National Grid reported a strong performance for the first half of fiscal 2027, driven by a substantial increase in capital expenditure and favorable revenue shifts under the new UK regulatory framework. Underlying operating profit rose 13% at constant currency to £2.6 billion, primarily reflecting the first-year impact of the RIIO-T3 price control and continued growth in the US rate base. The company also announced a major strategic $1.75 billion investment in Joulent to develop contracted power solutions for large-load US customers, including data centers.
Key Highlights
- Record capital investment of £6.7 billion increased 32% year-on-year, led by a 71% surge in UK Electricity Transmission spending.
- Underlying EPS of 36.5p grew 22% compared to the prior period, exceeding analyst expectations of 36.1p.
- Management upgraded full-year 2027 underlying EPS growth guidance to a range of 15–16%, up from the previous forecast of slightly above 13–15%.
- Statutory profit before tax more than doubled to £1.73 billion, aided by £240 million in favorable timing swings and one-off fair value gains in the investment portfolio.