National Grid Transco H2 Earnings Call Highlights

National Grid Transco NYSE: NGG said it delivered stronger full-year earnings and laid out a five-year investment plan centered on grid expansion, demand growth from data centers and electrification, and operational improvements across its U.K. and U.S. businesses.

Chief Executive Zoë Yujnovich, who became CEO last autumn, said the company’s results showed “the momentum we’re building” and emphasized that execution will be central to its strategy. National Grid reported a more than 20% increase in capital expenditure to GBP 11.6 billion, asset growth of 10.9%, and underlying operating profit of GBP 5.7 billion. Underlying earnings per share grew 8% at constant currency, in line with guidance, while the dividend per share increased 3.8%, consistent with U.K. CPIH inflation.

Yujnovich said the company’s portfolio remains differentiated by geography, regulatory frameworks and energy mix, and that National Grid is focused on sharpening performance rather than changing strategic direction. She highlighted a refreshed framework built around what she called “brilliant basics” — capital delivery, asset performance, customer service and functional effectiveness — along with three “big shifts” in leadership and culture, technology and innovation, and policy advocacy.

Five-Year Plan Centers on GBP 70 Billion of Investment

National Grid reaffirmed plans to invest at least GBP 70 billion over the next five years, which it said would support annual asset growth of around 10%, underlying EPS growth of 8% to 10%, and continued dividend growth in line with CPIH inflation. Chief Financial Officer Andy Agg said about two-thirds of the investment is already covered by regulatory agreements, with delivery mechanisms secured for three-quarters of the plan.

The company expects to invest around GBP 40 billion across its U.K. regulated businesses, including roughly GBP 31 billion in transmission and GBP 9 billion in distribution. Yujnovich said the U.K. program includes connecting up to 35 gigawatts of new generation and 19 gigawatts of new demand over the next five years. The company also expects to recruit around 6,000 full-time employees in the U.K., including 2,000 graduates and apprentices.

In the U.S., National Grid plans to invest around GBP 29 billion across New York and New England, including approximately GBP 17 billion in New York and GBP 12 billion in New England. Yujnovich said U.S. demand growth is being driven by reshoring, data centers and the need to maintain reliable electric and gas networks.

Business Units Show Higher Investment and Rate Base Growth

Agg said U.K. Electricity Transmission delivered underlying operating profit of GBP 1.7 billion, up GBP 254 million from the prior year, with capital investment rising 46% to GBP 4.4 billion. The unit’s regulated asset value grew 16% to GBP 23.8 billion, and it achieved an 8.2% return on equity, 100 basis points above its baseline allowance.

U.K. Electricity Distribution posted underlying operating profit of GBP 1.2 billion, up GBP 35 million, with capital investment up 13% to GBP 1.6 billion and RAV growth of 7% to GBP 13.1 billion. Agg also said National Grid reached its GBP 100 million group synergies target six months early.

In New York, underlying operating profit rose GBP 342 million to GBP 1.7 billion, while capital investment increased 11% to GBP 3.4 billion. The New York rate base grew 10% to $25.4 billion, and the business achieved a 9% return on equity, equal to 96% of its allowance. New England delivered underlying operating profit of GBP 866 million, broadly flat year over year, with capital investment up 24% to GBP 2 billion and rate base growth of 12% to $13.6 billion.

National Grid Ventures reported underlying operating profit, including joint ventures, of GBP 401 million, down GBP 52 million, as a higher contribution from interconnectors was more than offset by lower profit from Grain LNG following its sale. Capital investment in the segment fell 70% to GBP 109 million after disposals including National Grid Renewables and Grain LNG.

Technology and AI Cited as Execution Tools

Yujnovich repeatedly pointed to technology as a way to improve capital delivery, network capacity and customer outcomes. She said a new “capital control tower” uses agentic capabilities to assess project documentation and options at stage gates, giving project managers real-time feedback and helping address issues earlier in development.

The company also described operational use cases including AI-supported scheduling in its New York gas business, which Yujnovich said produced a 30% reduction in crew travel time, and self-healing FLISR technology in Massachusetts, where 34% of customers are now covered. She said FLISR helped customers avoid more than 15 million minutes of power outages in aggregate over the past six months.

National Grid also highlighted investments through National Grid Partners, its corporate venture capital and innovation arm. Yujnovich said GridCARE identified 650 megawatts of connection capacity in New York for large flexible loads, while an Emerald AI trial with NVIDIA achieved up to a 40% reduction in data center load demand without performance loss. LineVision dynamic line rating sensors are being expanded in the U.K., with the program expected to save U.K. customers up to GBP 50 million over five years.

FY2027 Guidance and Balance Sheet Outlook

For FY2027, Agg said National Grid expects capital investment to rise 10% to nearly GBP 13 billion. The company guided for underlying EPS growth of 13% to 15% from its FY2026 baseline of GBP 0.78, reflecting higher allowed revenue as U.K. transmission moves from RIIO-T2 into RIIO-T3.

Agg said cash generated from continuing operations was GBP 7.9 billion, up 15%, while net debt increased by GBP 2.8 billion to GBP 44.2 billion at constant currency. He said the company expects to maintain “comfortable headroom” against rating thresholds and retain funding options, including unused hybrid debt capacity. Regulatory gearing is expected to move from 61% toward the high 60% range by the end of the five-year plan.

During the question-and-answer session, Yujnovich said the current portfolio is “very strong” after prior streamlining and that the main priority remains delivering the GBP 70 billion investment program. She said National Grid would be open to selected growth opportunities through National Grid Ventures, including offshore hybrid interconnectors, U.S. competitive transmission and potential solutions for data center customers.

Asked about U.S. gas networks, Yujnovich said the company likes its current portfolio and sees continued importance for gas local distribution companies in system stability, safety and affordability. She noted that National Grid does not have direct exposure to gas price volatility in the U.S. because gas procurement costs are passed through to customers.

About National Grid Transco NYSE: NGG

National Grid Transco NYSE: NGG is a utility company focused on the transmission and distribution of electricity and natural gas. The company builds, owns, operates and maintains large-scale energy infrastructure, including high-voltage electricity transmission lines, electricity distribution networks and high-pressure gas pipelines. Its core activities center on providing safe, reliable delivery of energy to residential, commercial and industrial customers while meeting regulatory requirements across its service territories.

Services provided by National Grid Transco encompass network operation and maintenance, system balancing and control, metering and connections, and capital investment in grid modernization and reliability projects.

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