National Grid(NGG) - 2026 Q2 - Quarterly Report

Financial Performance - National Grid plc reported a statutory operating profit of £1,526 million for the six months ended 30 September 2025, a 17% increase from £1,309 million in the previous year[10]. - Underlying operating profit increased by 13% to £2,292 million, driven by strong performance across regulated businesses[37]. - Statutory earnings for the first half of 2025 were £617 million, an 8% increase from the previous year, primarily due to a £159 million favorable swing in timing[89]. - Profit for the period increased to £647 million for the six months ended 30 September 2025, compared to £618 million in the same period last year, reflecting a growth of 4.7%[128]. - Total profit for the period attributable to equity shareholders was £617 million, compared to £647 million in the previous year, a decrease of 4.6%[123][124]. - Operating profit from continuing operations rose to £1,526 million, up from £1,309 million, representing an increase of 16.6%[132]. - Basic earnings per share for continuing operations was 12.6 pence, unchanged from the previous year[123][124]. - Total comprehensive income for the period was £685 million, down from £719 million, indicating a decrease of 4.7% year-over-year[128]. Capital Investment - Capital investment reached a record £5,052 million, up 12% from £4,494 million in the prior year[29]. - The company is on track to deliver over £11 billion in capital investment for the full year, reflecting progress on ASTI projects in the UK and major transmission projects in the US[41]. - Capital investment for continuing operations increased by £558 million to £5,052 million, a 12% increase year-over-year[39]. - The company expects to invest around £60 billion across its energy networks and adjacent businesses over the five-year period to March 2029, with Group assets trending towards £100 billion by March 2029[59]. - In the UK, the company anticipates approximately £23 billion of investment in UK Electricity Transmission for asset health and system reinforcement, and around £8 billion in UK Electricity Distribution for infrastructure improvements[60]. - In the US, the company plans to invest around £17 billion in New York and £11 billion in New England over the five years to 2028/29, focusing on renewable connections and transmission upgrades[61]. Dividends - The interim dividend per share was increased to 16.35p, representing a 3% rise from 15.84p in the previous year[10]. - The Board approved an interim dividend of 16.35p per ordinary share, expected to be paid on 13 January 2026[108]. - The company paid dividends totaling £894 million during the period, an increase from £811 million in the previous year, reflecting a growth of 10.2%[134]. - The Directors proposed an interim dividend of 16.35 pence per share for the year ending 31 March 2026, distributing approximately £811 million of shareholders' equity[200]. - A final dividend for the year ended 31 March 2025 was paid at 30.88 pence per share, totaling £894 million in cash dividends[200]. Leadership Transition - Zoë Yujnovich will succeed John Pettigrew as CEO on 17 November 2025, marking a leadership transition[22]. Debt and Financial Outlook - Net debt rose to £41.8 billion, £0.5 billion higher than the previous period, primarily due to capital investment[40]. - The company expects net debt to increase by around £1.5 billion, reaching approximately £42.9 billion by March 2026, with regulatory gearing expected to be around 60%[82]. - The company expects underlying EPS to grow at a compound annual growth rate (CAGR) of 6-8% from the 2024/25 baseline of 73.3p[26]. Operational Highlights - The company achieved £100 million in cumulative synergies from the acquisition of UK Electricity Distribution, six months ahead of schedule[18]. - Installed over 360,000 advanced metering infrastructure (AMI) meters in New York and around 220,000 in New England during the half-year[43]. - Progressed construction on all six Wave 1 ASTI projects in the UK Electricity Transmission business, including energizing the Hurst-Crayford 275 kV circuit[43]. - The company aims to continue its strategic investments in infrastructure to support future growth and energy transition initiatives[119]. - National Grid is focused on addressing climate-related risks and enhancing its operational resilience against adverse weather conditions and regulatory changes[120]. Revenue and Sales - Revenue for the six months ended September 30, 2025, was £7,065 million, a decrease of 11.2% compared to £7,961 million in the same period of 2024[123]. - UK Electricity Transmission segment reported sales of £1,406 million, up from £1,182 million in 2024, reflecting a 19.0% increase[151]. - New York segment generated revenue of £2,667 million, an increase of 14.0% compared to £2,341 million in 2024[151]. - The Group's US revenue was £3,877 million, with significant contributions from System Operator and Distribution segments[166]. Asset Management - Total non-current assets increased to £94,833 million as of 30 September 2025, up from £92,410 million, reflecting a growth of 2.6%[130]. - Current assets decreased to £8,927 million from £14,332 million, a decline of 37.5%[130]. - Total liabilities decreased to £66,542 million from £68,916 million, a reduction of 3.5%[131]. - The company had undrawn committed facilities available amounting to £7.7 billion as of 30 September 2025, indicating strong liquidity[141].