National Grid plc: Half-Year Results Summary (Period Ended 30 September 2025)
Business Context and Reporting Period
This Form 6-K reports the unaudited half-year results for National Grid plc for the six months ended 30 September 2025. The company operates regulated electricity and gas networks in the UK and the US. The period marks a leadership transition, with Zoë Yujnovich succeeding John Pettigrew as Chief Executive Officer on 17 November 2025. The company continues to execute a strategy focused on regulated networks, having divested its US renewables business (National Grid Renewables) in May 2025 and agreed to sell its Grain LNG asset.
Key Financial Metrics
| Metric | 2025 (H1) | 2024 (H1) | Change |
|---|---|---|---|
| Statutory Operating Profit | £1,526 million | £1,309 million | +17% |
| Underlying Operating Profit (Constant Currency) | £2,292 million | £2,026 million | +13% |
| Profit Before Tax (Statutory) | £826 million | £684 million | +21% |
| Statutory EPS | 12.6p | 12.6p | 0% |
| Underlying EPS (Constant Currency) | 29.8p | 28.0p | +6% |
| Capital Investment | £5,052 million | £4,603 million | +10% |
| Net Debt (as of 30 Sep 2025) | £41.8 billion | £41.4 billion (31 Mar 2025) | +£0.5 billion |
| Interim Dividend | 16.35p | 15.84p | +3% |
Material Changes vs. Prior Period
- Profit Growth: Underlying operating profit increased by 13% at constant currency, driven by strong performance in UK Electricity Transmission, New York, and New England. This was partially offset by the disposal of the UK Electricity System Operator (ESO) in October 2024.
- Revenue Mix: Gross revenue decreased by 11% to £7,065 million, primarily due to the absence of ESO revenues (£1,012 million in the prior period) and lower commodity pass-through costs.
- Investment Ramp-Up: Capital investment reached a record £5.1 billion for a half-year, up 12% at constant currency. This reflects accelerated spending on UK Accelerated Strategic Transmission Investment (ASTI) projects and US infrastructure upgrades.
- Portfolio Changes: The company completed the sale of National Grid Renewables for $2.1 billion and agreed to sell Grain LNG for £1.66 billion. These disposals are part of the strategic shift to a pure-play networks business.
- Exceptional Items: Statutory results included a £96 million loss on the disposal of National Grid Renewables and £15 million in transformation programme costs.
Guidance, Outlook, and Risks
- Five-Year Framework (2024/25 – 2028/29):
- Total cumulative capital investment of approximately £60 billion.
- Group asset growth CAGR of around 10%.
- Underlying EPS CAGR of 6–8% from the 2024/25 baseline of 73.3p.
- Regulatory gearing expected to increase to the mid-60% range by March 2029.
- 2025/26 Outlook: Management expects underlying EPS to be in line with the 6–8% CAGR range. Full-year capital investment is expected to exceed £11 billion.
- Regulatory Environment:
- UK: Responded to Ofgem's RIIO-T3 Draft Determination; seeking adjustments to ensure the framework is investable. Planning applications for Wave 2 ASTI projects have been accepted.
- US: Received approval for $600 million under the Massachusetts Electric Sector Modernization Plan (ESMP) and unanimous approval for the NIMO rate case in New York.
- Risks and Contingencies:
- Operational: Ongoing investigation by Ofgem into the North Hyde substation incident (March 2025). Potential penalties could reach 10% of turnover, though management currently sees no present obligation for a cash outflow.
- Strategic: Risks related to supply chain capacity, regulatory outcomes, and the ability to deliver major capital projects on time.
- Financial: Exposure to exchange rate fluctuations (USD/GBP) and interest rate changes.
Key Facts for Investor Verification
- Dividend Policy: Verify the sustainability of the progressive dividend policy (aiming to grow in line with UK CPIH) against the backdrop of increased capital investment and rising net debt.
- Regulatory Approvals: Monitor the final determination of the UK RIIO-T3 price control (expected early December 2025) and the potential for appeals, as this impacts future revenue allowances.
- Disposal Completion: Confirm the completion date and final proceeds for the Grain LNG sale, currently expected in the second half of the 2025/26 financial year.
- Capital Execution: Assess the company's ability to secure supply chain capacity for the £60 billion investment plan, particularly for offshore HVDC projects (EGL3, EGL4, Sea Link).
- North Hyde Incident: Track the outcome of the Ofgem investigation regarding the March 2025 substation fire to understand potential financial or reputational impacts.