National Grid (NG) H1 2025 earnings summary

Executive summary

• Achieved record capital investment of £4.6 billion in H1, up 17–19% year-over-year, supporting a £60 billion five-year plan and robust growth across UK and US regulated businesses.

• Completed a £7 billion rights issue and major asset sales, including the UK gas transmission business and the electricity system operator.

• Strong operational and financial performance, with underlying operating profit up 14–15% to £2,046 million, driven by higher rates in New York, UK Transmission revenues, and lower environmental charges.

• Policy and regulatory progress in both UK and US, including sale of ESO to UK government, new rate approvals in New York and Massachusetts, and launch of major grid projects.

• Statutory operating profit fell 34% to £1,309 million due to adverse timing movements, mainly in ESO.

Financial highlights

• Underlying operating profit from continuing operations was £2,046 million, up 15% year-over-year at constant currency.

• Underlying earnings per share increased 8% to 28.1p; interim dividend of 15.84p per share, representing 35% of last year’s rebased full-year dividend.

• Net debt decreased by £5.1 billion to £38.5 billion, reflecting rights issue proceeds and asset sales.

• Group capital investment up £657 million to £4,603 million, led by UK ASTI projects and US network upgrades.

• Underlying profit before tax increased 26% to £1,436 million; statutory profit before tax down 50% to £684 million year-over-year.

Outlook and guidance

• Five-year plan targets £60 billion cumulative capital investment, driving ~10% group asset CAGR and 6–8% underlying EPS CAGR from FY25 baseline through FY29.

• Expecting full-year operating profit growth of around 10% and reduced financing costs due to lower average net debt.

• Regulatory gearing expected to fall to low 60% by March 2025; full-year capital investment forecast at ~£10 billion.

• Dividend per share targeted to grow in line with UK CPIH.

• Guidance reflects strong operational performance, with improved performance in New York and higher ESO contribution prior to sale.