HICL Infrastructure (HICL) H2 2026 earnings summary

Executive summary

• Delivered a total NAV return of 10.3%, exceeding expectations, with NAV growth of GBP 0.071 per share, driven by operational outperformance and accretive asset sales.

• Achieved GBP 536 million in asset sales, surpassing targets and supporting a sector-leading buyback program.

• Maintained a progressive dividend policy, with new guidance of GBP 0.0865 per share for FY 2028 and robust dividend cash cover.

• Portfolio actively managed, balancing cash-generative and growth-oriented assets for attractive total returns.

• Share buybacks totaled GBP 103 million, with total buybacks to date at GBP 189 million.

Financial highlights

• NAV per share grew 4.6% year-over-year to GBP 1.602 (160.2p), with earnings per share rising to 13.8p.

• Total shareholder return reached 13.1% for the year, reversing a prior negative return.

• Gross portfolio return was GBP 323.5 million, representing 12.2% of opening portfolio value.

• Dividend cash cover was 2.38x including disposals, 1.10x excluding disposals; FFO dividend cover at 1.59x.

• Pro forma expenses ratio reduced to 90 basis points after fee revisions.

Outlook and guidance

• Positioned to benefit from multi-decade infrastructure megatrends, including energy resilience, digitalization, and demographic trends.

• Disciplined capital allocation with focus on selective asset recycling, accretive investments, and buybacks.

• Dividend policy remains progressive, not directly linked to inflation, but supported by strong earnings and NAV growth; FY28 dividend guidance set at 8.65p per share.

• Pipeline includes GBP 2.6 billion in equity opportunities, focused on utilities, transport, and digital sectors.

• Expected returns for the pipeline are in the 10–12%+ range.