National Grid (NG) H1 2025 earnings summary

Executive summary

• Achieved record capital investment of £4.6 billion in H1 2024/25, up 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 in June 2024 to fund accelerated infrastructure growth and reduce net debt.

• Sold UK Electricity System Operator (ESO) to the government for £630 million and finalized sale of the remaining 20% stake in UK Gas Transmission.

• Maintained strong reliability and safety performance across networks despite severe weather events.

• Policy and regulatory progress in both UK and US, including new rate approvals and support for energy transition.

Financial highlights

• Underlying operating profit from continuing operations rose 15% to £2,046 million; underlying profit before tax increased 26% to £1,436 million.

• Underlying EPS up 8% to 28.1p; interim dividend declared at 15.84p per share, representing 35% of the rebased 2023/24 dividend.

• Net debt reduced 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.

• Cash generated from continuing operations was £2.7 billion, down 12% due to timing, but up £570 million excluding timing effects.

Outlook and guidance

• Five-year plan targets £60 billion cumulative capital investment and ~10% group asset CAGR through 2028/29.

• Underlying EPS CAGR of 6-8% expected from 2024/25 baseline; full-year operating profit growth of around 10% anticipated.

• Asset base expected to reach around £100 billion by FY29; regulatory gearing to fall to low 60% by March 2025.

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

• Full-year capital investment forecast at ~£10 billion; net debt to decrease by ~£1.5 billion.