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Investing.com -- Shares of National Grid (LON:NG) PLC rose more than 3% on Thursday after the British company reported full-year 2025 earnings slightly ahead of expectations and issued guidance that points to stronger-than-anticipated growth in the year ahead, despite currency headwinds and an impairment charge.
For the year ending March 31, National Grid posted underlying operating profit of £5.4 billion, up 12% year-on-year and narrowly beating consensus estimates.
Earnings per share came in at 73.3p, modestly above the market expectation of 72.3p.
The full-year dividend was set at 46.72p, in line with the company’s policy to grow payouts with CPIH inflation.
EPS growth from FY25 is expected to remain within a 6–8% compound annual range in FY26.
While management signaled this growth is likely to track the lower end due to FX pressures, driven by a weaker USD/GBP rate of 1.3, Jefferies estimates FY26 EPS at around 77.7p, roughly 5% ahead of current market consensus.
“We think the beat vs. cons is driven by the growth outlook of the NY business,” Jefferies said.
Divisional results were largely in line with expectations. Electricity Transmission EBIT rose 11% year-on-year to £1.5 billion, while Electricity Distribution EBIT increased 4% to £1.2 billion, slightly below estimates.
U.S. Regulated EBIT came in at £2.4 billion, about 5% above consensus. Group return on equity stood at 9%, with U.S. operations continuing to drive stable returns.
National Grid plans to invest over £11 billion in FY26, part of a £60 billion five-year capex plan across UK and U.S. networks.
Asset growth for FY26 is projected at 11%, while net debt is expected to rise by more than £6 billion from the FY25 closing level of £41.4 billion.
Proceeds from planned asset sales, including National Grid Renewables and Grain LNG, are expected to partially offset this increase.
The only material negative was a £303 million impairment charge related to the suspension of the Community Offshore Wind joint venture, reflecting a broader slowdown in the offshore wind sector.