National Grid stock gets boost from higher earnings outlook

National Grid raised its full-year earnings outlook on November 5 after reporting a sharp increase in first-half profit and record spending on its electricity and gas networks. The half-year statement, carried by National Grid, covers the six months ended September 30, 2026.

National Grid stock traded at 14.95 euros on Lang & Schwarz at 12:05 CET on Wednesday, November 11. The quote provides a current trading reference, while the company's London-listed ordinary shares report their operating results in pounds and pence.

Profit growth meets higher network spending

Statutory operating profit rose 55% to 2,359 million pounds from 1,526 million pounds a year earlier. Statutory profit before tax more than doubled to 1,730 million pounds, compared with 826 million pounds in the prior-year period. Statutory earnings per share increased 113% to 26.9 pence.

Underlying operating profit, which management uses as a non-GAAP measure, increased 13% to 2,591 million pounds at constant currency. Underlying EPS climbed 22% to 36.5 pence from 29.8 pence. The company attributed the improvement mainly to higher allowed revenue under the new RIIO-T3 price control in UK Electricity Transmission, continued growth in the US rate base and fair-value gains in its National Grid Partners portfolio.

National Grid also highlighted material differences between statutory and underlying performance. Statutory profit benefited from timing movements, portfolio revaluation gains and the non-recurring effect of divestments. That makes the underlying figures more relevant for assessing the recurring earnings trend, although they remain an alternative performance measure rather than an IFRS result.

Capital programme drives guidance

Capital investment reached 6,707 million pounds in the first half, up 33% from 5,052 million pounds. The increase was concentrated in UK electricity transmission, while investment also advanced across the regulated businesses in New York and New England.

For the full 2026/27 financial year, National Grid expects capital investment of about 13.5 billion pounds. It now expects underlying EPS to increase 15% to 16% from the 2025/26 baseline, compared with the previous 13% to 15% range. Management linked the upgrade to higher allowed revenue as delivery moves from RIIO-T2 to RIIO-T3.

The longer-term framework calls for at least 70 billion pounds of cumulative investment through 2030/31, group asset growth of about 10% annually and underlying EPS growth of 8% to 10% a year from the 2025/26 baseline of 78.0 pence. The plan supports the growth case, but it also requires substantial financing: net debt reached 48.6 billion pounds at September 30, 2026, 4.4 billion pounds above the March 2026 level.

Dividend calendar and investor focus

The board approved an interim dividend of 16.97 pence per ordinary share, up from 16.35 pence. Payment is expected on January 12, 2027, to shareholders on the register on November 20, 2026. The company continues to target dividend growth in line with UK CPIH.

For investors, the results reinforce the tension at the centre of the National Grid story: regulated network investment offers visible growth and supports higher allowed revenue, while the scale of spending increases borrowing and execution demands. The next focus will be delivery of the 13.5 billion pound annual investment plan, regulatory progress and the company's ability to convert the expanded asset base into recurring earnings.

UK utility shares remain part of the broader domestic market backdrop, tracked through the FTSE 100 market overview.

For more company-specific developments, see More news and analyses on National Grid stock.