National Grid Reports Strong FY2026 Results, Unveils £70B Five-Year Investment Plan & 8-10% EPS Growth Outlook
NGG sits 30% above its 52-week low of $67.28.
Summary
National Grid reported strong FY2026 results with 8% underlying EPS growth and unveiled an upgraded five-year financial framework, committing at least £70 billion in capital investment to drive 8-10% underlying EPS CAGR through 2030/31.
Key Events · Earnings and Guidance · NGG
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Strong FY2026 Financial Performance
Reported underlying EPS growth of 8% at constant currency to 78.0p, driven by strong operating performance and record capital investment of £11.6 billion, an 18% increase from the prior year.
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Massive Five-Year Capital Investment Plan
Unveiled an upgraded financial framework committing at least £70 billion in capital investment over the next five years (2026/27 to 2030/31) to modernize and expand energy networks in the UK and US Northeast.
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Robust EPS Growth Guidance
Projected underlying EPS compound annual growth rate of 8-10% from a 2025/26 baseline of 78.0p, with a 13-15% increase expected for the 2026/27 fiscal year.
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Dividend Increase Aligned with Inflation
Recommended a final dividend of 32.14p, bringing the total FY2026 dividend to 48.49p, a 3.8% increase in line with UK CPIH inflation.
Analysis · NGG · Energy & Transportation
National Grid's full-year results highlight a significant acceleration in its investment program and a robust outlook for earnings growth. The company reported an 8% increase in underlying EPS at constant currency for FY2026 and announced a massive £70 billion capital investment plan over the next five years. This plan is projected to drive an 8-10% compound annual growth rate in underlying EPS, with a strong 13-15% increase expected for FY2027. This substantial commitment to modernizing and expanding energy networks in the UK and US Northeast positions the company for long-term asset and earnings growth, despite an increase in net debt and an ongoing challenge to a FERC order regarding New England transmission returns.
At the time of this filing, NGG was trading at $87.67 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $85.8B. The 52-week trading range was $67.28 to $94.64. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.