National Grid plc

National Grid reported underlying operating profit of GBP 5.7 billion, up from last year, and underlying EPS growth of 8% at constant currency, in line with guidance. CapEx increased more than 20% to GBP 11.6 billion, supporting asset growth of 10.9%, and dividend per share grew 3.8%, in line with U.K. CPIH inflation. Andy Agg also noted cash generated from continuing operations of GBP 7.9 billion, up 15%, net cash outflow of GBP 6 billion, and net debt of GBP 44.2 billion at constant currency. Looking ahead, the company reiterated its five-year framework of at least GBP 70 billion of investment, about 10% annual asset growth, underlying EPS CAGR of 8%-10%, and dividend growth in line with CPIH. For FY 2027, it expects capital investment 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 National Grid has strong foundations and is entering a more disciplined phase of execution. She said the company is not changing direction, but refreshing its strategic framework around “brilliant basics” and “big shifts” to improve performance, de-risk delivery, and position the business for structural growth in the energy system. Her tone was confident and assertive, with repeated emphasis on visibility, scale, and the company’s ability to adapt to changing market conditions.

Andy Agg focused on the quality and visibility of the financial model, pointing to strong regulatory outcomes, rising allowed revenues, and a business mix that supports predictable growth. He cited underlying operating profit of GBP 1.7 billion in UK Electricity Transmission, GBP 1.2 billion in UK Electricity Distribution, GBP 1.7 billion in New York, GBP 866 million in New England, and GBP 401 million in National Grid Ventures, along with cash generation of GBP 7.9 billion and net finance costs of GBP 1.3 billion. He said the group expects comfortable headroom versus rating thresholds, controllable costs below inflation, and continued balance sheet strength, while FY 2027 should deliver 10% CapEx growth to nearly GBP 13 billion and EPS growth of 13%-15% from a GBP 0.78 baseline.

Analysts pressed on portfolio mix, optionality, and whether the 8%-10% EPS growth guide might be conservative given AI and technology opportunities. Zoë said the current portfolio is strong because of geographic diversity, transmission/distribution exposure, and U.S. gas/electric balance, and that the immediate priority is delivering the GBP 70 billion program; she said NGV could selectively pursue areas like offshore hybrid interconnectors, competitive transmission in the U.S., and data-center related solutions. On regulation and costs, management said RIIO-ED3 is still early, but they want improvements around cost of debt treatment, speed of cash, and output incentives; on inflation and supply chain, Andy said roughly 3/4 of the five-year plan is already contracted and real price effects mechanisms can flex allowances if underlying costs move sharply.