National Grid stock lifts outlook after record network investment

National Grid raised its full-year earnings outlook on Thursday, November 5, after record first-half investment accelerated work across its electricity transmission networks. Yahoo Finance reported that the utility increased its forecast for underlying earnings per share growth in 2026/27 to 15% to 16%, from 13% to 15% previously.

Investment raises growth expectations

First-half capital investment rose 33% to GBP 6.7 billion, while underlying operating profit increased 13% to GBP 2.6 billion. Underlying earnings per share rose 22% to 37 pence, helped by higher revenue from UK Electricity Transmission under the new RIIO-T3 price control.

National Grid expects capital investment of about GBP 13.5 billion in 2026/27. The spending forms part of a five-year programme of at least GBP 70 billion across its UK and US networks. Management also maintained its longer-term target for underlying EPS growth of 8% to 10% a year through 2030/31.

Debt remains a key trade-off

The investment cycle is strengthening the utility's growth profile, but it is also raising funding needs. Net debt reached GBP 48.6 billion at the end of September, up GBP 4.4 billion, as National Grid financed network spending and its investment in US power developer Joulent. The interim dividend rose 4% to 16.97 pence per share.

National Grid stock traded at 14.93 euros on Lang & Schwarz at 12:20 CET on Saturday, November 7, 0.60 percent below the Xetra close of Friday, November 6. On Xetra, the stock closed at 15.02 euros on November 6, compared with 15.05 euros on Friday, October 30, a weekly decline of 0.20 percent.

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