REG - National Grid PLC - National Grid plc Half-Year Results 2025/26
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RNS Number : 3898G National Grid PLC 06 November 2025
London | 6 November 2025: National Grid plc today announces its Half Year
results for the period ended 30 September 2025.
Building our energy future
John Pettigrew, Chief Executive said: "Our financial performance reflects
another period of strong operational delivery in line with our five-year
financial frame. We continue to deliver for our customers, investing a record
£5 billion this half, and we are on track to invest over £11 billion this
year. We continue to innovate, secure our supply chain and expand our talent
pipeline to efficiently deliver our plans on both sides of the Atlantic. This
investment in our networks is critical to ensure continued resilience, enable
economic growth, deliver cleaner energy, and meet growing power demand. It's
been a privilege to lead National Grid through a significant decade of growth
and I'm confident that under Zoë Yujnovich's leadership, National Grid will
continue to deliver for our customers and stakeholders."
Financial summary
Six months ended 30 September Statutory results Underlying(1) Underlying at constant currency(1,2)
(unaudited) 2025 2024 % change 2025 2024 % change 2024 % change
Operating profit (£m) 1,526 1,309 17% 2,292 2,046 12% 2,026 13%
Profit before tax (£m) 826 684 21% 1,653 1,436 15% 1,433 15%
Earnings per share (p) 12.6 12.6 -% 29.8 28.1 6% 28.0 6%
Dividend per share (p) 16.35 15.84 3%
Capital investment (£m) 5,052 4,603 10%
1. 'Underlying' is a non-GAAP alternative performance measure (APM) used by
management to monitor performance across the Group. This measure along with
other APMs used in this report are explained in more detail on pages 4
(#Page47) 7 (#Page47) to 5 (#Page51) 1 (#Page51) . These measures are not
substitutes for IFRS measures, however management believes such additional
information is useful in assessing the performance of the business on a
comparable basis.
2. Constant currency calculated using current year average exchange rate of
$1.353 (2024: actual average exchange rate was $1.296).
Continued delivery against our strategic objectives
Financial performance
■ Underlying EPS of 29.8p, up 6% with FY2026 guidance modestly higher
reflecting stronger underlying performance partially offset by exchange rate
headwinds. Statutory EPS constant at 12.6p.
■ Higher underlying operating profit reflects increased investment
across our regulated businesses.
■ Interim dividend of 16.35p, 35% of prior year full dividend.
Strategic initiatives
■ Supporting the UK Government in the development of AI Growth Zones,
and readiness to connect 19 GW of additional demand in RIIO-T3.
■ Supply chain and delivery mechanisms now secured for more than
three-quarters of our £60 billion five-year investment plan. In the first
half of this year we have:
■ agreed £8 billion Electricity Transmission Partnership for
substation construction;
■ established a £12 billion HVDC framework for civil works in the UK;
and
■ agreed the partners to support over $3 billion of capital work in New
England across the next five years.
■ Delivered our three-year target of £100 million cumulative synergies
from the acquisition of UK Electricity Distribution, six months ahead of
schedule.
■ Continued to streamline the portfolio with National Grid Renewables
divested and Grain LNG sale agreed.
Key projects
■ Strong progress on construction of all six Wave 1 ASTI* projects in
the UK.
■ Planning applications for Norwich to Tilbury and Sea Link Wave 2 ASTI
projects accepted by UK Planning Inspectorate.
■ Smart Path Connect project to upgrade more than 100 miles of
transmission lines in upstate New York ready to energise in December 2025.
■ Replaced a further 208 miles of leak-prone pipe across our gas
networks in the US.
Regulatory updates
■ Responded to Ofgem's Draft Determination for the RIIO-T3 price
control where our investments are expected to avoid £12 billion in constraint
costs, equating to £40 per year for consumers.
■ NIMO three-year electricity and gas rate case received regulatory
approval.
■ Received approval for around $600 million investment under the
Electric Sector Modernization Plan (ESMP) in Massachusetts.
■ Around 75% of the US investment in our five-year frame approved by
our regulators.
*See glossary on page 2 (#Page20) 0 (#Page20) .
Financial outlook and guidance
■ Guidance is based on our continuing businesses, as defined by IFRS and
includes the contribution of the ESO, National Grid Renewables and Grain LNG
up until disposal. It excludes the minority stake in National Gas
Transmission, which was classified as a discontinued operation until disposal.
■ Financial outlook over the five-year period from 2024/25 to 2028/29:
■ total cumulative capital investment of around £60 billion;
■ Group asset growth CAGR(1) of around 10% backed by strong balance
sheet;
■ driving underlying EPS CAGR(2) of 6-8% from the 2024/25 EPS baseline of
73.3p;
■ credit metrics consistent with current Group rating; and
■ regulatory gearing expected to increase towards the mid-60% range by
March 2029 and then trend towards the high 60% range by the end of RIIO-T3.
■ For 2025/26, we expect strong operational performance across the Group
with underlying EPS expected to be in line with the 6-8% CAGR range from the
2024/25 baseline.
1. Group asset compound annual growth rate from a FY24 baseline. Forward
years based on assumed USD FX rate of 1.25; and long run UK CPIH and US CPI.
Assumes sale of ESO, Grain LNG, and National Grid Renewables before 2029.
Assumes 20% stake in National Gas Transmission treated as a discontinued
operation and therefore does not contribute to Group asset growth.
2. Underlying EPS compound annual growth rate from FY25 baseline. Forward
years based on assumed USD FX rate of 1.25; long run UK CPIH, US CPI and
interest rate assumptions and scrip uptake of 25%. Assumed sale of Grain LNG
and National Grid Renewables before 2029. Assumed 20% stake in National Gas
Transmission treated as a discontinued operation and therefore did not
contribute to underlying EPS.
Chief Executive Officer succession
On 1 September 2025, Zoë Yujnovich joined as Chief Executive Designate, and
will become Chief Executive Officer with effect from 17 November 2025,
succeeding John Pettigrew, who after nearly a decade in role, will retire from
National Grid on 16 November 2025.
Contacts
Investor Relations Angela Broad +44 (0) 7825 351 918
Tom Edwards +44 (0) 7976 962 791
Cerys Reece +44 (0) 7860 382 264
Media Miranda Cochrane +44 (0) 7745 122 714
Brunswick Dan Roberts +44 (0) 7980 959 590
Results presentation and webcast
An audio webcast and live Q&A with management will be held at 09:15 (GMT)
today. Please use this link to join via a laptop, smartphone or tablet:
https://www.nationalgrid.com/investors/events/results-centre
(https://www.nationalgrid.com/investors/events/results-centre)
A replay of the webcast will be available soon after the event at the same
link.
UK (and International) +44 (0) 330 551 0200
UK (Toll Free) 0808 109 0700
US (Local) +1 786 697 3501
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Use of Alternative Performance Measures
Throughout this release we use a number of alternative (or non-IFRS) and
regulatory performance measures to provide users with a clearer picture of the
regulated performance of the business. This is in line with how management
monitor and manage the business day-to-day. Further detail and definitions for
all alternative performance measures are provided on pages 47 (#Page47) to 51
(#Page51) .
Financial performance
As at and for the six months ended 30 September 2025 2024 change %
(£ million)
Statutory operating profit at actual currency
UK Electricity Transmission 810 642 26%
UK Electricity Distribution 488 759 (36%)
UK Electricity System Operator - (213) 100%
New England 61 87 (30%)
New York 78 (50) n/m
National Grid Ventures 126 145 (13%)
Other (37) (61) 39%
Total statutory operating profit 1,526 1,309 17%
Underlying operating profit at constant currency(1)
UK Electricity Transmission 846 724 17%
UK Electricity Distribution 551 573 (4%)
UK Electricity System Operator - 115 (100%)
New England 292 227 29%
New York 443 276 61%
National Grid Ventures 187 149 26%
Other (27) (38) 29%
Total underlying operating profit 2,292 2,026 13%
Capital investment at constant currency
UK Electricity Transmission 1,684 1,290 31%
UK Electricity Distribution 756 647 17%
UK Electricity System Operator - - -%
New England 958 780 23%
New York 1,585 1,503 5%
National Grid Ventures 69 270 (74%)
Other - 4 (100%)
Total capital investment 5,052 4,494 12%
1. Constant currency calculated using current year average exchange rate of
$1.353 (2024: actual average exchange rate was $1.296). See pages 48 (#Page48)
to 51 (#Page51) for details.
The notation 'n/m' is used throughout this section where the period on period
percentage change is deemed to be 'not meaningful'.
Strategic overview
Safety and operational performance: Retained focus on reliability and
resilience
As at 30 September 2025 National Grid's rolling 12-month Lost Time Injury
Frequency Rate (LTIFR)* stood at 0.09, compared to 0.10 in 2024/25 and against
our Group target of 0.10. Our businesses continue to focus on promoting a
culture of safety excellence, with additional risk-based training, leadership
led safety moments, attention on ongoing reporting of near misses, and
incidents and embedding learnings from previous incidents.
National Grid has delivered strong reliability across our UK and US networks
in the first half of the year. Our interconnector fleet performed well, with
availability at 90%.
On 2 July 2025 NESO published their report into the incident at our North Hyde
electrical substation in March 2025 and Ofgem announced they were commencing
an investigation. We support the recommendations in the report and are
cooperating with the ongoing Ofgem investigation. We have taken further action
since the fire and continue to work with the government, regulator and
industry partners on implementing learnings from this incident.
In New England and New York, we further deployed our Fault Location, Isolation
and Service Restoration (FLISR) digital technology with 27% and 11%
respectively of our electric customers now covered by this automation
technology, which works to restore power to customers within one minute,
avoiding longer power outages. This automated restoration has reduced customer
outages by around 3% across our US businesses year to date.
* Employee and contractor lost time injury frequency rate per 100,000 hours
worked.
Financial performance: Continued delivery in line with financial framework
For detailed financial performance commentary, please refer to the Financial
Review section on page 12 (#Page12) . Our statutory operating profit is
presented on page 3 (#Page3) which includes the impact of exceptional items,
remeasurements, major storms and timing. A reconciliation between Statutory
performance and our Alternative Performance Measures (APMs) is presented on
page 49 (#Page49) .
The Group's financial performance in H1 2025/26 continued to demonstrate the
resilience of our business model which enables us to effectively manage the
impacts of inflation and cost pressures, changes in interest rates and
exchange rate fluctuations.
Underlying operating profit for continuing operations increased by £266
million at constant currency to £2,292 million, an increase of 13% on the
previous half year. This improvement was principally driven by strong
performance across our regulated businesses including the effect of recent
rates for Niagara Mohawk (NIMO) our upstate electric and gas business in New
York, the effect of rate increases, storm recoveries and capital trackers in
our Massachusetts Electric business (MECO), higher revenues reflecting
increased investment in the UK and the classification of Grain LNG as
held-for-sale, meaning depreciation has ceased. This was partly offset by the
adverse impact of Real Price Effects (RPEs) reducing allowances in UK
Electricity Distribution compared to the prior year, higher depreciation
across our regulated businesses, and the divestment of the ESO.
Underlying EPS of 29.8p increased by 1.8p per share at constant currency, or
6% compared to the previous year, with the underlying operating profit
increase partly offset by the increased weighted average number of shares
after the Rights Issue last year and the increased net interest cost for the
half year.
Capital investment for continuing operations increased by £558 million at
constant currency to £5,052 million, an increase of 12% relative to the prior
year period. This increase was principally driven by the ramp up of spend on
Wave 1 Accelerated Strategic Transmission Investment (ASTI) projects in our UK
Electricity Transmission business, increased asset health and load-related
reinforcement investment in UK Electricity Distribution, increased spend on
Advanced Metering Infrastructure (AMI) in MECO and NIMO, as well as leak-prone
pipe replacement in New York; partially offset by lower investment in National
Grid Ventures (NGV) following the divestment of National Grid Renewables and
lower capital investment in Grain LNG.
Net debt was £41.8 billion at 30 September 2025, £0.5 billion higher than at
31 March 2025. This increase primarily reflects capital investment in the half
year, partially offset by net proceeds of £1.5 billion from the divestment of
National Grid Renewables, and the impact of foreign exchange movements.
A further step up in growth: key projects and investments
We have delivered another record level of capital investment for a first-half
period at £5,052 million, on track to deliver over £11 billion for the full
year in line with guidance and our five-year financial framework. This
principally reflects the continued progress on our ASTI projects in the UK,
and our major transmission projects to upgrade infrastructure across our
jurisdictions in the US. During the half-year, we have:
■ progressed construction on all six of our Wave 1 ASTI projects in our
UK Electricity Transmission business, including our Eastern Green Links (EGL)
1 and 2 offshore projects (HVDC cable production is underway for EGL1 and
EGL2, and the converter station platform and groundworks for EGL2 have been
completed ahead of schedule);
■ energised the Hurst-Crayford 275 kV circuit as part of the London Power
Tunnels 2 project in our UK Electricity Transmission business;
■ stepped up UK Electricity Distribution investment in asset health and
network reinforcement in line with our RIIO-ED2 plans;
■ made good progress with our US leak-prone pipe replacement programme,
with 159 miles of pipeline replaced in New York, and 49 miles replaced in
Massachusetts over the last six months;
■ continued to make good progress on our Upstate Upgrade Electricity
Transmission programme, including Smart Path Connect, where we have completed
the installation of 644 transmission towers and we are on track to be ready to
energise in December 2025;
■ progressed AMI installations in the US, with over 360,000 meters
installed in New York and around 220,000 in New England during the half year;
and
■ stepped up investment in asset condition projects across our New
England distribution and transmission networks to support grid resilience.
Strategic initiatives
We have made good progress with portfolio activities, following our decision
last year to streamline our business by focusing on regulated networks. During
the half-year, we:
■ completed the sale of our National Grid Renewables onshore business in
the US to Brookfield Asset Management and its institutional partners, for cash
proceeds of $2.1 billion reflecting an enterprise value of $1.7 billion, and
including around $300 million invested prior to completion; and
■ agreed the sale of our Grain LNG business to a consortium of Centrica
plc and Energy Capital Partners, for cash proceeds of £1.66 billion,
including a pre-completion dividend. We expect to complete the transaction
later this year.
We also reached an important milestone having delivered our three-year target
of £100 million of synergy savings, six months ahead of target, following the
acquisition of UK Electricity Distribution in 2021. These synergies have been
achieved through smarter procurement, operational efficiencies across our
shared sites, and integration of support functions into the Group.
During the half-year, we have made significant progress in securing the supply
chain for our capital programme, with over three quarters of our £60 billion
investment plan now underpinned by delivery mechanisms.
In the UK, we have focused on securing the procurement for our ASTI projects
where we remain in a strong position, as well as progressing public
consultations and planning for those projects. We have:
■ finalised framework agreements to support the delivery of the offshore
HVDC projects including a £21 billion cable framework with six suppliers, a
£25 billion converter station framework, and in August 2025 we signed a £12
billion framework agreement covering HVDC project civils work;
■ allocated all of our onshore Wave 2 work to partners under our £9
billion Great Grid Partnership;
■ focused on finalising procurement contracts for the remaining Wave 2
offshore projects, which includes:
■ the Sea Link project, where we have awarded the converter station
contract to Siemens Energy, and the HVDC cable contract to Sumitomo Electric;
■ EGL3, where we have selected Hitachi as the preferred bidder for
converter stations, and NKT as preferred bidder for the HVDC cables contract
(we expect to sign contracts by the end of the financial year);
■ EGL4, where we have awarded the converter station contract to Siemens
Energy, and we expect to award the HVDC cable contract to Prysmian by the end
of the financial year;
■ progressed public consultations on EGL3 and 4, and Grimsby to Walpole
ASTI projects; and
■ had Development Consent Order (DCO) applications accepted by the
Planning Inspectorate for our Sea Link and Norwich to Tilbury ASTI projects.
In July 2025, we also signed an £8 billion Electricity Transmission
Partnership (ETP) with seven regional delivery partners to deliver substation
infrastructure across UK Electricity Transmission in support of work to
deliver the RIIO-T3 business plan. This agreement unlocks long-term supply
chain capacity and skills across England and Wales, and awards regional
exclusivity of substation work to partners based on how well they perform and
their commitment to expanding their capacity.
We have also progressed strategic initiatives supporting our US regulated
businesses. During the half year, we have:
■ filed all permit applications for our Climate Leadership and Community
Protection Act (CLCPA) Phase 1 and 2 projects with the New York Public Service
Commission (PSC). We expect the first round of permit approvals by the end of
2025, with the remaining approvals in 2026 (Phase 1 remains on track for
delivery by 2029; we are reviewing the final bids for Phase 2 projects to
progress towards contract); and
■ agreed 10 partners for a new strategic procurement framework in
Massachusetts covering transmission and distribution lines, EPC contract
awards and substation work. In total, the framework is expected to cover over
$3 billion of contract awards over the next five years.
The visibility we now have in our investment plans makes us a partner of
choice for our supply chain. These partnerships foster a longer-term
collaborative approach that builds stronger supply chains, encourages long
term investment, and supports the development of local skills and
capabilities.
Regulatory, policy and market environment
In the UK, we have noted the policy progress seen across a number of critical
areas, and we continue to work towards the RIIO-T3 price control which will
run for five years from April 2026.
■ In August, we submitted our response to Ofgem's RIIO-T3 Draft
Determinations. We welcomed the commitment to an £80 billion investment plan
across the electricity transmission sector and the changes made by Ofgem to
the financial package since the Sector Specific Methodology Decision (SSMD).
However, the Draft Determination did not sufficiently recognise the practical
realities of delivering the biggest expansion of the electricity system in
more than a generation. We therefore submitted evidence and solutions for the
changes required to achieve a framework that is investable (including changes
to the baseline level of return and appropriate incentives) and workable (such
as streamlining the process for agreeing uncertainty mechanisms). Our business
plan submitted in December 2024 includes up to £35 billion of totex over the
five years to March 2031, and, amongst other outcomes, is expected to nearly
double the power that can flow across the country, avoid £12 billion of
constraint costs, directly connect 35 GW of generation and 19 GVA of demand to
our network and create optionality for a further 26 GW, all while delivering
99.9999% reliability. We are continuing to engage with Ofgem to agree a price
control that attracts the investment needed to ensure the delivery of this
plan. We expect the Final Determination in early December and we anticipate
that we will make a final decision on whether to accept or appeal the licence
modifications implementing the Final Determination in late February or early
March 2026, following the license drafting process.
■ In May, we responded to Ofgem's consultation on the request for a Delay
Event on EGL1. We continue to engage with Ofgem to find a resolution and
expect these negotiations to reach a final decision over the next few months.
■ In September, we noted Ofgem's 'minded-to' position on changes for ASTI
projects in Lincolnshire, namely our EGL3, EGL4 and Grimsby to Walpole
projects. This follows a change to network requirements in the county,
including new overhead lines, leading to UK Electricity Transmission proposing
a new regional design. We welcomed Ofgem's recognition that this new design
supports increased connections, reduces environmental impacts, mitigates
consenting risk and, most importantly, has a significant benefit for
consumers. Ofgem indicated that, as part of the process, they will set a new
delivery date of no earlier than the end of December 2033. We will continue to
work with Ofgem to agree the new targets for these projects.
■ In October, Ofgem published its Sector Specific Methodology
Consultation (SSMC) for RIIO-ED3, the next price control for UK Electricity
Distribution which runs from 1 April 2028 to 31 March 2033. Importantly, Ofgem
recognised the need for a framework that attracts the capital to help deliver
improved reliability, meet increased levels of demand and maintain energy
security. We will respond to the SSMC and continue to work closely with Ofgem
as we develop our RIIO-ED3 plan, helping to shape the next regulatory period
and ensure the framework supports long-term delivery and innovation.
■ In September, the Government announced the country's first AI Growth
Zone, including data centres at Blyth and Cobalt, which is expected to unlock
£30 billion of investment for the north-east of England. We are now looking
to connect 1.1 GW of demand across the zone. The capacity will be delivered in
phases from 2028, with further connections by 2031. We will continue to work
closely with the Government to help enable further AI growth zones.
■ We have taken a lead role in the Electricity Networks Sector Growth
Plan (the "Plan"), an important initiative that aligns the industry with the
Government's Industrial Strategy, with our President of UK Electricity
Distribution serving as co-chair of the sector level steering group. The
initiative will be jointly led by the Energy Networks Association (ENA) and
BEAMA (the UK manufacturing trade association) with support from the UK
Government. It aims to: (a) demonstrate the sector's vital contribution to the
UK economy and its future growth potential; (b) set out the workforce
requirements needed to maintain and attract the skills essential for a growing
sector; (c) understand the UK's supply chain capabilities and how domestic
supply chains can be developed; and (d) provide confidence that the sector can
deliver and meet demand. To deliver this, the Plan is structured around a
series of dedicated workstreams, each designed to address a critical aspect of
sector growth from workforce development to supply chain resilience. A final
report will be delivered in 2026.
■ For UK Electricity Transmission, we are working closely with NESO and
customers to support the reordering of the connections queue. Once NESO
publishes its updated queue we will have a clear view of the sequencing of the
specific project connections required. For UK Electricity Distribution, we
have also made good progress including preparing flexible offers to customers
that are likely to secure a queue position. This allows them to progress their
builds ahead of a formal offer, enabling faster connections for renewables and
low-carbon technologies. The Government's Industrial Strategy also outlined
the development of a Connections Accelerator Service which, once designed,
should support strategically important demand projects in connecting more
quickly to the network.
■ The Planning and Infrastructure Bill continues to progress through
Parliament and is in its final stages. Whilst the outcome of the Bill is
unlikely to have an impact on our current five-year framework, the Bill
includes proposals which will ensure that consultation and engagement can be
more effective and targeted for Nationally Significant Infrastructure Projects
(NSIPs). It also includes a commitment to keep National Policy Statements up
to date by reviewing them at least every five years. In addition, the
Government launched recent consultations on consents, land access and rights
for electricity network infrastructure and streamlining infrastructure
planning. Both propose important reforms to support the roll-out of network
infrastructure and growth in the UK.
In the US, we have continued to build on the strong foundations we set last
year with further visibility within our rate cases.
■ In June, we received approval from the Massachusetts Department of
Public Utilities (DPU) for around $600 million of cost recovery under the
ESMP. This supports capital investment in networks and supporting technology,
associated operating costs and non-wires alternatives over five years from
July 2025, and is in addition to investment deployed under our Massachusetts
Electric (MECO) rate order. Cost recovery for these investments will be
similar to the current MECO capital tracking mechanism and aligns to our
five-year financial framework.
■ In August, we received unanimous approval from the New York PSC for our
joint proposal for NIMO. The rate settlement includes funding for $5.6 billion
of capital investment over three years, and a 9.5% allowed RoE. It also
includes $290 million in bill discounts for low-income customers across the
three years of the rate plan (representing discounts of up to 20% on gas and
30% on electric for low-income customers).
■ In September, we provided views on the New York State Energy Plan. The
plan outlines a long-term strategy to meet New York's energy needs whilst
supporting economic growth, reliability and decarbonisation. It emphasises the
importance of infrastructure investment and recognises the continued role gas
networks have to play in maintaining security of supply. We have advocated a
balance between clean energy goals with affordability and reliability,
including the future role for gas. The State Energy Planning Board is now
reviewing comments and we anticipate a final version to be released by the end
of calendar year 2025.
■ In September, the New York PSC issued its Order on our Long-Term Gas
Plan addendum filing, including the need for the proposed Northeast Supply
Enhancement (NESE) pipeline project. The PSC concluded that the pipeline,
which is being developed by Williams Transco and due to commission in late
2027, would offer significant reliability benefits to our gas distribution
system and to customers who depend on gas supply for heating, as well as the
potential for lower wholesale electricity costs. This aligns with our view
that the pipeline is needed to ensure the continued provision of safe,
reliable and affordable gas supply to customers in New York City and on Long
Island.
■ We are now preparing to file for new rates for our Massachusetts Gas
business, with the filing due to be made in January 2026, to allow us more
time to engage with new stakeholders and propose measures aligned with
evolving State policy goals.
Delivering as a Responsible Business
In the face of affordability challenges, we continue to support our customers
through payment assistance programmes, flexible payment plans and energy
efficiency solutions. In our recently approved NIMO electricity rate case, we
included $290 million of assistance across the rate case for low-income
households. In our MECO business, we introduced a multi-tiered income discount
rate to support low-income customers. In our UK Electricity Distribution
business last year we supported more than 21,000 customers to save £22
million through various support services including energy efficiency, tariff
switching, debt support and boiler replacements. Our Community Matters Fund
has awarded £7.5 million in grants to grassroots organisations, of which
£5.5 million has supported community efforts to tackle fuel poverty and keep
people warm since the beginning of RIIO-ED2, with a further £0.5 million of
funding launched in October 2025.
The continued strong performance of our interconnector portfolio enabled the
return of a further £39 million to UK consumers this half-year, part of a
total £316 million returned to reduce consumer bills in the last two and half
years, with a further £110 million to be returned over the next one and half
years resulting in a total benefit to customers of £426 million.
As outlined in our Climate Transition Plan, we recognise several policy and
regulatory dependencies that must be addressed to support the decarbonisation
of the wider energy sector and reduction of our own emissions. For instance,
our Long Island generation facilities in the US are obligated to meet
contractual commitments with the Long Island Power Authority (LIPA), which
necessitate continued utilisation to meet demand amid third‑party outages.
Consequently, depending on usage during the second half of the year, we may
see an annual increase in our Scope 1 greenhouse gas (GHG) emissions. We will
remain vigilant, closely monitoring developments in the external environment
and adapting our climate strategy as needed.
In May 2025, we published our updated Green Financing Framework (GFF) under
which National Grid and its subsidiaries can issue Green Financing Instruments
to fund our efforts towards a cleaner energy system.
The updated GFF is aligned with our strategic pillars and UN Sustainable
Development goals, and it ensures closer alignment with the screening criteria
of the EU Taxonomy. An amount equal to the net proceeds from the issuance of
Green Financing Instruments are used to finance new or existing Eligible Green
Projects from categories defined in the GFF. Moody's provided a second party
opinion on our updated GFF for which they attributed the highest attainable
score, 'SQS1 - Excellent'.
Five-year financial framework
Our five-year financial framework is based on our continuing businesses, as
defined by IFRS. This excludes the minority stake in National Gas
Transmission, which was treated as a discontinued operation prior to being
sold in September 2024, but includes contributions from Grain LNG until the
point of disposal, and from the ESO until it was sold on 1 October 2024 and
National Grid Renewables until it was sold on 29 May 2025. The five-year
financial framework assumes an exchange rate of £1:$1.25.
Capital investment and Group asset growth
We expect to invest around £60 billion across our energy networks and
adjacent businesses, in the UK and US, over the five-year period to March
2029, with Group assets trending towards £100 billion by March 2029. Of the
£60 billion investment over the five years to March 2029, around £51 billion
is considered to be aligned with the principles of the EU Taxonomy legislation
as at the date of reporting.
In the UK, we expect around £23 billion of investment in UK Electricity
Transmission for asset health and anticipatory system reinforcement to
facilitate offshore generation and other new onshore system connections. This
also includes the investment across our 17 ASTI projects, as we invest in the
critical infrastructure required to enable the energy transition and a
decarbonised electricity network in the 2030s. We expect our UK Electricity
Distribution network to invest around £8 billion over the five years to
2028/29 in asset replacement, reinforcement and new connections, facilitating
the infrastructure for electric vehicles, heat pumps and directly connected
generation.
In our US regulated businesses, we expect to invest around £17 billion in New
York, and £11 billion in New England, over the five years to 2028/29. We
expect to invest nearly 60% in this plan into our electricity networks, as we
see a step up in investment for renewable connections, transmission network
upgrades, and digital capabilities to enable the energy transition, alongside
significant investment in gas mains replacement.
National Grid Ventures (NGV) has committed capex of around £1 billion over
the five years to 2028/29, including the necessary maintenance investment
across the six operational interconnectors.
With the large step up in investment, we expect to see higher Group asset
growth of around 10% CAGR through to 2028/29.
Group gearing
We remain committed to a strong, overall investment grade credit rating. We
expect to maintain credit metrics above our thresholds for our current Group
credit ratings through to at least the end of the RIIO-T3 price control
period, with current thresholds of 10% for S&P's FFO/adjusted net debt,
and 7% for Moody's RCF/adjusted net debt. Having completed the Rights Issue
last year, we expect regulatory gearing to increase to the mid 60% range by
March 2029, and then trend towards the high 60% range by the end of RIIO-T3.
Group earnings growth and dividend growth
We expect our CAGR in underlying EPS to be in the 6-8% range from our 2024/25
baseline of 73.3p. This includes our long-run average scrip uptake assumption
of 25% per annum, which will support our sustainable, progressive dividend
policy into the future.
We will maintain a progressive level of total dividend aiming to grow the
dividend per share in line with UK CPIH in keeping with the current dividend
policy (for details of our dividend policy please refer to page 16 (#Page16)
).
2025/26 forward guidance
This forward guidance is based on our continuing operations, as defined by
IFRS. The guidance includes businesses classified as held for sale within
continuing operations; namely Grain LNG and the controlling stake in National
Grid Renewables before it was sold on 29 May 2025.
The outlook and forward guidance contained in this statement should be
reviewed, together with the forward looking statements set out in this
release, in the context of the cautionary statement. The forward guidance in
this section is presented on an underlying basis and excludes remeasurements
and exceptional items, deferrable major storm costs in the US (when greater
than $100 million, after deductibles and allowances), timing and the impact on
underlying results of deferred tax in our UK regulated businesses (UK
Electricity Transmission and UK Electricity Distribution). The 2025/26 forward
guidance assumes an exchange rate of £1:$1.35, reflecting near term exchange
rates.
UK Electricity Transmission
Underlying net revenue is expected to increase by around £250 million
compared to 2024/25 primarily driven by higher allowances as a result of
growing RAV, including returns on increasing ASTI investment and indexation.
We expect to deliver around 100bps of outperformance in the final year of
RIIO-T2 in operational Return on Equity. This is in line with our target to
deliver 100 basis points of operational outperformance on average through the
five-year period of the RIIO-T2 price control.
UK Electricity Distribution
Underlying net revenue is expected to be around £20 million higher compared
to 2024/25 primarily driven by improved incentive performance. Increased
depreciation, reflecting the increasing asset base is expected to be broadly
offset by the non-recurrence of Storm Darragh costs.
We expect to deliver around 50 basis points of outperformance in the third
year of RIIO-ED2 in operational Return on Equity, increasing from 2024/25,
primarily as a result of the one-off impact of Storm Darragh costs in 2024/25,
alongside the impact of Real Price Effects. We expect outperformance to
improve towards 100bps over the remainder of RIIO-ED2.
New England
Underlying net revenue is expected to be around $400 million higher, driven
primarily by rate increases and higher tracker revenue. This is expected to be
offset by around $50 million higher depreciation as a result of the increasing
asset base and around $250 million of other cost increases linked to
investments.
Return on Equity for New England is expected to be similar to 2024/25.
New York
Underlying net revenue is expected to be around $950 million higher, including
increases from the NIMO rate settlement and rate increases from the KEDNY and
KEDLI rate cases. Depreciation is expected to be around $100 million higher,
reflecting the increasing asset base and other costs are expected to be around
$300 million higher, linked to investments. We also do not expect the $50
million environmental accounting benefit in 2024/25 to repeat.
Return on Equity for New York is expected to slightly improve compared to
2024/25.
National Grid Ventures and Other activities
In NGV, we expect operating profit to be nearly £50 million lower than
2024/25 driven by expected lower interconnector revenues.
We also expect other activities underlying operating loss to be around £30
million lower compared to 2024/25 reflecting lower insurance costs and
improved performance within the NG Partners portfolio.
Joint Ventures and Associates
Our share of the profit after tax of joint ventures and associates is expected
to be around £10 million lower than 2024/25 as a result of lower profits from
our Emerald joint venture (part of the National Grid Renewables disposal
group), which had no contribution to IFRS continuing profit prior to its sale
on 29 May 2025.
Interest and Tax
Net finance costs in 2025/26 are expected to be around £30 million lower than
2024/25 (at actual currency) driven by favourable exchange rate impacts,
partly offset by the impact of higher debt issuances to fund investment
growth.
For the full year 2025/26, the underlying effective tax rate, excluding the
share of post-tax profits from joint ventures and associates, is expected to
be around 15%. This is calculated following our definition of underlying
earnings which excludes the impact of deferred tax on underlying results of
our UK regulated businesses (UK Electricity Transmission and UK Electricity
Distribution).
Investment, Growth and Net Debt
Overall Group capital investment for continuing operations in 2025/26 is
expected to be over £11 billion.
Asset Growth is expected to be around 11%, normalised in year for business
disposals, reflecting an increase in investment, predominantly in New York,
New England, and in the ASTI projects within UK Electricity Transmission.
Depreciation is expected to increase, reflecting the impact of continued high
levels of capital investment.
Operating cash flow generated from continuing operations (excluding
acquisitions, disposals and transaction costs) is expected to increase by
around 20% compared to 2024/25 driven by increased underlying performance and
lower timing under-recoveries, including non-recurrence of the 2024/25
significant ESO return of prior year over-recoveries.
Net debt is expected to increase by around £1.5 billion (from £41.4 billion
as at 31 March 2025), driven by our continued levels of significant investment
in critical energy infrastructure, partially offset by operating cash inflows,
with regulatory gearing expected to be around 60%. The forecast includes the
expected sale proceeds from the Grain LNG disposal.
Weighted average number of shares (WAV) is expected to be approximately 4,947
million in 2025/26.
Financial review - HY 2025/26
Performance for the six months ended 30 September
Financial summary for continuing operations
(£ million) 2025 2024 change %
Accounting profit
Gross revenue 7,065 7,961 (11%)
Operating costs (5,539) (6,652) 17%
Statutory operating profit 1,526 1,309 17%
Net finance costs (739) (682) (8%)
Share of joint ventures and associates (after tax) 39 57 (32%)
Tax (208) (112) (86%)
Non-controlling interest (1) (1) -%
Statutory earnings 617 571 8%
Exceptional items and remeasurements 150 (84) 279%
Tax on exceptional and remeasurements (15) (17) 12%
Adjusted earnings(1) 752 470 60%
Timing 677 836 (19%)
Tax on timing (182) (219) 17%
Deferred tax on underlying profits in NGET and NGED 223 184 21%
Underlying earnings(1) 1,470 1,271 16%
Statutory EPS 12.6 12.6 -%
Adjusted EPS(1) 15.3 10.4 47%
Underlying EPS(1) 29.8 28.1 6%
Interim dividend per share (pence) 16.35 15.84 3%
Capital investment
Capital investment 5,052 4,603 10%
1. Non-GAAP alternative performance measures (APMs). For further details and
reconciliation to GAAP measures, see 'Alternative performance measures/
non-IFRS reconciliations' on pages 47 (#Page47) to 51 (#Page51) .
Reconciliation of different measures of profitability and earnings
The table below reconciles our statutory profit measures for continuing
operations, at actual exchange rates, to adjusted and underlying versions.
Details of exceptional items and remeasurements are provided in notes 4 and 5
to the financial statements.
Reconciliation of profit and earnings from continuing operations
Operating profit Profit after tax Earnings per share (pence)
(£ million) 2025 2024 2025 2024 2025 2024
Statutory results 1,526 1,309 618 572 12.6 12.6
Exceptional items 105 (108) 103 (119) 2.1 (2.6)
Remeasurements (16) 9 32 18 0.6 0.4
Adjusted results 1,615 1,210 753 471 15.3 10.4
Timing 677 836 495 617 10.0 13.6
Deferred tax in NGET and NGED - - 223 184 4.5 4.1
Underlying results 2,292 2,046 1,471 1,272 29.8 28.1
Statutory IFRS earnings were £617 million in the first six months of the
year, £46 million, or 8% higher than the six months to September 2024. The
main reason for this increase is a £159 million period-on-period favourable
swing in timing (pre-tax), with net under-recoveries of £677 million in the
first six months compared to £836 million net under-recoveries in the prior
period. In the prior year the now sold UK Electricity System Operator (ESO)
business returned £479 million of prior period over-collections, but no such
repayment occurred in the current year. Tax on timing for the current year was
£182 million net credit (2024: £219 million net credit).
The current period statutory results include £105 million (pre-tax) net
exceptional losses, comprising: a £96 million loss associated with the
disposal of the National Grid Renewables business, £19 million transaction
and separation costs pertaining to our held for sale business, £15 million of
charges for our major transformation programme and a £25 million movement on
our US environmental provisions. The prior period included £108 million of
(pre‑tax) net exceptional gains, comprising: a £151 million credit
representing the element of the ESO over-recovery that would be settled
through the sales process, a £42 million of charges for our major
transformation programme and a £1 million movement on our US environmental
provisions. In the current period, tax on exceptional items was £2 million
credit (2024: £11 million charge).
Statutory results were adversely impacted by derivative remeasurements in this
half year, with post-tax net losses of £32 million (2024: £18 million
post-tax net gains). The expected future exceptional costs associated with our
multi-year major transformation programme are anticipated to be in the region
of £300 million over the period to 2028.
Underlying operating profit of £2,292 million was up 12% and underlying EPS
of 29.8p was up 6% against the prior period. This was driven by improved
performance in UK Electricity Transmission, New York and New England, partly
offset by the sale of the ESO business in October 2024.
Underlying net revenues of £5,800 million were £50 million higher compared
to the prior period (£185 million higher at constant currency), driven by
higher UK Electricity Transmission regulated revenues (up £129 million) along
with increases in New York (up £201 million, or £276 million at constant
currency) and New England (up £70 million, or £114 million at constant
currency), partly offset by a £291 million reduction from the disposal of ESO
in October last year.
Regulated controllable costs were substantially lower as a result of the
disposal of ESO, but after excluding the £159 million impact of that, they
were broadly flat on a constant currency basis, with higher workload and
inflationary increases being offset by efficiencies and other savings.
Depreciation was higher from our ongoing investment programme. Other costs
were higher related to increased US property taxes, no repeat of the reduction
to environmental remediation provisions in New York in the prior period, also
higher costs to deliver outputs as agreed with our regulators (which are
offset by higher revenues), partly offset by lower US storm response costs and
lower bad debts. These factors resulted in underlying earnings of £1,470
million for the first six months of 2024/25, up £199 million or 16%.
Segmental income statement
Segmental analysis for continuing operations
Statutory results Underlying results
£ million 2025 2024 change % 2025 2024 change %
UK Electricity Transmission 810 642 26% 846 724 17%
UK Electricity Distribution 488 759 (36%) 551 573 (4%)
UK Electricity System Operator - (213) 100% - 115 (100%)
New England 61 87 (30%) 292 237 23%
New York 78 (50) 256% 443 288 54%
National Grid Ventures 126 145 (13%) 187 147 27%
Other (37) (61) 39% (27) (38) 29%
Total operating profit 1,526 1,309 17% 2,292 2,046 12%
Net finance costs (739) (682) 8% (678) (670) 1%
Share of JVs and associates (post-tax) 39 57 (32%) 39 60 (35%)
Profit before tax 826 684 21% 1,653 1,436 15%
Tax (208) (112) 86% (182) (164) 11%
Profit after tax 618 572 8% 1,471 1,272 16%
EPS (pence) 12.6 12.6 -% 29.8 28.1 6%
UK Electricity Transmission statutory operating profit of £810 million was up
from £642 million in the prior period. The current period includes £3
million of exceptional charges related to our major transformation programme.
Timing movements were £49 million favourable to the comparative period
(mainly the return of over-collected balances in the prior period). Underlying
operating profit was £846 million compared to £724 million in the prior
period. This increase was driven by £129 million higher underlying net
revenues and a net £12 million reduction in controllable costs, partially
offset by higher depreciation resulting from the higher asset base.
UK Electricity Distribution statutory operating profit of £488 million was
down from £759 million in the prior period. Timing movements were £254
million adverse to the prior period mainly related to volumes and inflation
true-ups, partly offset by recovery of pass-through costs. In the prior period
we incurred exceptional charges of £5 million as part of our major
transformation programme. Underlying operating profit decreased by £22
million to £551 million (2024: £573 million). Underlying net revenues
decreased by £14 million with higher allowed returns offset by an adverse
impact from the 'real price effect' (index-linked inflation) adjustment. In
addition there were higher controllable costs driven by increased workload and
higher depreciation due to the higher asset base.
National Grid ESO was sold to the UK Government on 1 October 2024 for an
agreed enterprise value of £630 million. This business comprised the entire
UK Electricity System Operator segment, which made a statutory operating loss
of £213 million in the prior period, principally driven by the return of an
over-collection of allowed revenues (related to BSUoS fixed price tariffs)
that arose during 2023/24, partly offset by an exceptional credit of £151
million representing the element of the over-recovery that would be settled
through the sale process.
New England statutory operating profit of £61 million was down from a
statutory operating profit of £87 million in the prior period. This included
a £1 million exceptional charge in relation to our broader major
transformation programme (2024: £6 million), along with commodity derivative
remeasurement losses of £19 million (2024: £4 million gains). New England's
adjusted operating profit of £81 million, was £8 million lower than the
prior period. This included a £69 million adverse period-on-period timing
swing (at constant currency), mainly due to higher recoveries of prior period
commodity costs that benefited last year's results and lower recovery of
energy efficiency programme costs and incentives this year. Underlying
operating profit was £292 million (2024: £237 million, or £227 million at
constant currency), due to higher underlying net revenues from higher rates,
higher revenues from capital trackers and storm recoveries. Controllable costs
were £20 million lower compared to the prior period (including £16 million
from favourable exchange rate movements) with increases from inflation and
workload being offset by efficiency savings and higher capitalisation due to
workload mix. Depreciation increased from the higher asset base due to ongoing
investment. Other costs were higher compared to the prior period principally
from increased cost of removal, capital-related O&M costs and property
taxes, partly offset by lower storm costs incurred.
New York statutory operating profit of £78 million was improved from a
statutory operating loss of £50 million in the prior period. The current
period includes a £2 million exceptional charge as part of our broader major
transformation programme (2024: £8 million) and a £25 million exceptional
credit on environmental provisions (2024: £1 million net charge); and also
includes commodity derivative remeasurement losses of £18 million (2024: £11
million losses). New York's adjusted operating profit of £73 million was
£103 million favourable to the prior period. In-year timing under-recoveries
were £370 million (2024: £318 million, or £304 million at constant
currency), resulting in a £52 million adverse period-on-period timing swing,
primarily from an under-collection of new rates in KEDNY and KEDLI and the
return of prior year balances, partly offset by an over-collection of
pass-through costs. Underlying operating profit was £443 million, £155
million higher than the prior period (£167 million higher at constant
currency). Underlying net revenues were £201 million higher (£276 million
higher at constant currency) driven by increased rates in NIMO (£189
million), KEDNY (£40 million) and KEDLI (£23 million) along with other
regulatory asset recoveries and customer-funded work increases. Controllable
costs were £18 million lower compared to the prior period (including
favourable exchange rate movements), with inflationary and workload increases
partly offset by efficiency savings and higher capitalisation related to
workload mix. Other costs were higher compared to the prior period, driven by
no repeat of the environmental credits in the comparative period, higher
property taxes and an increase in customer-funded work, partly offset by lower
storm costs.
National Grid Ventures' statutory operating profit of £126 million was down
from £145 million in the prior period. The current year includes a £96
million loss on the disposal of National Grid Renewables which was sold in May
2025 (the loss arose principally from the recycling of cumulative foreign
exchange movements up to the date of disposal). Statutory operating profit
also includes £18 million of exceptional transaction costs related to the
disposal of Grain LNG. In the current period, there were £53 million of gains
related to derivative remeasurements on capacity contracts in NSL (2024: £2
million losses). Adjusted operating profit of £187 million was £40 million
higher than the prior period, driven by Grain LNG (£23 million higher) and
National Grid Renewables (£17 million higher) with Grain LNG benefitting from
depreciation ceasing under held for sale accounting treatment and National
Grid Renewables benefitting from lower total business development costs than
the comparative period. National Grid Renewables (US) was sold on 29 May 2025
for $2.1 billion and Grain LNG (UK) was agreed to be sold for £1.66 billion
and is expected to complete before the end of 2025.
'Other' activities' statutory operating loss of £37 million was £24 million
favourable to the prior period. The current period includes exceptional
charges of £9 million as part of our broader major transformation programme
(2024: £26 million). The adjusted operating loss of £27 million (2024: £38
million loss) was adverse to the prior period, principally as a result of fair
value losses in NG Partners in the prior period.
Financing costs and tax
Net finance costs
Statutory net finance costs of £739 million were up from £682 million in the
prior period and included derivative remeasurement gains of £61 million
(2024: £12 million). Adjusted net finance costs for continuing operations of
£678 million (2024: £670 million) were £8 million, or 1% higher than the
prior period (£26 million, or 4% higher at constant currency). This was
driven by higher inflation on index-linked debt and no repeat of the interest
income arising in the prior period on the £6.8 billion rights issue proceeds
(held as short-term investments prior to funding of capital investment).
Joint ventures and associates
The Group's share of net profits from joint ventures and associates on a
statutory basis was £39 million (2024: £57 million) with no fair value
remeasurements (2024: £3 million gains). On an adjusted basis, the share of
net profits from joint ventures and associates decreased to £39 million
(2024: £60 million) due to the sale of the Emerald JV (part of National Grid
Renewables) in May 2025, with increased profits in BritNed broadly offsetting
lower profits in Nemo.
Tax
The statutory tax charge for continuing operations was £208 million (2024:
£112 million) including the impact of tax on exceptional items and
remeasurements of £15 million credit (2024: £17 million charge). The
adjusted tax charge for continuing operations was £223 million (2024: £129
million), resulting in an effective tax rate for continuing operations
(excluding profits from joint ventures and associates) of 23.8% (2024: 23.9%).
The underlying effective tax rate for continuing operations (excluding profits
from joint ventures and associates) was 11.3% (2024: 11.9%). Our underlying
tax (a non-GAAP measure) takes our adjusted tax charge and further excludes
the tax impacts on timing and major storm costs and deferred tax in our UK
regulated businesses (NGET and NGED). The underlying effective tax rate of
11.3% is lower than the prior period (11.9%), primarily due to higher capex in
our UK regulated businesses (NGET and NGED) resulting in higher deferred tax
exclusion, and a higher net prior year adjustment credit. This is partially
offset by a change in geographic profit mix.
Net debt
Net debt is a measure derived from IFRS (comprising cash and cash equivalents,
current financial investments, borrowings and bank overdrafts and financing
derivatives) and is defined and reconciled to these balances in note 11 to the
financial statements.
During the first six months of the year, net debt increased to £41.8 billion,
£0.5 billion higher than at 31 March 2025. Movements in exchange rates
reduced reported opening net debt by £1.0 billion. Net debt benefited from
the receipt of £1.5 billion of proceeds from the sale of National Grid
Renewables in May 2025. In addition, cash generated from continuing operations
of £3,638 million and dividends received on financial investments of £49
million were offset by £4,784 million of cash outflows for capital investment
(net of disposals) and movements in financial investments outside net debt,
£12 million of tax paid, £853 million of interest outflows, £894 million
paid in dividends, £139 million of accretions on index-linked debt and other
non-cash movements.
During the period we raised around £2.2 billion of new long-term senior debt
to refinance maturing debt and to fund a portion of our significant capital
programme, including the first green bond from our new Green Financing
Framework, €700 million issued by National Grid North America Inc. In
addition, we signed two new loan facilities that are guaranteed by European
Export Credit Agencies for a combined total of around £1.7 billion. The
facilities are aligned with our Green Financing Framework. As at 30 September
2025, we have £8.7 billion of undrawn committed facilities available for
liquidity purposes.
There are no significant updates relating to credit rating agency actions.
National Grid's balance sheet remains robust and we remain committed to a
strong, overall investment grade credit rating.
Interim dividend
The Board has approved an interim dividend of 16.35p per ordinary share
($1.0657 per American Depositary Share). The interim dividend is expected to
be paid on 13 January 2026 to shareholders on the register as at 21 November
2025.
The Board aims to grow the annual dividend per share in line with UK CPIH,
thus maintaining the dividend per share in real terms. The Board reviews this
policy regularly, taking into account a range of factors including expected
business performance and regulatory developments.
The scrip dividend alternative will again be offered in respect of the 2025/26
interim dividend.
Growth
A balanced portfolio to deliver asset and dividend growth
National Grid seeks to create value for shareholders through developing a
balanced portfolio of businesses that offer an attractive combination of asset
growth and cash returns.
£5.1 billion of capital investment across the Group
We continued to make significant investment in energy infrastructure in the
first six months of the year. Capital investment across the Group was £5,052
million, an increase of £449 million or 10% at actual exchange rates (12% at
constant currency) compared to the first half of 2024/25.
Group capital investment
Six months ended 30 September At actual exchange rates At constant currency
(£ million)
2025 2024 % change 2024 % change
UK Electricity Transmission 1,684 1,290 31% 1,290 31%
UK Electricity Distribution 756 647 17% 647 17%
New England 958 814 18% 780 23%
New York 1,585 1,569 1% 1,503 5%
National Grid Ventures 69 279 (75%) 270 (74%)
Other - 4 (100%) 4 (100%)
Total capital investment 5,052 4,603 10% 4,494 12%
UK Electricity Transmission invested £1,684 million for the first six months
of the year, an increase of £394 million on the prior period, primarily
driven by £219 million increased spend on onshore ASTI projects (such as
North London Reinforcement and Yorkshire Green), £48 million higher spend on
ASTI offshore projects (EGL1 and EG2), along with customer connections, cable
repair and IT systems investment and cyber; partially offset by lower spend on
projects that are reaching completion.
UK Electricity Distribution invested £756 million, an increase of £109
million on the prior period, principally driven by planned asset health work
and load-related network reinforcement, along with increases in site spend,
investment in vehicles and transport and higher investment in IT systems.
In New England, investment reached £958 million, an increase of £144 million
at actual exchange rates (an increase of £178 million at constant currency).
This was principally driven by £100 million higher electric distribution
programme spend (e.g. AMI and system capacity), £33 million increased spend
on electric transmission, along with higher investment in IT systems compared
to the prior period.
Investment in New York was £1,585 million, an increase of £16 million over
the period at actual exchange rates (an increase of £82 million at constant
currency). This increase was mostly related to £66 million of additional
spend across our gas distribution networks including increased leak-prone pipe
replacement and £47 million higher spend on IT systems investment, partly
offset by lower overall investment in our electric business as a result of
Smart Path Connect having reached its peak construction phase in the prior
year.
National Grid Ventures capital investment was lower than the prior period,
with no further investment spend in National Grid Renewables and Grain LNG
recognised as 'capital investment' subsequent to their 'held for sale'
treatment on 30 September 2024.
Alternative Performance Measures
Unless otherwise stated, all financial commentaries in this results statement
are given on an underlying basis at actual exchange rates for continuing
operations. Underlying represents statutory results excluding exceptional
items, remeasurements, timing and major storm costs. The following are terms
or metrics that are reconciled to IFRS measures and are defined on pages 4
(#Page47) 7 (#Page47) to 49 (#Page49) , including but not limited to: net
revenue, underlying net revenue, adjusted profit measures, underlying results,
constant currency, timing impacts, net debt (defined in note 11 on page 41
(#Page41) .
Provisional 2025/26 financial timetable
Date Event
6 November 2025 2025/26 Half Year Results
20 November 2025 Ex-dividend date for 2025/26 interim dividend - ordinary shares
21 November 2025 Ex-dividend date for 2025/26 interim dividend - ADRs
21 November 2025 Record date for 2025/26 interim dividend
27 November 2025 Scrip reference price announced for 2025/26 interim dividend
8 December 2025 (5pm EST) Scrip election date for 2025/26 interim dividend - ADRs
11 December 2025 (5pm London time) Scrip election date for 2025/26 interim dividend - ordinary shares
13 January 2026 2025/26 interim dividend paid to qualifying shareholders
14 May 2026 2025/26 Full Year Results
28 May 2026 Ex-dividend date for 2025/26 final dividend - ordinary shares
29 May 2026 Ex-dividend date for 2025/26 final dividend - ADRs
29 May 2026 Record date for 2025/26 final dividend
4 June 2026 Scrip reference price announced for 2025/26 final dividend
15 June 2026 (5pm EDT) Scrip election date for 2025/26 final dividend - ADRs
18 June 2026 (5pm London time) Scrip election date for 2025/26 final dividend - ordinary shares
14 July 2026 2026 AGM
23 July 2026 2025/26 final dividend paid to qualifying shareholders
5 November 2026 2026/27 Half Year Results
Cautionary statement
This announcement contains certain statements that are neither reported
financial results nor other historical information. These statements are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. These statements include information with respect to
National Grid's (the Company) financial condition, its results of operations
and businesses, strategy, plans and objectives. Words such as 'aims',
'anticipates', 'expects', 'should', 'intends', 'plans', 'believes', 'outlook',
'seeks', 'estimates', 'targets', 'may', 'will', 'continue', 'project' and
similar expressions, as well as statements in the future tense, identify
forward-looking statements. This document also references climate-related
targets and climate-related risks which differ from conventional financial
risks in that they are complex, novel and tend to involve projection over
long-term scenarios which are subject to significant uncertainty and change.
These forward-looking statements and targets are not guarantees of National
Grid's future performance and are subject to assumptions, risks and
uncertainties that could cause actual future results to differ materially from
those expressed in or implied by such forward-looking statements and targets.
Many of these assumptions, risks and uncertainties relate to factors that are
beyond National Grid's ability to control or estimate precisely, such as
changes in laws or regulations and decisions by governmental bodies or
regulators, including those relating to current and upcoming price controls in
the UK and rate cases in the US; the timing of construction and delivery by
third parties of new generation projects requiring connection; breaches of, or
changes in, environmental, climate change and health and safety laws or
regulations, including breaches or other incidents arising from the
potentially harmful nature of its activities; network failure or interruption,
the inability to carry out critical non-network operations and damage to
infrastructure, due to adverse weather conditions including the impact of
major storms as well as the results of climate change, due to counterparties
being unable to deliver physical commodities; reliability of and access to IT
systems, including due to the failure of or unauthorised access to or
deliberate breaches of National Grid's systems and supporting technology;
failure to adequately forecast and respond to disruptions in energy supply;
performance against regulatory targets and standards and against National
Grid's peers with the aim of delivering stakeholder expectations regarding
costs and efficiency savings, as well as against targets and standards
designed to support its role in the energy transition; and customers and
counterparties (including financial institutions) failing to perform their
obligations to the Company. Other factors that could cause actual results to
differ materially from those described in this announcement include
fluctuations in exchange rates, interest rates and commodity price indices;
restrictions and conditions (including filing requirements) in National Grid's
borrowing and debt arrangements, funding costs and access to financing;
regulatory requirements for the Company to maintain financial resources in
certain parts of its business and restrictions on some subsidiaries'
transactions such as paying dividends, lending or levying charges; the delayed
timing of recoveries and payments in National Grid's regulated businesses, and
whether aspects of its activities are contestable; the funding requirements
and performance of National Grid's pension schemes and other post-retirement
benefit schemes; the failure to attract, develop and retain employees with the
necessary competencies, including leadership and business capabilities, and
any significant disputes arising with National Grid's employees or breaches of
laws or regulations by its employees; the failure to respond to market
developments, including competition for onshore transmission; the threats and
opportunities presented by emerging technology; the failure by the Company to
respond to, or meet its own commitments as a leader in relation to, climate
change development activities relating to energy transition, including the
integration of distributed energy resources; and the need to grow the
Company's business to deliver its strategy, as well as incorrect or unforeseen
assumptions or conclusions (including unanticipated costs and liabilities)
relating to business development activity, including the sale of certain of
its businesses, its strategic infrastructure projects and joint ventures. For
further details regarding these and other assumptions, risks and uncertainties
that may affect National Grid, please read the Strategic Report section and
the 'Risk factors' on pages 262 to 268 of National Grid's Annual Report and
Accounts for the year ended 31 March 2025, as updated by the principal risks
and uncertainties statement on page 4 (#Page44) 4 (#Page44) of this
announcement. In addition, new factors emerge from time to time and National
Grid cannot assess the potential impact of any such factor on its activities
or the extent to which any factor, or combination of factors, may cause actual
future results to differ materially from those contained in any
forward-looking statement. Except as may be required by law or regulation, the
Company undertakes no obligation to update any of its forward-looking
statements, which speak only as of the date of this announcement. This
announcement is for informational purposes only and does not constitute an
offer to sell or the solicitation of an offer to buy any securities. The
securities mentioned herein have not been, and will not be, registered under
the Securities Act or the securities laws of any state or other jurisdiction,
and may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements. No public offering of
securities is being made in the United States.
Glossary
Term Meaning
AMI Advanced Metering Infrastructure
ASTI Accelerated Strategic Transmission Investment
CAGR Compound Annual Growth Rate
CPIH UK Consumer Prices Index including Owner Occupiers' Housing Costs
DSO Distribution System Operator
EGL1 Eastern Green Link 1: Torness to Hawthorn Pit (ASTI project); JV with SP
Energy Networks
EGL2 Eastern Green Link 2: Peterhead, Aberdeenshire, to Drax (ASTI Project); JV
with SSEN
EGL3 Eastern Green Link 3: Peterhead, Aberdeenshire, to Walpole, Norfolk (ASTI
Project); JV with SSEN
EGL4 Eastern Green Link 4: Westfield, Fife, to Walpole, Norfolk (ASTI Project); JV
with SP Energy Networks
EPS Earnings per share
ESMP Electric Sector Modernization Plan
ESO UK Electricity System Operator, formerly owned by National Grid, divested to
the UK Government on 1 October 2024
FERC Federal Energy Regulatory Commission
FFO Funds from Operations
FLISR Fault Location, Isolation and Service Restoration
HVDC High Voltage Direct Current
KEDNY and KEDLI KeySpan Energy Delivery New York (KEDNY) and KeySpan Energy Delivery Long
Island (KEDLI)
LTIFR Lost Time Injury Frequency Rate
MADPU Massachusetts Department of Public Utilities (state energy regulator)
MECO Massachusetts Electric Company
NESO National Energy System Operator
NGED/UK ED National Grid Electricity Distribution
NGET/UK ET National Grid Electricity Transmission
NGV National Grid Ventures
NIMO Niagara Mohawk (National Grid's electric and gas distribution business in
upstate New York)
NYPSC New York Public Service Commission (state energy regulator)
RAV Regulated Asset Value
RIIO "Revenue = Incentives + Innovation + Outputs" a Price control Framework used
by the
UK regulator OFGEM
RPEs Real Price Effects, a regulatory mechanism for inflation of certain costs,
used by Ofgem.
SSMC Sector Specific Methodology Consultation
SSMD Sector Specific Methodology Decision
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Consolidated income statement
for the six months ended 30 September
2025 Notes Before Exceptional Total
exceptional items and remeasurements £m
items and remeasurements £m
£m
Continuing operations
Revenue 2(a),3 7,065 - 7,065
Provision for bad and doubtful debts (58) - (58)
Other operating costs 4 (5,392) (89) (5,481)
Operating profit 2(b),4 1,615 (89) 1,526
Finance income 4,5 206 2 208
Finance costs 4,5 (884) (63) (947)
Share of post-tax results of joint ventures and associates 2(b),4 39 - 39
Profit before tax 2(b),4 976 (150) 826
Tax 4,7 (223) 15 (208)
Total profit for the period - continuing 753 (135) 618
Attributable to:
Equity shareholders of the parent 752 (135) 617
Non-controlling interests 1 - 1
Earnings per share (pence)
Basic earnings per share - continuing 8 12.6
Diluted earnings per share - continuing 8 12.5
2024 Notes Before Exceptional Total
exceptional items and remeasurements £m
items and remeasurements £m
£m
Continuing operations
Revenue 2(a),3 7,961 - 7,961
Provision for bad and doubtful debts (81) - (81)
Other operating costs 4 (6,670) 99 (6,571)
Operating profit 2(b),4 1,210 99 1,309
Finance income 4,5 231 3 234
Finance costs 4,5 (901) (15) (916)
Share of post-tax results of joint ventures and associates 2(b),4 60 (3) 57
Profit before tax 2(b),4 600 84 684
Tax 4,7 (129) 17 (112)
Profit after tax from continuing operations 4 471 101 572
Profit after tax from discontinued operations 6 4 72 76
Total profit for the period (continuing and discontinued) 475 173 648
Attributable to:
Equity shareholders of the parent 474 173 647
Non-controlling interests 1 - 1
Earnings per share (pence)
Basic earnings per share (continuing) 8 12.6
Diluted earnings per share (continuing) 8 12.6
Basic earnings per share (continuing and discontinued) 8 14.3
Diluted earnings per share (continuing and discontinued) 8 14.2
Consolidated statement of comprehensive income
for the six months ended 30 September
2025 2024
Notes £m £m
Profit after tax from continuing operations 618 572
Profit after tax from discontinued operations - 76
Other comprehensive income from continuing operations
Items from continuing operations that will never be reclassified to profit or
loss:
Remeasurement gains on pension assets and post-retirement benefit obligations 147 51
Net gains/(losses) in respect of cash flow hedging of capital expenditure 42 (25)
Tax on items that will never be reclassified to profit or loss (54) (8)
Total items from continuing operations that will never be reclassified to 135 18
profit or loss
Items from continuing operations that may be reclassified subsequently to
profit or loss:
Retranslation of net assets offset by net investment hedge (588) (799)
Exchange differences reclassified to the consolidated income statement on 76 -
disposal
Net (losses)/gains in respect of cash flow hedges (68) 78
Net gains/(losses) in respect of cost of hedging 35 (12)
Net gains on investments in debt instruments measured at fair value through 13 13
other
comprehensive income
Tax on items that may be reclassified subsequently to profit or loss 8 (17)
Total items from continuing operations that may be reclassified subsequently (524) (737)
to profit or loss
Other comprehensive loss for the period, net of tax, from continuing (389) (719)
operations
Other comprehensive loss for the period, net of tax, from discontinued 6 - (10)
operations
Other comprehensive loss for the period, net of tax (389) (729)
Total comprehensive income/(loss) for the period from continuing operations 229 (147)
Total comprehensive income for the period from discontinued operations 6 - 66
Total comprehensive income/(loss) for the period 229 (81)
Attributable to:
Equity shareholders of the parent
From continuing operations 228 (147)
From discontinued operations - 66
228 (81)
Non-controlling interests 1 -
Consolidated statement of changes in equity
for the six months ended 30 September
Share Share premium account Retained earnings Other equity reserves Total Non-controlling interests Total
capital share-holders' equity equity
Notes £m £m £m £m £m £m £m
At 1 April 2025 638 1,292 40,106 (4,233) 37,803 23 37,826
Profit for the period - - 617 - 617 1 618
Other comprehensive income/(loss) for the period - - 102 (491) (389) - (389)
Total comprehensive income/(loss) for the period - - 719 (491) 228 1 229
Equity dividends 9 - - (894) - (894) - (894)
Scrip dividend-related share issue 7 (8) - - (1) - (1)
Issue of treasury shares - - 38 - 38 - 38
Transactions in own shares - - (1) - (1) - (1)
Other movements in non-controlling interests - - - - - 4 4
Share-based payments - - 17 - 17 - 17
At 30 September 2025 645 1,284 39,985 (4,724) 37,190 28 37,218
At 1 April 2024 493 1,298 32,066 (3,990) 29,867 25 29,892
Profit for the period - - 647 - 647 1 648
Other comprehensive income/(loss) for the period - - 38 (766) (728) (1) (729)
Total comprehensive income/(loss) for the period - - 685 (766) (81) - (81)
Rights Issue 135 - - 6,704 6,839 - 6,839
Transfer between reserves - - 6,704 (6,704) - - -
Equity dividends 9 - - (811) - (811) - (811)
Scrip dividend-related share issue 9 (9) - - - - -
Issue of treasury shares - - 15 - 15 - 15
Transactions in own shares - - (5) - (5) - (5)
Share-based payments - - 16 - 16 - 16
Cash flow hedges transferred to the statement - - - 1 1 - 1
of financial position, net of tax
At 30 September 2024 637 1,289 38,670 (4,755) 35,841 25 35,866
Consolidated statement of financial position
30 September 2025 31 March 2025
Notes £m £m
Non-current assets
Goodwill 9,343 9,532
Other intangible assets 2(c) 3,669 3,564
Property, plant and equipment 2(c) 76,345 74,091
Other non-current assets 897 959
Pensions and other post-retirement benefit assets 12 2,424 2,489
Financial and other investments 795 798
Investments in joint ventures and associates 624 608
Derivative financial assets 10 736 369
Total non-current assets 94,833 92,410
Current assets
Inventories 641 557
Trade and other receivables 2,830 4,092
Current tax assets 11 11
Financial and other investments 11 3,172 5,753
Derivative financial assets 10 240 113
Cash and cash equivalents 11 887 1,178
Assets held for sale 6 1,146 2,628
Total current assets 8,927 14,332
Total assets 103,760 106,742
Current liabilities
Borrowings 11 (3,624) (4,662)
Derivative financial liabilities 10 (358) (381)
Trade and other payables (4,264) (4,472)
Contract liabilities (86) (96)
Current tax liabilities (187) (219)
Provisions (338) (357)
Liabilities held for sale 6 (328) (434)
Total current liabilities (9,185) (10,621)
Non-current liabilities
Borrowings 11 (42,290) (42,877)
Derivative financial liabilities 10 (555) (821)
Other non-current liabilities (894) (876)
Contract liabilities (2,516) (2,418)
Deferred tax liabilities (8,114) (8,038)
Pensions and other post-retirement benefit obligations 12 (349) (573)
Provisions (2,639) (2,692)
Total non-current liabilities (57,357) (58,295)
Total liabilities (66,542) (68,916)
Net assets 37,218 37,826
Equity
Share capital 645 638
Share premium account 1,284 1,292
Retained earnings 39,985 40,106
Other equity reserves (4,724) (4,233)
Total shareholders' equity 37,190 37,803
Non-controlling interests 28 23
Total equity 37,218 37,826
Consolidated cash flow statement
for the six months ended 30 September
2025 2024
Notes £m £m
Cash flows from operating activities
Operating profit from continuing operations 2(b) 1,526 1,309
Adjustments for:
Exceptional items and remeasurements 4 89 (99)
Other fair value movements (7) 21
Depreciation, amortisation and impairment 2(b) 1,102 1,058
Share-based payments 17 16
Changes in working capital 922 429
Changes in provisions (10) (30)
Changes in pensions and other post-retirement benefit obligations 26 24
Cash flows relating to exceptional items (27) (38)
Cash generated from operations - continuing operations 3,638 2,690
Tax paid (12) (78)
Net cash flow from operating activities - continuing operations 3,626 2,612
Cash flows from investing activities
Purchases of intangible assets (260) (243)
Purchases of property, plant and equipment (4,444) (3,985)
Disposals of property, plant and equipment 10 10
Investments in joint ventures and associates (77) (102)
Dividends received from joint ventures, associates and other investments 49 71
Disposal of interest in National Grid Renewables(1) 6 1,481 -
Disposal of interest in the UK Gas Transmission business - 686
Disposal of financial and other investments 31 33
Acquisition of financial investments (44) (49)
Net movements in short-term financial investments 2,555 (2,995)
Interest received 143 162
Cash inflows on derivatives 20 -
Cash outflows on derivatives - (6)
Net cash flow used in investing activities - continuing operations (536) (6,418)
Net cash flow from investing activities - discontinued operations - 22
Cash flows from financing activities
Proceeds of Rights Issue - 7,001
Transaction fees related to Rights Issue - (162)
Proceeds from issue of treasury shares 38 15
Transactions in own shares (1) (5)
Proceeds received from loans 2,235 1,809
Repayments of loans (1,638) (916)
Payments of lease liabilities (76) (75)
Net movements in short-term borrowings (2,104) (1,313)
Cash inflows on derivatives 71 73
Cash outflows on derivatives (40) (33)
Interest paid (996) (1,002)
Dividends paid to shareholders 9 (894) (811)
Net cash flow (used in)/from financing activities - continuing operations (3,405) 4,581
Net (decrease)/increase in cash and cash equivalents (315) 797
Reclassification to held for sale 31 (166)
Exchange movements (7) (65)
Net cash and cash equivalents at start of period 1,178 559
Net cash and cash equivalents at end of period 887 1,125
1. Balance consists of cash proceeds received, net of cash disposed.
Notes to the financial statements
1. Basis of preparation and new accounting standards, interpretations and
amendments
The half year financial information covers the six month period ended 30
September 2025 and has been prepared in accordance with IAS 34 'Interim
Financial Reporting' as issued by the International Accounting Standards Board
(IASB) and as adopted by the United Kingdom (UK); and the Disclosure and
Transparency Rules of the Financial Conduct Authority. This condensed set of
financial statements comprises the unaudited financial information for the
half years ended 30 September 2025 and 2024, together with the audited
consolidated statement of financial position as at 31 March 2025. The half
year financial information has been prepared applying consistent accounting
policies to those applied by the Group for the year ended 31 March 2025 and
are expected to be applicable for the year ending 31 March 2026. The notes to
the unaudited financial information are prepared on a continuing basis unless
otherwise stated.
The financial information for the six months ended 30 September 2025 does not
constitute statutory accounts as defined in Section 434 of the Companies Act
2006. It should be read in conjunction with the Annual Report and Accounts and
Form 20-F for the year ended 31 March 2025, which were prepared in accordance
with IFRS(®) Accounting Standards (IFRSs) as issued by the IASB and as
adopted by the UK, and have been filed with the Registrar of Companies. The
Deloitte LLP audit report on those Annual Report and Accounts was unqualified,
did not contain an emphasis of matter and did not contain a statement under
Section 498 of the Companies Act 2006.
The key sources of estimation uncertainty and areas of judgement for the
period ended 30 September 2025 are aligned to those disclosed in the Annual
Report and Accounts for year ended 31 March 2025.
Our consolidated income statement and segmental analysis (see note 2)
separately identify financial results before and after exceptional items and
remeasurements. The Directors believe that presentation of the results in this
way is relevant to an understanding of the Group's financial performance.
Presenting financial results before exceptional items and remeasurements is
consistent with the way that financial performance is measured by management
and reported to the Board and improves the comparability of reported financial
performance from year to year. Items which are classified as exceptional items
or remeasurements are defined in the Annual Report and Accounts for the year
ended 31 March 2025.
1. Basis of preparation and new accounting standards, interpretations and
amendments continued
Going concern
As part of the Directors' consideration of the appropriateness of adopting the
going concern basis of accounting in preparing the half year financial
information, the Directors have considered the Group's principal risks
(discussed on page 44 (#Page44) ) alongside potential downside business cash
flow scenarios impacting the Group's operations. The Directors specifically
considered both a base case and a reasonable worst-case scenario for business
cash flows.
The main additional cash flow impacts identified in the reasonable worst-case
scenario are:
• adverse impacts of higher spend on our capital expenditure programme;
• adverse impact from timing across the Group (i.e. a net under-recovery
of allowed revenues or reductions in over-collections) and slower collections
of outstanding receivables;
• higher operating and financing costs than expected; including
non-delivery of planned efficiencies across the Group; and
• the potential impact of further significant storm costs in the US.
As part of their analysis, the Board also considered the following potential
levers at their discretion to improve the position identified by the analysis
if the debt capital markets are not accessible:
• the payment of dividends to shareholders;
• significant changes in the phasing of the Group's capital expenditure
programme, with elements of non-essential works and programmes delayed; and
• a number of further reductions in operating expenditure across the
Group.
As at 30 September 2025, the Group had undrawn committed facilities available
for general corporate purposes amounting to £7.7 billion and a £1.0 billion
undrawn Export Credit Agency (ECA) loan. Based on these available liquidity
resources and having considered the reasonable worst-case scenario, and the
further levers at the Board's discretion, the Group has not identified any
material uncertainties relating to events or conditions that, individually or
collectively, may cast significant doubt on its ability to continue as a going
concern for the foreseeable future, a period not less than 12 months from the
date of this report.
In addition to the above, the ability to raise new and extend existing
financing was separately included in the analysis, and the Directors noted
over £2.2 billion of new long-term senior debt and private placements were
issued in the period from 1 April to 30 September 2025 as evidence of the
Group's ability to continue to have access to the debt capital markets if
needed.
Based on the above, the Directors have concluded the Group is well placed to
manage its financing and other business risks satisfactorily, and have a
reasonable expectation that the Group will have adequate resources to continue
in operation for at least 12 months from the signing date of these
consolidated interim financial statements. They therefore consider it
appropriate to adopt the going concern basis of accounting in preparing the
half year financial information.
New IFRS accounting standards, interpretations and amendments adopted in the
period
There are no new standards, interpretations or amendments, issued by the IASB
or by the IFRS Interpretations Committee (IFRIC), that are applicable for the
period commencing on 1 April 2025 and have had a material impact on the
Group's results.
2. Segmental analysis
Revenue and the results of the business are analysed by operating segment,
based on the information the Board of Directors uses internally for the
purposes of evaluating the performance of each operating segment and
determining resource allocation between them. The Board is National Grid's
chief operating decision maker (as defined by IFRS 8 'Operating Segments') and
as a matter of course, the Board considers multiple profitability measures by
segment, being 'adjusted profit' and 'underlying profit'. Adjusted profit
excludes exceptional items and remeasurements (as defined in note 4) and is
used by management and the Board to monitor financial performance as it is
considered that it aids the comparability of our reported financial
performance from year to year. Underlying profit, as presented in the Annual
Report and Accounts, represents adjusted profit and also excludes the effects
of timing, major storm costs and deferred tax expenses in our UK Electricity
Transmission and UK Electricity Distribution businesses. The measure of profit
disclosed in this note and the primary profitability benchmark considered by
the chief operating decision maker is operating profit before exceptional
items and remeasurements, adjusted profit, as this is the measure that is most
consistent with the IFRS results reported within these financial statements.
The results of our five principal businesses are reported to the Board and are
accordingly treated as reportable operating segments. All other operating
segments are either reported to the Board on an aggregated basis or do not
meet the quantitative threshold in order to be considered a separate operating
segment. The following table describes the main activities for each reportable
operating segment:
UK Electricity Transmission The high-voltage electricity transmission networks in England and Wales. This
includes our Accelerated Strategic Transmission Investment projects to connect
more clean, low-carbon power to the transmission network in England and Wales.
UK Electricity Distribution The electricity distribution networks of NGED in the East Midlands, West
Midlands and South West of England and South Wales.
New England Electricity distribution networks, high-voltage electricity transmission
networks and gas distribution networks in New England.
New York Electricity distribution networks, high-voltage electricity transmission
networks and gas distribution networks in New York.
National Grid Ventures Comprises our electricity interconnectors in the UK, our electricity
generation business in the US, all commercial operations in LNG at Providence,
Rhode Island in the US and the Isle of Grain in the UK, and our investment in
NG Renewables, our renewables business in the US. While NGV operates outside
our regulated core business, the electricity interconnectors in the UK are
subject to indirect regulation by Ofgem regarding the level of returns they
can earn. The Group sold its interest in NG Renewables on 29 May 2025 and
Grain LNG was classified as held for sale in the prior period (see note 6).
Included within the comparative period are the results of the UK Electricity
System Operator which also represented a separate operating segment. The Group
completed the disposal of the ESO to the UK Government in the year ended 31
March 2025.
The New England and New York segments typically experience seasonal
fluctuations in revenue and operating profit due to higher delivery volumes
during the second half of the financial year, for example as a result of
colder weather over the winter months driving increased heating demand. These
seasonal fluctuations have a consequential impact on the working capital
balances (primarily trade debtors and accrued income) in the consolidated
statement of financial position at 30 September 2025 when compared to 31 March
2025. The majority of UK revenues are derived from the supply of network
capacity rather than the supply of commodities and therefore are not subject
to the same seasonal fluctuations as in New York and New England.
Other activities that do not form part of any of the segments in the above
table primarily relate to our UK property business together with insurance and
corporate activities in the UK and US and the Group's investments in
technology and innovation companies through National Grid Partners.
2. Segmental analysis continued
(a) Revenue
Six months ended 30 September 2025 2024
Total sales Sales between segments(1) Sales to third parties Total sales Sales between segments(1) Sales to third
parties
£m £m £m £m £m £m
Operating segments - continuing operations:
UK Electricity Transmission 1,443 (37) 1,406 1,274 (92) 1,182
UK Electricity Distribution 901 (5) 896 1,166 (2) 1,164
UK Electricity System Operator - - - 1,029 (17) 1,012
New England 1,493 - 1,493 1,545 - 1,545
New York 2,667 - 2,667 2,341 - 2,341
National Grid Ventures 601 (20) 581 650 (26) 624
Other 25 (3) 22 98 (5) 93
Total revenue from continuing operations 7,130 (65) 7,065 8,103 (142) 7,961
Geographical areas:
UK 2,702 3,755
US 4,363 4,206
Total revenue from continuing operations 7,065 7,961
1. Sales between operating segments are priced having regard to the
regulatory and legal requirements to which the businesses are subject. The
analysis of revenue by geographical area is on the basis of destination. There
are no material sales between the UK and US geographical areas.
(b) Operating profit/(loss)
Total operating profit/(loss) before exceptional items and remeasurements Exceptional items and remeasurements Total operating profit/(loss) after exceptional items and remeasurements
Six months ended 30 September 2025 2024 2025 2024 2025 2024
£m £m £m £m £m £m
Operating segments - continuing operations:
UK Electricity Transmission 813 642 (3) - 810 642
UK Electricity Distribution 488 764 - (5) 488 759
UK Electricity System Operator - (364) - 151 - (213)
New England 81 89 (20) (2) 61 87
New York 73 (30) 5 (20) 78 (50)
National Grid Ventures 187 147 (61) (2) 126 145
Other (27) (38) (10) (23) (37) (61)
Total Group 1,615 1,210 (89) 99 1,526 1,309
Geographical areas:
UK 1,476 1,173 22 121 1,498 1,294
US 139 37 (111) (22) 28 15
Total Group 1,615 1,210 (89) 99 1,526 1,309
Total operating profit/(loss) before exceptional items and remeasurements Exceptional items and remeasurements Total operating profit/(loss) after exceptional items and remeasurements
Six months ended 30 September 2025 2024 2025 2024 2025 2024
£m £m £m £m £m £m
Reconciliation to profit before tax:
Operating profit from continuing operations 1,615 1,210 (89) 99 1,526 1,309
Share of post-tax results of joint ventures and associates 39 60 - (3) 39 57
Finance income 206 231 2 3 208 234
Finance costs (884) (901) (63) (15) (947) (916)
Total Group 976 600 (150) 84 826 684
2. Segmental analysis continued
The following items are included in the total operating profit by segment:
Depreciation, amortisation and impairment 30 September 2025 30 September 2024
£m £m
Operating segments:
UK Electricity Transmission (278) (267)
UK Electricity Distribution (133) (122)
New England (236) (221)
New York (376) (351)
National Grid Ventures (76) (92)
Other (3) (5)
Total (1,102) (1,058)
Asset type:
Property, plant and equipment (950) (936)
Non-current intangible assets (152) (122)
Total (1,102) (1,058)
(c) Capital investment
Capital investment represents additions to property, plant and equipment,
prepayments to suppliers to secure production capacity in relation to our
capital projects, non-current intangibles and additional equity investments in
joint ventures and associates. Capital investments exclude additions for
assets or businesses from the point they are classified as held for sale.
30 September 2025 30 September 2024
£m £m
Operating segments:
UK Electricity Transmission 1,684 1,290
UK Electricity Distribution 756 647
New England 958 814
New York 1,585 1,569
National Grid Ventures 69 279
Other - 4
Total 5,052 4,603
Asset type:
Property, plant and equipment 4,551 4,200
Non-current intangible assets 323 196
Equity investments in joint ventures and associates 15 102
Capital expenditure prepayments 163 105
Total 5,052 4,603
(d) Geographical analysis of non-current assets
Non-current assets by geography comprise goodwill, other intangible assets,
property, plant and equipment, investments in joint ventures and associates
and other non-current assets.
30 September 2025 31 March 2025
£m £m
Split by geographical area:
UK 44,625 42,623
US 46,253 46,131
Total 90,878 88,754
Reconciliation to total non-current assets:
Pension assets 2,424 2,489
Financial and other investments 795 798
Derivative financial assets 736 369
Non-current assets 94,833 92,410
3. Revenue
Under IFRS 15 'Revenue from Contracts with Customers', revenue is recorded as
or when the Group satisfies a performance obligation by transferring a
promised good or service to a customer. A good or service is transferred when
the customer obtains control of that good or service.
The transfer of control of our distribution or transmission services coincides
with the use of our network, as electricity and gas pass through our network
and reach our customers. The Group principally satisfies its performance
obligations over time and the amount of revenue recorded corresponds to the
amounts billed and accrued for volumes of gas and electricity
delivered/transferred to/from our customers.
Revenue for the six months UK Electricity Transmission UK Electricity Distribution New New National Grid Ventures Other Total
ended 30 September 2025 £m £m England York £m £m £m
£m £m
Revenue under IFRS 15
Transmission 1,293 - 49 163 423 - 1,928
Distribution - 860 1,421 2,477 - - 4,758
Other(1) 13 34 4 8 14 2 75
Total IFRS 15 revenue 1,306 894 1,474 2,648 437 2 6,761
Other revenue
Generation - - (1) - 178 - 177
Other(2) 100 2 20 19 (34) 20 127
Total other revenue 100 2 19 19 144 20 304
Total revenue from continuing operations 1,406 896 1,493 2,667 581 22 7,065
Geographic split of revenue for the six months ended 30 September 2025 UK Electricity Transmission UK Electricity Distribution New England New National Grid Ventures Other Total
£m £m £m York £m £m £m
£m
Revenue under IFRS 15
UK 1,306 894 - - 423 - 2,623
US - - 1,474 2,648 14 2 4,138
Total IFRS 15 revenue 1,306 894 1,474 2,648 437 2 6,761
Other revenue
UK 100 2 - - (38) 15 79
US - - 19 19 182 5 225
Total other revenue 100 2 19 19 144 20 304
Total revenue from continuing operations 1,406 896 1,493 2,667 581 22 7,065
1. The UK Electricity Transmission and UK Electricity Distribution other
IFRS 15 revenue principally relates to engineering recharges, which are the
recovery of costs incurred for construction work requested by customers, such
as the re-routing of existing network assets.
2. Other revenue, recognised in accordance with accounting standards other
than IFRS 15, includes property sales by our UK commercial property business,
net fair value gains and losses in respect of investments in our National Grid
Partners business, rental income, income arising in connection with the
Transition Services Agreements in place following the sales of the UK Gas
Transmission business and the ESO, and an adjustment to NGV revenue in respect
of the interconnector cap and floor and Use of Revenue regimes constructed by
Ofgem.
3. Revenue continued
Revenue for the six months ended 30 September 2024 UK Electricity Transmission UK Electricity Distribution UK Electricity System Operator New England New York National Grid Ventures Other Total
£m £m £m £m £m £m £m £m
Revenue under IFRS 15
Transmission 1,116 - 46 46 126 430 - 1,764
Distribution - 1,113 - 1,468 2,181 - 1 4,763
System Operator - - 966 - - - - 966
Other(1) 16 49 - 4 8 43 - 120
Total IFRS 15 revenue 1,132 1,162 1,012 1,518 2,315 473 1 7,613
Other revenue
Generation - - - - - 191 - 191
Other(2) 50 2 - 27 26 (40) 92 157
Total other revenue 50 2 - 27 26 151 92 348
Total revenue from continuing operations 1,182 1,164 1,012 1,545 2,341 624 93 7,961
Geographic split of revenue for the six months ended 30 September 2024 UK Electricity Transmission UK Electricity Distribution UK Electricity System Operator New England New York National Grid Ventures Other Total
£m £m £m £m £m £m £m £m
Revenue under IFRS 15
UK 1,132 1,162 1,012 - - 430 - 3,736
US - - - 1,518 2,315 43 1 3,877
Total IFRS 15 revenue 1,132 1,162 1,012 1,518 2,315 473 1 7,613
Other revenue
UK 50 2 - - - (38) 5 19
US - - - 27 26 189 87 329
Total other revenue 50 2 - 27 26 151 92 348
Total revenue from continuing operations 1,182 1,164 1,012 1,545 2,341 624 93 7,961
1. The UK Electricity Transmission and UK Electricity Distribution other
IFRS 15 revenue principally relates to engineering recharges, which are the
recovery of costs incurred for construction work requested by customers, such
as the re-routing of existing network assets. Within NGV, the other IFRS 15
revenue principally relates to revenue generated by NG Renewables.
2. Other revenue, recognised in accordance with accounting standards other
than IFRS 15, includes property sales by our UK commercial property business,
net fair value gains and losses in respect of investments in our National Grid
Partners business, rental income, income arising in connection with the
Transition Services Agreements in place following the sales of The
Narragansett Electric Company (NECO), the UK Gas Transmission business and the
NESO, and an adjustment to NGV revenue in respect of the interconnector cap
and floor and Use of Revenue regimes constructed by Ofgem.
4. Exceptional items and remeasurements
To monitor our financial performance, we use an adjusted profit measure that
excludes exceptional items and remeasurements. We exclude certain income and
expenses from adjusted profit because, if included, these items could distort
understanding of our performance for the period and the comparability between
periods.
With respect to restructuring costs, these represent additional expenses
incurred that are not related to normal business and day‑to-day activities.
These can take place over multiple reporting periods given the scale of the
Group, the nature and complexity of the transformation initiatives and due to
the impact of strategic transactions. In determining the facts and
circumstances, management considers factors such as ensuring consistent
treatment between favourable and unfavourable transactions, the precedent for
similar items, the number of periods over which costs will be spread or gains
earned, and the commercial context for the particular transaction. Management
uses an exceptional items framework that has been discussed and approved by
the Audit & Risk Committee, as detailed in note 5 of the Annual Report and
Accounts for the year ended 31 March 2025.
Remeasurements comprise unrealised gains or losses recorded in the
consolidated income statement arising from changes in the fair value of
certain of our financial assets and liabilities accounted for at fair value
through profit and loss (FVTPL). Once the fair value movements are realised
(for example, when the derivative matures), the previously recognised fair
value movements are then reversed through remeasurements and recognised within
earnings before exceptional items and remeasurements. These assets and
liabilities include commodity contract derivatives and financing derivatives
to the extent that hedge accounting is not available or is not fully
effective. The unrealised gains or losses reported in profit and loss on
certain additional assets and liabilities treated at FVTPL are also classified
within remeasurements. These relate to financial assets (which fail the
'solely payments of principal and interest test' under IFRS 9), the money
market fund investments used by Group Treasury for cash management purposes
and the net foreign exchange gains and losses on borrowing activities. These
are offset by foreign exchange gains and losses on financing derivatives
measured at fair value. In all cases, these fair values increase or decrease
because of changes in foreign exchange, commodity or other financial indices
over which we have no control.
Six months ended 30 September 2025 Exceptional items Remeasurements Total
£m £m £m
Included within operating profit from continuing operations
Net loss on disposal of NG Renewables (96) - (96)
Major transformation programme (15) - (15)
Transaction, separation and integration costs (19) - (19)
Changes in environmental provisions 25 - 25
Net gains on commodity contract derivatives - 16 16
(105) 16 (89)
Included within net finance costs (note 5)
Net losses on derivative financial instruments - (63) (63)
Net gains on financial assets at fair value through profit and loss - 2 2
- (61) (61)
Total included within profit before tax from continuing operations (105) (45) (150)
Tax on exceptional items and remeasurements 2 13 15
Total exceptional items and remeasurements after tax from (103) (32) (135)
continuing operations
4. Exceptional items and remeasurements continued
Six months ended 30 September 2024 Exceptional items Remeasurements Total
£m £m £m
Included within operating profit from continuing operations
Provision for UK electricity balancing costs 151 - 151
Major transformation programme (42) - (42)
Changes in environmental provisions (1) - (1)
Net losses on commodity contract derivatives - (9) (9)
108 (9) 99
Included within net finance costs (note 5)
Net losses on derivative financial instruments - (15) (15)
Net gains on financial assets at fair value through profit and loss - 3 3
- (12) (12)
Included within share of post-tax results of joint ventures and associates
Net losses on financial instruments - (3) (3)
- (3) (3)
Total included within profit before tax from continuing operations 108 (24) 84
Tax on exceptional items and remeasurements 11 6 17
Total exceptional items and remeasurements after tax from 119 (18) 101
continuing operations
Net loss on disposal of NG Renewables: In the period ended 30 September 2025
the Group recognised a net loss of £96 million (before tax) on the disposal
of its interest in National Grid Renewables Development LLC (NG Renewables) to
Brookfield Asset Management for cash consideration of £1.5 billion ($2.1
billion) (see note 6). The receipt of cash has been recognised within net cash
used in investing activities within the consolidated cash flow statement.
Major transformation programme: Following the announcement of our strategic
priorities in May 2024, the Group entered into a four-year transformation
programme designed to implement our refreshed strategy to be a pre‑eminent
pureplay networks business. In the period, the Group incurred a further £15
million (2024: £42 million) of costs in relation to the programme. The costs
recognised primarily relate to technology implementation costs, employee costs
and professional fees incurred in delivering the programme. Whilst the costs
incurred in the six-month period do not meet the quantitative threshold to be
classified as exceptional on a standalone basis, when taken in aggregate with
the costs expected to be incurred to date and over the duration of the
programme, we have concluded that the costs should be classified as
exceptional in line with our exceptional items policy. Estimated costs
expected to be incurred in future years are disclosed in the Financial review
on page 1 (#Page13) 3 (#Page13) . The total cash outflow for the period was
£14 million (2024: £33 million).
Transaction, separation and integration costs: In the prior year, we announced
the sale of NG Renewables and Grain LNG as part of our strategic focus on
becoming a leading pureplay networks business. Transaction and separation
costs of £19 million were incurred in the period in relation to the planned
disposal of Grain LNG. The costs incurred primarily related to professional
fees and employee costs. These costs have been classified as exceptional in
accordance with our exceptional items policy. While the costs incurred in the
current period in isolation are not sufficiently material to warrant
classification as an exceptional item, when taken in aggregate with the
disposal, which is expected to complete in the year ended 31 March 2026, the
impact to the consolidated income statement incurred will be sufficiently
material to be classified as exceptional in line with our policy. The total
cash outflow for the year was £11 million.
4. Exceptional items and remeasurements continued
Changes in environmental provisions: In the US, we recognise environmental
provisions related to the remediation of the Gowanus Canal, Newtown Creek and
the former manufacturing gas plant facilities previously owned or operated by
the Group or its predecessor companies. The sites are subject to both state
and federal environmental remediation laws in the US. Potential liability for
the historical contamination may be imposed on responsible parties jointly and
severally, without regard to fault, even if the activities were lawful when
they occurred. The provisions and the Group's share of estimated costs are
re-evaluated at each reporting period. In the period, following discussions
with the Environmental Protection Agency on the scope and design of
remediation activities related to the Gowanus site, we re-evaluated our
estimates of total costs and recognised a reduction of £25 million (2024: £1
million). Under the terms of our rate plans, we are entitled to recovery of
environmental clean-up costs from rate payers in future reporting periods.
Such recoveries through overall allowed revenues are not classified as
exceptional in the future periods that they occur due to the extended duration
over which such costs are recovered and the immateriality of the recoveries in
any given year.
Provision for UK electricity balancing costs: During the year ended 31 March
2024, the ESO's operating profit increased due to a substantial over-recovery
of allowed revenues received under its regulatory framework. Under IFRS a
corresponding liability is not recognised for the return of over-recoveries as
this relates to future customers and services that have not yet been
delivered. Following legislation to enable the separation of the ESO and the
formation of the National Energy System Operator, the Group recognised a
liability of £498 million representing the element of the over-recovery that
would be settled through the sale process. In the prior period, the liability
was remeasured to reflect the final amount of over-recovered revenues which
transferred through on disposal.
5. Finance income and costs
2025 2024
Six months ended 30 September Notes £m £m
Finance income before exceptional items and remeasurements
Interest income from financing activities 126 143
Net interest on pensions and other post-retirement benefit obligations 50 50
Other interest income 30 38
206 231
Finance costs before exceptional items and remeasurements
Interest expense on financial instruments(1) (999) (950)
Unwinding of discount on provisions and other liabilities (63) (64)
Other interest (11) (21)
Less: interest capitalised(2) 189 134
(884) (901)
Net finance costs before exceptional items and remeasurements (678) (670)
Total exceptional items and remeasurements(3) 4 (61) (12)
Net finance costs including exceptional items and remeasurements (739) (682)
from continuing operations
1. Finance costs include principal accretion on inflation-linked debt of
£115 million (2024: £87 million) and principal accretion on inflation-linked
swaps of £nil (2024: £4 million income).
2. Interest on funding attributable to assets in the course of construction
in the current period was capitalised at a rate of 4.5% (2024: 4.3%). In the
UK, capitalised interest qualifies for a current year tax deduction with tax
relief claimed of £27 million (2024: £16 million). In the US, capitalised
interest is added to the cost of property, plant and equipment and qualifies
for tax depreciation allowances.
3. Includes a net foreign exchange gain on borrowing activities, offset by
foreign exchange gains and losses on financing derivatives measured at fair
value.
6. Assets held for sale
Assets and businesses are classified as held for sale when their carrying
amounts are recovered through sale rather than through continuing use. They
only meet the held for sale condition when the assets are ready for immediate
sale in their present condition, management is committed to the sale and it is
highly probable that the sale will complete within one year. Once assets and
businesses are classified as held for sale, depreciation and equity accounting
ceases and the assets and businesses are remeasured if their carrying value
exceeds their fair value less expected costs to sell.
The results and cash flows of assets or businesses classified as held for sale
or sold during the year, that meet the criteria of being a major separate line
of business or geographical area of operation, are shown separately from our
continuing operations, and presented within discontinued operations in the
income statement and cash flow statement.
The following assets and liabilities were classified as held for sale:
30 September 2025 31 March 2025
Total assets Total liabilities held for sale Net assets/(liabilities) held for sale Total assets Total liabilities held for sale Net assets/(liabilities)
held for sale £m £m held for sale £m held for sale
£m £m £m
National Grid Renewables - - - 1,528 (108) 1,420
Grain LNG 1,146 (328) 818 1,100 (326) 774
Net assets/(liabilities) held for sale 1,146 (328) 818 2,628 (434) 2,194
National Grid Renewables
On 24 February 2025, the Group agreed to sell NG Renewables, its US onshore
renewables business, to Brookfield Asset Management. The disposal subsequently
completed on 29 May 2025 for consideration of £1,531 million ($2,061 million)
and remains subject to certain completion adjustments. As NG Renewables did
not represent a separate major line of business or geographical operation, it
did not meet the criteria for classification as discontinued operations and
therefore the results for the period are not separately disclosed on the face
of the income statement.
Financial information relating to the loss arising on the disposal of NG
Renewables is set out below:
£m
Goodwill 51
Property, plant and equipment 438
Investment in joint venture 906
Trade and other receivables 141
Cash and cash equivalents 58
Financial investments 41
Other assets 66
Total assets on disposal 1,701
Borrowings (2)
Other liabilities (159)
Total liabilities on disposal (161)
Net assets on disposal 1,540
Satisfied by:
Proceeds 1,531
Total consideration 1,531
Less:
Disposal-related costs (11)
Loss on disposal before tax and reclassification of foreign currency (20)
translation reserve
Reclassification of foreign currency translation reserve¹ (76)
Tax 5
Post-tax loss on disposal (91)
1. The reclassification of the foreign currency translation reserve
attributable to NG Renewables comprises a loss of £84 million relating to the
retranslation of NG Renewables' operations offset by a gain of £8 million
relating to borrowings, cross-currency swaps and foreign exchange forward
contracts used to hedge the Group's net investment in NG Renewables.
NG Renewables generated loss after tax of £14 million for the period until 29
May 2025 (2024: £17 million loss).
6. Assets held for sale continued
Grain LNG
On 14 August 2025, the Group agreed to sell Grain LNG, its UK LNG asset, to a
consortium of multinational energy company, Centrica plc and energy transition
infrastructure investment firm, Energy Capital Partners LLC, part of
Bridgepoint Group plc. The terms of the transaction comprise total proceeds of
approximately £1.66 billion, subject to certain completion adjustments, and
the sale is expected to complete in the second half of the financial year
ending 31 March 2026 following the receipt of all customary government and
regulatory approvals.
As the sale is considered to be highly probable and expected to complete
within a year, the associated assets and liabilities have been presented as
held for sale in the consolidated statement of financial position at 30
September 2025. However, as Grain LNG does not represent separate major lines
of business or geographical operations, it has not met the criteria for
classification as a discontinued operation and therefore its results for the
period are not separately disclosed on the face of the income statement.
The following assets and liabilities were classified as held for sale at 30
September 2025.
Grain LNG
£m
Other intangible assets 26
Property, plant and equipment 949
Trade and other receivables 30
Cash and cash equivalents 122
Other assets 19
Total assets 1,146
Borrowings (133)
Other liabilities (195)
Total liabilities (328)
Net assets 818
No impairment losses were recognised on reclassification of the Grain LNG
assets and liabilities classified to held for sale. The profit after tax for
Grain LNG for the period ended 30 September 2025 was £68 million (2024: £69
million).
7. Tax from continuing operations
The tax charge from continuing operations for the six month period ended 30
September 2025 is £208 million (2024: £112 million), and before tax on
exceptional items and remeasurements, is £223 million (2024: £129 million).
It is based on management's estimate of the weighted average effective tax
rate by jurisdiction expected for the full year. The effective tax rate
excluding tax on exceptional items and remeasurements is 22.8% (2024: 21.5%),
which includes the impact of our share of post-tax results of joint ventures
and associates. The half year effective tax rate before exceptional items and
remeasurements, including our share of post-tax results of joint ventures and
associates, is lower than the Group's full year effective tax rate, as shown
below, primarily as a result of seasonality of earnings in the US Group.
For the full year, we expect the Group's effective tax rate excluding tax on
exceptional items and remeasurements to be around 25% which includes the
impact of our share of post-tax results of joint ventures and associates. The
effective tax rate for the year ended 31 March 2025 before exceptional items
and remeasurements was 24.7% including the impact of our share of post-tax
results of joint ventures and associates.
8. Earnings per share
Earnings per share (EPS), excluding exceptional items and remeasurements are
provided to reflect the adjusted profit subtotals used by the Group, as set
out in note 1. The earnings per share calculations are based on profit after
tax attributable to equity shareholders of the parent company which excludes
non-controlling interests.
(a) Basic earnings per share
Earnings EPS Earnings EPS
Six months ended 30 September 2025 2025 2024 2024
£m pence £m pence
Profit after tax before exceptional items and remeasurements - continuing 752 15.3 470 10.4
Exceptional items and remeasurements after tax - continuing (135) (2.7) 101 2.2
Profit after tax from continuing operations attributable to the parent 617 12.6 571 12.6
Profit after tax before exceptional items and remeasurements - discontinued - - 4 0.1
Exceptional items and remeasurements after tax - discontinued - - 72 1.6
Profit after tax from discontinued operations attributable to the parent - - 76 1.7
Total profit after tax before exceptional items and remeasurements 752 15.3 474 10.5
Total exceptional items and remeasurements after tax (135) (2.7) 173 3.8
Total profit after tax attributable to the parent 617 12.6 647 14.3
2025 2024
millions millions
Weighted average number of shares - basic 4,926 4,526
(b) Diluted earnings per share
Earnings EPS Earnings EPS
Six months ended 30 September 2025 2025 2024 2024
£m pence £m pence
Profit after tax before exceptional items and remeasurements - continuing 752 15.2 470 10.3
Exceptional items and remeasurements after tax - continuing (135) (2.7) 101 2.3
Profit after tax from continuing operations attributable to the parent 617 12.5 571 12.6
Profit after tax before exceptional items and remeasurements - discontinued - - 4 0.1
Exceptional items and remeasurements after tax - discontinued - - 72 1.5
Profit after tax from discontinued operations attributable to the parent - - 76 1.6
Total profit after tax before exceptional items and remeasurements 752 15.2 474 10.4
Total exceptional items and remeasurements after tax (135) (2.7) 173 3.8
Total profit after tax attributable to the parent 617 12.5 647 14.2
2025 2024
millions millions
Weighted average number of shares - diluted 4,950 4,547
9. Dividends
Pence Cash Scrip
per share dividend dividend
paid £m
£m
Ordinary dividends
Final dividend in respect of the year ended 31 March 2025 30.88 894 617
Interim dividend in respect of the year ended 31 March 2025 15.84 718 59
Final dividend in respect of the year ended 31 March 2024 39.12 811 643
The Directors are proposing an interim dividend of 16.35 pence per share to be
paid in respect of the year ending 31 March 2026. This would distribute
approximately £811 million of shareholders' equity.
A final dividend for the year ended 31 March 2025 of 30.88 pence per share was
paid in July 2025. The cash dividend paid was £894 million with an additional
£617 million settled via a scrip issue.
10. Fair value measurement
Assets and liabilities measured at fair value
Included in the statement of financial position are certain financial assets
and liabilities which are measured at fair value. The following table
categorises these assets and liabilities by the valuation methodology applied
in determining their fair value using the fair value hierarchy described on
page 237 of the Annual Report and Accounts for the year ended 31 March 2025.
30 September 2025 31 March 2025
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
£m £m £m £m £m £m £m £m
Assets
Investments held at fair value through profit and loss 2,635 - 406 3,041 5,156 - 407 5,563
Investments held at fair value through other comprehensive income(1) - 382 - 382 - 384 - 384
Financing derivatives - 822 29 851 - 344 31 375
Commodity contract derivatives - 73 52 125 - 102 5 107
2,635 1,277 487 4,399 5,156 830 443 6,429
Liabilities
Financing derivatives - (755) (90) (845) - (1,043) (95) (1,138)
Commodity contract derivatives - (56) (12) (68) - (39) (25) (64)
- (811) (102) (913) - (1,082) (120) (1,202)
Total 2,635 466 385 3,486 5,156 (252) 323 5,227
1. Investments held include instruments which meet the criteria of IFRS 9 or
IAS 19.
The estimated fair value of total borrowings, excluding lease liabilities,
using market values at 30 September 2025 is £42,201 million (31 March 2025:
£43,137 million).
Our Level 1 financial investments and liabilities held at fair value are
valued using quoted prices from liquid markets and primarily comprise
investments in short-term money market funds.
Our Level 2 financial investments held at fair value primarily include bonds
with a tenor greater than one year and are valued using quoted prices for
similar instruments in active markets, or quoted prices for identical or
similar instruments in inactive markets. Alternatively, they are valued using
models where all significant inputs are based directly or indirectly on
observable market data.
Our Level 2 financing derivatives include cross-currency, interest rate and
foreign exchange derivatives. We value these derivatives by discounting all
future cash flows by externally sourced market yield curves at the reporting
date, taking into account the credit quality of both parties. These
derivatives can be priced using liquidly traded interest rate curves and
foreign exchange rates, and therefore we classify our vanilla trades as Level
2 under the IFRS 13 framework.
Our Level 2 US commodity contract derivatives include over-the-counter gas and
power swaps as well as forward physical gas deals. We value our contracts
based on market data obtained from the New York Mercantile Exchange (NYMEX)
and the Intercontinental Exchange (ICE), where monthly prices are available.
We discount based on externally sourced market yield curves at the reporting
date, taking into account the credit quality of both parties and liquidity in
the market. Our commodity contracts can be priced using liquidly traded swaps.
Therefore, we classify our vanilla trades as Level 2 under the IFRS 13
framework.
Our Level 3 financing derivatives include inflation-linked swaps, where the
market is illiquid. In valuing these instruments we use in-house valuation
models and obtain external valuations to support each reported fair value.
Our Level 3 UK commodity contract derivatives consist of UK electricity
capacity swaps.
Our Level 3 US commodity contract derivatives primarily consist of our forward
purchases of electricity and gas that we value using proprietary models.
Derivatives are classified as Level 3 where significant inputs into the
valuation technique are neither directly nor indirectly observable (including
our own data, which are adjusted, if necessary, to reflect the assumptions
market participants would use in the circumstances).
10. Fair value measurement continued
Our Level 3 investments include equity instruments accounted for at fair value
through profit and loss. These equity holdings are part of our corporate
venture capital portfolio held by National Grid Partners and comprise a series
of relatively small, early-stage non-controlling minority interest unquoted
investments where prices or valuation inputs are unobservable. Out of 38
equity investments, 11 are fair valued based on the latest transaction price
(a price within the last 12 months), either being the price we paid for the
investments, marked to a latest round of funding and adjusted for our
preferential rights or based on an internal model. In addition, we have 25
investments without a transaction in the last 12 months that underwent an
internal valuation process using the Black-Scholes Murton Option Pricing Model
(OPM Backsolve). Between 12 and 18 months a blend between OPM Backsolve and
other techniques are utilised such as proxy group revenue multiples,
discounted cash flow, comparable company analysis and probability weighted
expected return approach in order to triangulate a valuation. After 18 months
the valuation is based on these alternative methods as the last fundraising
price is no longer a reliable basis for valuation.
Our Level 3 investments also include our investment in Sunrun Neptune 2016
LLC, which is accounted for at fair value through profit and loss. The
investment is fair valued by discounting expected cash flows using a weighted
average cost of capital specific to Sunrun Neptune 2016 LLC.
The impacts on a post-tax basis of reasonably possible changes in significant
assumptions used in valuing assets and liabilities classified within Level 3
of the fair value hierarchy are as follows:
Financing derivatives Commodity contract derivatives Other
Six months ended 30 September 2025 2024 2025 2024 2025 2024
£m £m £m £m £m £m
10% increase in commodity prices - - 3 2 - -
10% decrease in commodity prices - - (2) (2) - -
+10% market area price change - - 1 11 - -
-10% market area price change - - (2) (10) - -
+20 basis point increase in Limited Price Index (32) (40) - - - -
(LPI) market curve
-20 basis point decrease in LPI market curve 30 38 - - - -
+20 basis point increase between Retail Price Index (RPI) and Consumer Price 29 36 - - - -
Index (CPI)
-20 basis point decrease between RPI and CPI (27) (33) - - - -
+100 basis points change in discount rate - - - - (6) (6)
-100 basis points change in discount rate - - - - 7 7
+10% change in venture capital price - - - - 26 26
-10% change in venture capital price - - - - (26) (26)
The impacts disclosed above were considered on a contract by contract basis
with the most significant unobservable inputs identified. A reasonably
possible change in assumptions for other Level 3 assets and liabilities would
not result in a material change in fair values.
10. Fair value measurement continued
The changes in fair value of our level 3 financial assets and liabilities in
the six months to 30 September are presented below:
Financing derivatives Commodity contract derivatives Other(1) Total
2025 2024 2025 2024 2025 2024 2025 2024
£m £m £m £m £m £m £m £m
At 1 April (64) (64) (20) (13) 407 483 323 406
Net gains/(losses) through the consolidated income statement for the 3 12 72 (19) (9) (54) 66 (61)
period(2,3)
Purchases - - - - 9 19 9 19
Settlements - - (12) 4 (1) (42) (13) (38)
Reclassification/transfers out of level 3(4) - - - 10 - - - 10
At 30 September (61) (52) 40 (18) 406 406 385 336
1. Other comprises our investments in Sunrun Neptune 2016 LLC and the
investments made by National Grid Partners, which are accounted for at fair
value through profit and loss. Net gains and loss are recognised within
revenue in the consolidated income statement.
2. Gains of £3 million (2024: gains of £12 million) are attributable to
derivative financial instruments held at the end of the reporting period and
have been recognised in finance costs in the consolidated income statement.
3. Gains of £72 million (2024: losses of £19 million) are attributable to
the commodity contract derivative financial instruments held at the end of the
reporting period and have been recognised in other operating costs in the
consolidated income statement.
4. £10 million of US Commodity contract derivatives were reclassified out
of Level 3 to Level 2 in the prior period due to improved observability of the
fair value of these instruments.
The Group also has a number of financial instruments which are not measured at
fair value in the balance sheet. The carrying value of current financial
assets at amortised cost approximates their fair values, primarily due to
short-dated maturities.
11. Net debt
Net debt is comprised as follows:
30 September 2025 31 March 2025
£m £m
Cash and cash equivalents 887 1,178
Current financial investments 3,172 5,753
Borrowings and bank overdrafts (45,914) (47,539)
Financing derivatives(1) 6 (763)
Net debt (net of related derivative financial instruments) (41,849) (41,371)
1. Includes £3 million liability (31 March 2025: £45 million liability) in
relation to the hedging of capital expenditure. The cash flows related to
these derivatives are included within investing activities in the consolidated
cash flow statement which gives alignment with the presentation of the hedged
item. The financing derivatives balance included in net debt exclude the
commodity derivatives.
The following table splits out the total derivative balances on the face of
the consolidated statement of financial position by category:
30 September 2025 31 March 2025
Assets Liabilities Total Assets Liabilities Total
£m £m £m £m £m £m
Financing derivatives 851 (845) 6 375 (1,138) (763)
Commodity contract derivatives 125 (68) 57 107 (64) 43
Total derivative financial instruments 976 (913) 63 482 (1,202) (720)
12. Pensions and other post-retirement benefit obligations
30 September 2025 31 March 2025
£m £m
Present value of funded obligations (15,628) (16,154)
Fair value of plan assets 18,218 18,441
2,590 2,287
Present value of unfunded obligations (250) (247)
Other post-employment liabilities (44) (47)
2,296 1,993
Restrictions on asset recognised (221) (77)
Net defined benefit asset 2,075 1,916
Presented in consolidated statement of financial position:
Assets 2,424 2,489
Liabilities (349) (573)
2,075 1,916
Key actuarial assumptions 30 September 2025 31 March 2025
Discount rate - UK past service 5.76% 5.73%
Discount rate - US 5.30% 5.50%
Rate of increase in RPI - UK past service 2.81% 2.99%
The movement in the net pensions and other post-retirement benefit (OPEB)
obligations position in the period can be analysed as follows:
30 September 2025 30 September 2024
£m £m
Opening net defined benefit asset 1,916 1,814
Cost recognised in the income statement (25) (29)
Employer contributions 62 81
Remeasurements and foreign exchange 260 18
Other movements 2 (9)
Adjustments for restrictions on the defined benefit asset (140) -
Closing net defined benefit asset 2,075 1,875
The pension and OPEB surpluses in both the UK and the US of £1,041 million
and £1,383 million respectively (31 March 2025: £1,179 million and £1,310
million) continue to be recognised as assets under IFRIC 14 as explained on
page 216 of the Annual Report and Accounts for the year ended 31 March 2025.
The pension and OPEB surpluses are presented net of an irrecoverable surplus
of £221 million (31 March 2025: £77 million) related to one OPEB plan. The
economic benefit from reductions in future contributions to the plan is not
sufficient to cover the surplus and this plan does not have an unconditional
right to a refund of surplus assets in the event of a winding up without
incurring significant tax charges.
13. Commitments and contingencies
At 30 September 2025, there were commitments for future energy purchase
agreements of £13,649 million (31 March 2025: £13,880 million) and future
capital expenditure contracted but not provided for in relation to the
acquisition of property, plant and equipment of £6,520 million (31 March
2025: £4,949 million).
We also have contingencies in the form of certain guarantees and letters of
credit. These are described in further detail in note 30 to the Annual Report
and Accounts for the year ended 31 March 2025.
Legal and regulatory proceedings
Through the ordinary course of our operations, we are party to various
litigation, claims and investigations, including Ofgem's investigation into
the North Hyde substation incident. These investigations are ongoing. In the
case of the North Hyde incident, based on the available information, we
consider that there is no present obligation which could ultimately lead to a
cash outflow, following the outcome of the investigation. The potential
maximum penalty for a licence breach following an Ofgem investigation is 10%
of turnover. We continue to monitor this position and engage with ongoing
investigations. We do not expect the ultimate resolution of any other
proceedings to have a material adverse effect on our results of operations,
cash flows or financial position.
14. Exchange rates
The consolidated results are affected by the exchange rates used to translate
the results of our US operations and US dollar transactions. The US dollar to
pound sterling exchange rates used were:
30 September 2025 2024 Year ended 31 March 2025
Closing rate applied at period end 1.34 1.34 1.29
Average rate applied for the period 1.35 1.30 1.27
15. Related party transactions
Related party transactions in the six months ended 30 September 2025 were
substantially the same in nature to those disclosed in note 31 of the Annual
Report and Accounts for the year ended 31 March 2025. There were no other
related party transactions in the period that have materially affected the
financial position or performance of the Group.
16. Post balance sheet events
In the period between 1 October 2025 and 5 November 2025, there have been no
significant post balance sheet events.
Principal risks and uncertainties
When preparing the half year financial information the risks as reported in
the Annual Report and Accounts for the year ended 31 March 2025 (Group
Principal Risks on pages 35-41 and inherent risks on pages 262-268) were
reviewed to ensure that the disclosures remained appropriate and adequate.
Below is a summary of our key risks as at 30 September 2025:
People risks
■ There is a risk that we do not have, across our workforce and within
our leadership, the capability or capacity necessary to deliver on existing or
future commitments because of ineffective planning for future people needs,
insufficient development of people and failure to attract and retain people in
a competitive market for skills and talent, leading to failure to deliver on
our business goals, strategic priorities and vision to be at the heart of a
clean, fair and affordable energy future.
Financial risks
■ There is a risk that we are unable to fund our business efficiently as
a result of a lack of access to a wide pool of equity and debt investors,
market volatility, unsatisfactory regulatory outcomes or unsatisfactory
financial or operational performance of the business, leading to a lack of
access to capital, impacting our ability to achieve our strategic objectives,
including our proposed capital investment programme.
Strategic risks
■ There is a risk that we fail to influence future energy policies and
secure satisfactory regulatory agreements because of lack of insight or
unsuccessful negotiations, given the scale of investment needed to meet load
growth and clean energy requirements, while balancing affordability and
reliability concerns. This may lead to poor regulatory outcomes, energy
policies that negatively impact our operations, reduced financial performance,
fines/penalties, increased costs to remain compliant and/or reputational
damage.
■ There is a risk that we fail to identify and/or deliver upon the
actions necessary to meet our climate change targets because of poor
monitoring and response to external developments associated with mitigating
climate change. This could lead to legal risks or reputational impacts of not
meeting our climate change targets and in the longer term reaching net zero by
2050.
■ There is a risk that we do not position ourselves appropriately to
political and societal expectations because of a failure to proactively
monitor the landscape or to anticipate and respond to changes leading to
reputational damage, political intervention, threats to the Group's licences
to operate and our ability to achieve our objectives.
Operational risks
■ There is a risk that we are unable to adequately anticipate and manage
disruptive forces on our systems because of a cyber-attack, poor recovery of
critical systems or malicious external or internal parties resulting in an
inability to operate the network, damage to assets, loss of confidentiality,
integrity and/or availability of systems.
■ There is a risk of failure to predict and respond adequately to
significant energy disruption events to our assets resulting from asset
failure (including third party interactions e.g. control systems protection
etc.), climate change, storms, attacks or other emergency events leading to
significant customer harm, lasting reputational damage with customers,
regulators and politicians, material financial losses, loss of franchise or
significant damage to investor confidence.
■ There is a risk of failure to prepare and respond adequately to
disruptions in energy supply that are outside our control because of third
party asset failure, system imbalances, and customer demand outstripping
capacity, with potential adverse impacts on our customers, reputational
damage, cost increases and regulatory consequences.
■ There is a risk of a catastrophic asset failure because of failure of a
critical asset or system, substandard operational performance or inadequate
maintenance, third-party damage and undetected system anomalies leading to a
significant public or employee safety and/or environmental event.
■ There is a risk that we are unable to deliver on our major capital
project programme within the required time-frames because of misalignment or
lack of clarity with regulatory expectations, unclear financial frameworks to
incentivise investment, complex planning requirements, external impacts on
supply chain or a failure to demonstrate clear, long-term economic benefits to
communities leading to increased costs, compromised quality, reputational
damage and detrimentally impacting our ability to deliver our clean energy
transition strategy.
Statement of Directors' responsibilities
The half year financial information is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for preparing the
half year financial information in accordance with the Disclosure Guidance and
Transparency Rules (DTR) of the United Kingdom's Financial Conduct Authority.
The Directors confirm that to the best of their knowledge:
a) the condensed consolidated interim financial statements have been
prepared in accordance with IAS 34 'Interim Financial Reporting' as issued by
the International Accounting Standards Board and as adopted by the United
Kingdom;
b) the half year management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events during the
first six months and description of principal risks and uncertainties for the
remaining six months of the year); and
c) the half year management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
By order of the Board
……………………..............……………………..............
John Pettigrew Andy
Agg
5 November 2025 5 November
2025
Chief Executive Chief
Financial Officer
Independent Review Report to National Grid plc
Conclusion
We have been engaged by the Company (National Grid plc) to review the
condensed consolidated set of financial statements in the half-yearly
financial report for the six months ended 30 September 2025 which comprises
the consolidated income statement, the consolidated statement of comprehensive
income, the consolidated statement of changes in equity, the consolidated cash
flow statement and related notes 1 to 16 (collectively referred to as the
'interim financial information').
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 September 2025 is not prepared,
in all material respects, in accordance with United Kingdom adopted
International Accounting Standard 34 and the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim
financial information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with United Kingdom adopted international accounting
standards. The condensed set of financial statements included in this
half-yearly financial report has been prepared in accordance with United
Kingdom adopted International Accounting Standard 34, 'Interim Financial
Reporting'.
Conclusion relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that the Directors have
inappropriately adopted the going concern basis of accounting or that the
Directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This Conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410; however future events or conditions may cause the entity to
cease to continue as a going concern.
Responsibilities of the Directors
The Directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the Directors are responsible
for assessing the Group's ability to continue as a going concern, disclosing
as applicable, matters related to going concern and using the going concern
basis of accounting unless the Directors either intend to liquidate the
Company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the review of the financial information
In reviewing the half-yearly financial report, we are responsible for
expressing to the Company a conclusion on the condensed consolidated set of
financial statements in the half-yearly financial report. Our Conclusion,
including our Conclusion Relating to Going Concern, are based on procedures
that are less extensive than audit procedures, as described in the Basis for
Conclusion paragraph of this report.
Use of our report
This report is made solely to the Company in accordance with ISRE (UK) 2410.
Our work has been undertaken so that we might state to the Company those
matters we are required to state to it in an independent review report and for
no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company, for our review work,
for this report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
London, United Kingdom
5 November 2025
Alternative performance measures/
non-IFRS reconciliations
Within the Half Year Results Statement, a number of financial measures are
presented. Some of these measures have been categorised as alternative
performance measures (APMs), as per the European Securities and Markets
Authority (ESMA) guidelines and the Securities and Exchange Commission (SEC)
conditions for use of non-IFRS Financial Measures.
An APM is a financial measure of historical or future financial performance,
financial position, or cash flows, other than a financial measure defined
under IFRS. The Group uses a range of these measures to provide a better
understanding of its underlying performance. APMs are reconciled to the most
directly comparable IFRS financial measure where practicable.
The Group has defined the following financial measures as APMs derived from
IFRS within the Half Year Results Statement: net revenue, the various adjusted
operating profit, earnings and earnings per share metrics detailed in the
'adjusted profit measures' section below. For each of these we present a
reconciliation to the most directly comparable IFRS measure. We present
'constant currency' comparative period performance and capital investment by
applying the current period average exchange rate to the relevant US dollar
amounts in the comparative periods presented, to remove the year-on-year
impact of foreign exchange translation.
Net revenue and underlying net revenue
'Net revenue' is revenue less pass-through costs, such as system balancing
costs, and gas and electricity commodity costs in the US. Pass-through costs
are fully recoverable from our customers and are recovered through separate
charges that are designed to recover those costs with no profit. Any over- or
under-recovery of these costs is returned to, or recovered from, our
customers. Underlying net revenue further adjusts this to reflect the impact
of 'timing', i.e. the in-year difference between allowed and collected
revenues, including revenue incentives, as governed by our rate plans in the
US or regulatory price controls in the UK (but excluding totex-related
allowances and adjustments).
2025
Six months ended 30 September Gross revenue Pass- Net revenue Timing Underlying net revenue
£m through £m £m £m
costs
£m
UK Electricity Transmission 1,443 (194) 1,249 33 1,282
UK Electricity Distribution 901 (98) 803 63 866
UK Electricity System Operator - - - - -
New England 1,493 (604) 889 211 1,100
New York 2,667 (1,046) 1,621 370 1,991
National Grid Ventures 601 - 601 - 601
Other 25 - 25 - 25
Sales between segments (65) - (65) - (65)
Total from continuing operations 7,065 (1,942) 5,123 677 5,800
2024
Six months ended 30 September Gross revenue Pass- Net revenue Timing Underlying net revenue
£m through £m £m £m
costs
£m
UK Electricity Transmission 1,274 (203) 1,071 82 1,153
UK Electricity Distribution 1,166 (95) 1,071 (191) 880
UK Electricity System Operator 1,029 (1,217) (188) 479 291
New England 1,545 (663) 882 148 1,030
New York 2,341 (869) 1,472 318 1,790
National Grid Ventures 650 - 650 - 650
Other 98 - 98 - 98
Sales between segments (142) - (142) - (142)
Total from continuing operations 7,961 (3,047) 4,914 836 5,750
Alternative performance measures/non-IFRS reconciliations continued
Adjusted profit measures
In considering the financial performance of our business and segments, we use
various adjusted profit measures in order to aid comparability of results
year-on-year. The various measures are presented on page 1 (#Page12) 2
(#Page12) and reconciled below.
Adjusted results: These exclude the impact of exceptional items and
remeasurements that are treated as discrete transactions under IFRS and can
accordingly be classified as such. Further details of these items are included
in note 4.
Underlying results: Further adapts our adjusted results to take account of
volumetric and other revenue timing differences arising due to the in-year
difference between allowed and collected revenues, including revenue
incentives, as governed by our rate plans in the US or regulatory price
controls in the UK (but excluding totex-related allowances and adjustments).
As defined on page 82 of the Annual Report and Accounts for the year ended 31
March 2025, major storm costs are costs (net of certain deductibles) that are
recoverable under our US rate plans but expensed as incurred under IFRS. Where
the total incurred costs (after deductibles and allowances) exceed $100
million in any given year we also exclude the net amount from underlying
earnings. Underlying results also exclude deferred tax in our UK regulated
business (NGET and NGED). Our UK regulated revenue contain an allowance for
current tax, but not for deferred tax, so excluding the IFRS deferred tax
charge aligns our underlying results APM more closely with our regulatory
performance measures. Group underlying EPS is one of the incentive targets set
annually and part of the LTPP target for remunerating certain Executive
Directors.
Constant currency: 'Constant Currency Basis' refers to the reporting of the
actual results against the results for the same period last year which, in
respect of any US dollar currency-denominated activity, have been translated
using the weighted average US dollar exchange rate for the six months ended 30
September 2025, which was $1.35 to £1.00. The weighted average rate for the
six months ended 30 September 2024, was $1.30 to £1.00. Assets and
liabilities as at 30 September 2025 have been retranslated at the closing rate
at 30 September 2025 of $1.34 to £1.00. The closing rate for the balance
sheet date 31 March 2025 was $1.29 to £1.00.
Alternative performance measures/non-IFRS reconciliations continued
Reconciliation of Statutory, Adjusted and Underlying Profits and Earnings - at
actual exchange rates - continuing operations
Six months ended 30 September 2025 Statutory Exceptionals and remeasurements Adjusted Timing Deferred tax on underlying profits in NGET and NGED Underlying
£m £m £m £m £m £m
UK Electricity Transmission 810 3 813 33 - 846
UK Electricity Distribution 488 - 488 63 - 551
UK Electricity System Operator - - - - - -
New England 61 20 81 211 - 292
New York 78 (5) 73 370 - 443
National Grid Ventures 126 61 187 - - 187
Other (37) 10 (27) - - (27)
Total operating profit 1,526 89 1,615 677 - 2,292
Net finance costs (739) 61 (678) - - (678)
Share of JVs and associates (post tax) 39 - 39 - - 39
Profit before tax 826 150 976 677 - 1,653
Tax (208) (15) (223) (182) 223 (182)
Profit after tax 618 135 753 495 223 1,471
Six months ended 30 September 2024 Statutory Exceptionals and remeasurements Adjusted Timing Deferred tax on underlying profits in NGET and NGED Underlying
£m £m £m £m £m £m
UK Electricity Transmission 642 - 642 82 - 724
UK Electricity Distribution 759 5 764 (191) - 573
UK Electricity System Operator (213) (151) (364) 479 - 115
New England 87 2 89 148 - 237
New York (50) 20 (30) 318 - 288
National Grid Ventures 145 2 147 - - 147
Other (61) 23 (38) - - (38)
Total operating profit 1,309 (99) 1,210 836 - 2,046
Net finance costs (682) 12 (670) - - (670)
Share of JVs and associates (post tax) 57 3 60 - - 60
Profit before tax 684 (84) 600 836 - 1,436
Tax (112) (17) (129) (219) 184 (164)
Profit after tax 572 (101) 471 617 184 1,272
Alternative performance measures/non-IFRS reconciliations continued
Reconciliation of Adjusted and Underlying Profits - at constant currency
At constant currency
Six months ended 30 September 2024 Adjusted Constant currency adjustment Adjusted Timing Underlying
at actual exchange rate
£m £m £m £m £m
UK Electricity Transmission 642 - 642 82 724
UK Electricity Distribution 764 - 764 (191) 573
UK Electricity System Operator (364) - (364) 479 115
New England 89 (4) 85 142 227
New York (30) 2 (28) 304 276
National Grid Ventures 147 2 149 - 149
Other (38) - (38) - (38)
Total operating profit 1,210 - 1,210 816 2,026
Net finance costs (670) 18 (652) - (652)
Share of JVs and associates (post tax) 60 (1) 59 - 59
Profit before tax 600 17 617 816 1,433
Earnings per share calculations from continuing operations - At actual
exchange rates
The table below reconciles the profit after tax from continuing operations per
the previous tables back to the earnings per share from continuing operations
for each of the adjusted profit measures. Earnings per share is only presented
for those adjusted profit measures that are at actual exchange rates, and not
for those at constant currency.
Six months ended 30 September 2025 Profit after tax Non-controlling interest Profit after tax attributable to the parent Weighted average number of shares Earnings
£m £m £m Millions per share
pence
Statutory 618 (1) 617 4,926 12.6
Adjusted 753 (1) 752 4,926 15.3
Underlying 1,471 (1) 1,470 4,926 29.8
Six months ended 30 September 2024 Profit after tax Non-controlling interest Profit after tax attributable to the parent Weighted average number of shares Earnings
£m £m £m Millions per share
pence
Statutory 572 (1) 571 4,526 12.6
Adjusted 471 (1) 470 4,526 10.4
Underlying 1,272 (1) 1,271 4,526 28.1
Alternative performance measures/non-IFRS reconciliations continued
Timing impacts from continuing operations
Under the Group's regulatory frameworks, the majority of the revenues that
National Grid is allowed to collect each year are governed by a regulatory
price control or rate plan. If National Grid collects more than this allowed
level of revenue, the balance must be returned to customers in subsequent
years, and if it collects less than this level of revenue, it may recover the
balance from customers in subsequent years. These variances between allowed
and collected revenues give rise to 'over and under-recoveries'. A number of
costs in the UK and the US are pass-through costs (including commodity and
energy efficiency costs in the US), and are fully recoverable from customers.
Timing differences between costs of this type being incurred and their
recovery through revenues are also included in over and under-recoveries. In
the UK, timing differences include an estimation of the difference between
revenues earned under revenue incentive mechanisms and associated revenues
collected. UK timing balances and movements exclude adjustments associated
with changes to controllable cost (totex) allowances or adjustments under the
totex incentive mechanism. Opening balances of over and under-recoveries have
been restated where appropriate to correspond with regulatory filings and
calculations.
UK Electricity Transmission UK Electricity Distribution UK Electricity System Operator New New Total
£m £m £m England(1) York(1) £m
£m £m
1 April 2025 opening balance(2) 9 124 - (366) 299 66
Over/(under)-recovery (33) (63) - (211) (370) (677)
30 September 2025 closing balance (24) 61 - (577) (71) (611)
to (recover)/return
UK Electricity Transmission UK Electricity Distribution UK Electricity System Operator New New Total
£m £m £m England(1) York(1) £m
£m £m
1 April 2024 opening balance(2) 160 (282) 941 (422) 619 1,016
Over/(under)-recovery (82) 191 (479) (142) (304) (816)
30 September 2024 closing balance 78 (91) 462 (564) 315 200
to (recover)/return
1. New England and New York in-year over/(under)-recovery and all New
England and New York balances have been translated using the average exchange
rate for the half year ended 30 September 2025.
2. Opening balances have been restated to reflect the finalisation of
calculated over/(under)-recoveries in the UK and the US and also adjusted for
the regulatory time value of money impact on opening balances, where
appropriate, in the UK.
Capital investment - at constant currency
'Capital investment' or 'investment' both refer to additions to property,
plant and equipment and intangible assets, including capital prepayments plus
equity contributions to joint ventures and associates during the period. This
measure of capital investment is aligned with how we present our segmental
information (see note 2(c) to the financial statements for further details).
References to 'capital investment' in our regulated networks include the
following segments: UK Electricity Transmission, UK Electricity Distribution,
New England and New York, but exclude National Grid Ventures and 'Other'.
Capital investment measures are presented at actual exchange rates, but are
also shown on a constant currency basis to show the year-on-year comparisons
excluding any impact of foreign currency translation movements.
At actual exchange rates At constant currency
Six months ended 30 September 2025 2024 % change 2025 2024 % change
£m £m £m £m
UK Electricity Transmission 1,684 1,290 31 1,684 1,290 31
UK Electricity Distribution 756 647 17 756 647 17
New England 958 814 18 958 780 23
New York 1,585 1,569 1 1,585 1,503 5
Capital investment (regulated networks) 4,983 4,320 15 4,983 4,220 18
National Grid Ventures 69 279 (75) 69 270 (74)
Other - 4 (100) - 4 (100)
Group capital investment - total 5,052 4,603 10 5,052 4,494 12
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