HICL Infrastructure (HICL) H1 2026 earnings summary

Executive summary

• Announced proposed combination with TRIG to form the UK's largest listed infrastructure investment company with net assets over £5.3bn, subject to shareholder approval.

• Achieved strong operational and financial performance in H1 2025, with robust NAV growth and strategic disposals exceeding targets.

• Portfolio rotation reduced exposure to short-duration PPP and healthcare assets, supporting long-term value creation.

• Maintained focus on sustainable NAV growth, reinvestment into longer-duration, earnings-generating assets, and covered dividend expectations.

• Over £730m of disposals completed in the last 24 months at strong valuations, supporting portfolio flexibility.

Financial highlights

• NAV per share increased by 2.9p to 156.0p as at 30 September 2025 (March 2025: 153.1p), with annualised underlying portfolio return of 10.3%.

• Earnings per share rose to 6.1p (prior period: 2.2p), and total investment income for the six months was £145.8m.

• Dividend cash cover improved to 1.10x (March 2025: 1.07x), supporting covered dividend targets of 8.35p for FY26 and 8.50p for FY27.

• Over £730m of disposals in the last 24 months, including £225m of UK PPP asset sales in H1 FY26, exceeding disposal targets.

• Share buyback programme contributed 0.9p NAV accretion, with £60m of shares repurchased in H1 2025.

Outlook and guidance

• On track to deliver covered dividend targets for FY26 (8.35p) and FY27 (8.50p), with surplus cashflow for reinvestment.

• Share price implies a long-term annual expected portfolio return of 9.6–9.7% net of costs over a weighted average asset life of 32 years.

• Focus remains on disciplined capital allocation, further disposals, and selective new investments.

• Infrastructure megatrends such as decarbonisation, digitalisation, and demographic change underpin long-term growth prospects.

• Well-positioned to capitalize on opportunities from pricing dislocation between public and private markets.