand, and grid modernization.

Andy Agg focused on the underlying financial strength of the business and the visibility of the new five-year plan. He highlighted UK Electricity Transmission underlying operating profit of GBP 1.7 billion, UK Electricity Distribution of GBP 1.2 billion, New York of GBP 1.7 billion, New England of GBP 866 million, and National Grid Ventures of GBP 401 million; he also noted cash generated from continuing operations of GBP 7.9 billion, net finance costs of GBP 1.3 billion, and debt issuance of GBP 4.2 billion during the year. On capital allocation, he reiterated the “at least GBP 70 billion” framework, said around 2/3 is covered by regulatory agreements and 3/4 has delivery mechanisms secured, and said the company expects to maintain comfortable headroom against current rating thresholds while keeping controllable costs below inflation.

Analysts pressed on portfolio mix, additional growth opportunities, and whether M&A could be part of the plan; management said the current portfolio is strong, with useful geographic and energy-mix diversification, and that the main priority is delivering the GBP 70 billion program before considering selective opportunities in areas like offshore hybrid interconnectors, competitive transmission in the U.S., and data-center solutions. Questions also focused on whether the 8%-10% EPS growth target is conservative given AI and technology gains; Zoë said some efficiencies may flow to customers through regulation, and that it is too early to quantify upside. On ED3 and demand trends, management said they are waiting for more methodology detail, want better treatment of incentives and cost mechanisms, and see U.K. demand growth led by data centers/AI, while U.S. demand is being driven by reshoring and large loads.