London, May 14, 2026, 14:08 BST
National Grid plc fell short of annual profit expectations Thursday, blaming higher storm-related repair costs in the U.S. Still, shares moved higher after the company reaffirmed its growth forecast and announced plans for at least £70 billion in network investments over five years.
UK electricity and gas network operator reported adjusted operating profit at £5.68 billion for the year to March 31, slightly short of the £5.75 billion consensus pulled together by the company. Over in the U.S., storm costs climbed 7.4% to £636 million. Shares gained 2.3%, trading at 1,305 pence as of 0846 GMT.
Timing is key here. National Grid is heading into RIIO-T3—the UK’s price-control window dictating how much energy networks like it can earn and invest from April 2026 through March 2031. Put simply, this framework governs what grid operators are allowed to spend and how much they can charge customers back.
The company laid out plans for at least £70 billion in capital investment by 2030/31, with a goal of roughly 10% annual asset growth and underlying earnings per share climbing 8% to 10% each year. This profit metric excludes certain one-off and accounting items. For 2025/26, underlying EPS gained 8% at constant currency to 78.0 pence.
Chief Executive Zoë Yujnovich described the move as the “largest investment programme in our history,” targeting upgrades and growth across UK and U.S. Northeast networks. The company posted record capital investment for the year: £11.6 billion. Investegate
No question, the miss landed. Weather expenses in the United States aren’t fading into the background—if anything, they’re more pronounced, especially with a larger asset base. That scale brings more risk when storms barrel through New England and New York.
National Grid reported a 10% jump in statutory operating profit to £5.43 billion, and bumped its full-year dividend up by 3.8% to 48.49 pence per share. The company wrapped up the sales of both National Grid Renewables and Grain LNG in the period, pulling in £2.8 billion in net cash proceeds as it sharpened its focus on regulated networks.
This isn’t so much a direct showdown as a question of which player can handle grid expansion without stretching the balance sheet too thin. Under the RIIO-3 framework, Ofgem puts National Grid Electricity Transmission in the same basket as ScottishPower Transmission and Scottish Hydro Electric Transmission—a pair housed within SSE’s network arm—as the transmission owners steering Britain’s grid.
Rates are still weighing on the picture. On Polymarket, traders put the odds at 89% that the Bank of England holds Bank Rate steady at the June 18 meeting. But another market is pricing in about a 58% chance of a BoE hike in 2026. That could be a headache for capital-intensive utilities, even if National Grid points out that about 80% of its debt remains on fixed rates.
Analysts kept their tone measured. RBC Capital Markets’ Alexander Wheeler pointed to net debt of £44.2 billion, topping the consensus estimate of £43.3 billion. Still, results met expectations. Over at Hargreaves Lansdown, Aarin Chiekrie noted National Grid’s limited wholesale energy exposure and inflation-linked revenues help shield it from Middle East-related energy shocks.
Yujnovich told Reuters the effect of geopolitical tensions and U.S. tariffs has been minimal so far, since roughly 90% of U.S. procurement happens domestically. Still, that local sourcing only goes so far. Bigger storms, rising borrowing costs, or setbacks in the £70 billion program could all pressure cash flow as investment ramps up.
Investors, for the moment, are shrugging off the impact of the storm bill. National Grid is sticking to its 2026/27 underlying EPS growth target of 13% to 15%, supported by higher permitted revenue as it transitions from RIIO-T2 to RIIO-T3.
