National Grid plc (LSE:NG.) reported a 109% increase in statutory pretax profit to £1.73 billion for the six months ended 30 September 2026, compared with £826 million a year earlier, as higher regulated revenues and increased investment supported earnings growth.
The energy infrastructure group increased capital investment by 33% to £6.7 billion and raised its interim dividend by 4% to 16.97 pence per share. National Grid also confirmed its five-year investment programme of at least £70 billion through March 2031.
Operating Profit Rises 55% as Underlying Earnings Improve
Statutory operating profit increased 55% to £2.36 billion, compared with £1.53 billion in the prior-year period.
Underlying operating profit rose 13% to £2.59 billion, supported by higher regulated revenues in UK Electricity Transmission and growth in the company’s US asset base.
Underlying pretax profit increased 18% to £1.96 billion, while underlying earnings per share advanced 22% to 36.5 pence.
Statutory earnings per share more than doubled to 26.9 pence from 12.6 pence.
The statutory profit improvement also reflected favourable timing movements and exceptional gains associated with investment valuations and disposals.
UK Electricity Transmission Drives Earnings Growth
National Grid’s UK Electricity Transmission business reported a 45% increase in underlying operating profit to £1.23 billion, compared with £846 million a year earlier.
The improvement reflected the introduction of the RIIO-T3 regulatory price control, which provides higher allowed revenues to support increased network investment.
UK Electricity Distribution reported broadly unchanged underlying operating profit of £550 million.
In the United States, New York underlying operating profit increased 9% at constant currency to £487 million, supported by higher regulated revenues and recovery of historical costs.
New England underlying operating profit declined 10% at constant currency to £266 million, reflecting higher operating costs, depreciation and investment-related expenditure.
National Grid Ventures reported underlying operating profit of £127 million, down 32%, primarily following the disposal of the Grain LNG business.
Capital Investment Increases to £6.7 Billion
Capital investment reached £6.71 billion during the first half, compared with £5.05 billion in the equivalent period last year.
UK Electricity Transmission investment increased 71% to £2.89 billion, reflecting accelerated spending on major network expansion projects.
UK Electricity Distribution investment rose 10% to £834 million.
In the United States, investment reached £1.78 billion in New York and £1.11 billion in New England.
National Grid reported progress across several UK transmission projects, including the Grain to Tilbury and Snowdonia tunnel developments, alongside continued work on its Accelerated Strategic Transmission Investment programme.
The company also advanced electricity transmission upgrades and new customer connections across its US networks.
$1.75 Billion Joulent Investment Supports US Power Demand
National Grid highlighted its agreement to invest $1.75 billion for a 35% interest in Joulent, a company developing contracted power generation and infrastructure for large electricity customers in the United States.
The investment includes exposure to Project Kilby, a proposed 2.7GW power generation facility in West Texas being developed through a partnership with Chevron.
The facility is intended to supply electricity to a Microsoft-operated data centre campus under a 20-year power purchase agreement, with initial electricity delivery targeted for 2028.
National Grid said the investment forms part of its strategy to participate in growing electricity demand from data centres and other large industrial customers.
Net Debt Rises to £48.6 Billion
Net debt increased by £4.4 billion to £48.6 billion at 30 September 2026, primarily reflecting capital expenditure, the Joulent investment and financing costs.
The group generated £4.1 billion in operating cash inflows during the period.
National Grid said it remains committed to maintaining an investment-grade credit rating while funding its expanded infrastructure programme.
FY2026/27 Earnings Growth Forecast at 15% to 16%
National Grid expects full-year 2026/27 capital investment of approximately £13.5 billion, representing growth of more than 15%.
The company now forecasts underlying earnings per share growth of 15% to 16% from its 2025/26 baseline of 78.0 pence.
Over the five years to March 2031, National Grid continues to target cumulative investment of at least £70 billion, annual group asset growth of approximately 10% and underlying earnings per share compound annual growth of 8% to 10%.
The company expects its investment programme to support network expansion and modernisation across the UK and northeastern United States.
Interim Dividend Increased to 16.97 Pence
National Grid declared an interim dividend of 16.97 pence per ordinary share, compared with 16.35 pence a year earlier.
The dividend is expected to be paid on 12 January 2027 to shareholders on the register on 20 November 2026.
The group maintained its policy of targeting annual dividend growth in line with UK CPIH inflation.
More About National Grid
National Grid plc (LSE:NG.) is an energy infrastructure company operating electricity transmission and distribution networks in the United Kingdom and electricity and gas networks in the northeastern United States. The group also invests in interconnectors and other energy infrastructure through National Grid Ventures.
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