Company Reports

National Grid owns and operates energy networks in the UK and the Northeastern United States. The former accounts for around 60% of the profits, the latter for 40%.

National Grid announced on July 1 that it agreed to invest USD 1.75 billion through National Grid Ventures for a 35% stake in Joulent, a newly launched, Texas-based energy infrastructure developer providing integrated power solutions for data centers.

National Grid's fiscal 2026 underlying earnings per share increased 6% to GBX 78, in line with our expectations and company-compiled consensus. Management confirmed its guidance for 13%-15% EPS growth in 2027 and an 8%-10% compound annual growth rate through 2031.

We remove SSE from European utilities top picks after 40% increase and 35% outperformance versus the S&P 500 since its addition in early November 2025. We replace it with United Utilities and National Grid, which offer more attractive long-duration compounding at current valuations.

National Grid released an update ahead of its fiscal 2026 results due on May 14. It said that recognition of customer refund recharges at New England Transmission and storm costs will shave GBX 1 off its fiscal 2026 EPS, or about 1.3%.

National Grid owns and operates energy networks in the UK and the Northeastern United States. The former accounts for around 60% of the profits, the latter for 40%.

On March 2, National Grid accepted the final determination for the RIIO-T3 2026-31 regulatory period and rolled over its business plan to 2031, maintaining its annual asset growth guidance at about 10% but raising its EPS guidance to 8%-10% from 6%-8%.

The European utilities sector increased by nearly 8% since the end of September, outperforming the market by 5% due to stabilizing interest rates, solid third-quarter results, and hopes that artificial intelligence growth will boost electricity consumption in Europe.

National Grid owns and operates energy networks in the United States and the United Kingdom.

On Dec. 4, UK watchdog Ofgem released its final determination for the 2026-31 RIIO-3 regulatory regime. For electricity transmission networks, it approved a baseline total expenditure of GBP 10.3 billion, up from GBP 8.8 billion in the July draft determination.

On July 1, UK watchdog Ofgem released its draft determination for the RIIO-3 five-year regulatory regime that will apply to gas networks and electricity transmission networks as of April 2026.

National Grid owns and operates energy networks in the United States and the United Kingdom.

National Grid reported fiscal 2025 results broadly in line with company-compiled consensus. EBIT came in at GBP 5.4 billion, up 12% year over year and ahead of the 10% guidance. Management issued an EPS growth target for fiscal 2026 that is above the FactSet consensus.

National Grid owns and operates energy networks in the United States and the United Kingdom.

After rallying on April 3 together with government bonds, European utilities have been caught in the market rout since April 4.

We confirm our GBX 970 fair value estimate after no-moat National Grid agreed to sell its US onshore renewable business to Brookfield for $1.74 billion, in line with our expectations. Completion is expected in the first half of National Grid's fiscal 2026. We view shares as fairly valued. The deal price reflects that renewables firms with US exposure like EDP Renovaveis have excessively sold off. It's consistent with recent statements by Brookfield's President Connor Teskey about the bright outlook of renewables in the US on the back of data-center-driven electricity consumption growth and large opportunities offered by the discrepancy between public and private valuations for renewables.

National Grid owns and operates energy networks in the United States and the United Kingdom.

No-moat National Grid posted fiscal 2025 first-half results mostly in line with the company-compiled consensus. Management confirmed its full-year guidance EPS guidance, specifying that it now expects a 10% growth in operating profit. With no changes to our estimates, we confirm our fair value estimate of GBX 970 per share and see shares as fairly valued.

National Grid owns and operates energy networks in the United States and the United Kingdom.

We maintain our GBX 1,040 fair value estimate after National Grid released fiscal 2024 results that were in line with company-compiled consensus and a new 5-year strategic plan calling for a massive step-up in investments to be funded by a GBP 7 billion rights issue and noncore asset disposals. The firm will pay a GBX 58.5 dividend in fiscal 2024, 5.6% above last year. It extends its target to grow the dividend in line with inflation through fiscal 2029 with the caveat that the 2024 dividend will be rebased to take into account the rights issue's shares. All in all, we forecast a 2025 dividend of GBX 43.