National Grid lifts EPS guidance as spending ramps up

What changed this quarter

National Grid raised its profit outlook after stepping up first half investment. The company now sees earnings per share - EPS, or profit per share - increasing 15% to 16%, versus its previous 13% to 15% range. Underlying operating profit rose 13% year over year to £2.59 billion. Jefferies called that a touch below consensus, while EPS topped expectations.

Shares responded, gaining up to 3.4% in early trading and touching their best level since May.

Where the money is going

Capital spending hit a record £6.7 billion in the first half, led by big UK transmission builds and upgrades across its US networks. Management also lifted its forecast for fiscal 2026-27 investment to £13.5 billion ($18.2 billion), £500 million higher than before.

The company operates most of Britain's electricity transmission grid and is plowing cash into expanding and modernizing networks for renewables and rising power demand. It is executing a five-year, £70 billion program that covers infrastructure improvements across the UK and the US. Roughly £31 billion is tagged for UK electricity transmission to connect new renewable projects, boost capacity and cut congestion. A new regulatory period for the UK transmission business that began earlier this year allows National Grid to invest more, with the regulator letting it collect additional revenue to fund that spend and earn a return.

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Other results and why it matters for your portfolio

National Grid's venture arm booked £253 million of gains in the half. Its holdings include Uniphore, which builds AI software for enterprises, and ERock, which delivers on site electricity to data centers as well as other power-hungry customers. The company classified the £142 million gain on Uniphore as exceptional, excluding it from underlying earnings. Citi's Jenny Ping said the results "strengthen confidence" that the company can carry out its UK transmission investment program.

The bottom line: heavier investment is translating into a higher EPS growth outlook, and the market liked it. For income and infrastructure exposure, the combination of regulatory support, record capex, and a clearer growth path is the key watch.

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