London, June 12, 2026, 13:02 (BST)
- National Grid traded 0.41% lower at 1,203p as of 12:46 BST. The FTSE 100 was up.
- UK grid-connection reform is good news for network investment over the long run. But it also puts more pressure on getting projects done.
- The July AGM and dividend decision are the next events for the stock, followed by half-year numbers in November.
National Grid plc slipped on Friday, down 5p at 1,203p by 12:46 BST, off 0.41%. The FTSE 100 gained 1.12%. That put the utility under the London benchmark, with market cap at about £59.9 billion.
Investors pushed the stock higher after signs Britain’s grid-upgrade cycle is picking up speed. The National Energy System Operator and power networks said on June 10 that they’ve given grid connection offers to over 700 shovel-ready projects, representing 37GW of capacity and supporting up to £40 billion a year in clean-energy spending. NESO Chief Operating Officer Kayte O’Neill said these offers give developers “the certainty they need to invest.” But she also noted the milestone shows just how much the network owners still have to deliver. National Energy System Operator (NESO)
National Grid’s case relies on growth from regulated networks in both the UK and the U.S. Northeast. In May, the company posted underlying earnings per share of 78.0p for fiscal 2025/26, an 8% rise at constant currency, along with a record £11.6 billion in capital investment. Underlying EPS is earnings per share with certain items stripped out. Capital investment covers spend on long-term assets like wires, substations and other energy infrastructure.
National Grid stands out as a clear winner if fixing grid bottlenecks stays high on the national agenda. Chief Executive Zoë Yujnovich called the strategy the “largest investment programme in our history,” putting at least £70 billion into the plan over five years. For 2026/27, National Grid is looking for group capital investment close to £13 billion. Its regulated asset base, which is the value of assets that set its returns, went up 11.7% in 2025/26.
The risk for bears is that this growth costs a lot of capital and depends on regulation, rates, and how well projects roll out. National Grid said it sees net debt rising by just over £6 billion from £44.2 billion at March 31, 2026, as it keeps investing. Regulatory gearing, the net debt as a share of regulated asset value and other invested capital, was 61%. That leaves investors with a utility play that offers predictability, but still carries some balance-sheet risk.
National Grid shares look fairly valued at 1,203p, not cheap. The P/E stands at 18.44, with a dividend yield around 4.0%. Shares are trading well under their 52-week high of 1,428.5p, but remain above the 1,000p low. Consensus from 14 analysts pulled by Investors Chronicle sets the median 12-month price target at 1,388.5p. That points to about 15% upside from the last reference price.
Income-focused investors are watching the next steps on National Grid’s final dividend. The ordinary-share scrip election closes June 18, the annual general meeting is set for July 14, and, if approved, the 32.14p final payout lands July 23. The bigger question for the market comes November 5, when National Grid posts its 2026/27 half-year numbers. On that day, investors want to see capex progress, resilient regulated returns, and a handle on the rising debt.
