UK's National Grid FY adjusted operating profit misses

National Grid

14/05/2026 07:11

Overview

UK electricity and gas utility's FY adjusted operating profit missed analyst expectations

Underlying EPS grew 8% at constant currency, driven by strong regulated business performance

Company completed divestments of National Grid Renewables and Grain LNG

Outlook

National Grid expects cumulative capital investment of at least £70 bln through 2030/31

Company sees asset growth CAGR of around 10% and underlying EPS CAGR of 8-10%

National Grid expects 2026/27 underlying EPS to increase 13-15% from 2025/26 baseline

Result Drivers

REGULATED REVENUE INCREASES - Higher allowed revenues in UK and New York, supported by new rates and increased allowances, contributed to profit growth

RECORD CAPITAL INVESTMENT - Capital investment reached £11.6 bln, mainly for UK transmission projects, asset replacement, and network enhancements in the US, driving asset growth

COST EFFICIENCIES - Delivery of cost efficiencies across the group supported operating profit

DIVESTMENTS AND REGULATORY IMPACTS - Profit growth was partially offset by divestments and customer refunds related to a FERC order

Company press release: ID:nRSN2406Ea

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Adjusted Operating Profit
Miss
GBP 5.68 bln
GBP 5.78 bln (16 Analysts)
FY Dividend
GBP 0.48
FY Operating Profit
GBP 5.43 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the multiline utilities peer group is "buy"

Wall Street's median 12-month price target for National Grid PLC is GBp1,393.00, about 9.2% above its May 13 closing price of GBp1,276.00

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)