National Grid Reaffirms GBP 70 Billion Plan After 5.7 Billion Profit
National Grid reported GBP 5.7 billion in underlying operating profit and reaffirmed a national grid investment plan of at least GBP 70 billion over five years. The company said the spending is aimed at grid expansion, electrification, and demand from data centers and reshoring across its U.K. and U.S. businesses. For investors, the mix points to heavier capital use now and a bigger regulated asset base later.
Yujnovich cites momentum
8% underlying earnings per share growth at constant currency came alongside a 3.8% dividend increase in line with inflation, while capital expenditure rose more than 20% to GBP 11.6 billion. Zoë Yujnovich said the results showed “the momentum we’re building,” and stressed execution as central to the strategy. The figures show National Grid is pushing cash into the network while still lifting shareholder payouts.
10.9% asset growth gave the company room to keep its 8% to 10% annual asset-growth target and its dividend policy tied to CPIH inflation. It also kept FY2027 EPS growth guidance at 13% to 15%, extending the path management laid out for the next two years. Andy Agg, the chief financial officer, has the balance-sheet task of turning that pace of spending into earnings growth rather than just a larger asset base.
UK grid takes GBP 40 billion
GBP 40 billion is earmarked for the U.K. regulated businesses, including roughly GBP 31 billion for transmission and GBP 9 billion for distribution. The U.K. program is designed to connect up to 35 gigawatts of new generation and 19 gigawatts of new demand over the next five years, and the company said it expects to recruit around 6,000 full-time employees in the U.K. plus 2,000 graduates and apprentices. About two-thirds of the five-year plan is already covered by regulatory agreements, and delivery mechanisms are secured for three-quarters of it.
GBP 29 billion is planned across New York and New England, with approximately GBP 17 billion targeted for New York and GBP 12 billion for New England. National Grid said its synergies target was reached early, which gives management more room to fund the rollout without leaning solely on cost cuts. The next question for shareholders is whether that pace of investment can keep delivering the promised 8% to 10% annual asset growth while holding the dividend line to CPIH inflation.
