National Grid PLC 6-K, filed Nov 5, 2026
National Grid PLC (NGG)
6-K
2026-11-05
For: 2026-11-05
View Original
Added on
November 05, 2026
About this 6-K
National Grid PLC filed this 6-K on November 5, 2026.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
________________________
FORM 6-K
________________________
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
Date: 05 November 2026
Commission File Number: 001-14958
________________________
NATIONAL GRID plc
(Translation
of registrant’s name into English)
England and Wales
(Jurisdiction
of Incorporation)
________________________
1-3 Strand, London, WC2N 5EH, United Kingdom
(Address
of principal executive office)
________________________
Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
☒ Form 20-F ☐ Form 40-F
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule
101(b)(1): ☐
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule
101(b)(7): ☐
Indicate
by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3- 2(b) under the Securities
Exchange Act of 1934. ☐ Yes ☒ No
If
“Yes” is marked, indicate below the file number
assigned to the registrant in connection with Rule 12g3-2(b):
n/a
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EXHIBIT INDEX
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Exhibit No.
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Description
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99.1
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Exhibit
99.1 Announcement sent to the London Stock Exchange on 05 November
2026 —
National Grid plc Half-Year Results 2026/27
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Exhibit
99.1
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London | 5 November 2026: National Grid plc
today announces its Half Year results
for the period ended 30 September 2026.
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We bring energy to power possibilities
Zoë Yujnovich, Chief Executive said: “Our results for the first half show that
capital investment is accelerating – increasing by one-third,
our major projects are progressing, and the changes we are making
within National Grid are sharpening performance in service of
better outcomes for customers and stakeholders.
We’re working to get more from our existing networks,
including through scaled use of technology and innovation, while
investing to build capacity for the future – committing
£70 billion over the next five years to modernise and expand
energy networks in the UK and US Northeast. Our capital delivery
will underpin economic growth, electrification, and energy
security, supporting long term affordability and reliability. In
the UK, our planned £40 billion capital investment will
help reduce system constraint costs for the benefit of consumers,
and support more than 60,000 jobs.
This first half progress further strengthens our confidence in
delivering the five-year framework we set out in
March.”
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Financial summary
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Six months ended 30 September (unaudited)
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Statutory results
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Underlying1
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Underlying at constant
currency1,2
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2026
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2025
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% change
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2026
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2025
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% change
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2025
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% change
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Operating
profit (£m)
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2,359
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1,526
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55%
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2,591
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2,292
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13%
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2,299
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13%
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Profit
before tax (£m)
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1,730
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826
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109%
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1,958
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1,653
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18%
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1,657
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18%
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Earnings
per share (EPS) (p)
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26.9
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12.6
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113%
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36.5
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29.8
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22%
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29.9
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22%
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Dividend
per share (p)
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16.97
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16.35
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4%
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Statutory results
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Capital investment at constant
currency2
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Capital
investment (£m)
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6,707
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5,052
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33%
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5,076
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32%
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1. ‘Underlying’
is a non-GAAP alternative performance measure (APM) used by
management to monitor performance across the Group. This measure
along with other APMs used in this report are explained in more
detail on pages 49 to 53. These measures are not substitutes for IFRS
measures, however management believes
such additional
information is useful in assessing the performance
of the business on a comparable basis.
2. Constant
currency calculated using current year average exchange rate of
$1.342 (2025: actual average exchange rate was
$1.353).
Highlights
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Financial performance
– Record
capital investment of £6.7 billion due to the step-up in
onshore and offshore ASTI spend in UK Electricity Transmission as
we seek to double our network capacity and reduce system constraint
costs for the benefit of consumers, alongside wider network growth
and reinforcement across our UK, New York and New England
businesses.
– Higher
underlying operating profit of £2.6 billion drove
underlying EPS of 36.5p, up 22%, reflecting the first-year impact
of the new RIIO-T3 price control, continued growth in our US
rate base and one-off fair value gains in our NGP*
portfolio.
– Statutory
profit before tax of £1,730 million (HY 26 £826
million) includes favourable timing swings (£240 million
year-on-year) and benefits from exceptional items including NGP*
portfolio revaluation gains and the non-recurring impact of
divestments (£333 million year-on-year). Statutory EPS
was 26.9p.
– Interim
dividend of 16.97p equates to 35% of the prior year full dividend,
in line with our progressive inflation-linked
policy.
Strategic progress
– Strong
capital delivery progress in the first six months including a
number of major project milestones completed, and supply chain and
delivery mechanisms are now secured for c. 80% of our £70
billion five-year investment programme.
– Announced
a $1.75 billion investment in Joulent to develop contracted power
solutions for US large-load customers.
– Deploying
technology and innovation to optimise assets across our networks,
enhance customer experience and drive efficiency in central
functions; which is supporting world-class UK network reliability
and improved customer service in H1.
– Simplified
our organisation to create clear accountability across our
strategic framework and drive better quality decisions at
pace.
– Filed
a 1-year rate stabilisation proposal for our NY gas businesses
(KEDNY/LI) and progressed our ED3* Business
Plan.
*See glossary on page
23.
Financial outlook and guidance: visible growth and
resilience
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– Financial
outlook over the five-year period from 2026/27 to
2030/31:
– total
cumulative capital investment of at least £70
billion;
– Group
asset growth CAGR1
of around 10%;
– driving
underlying EPS CAGR2
of 8–10% from the 2025/26 EPS
baseline of 78.0p;
– aim
to grow dividend per share in line with UK
CPIH;
– a
strong balance sheet with credit metrics consistent with current
Group rating; and
– regulatory
gearing trending back to the high 60% range by 2030/31 (2025/26:
61%), with balance sheet strength extending beyond 2030/31,
complemented by significant hybrid capacity.
– For
2026/27, we expect to deploy c.£13.5 billion of capital
investment and with continued strong operational performance across
the Group, underlying EPS is now expected to increase 15 –16%
from the 2025/26 baseline, reflecting higher allowed revenue as we
step-up delivery from RIIO-T2 to RIIO-T3.
1. Group
asset compound annual growth rate (CAGR) from a 2025/26 baseline.
Forward years based on assumed USD FX rate of 1.35; and long run
UK CPIH and US CPI inflation assumptions.
2. Underlying
EPS compound annual growth rate from a 2025/26 baseline. Forward
years based on assumed USD FX rate of 1.35; long run UK CPIH and
US CPI inflation and forward interest rate assumptions and
scrip uptake of 25%. 2025/26 included the contribution of National
Grid Renewables and Grain LNG up until disposal.
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Contacts
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Investor Relations
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Andrew
Downey
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+44
(0) 7926 285 683
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Tom
Edwards
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+44
(0) 7976 962 791
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Cerys
Reece
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+44
(0) 7860 382 264
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Media
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Illtud
Harri
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+44
(0) 7920 503 600
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Hannah
McCarthy
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+44
(0) 7709 842 420
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Results presentation and webcast
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A
webcast presentation and Q&A with management will be held at
09:30 (GMT) today. Please use this link to join via a laptop,
smartphone or tablet: https://www.nationalgrid.com/investors/events/results-centre
A replay
of the webcast will be available soon after the event at the same
link.
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Use of Alternative Performance Measures
Throughout this release we use a number of alternative (or
non-IFRS) and regulatory performance measures to provide users with
a clearer picture of the regulated performance of the business.
This is in line with how management monitor and manage the business
day-to-day. Further detail and definitions for all alternative
performance measures are provided on pages 49 to 53.
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Financial performance
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As at and for the six months ended 30 September
(£ million)
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2026
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2025
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change %
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Statutory operating profit at actual currency
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UK
Electricity Transmission
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1,147
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810
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42%
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UK
Electricity Distribution
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477
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488
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(2%)
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New
England
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65
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61
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7%
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New
York
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377
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78
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n/m
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National
Grid Ventures
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217
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126
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72%
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Other
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76
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(37)
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n/m
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Total statutory operating profit
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2,359
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1,526
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55%
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Underlying operating profit at
constant currency1
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UK
Electricity Transmission
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1,227
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846
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45%
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UK
Electricity Distribution
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550
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551
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—%
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New
England
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266
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295
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(10%)
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New
York
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487
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447
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9%
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National
Grid Ventures
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127
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187
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(32%)
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Other
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(66)
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(27)
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(144%)
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Total underlying operating profit
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2,591
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2,299
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13%
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Capital investment at constant currency
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UK
Electricity Transmission
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2,888
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1,684
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71%
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UK
Electricity Distribution
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834
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756
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10%
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New
England
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1,105
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967
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14%
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New
York
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1,775
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1,599
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11%
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Capital investment (regulated networks)
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6,602
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5,006
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32%
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National
Grid Ventures
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100
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70
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43%
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Other
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5
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—
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—%
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Total capital investment
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6,707
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5,076
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32%
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1. Constant
currency calculated using current year average exchange rate of
$1.342 (2025: actual average exchange rate was $1.353). See
pages 50 to 53 for details.
The notation ‘n/m’ is used throughout this section
where the period-on-period percentage change is deemed to be
‘not meaningful’.
Strategic overview
In the first half of 2026/27, we made strong early progress in
executing our largest-ever investment programme of at least
£70 billion over the five years to 2030/31, while maintaining
our focus on delivering safe, reliable and resilient networks. We
are strengthening the capabilities required to execute at scale,
leveraging innovation to optimise our networks and improving how we
serve customers. All whilst maintaining our strong safety
performance and positioning National Grid to capture the
significant growth opportunities created by a rapidly changing
energy system.
Strategic framework
Earlier this year we introduced our strategic framework, which
builds on our strengths and underpins delivery of our five-year
financial framework. It focuses on delivering the Brilliant Basics,
designed to drive better performance across the business through
competitive benchmarking and continuous improvement. The Big Shifts
focus our attention on the few transformations necessary to respond
to the ever-changing external market. Delivering on both of these
will position National Grid for the future by building a platform
for Disciplined Growth, primarily through our core regulated
networks, but also in adjacencies that will support longer-term
growth, where there is a strong portfolio fit and the opportunity
to earn attractive returns.
During the period, we continued to embed the framework across our
businesses and functions, with clear accountabilities now
established through our new operating model and a much stronger
focus on performance outcomes.
Delivering the Brilliant Basics to lead on performance
The Brilliant Basics are the foundations of our business, where we
focus on delivering world-class performance. These are the core
activities that underpin safe, reliable and efficient operations.
Our focus is on driving a step-up in performance across capital
delivery, asset management, customer service and our
functions.
Capital: best-in-class delivery of our largest-ever capital
programme
We continued to scale delivery of our investment programme across
our regulated businesses in the UK and US. Capital investment in
the first half was £6.7 billion up 32% at constant currency
from HY 26 (£5.1 billion) with increases across all regulated
businesses, but with the largest step-up in UK Electricity
Transmission.
In the UK, our Electricity Transmission business continued to
progress its capital investment programme, with a number of
major project milestones achieved in the first half. Examples in
the period include the main tunnelling works on both the Grain to
Tilbury and Snowdonia VIP Projects. These included a 2.2 kilometre
tunnel under the River Thames and a 3.4 kilometre tunnel under the
Dwyryd Estuary, which were completed in September and October 2026
respectively. Elsewhere we achieved Stage 1 commissioning of the
super grid transformers at our Yorkshire Green
project.
All six of our Wave 1 ASTI projects and the first two of our Wave 2
projects are now in construction. The remaining nine Wave 2 ASTI
projects are progressing through the planning and consenting
processes. For instance, we secured the Development Consent Order
(DCO) for Sea Link at the end of October, enabling us to move the
project into its next phase, and the outcome on Norwich to Tilbury
is due in early 2027. We also made our DCO submissions for EGL 3
and EGL 4 in early November, and expect to submit all remaining
ASTI project planning submissions by the end of March
2027.
During the period we enabled 2.5 GW of connections to be energised,
bringing new generation and storage capacity onto the network
including a 350 MW battery energy storage system at Uskmouth, Wales
and the 1.4 GW Sofia offshore wind farm.
In August, Ofgem also issued their draft determination on the
first of our reopener filings which we will file every six months
under the RIIO-T3 framework. The draft determination supports
approval of eligibility for 23 of 25 reopeners submitted, unlocking
£373 million of Pre-Construction Funding and optioneering
certainty for 12 projects, equating to c.£1.15 billion of
investment. Ofgem’s ‘minded to’ position on Sea
Link would approve £2.9 billion of project funding, more than
90% of the costs submitted for assessment.
UK Electricity Distribution saw a 36% increase in investment on
connections, with works completed for over 380 MW of
generation to connect to our primary network, and over 9,700
connections totalling 250 MW of new or upgraded connections to our
secondary or low voltage network.
In the US, as part of our Upstate Upgrade in New York, we completed
the Smart Path Connect transmission project, commissioning two 345
kV lines and moved our CLCPA Phase 1 and 2 projects from planning
and development into construction. This included six new
substations and four transmission projects, with capital investment
for the Upstate Upgrade of around $300 million in the period. We
also began construction of the electricity connection for
Micron’s first semi-conductor fabrication plant in Upstate
New York supporting 480 MW of demand. A second fabrication plant is
already planned for an additional > 550 MW, bringing the two
facilities to more than 1 GW of planned demand and supporting
economic development in the region. At full build it is expected to
account for around 2 GW of demand, equivalent to one-third of NIMO
Electric’s current peak demand, and Micron will become our
largest single electric customer in New York.
In New England, after completing the Vermont and New Hampshire
portions of the century-old A1/B2 transmission line refurbishment
project, New England Power received approval for, and started
construction on the Massachusetts phase of the
$470 million project. Across Massachusetts and New York gas
distribution, 170 miles of leak prone pipe were replaced in
the first half of 2026/27.
Asset: getting the most from our transmission and distribution
assets
The safety of our people and contractors remains our highest
priority. Our Lost Time Injury Frequency Rate was 0.10 on a
rolling 12-month basis at half year, compared with 0.11 at full
year. Our strong safety performance has therefore remained broadly
stable. We continue to strengthen our safety culture through
frontline engagement, critical risk management, control
effectiveness, and the proactive sharing of safety
learnings.
In the UK, reliability remained high across our UK Electricity
Transmission network, operating without any ‘energy not
supplied’ events during the period and with our strongest
availability and reliability recorded over the last five years
across our interconnector portfolio, including Viking Link reaching
its full capacity of 1.4 GW. In UK Electricity Transmission, we
also energised shunt reactors at Taunton, Wylfa and Willington
substations. These shunt reactors support network stability through
providing additional voltage management capability, supporting the
integration of additional renewables, and reducing network
management costs to benefit consumers.
In UK Electricity Distribution, network stability was maintained,
but additional localised outages were experienced because of the
significant increase in extreme heat during the UK summer period.
We have continued to invest in asset health, and are on track to
achieve our ED2 asset health commitments. Our Distribution System
Operator (DSO) flexibility services have avoided 295 GWh
curtailment to date, having completed 25% more outage studies
compared to the equivalent point last year, demonstrating our
increasing role in keeping customers connected to our
network.
In the US, our asset optimisation programmes, including the
roll-out of Fault Location Isolation and Service Restoration
(FLISR) and Advanced Meter Infrastructure (AMI), continue to
demonstrate their effectiveness and enhance efficiency. Across New
York and Massachusetts, FLISR has restored power to more than
90,000 customers, and avoided almost 11 million customer outage
minutes year to date, with a notable impact during the September
Nor’easter storm in Massachusetts. FLISR restored power to
12,300 customers in less than 60 seconds, and AMI meters were
able to confirm power remotely leading to a reduction of 185
required site checks.
In our New York Gas operations, we continue to expand our use of
‘Lighthouse’, our programme to drive productivity and
efficiency by removing field obstacles, improving planning and
scheduling, and enhancing performance management. In some of our
early locations, this is helping us to get crews to their first
jobs 15% faster, reduce travel time between jobs by 25%, complete
up to a third more valve inspections each day, and it has cut
unplanned overtime on Long Island by 75%. Also in New York, we
advanced our $230 million Holtsville LNG Plant Modernization
Project, completing the first of two phases of the project to
extend the asset life by another 50 years. This supports ongoing
reliability for Long Island, as the plant can supply 10% of gas
during peak demand.
Customer: enhancing our customer experience
In UK Electricity Transmission, following the connections reforms
introduced by NESO, we have issued the majority of our Phase 1
offers covering transmission connections, and are now working
through queries with our customers. We have established new
governance procedures for customer connections to strengthen
delivery discipline, improve transparency and tackle delivery
barriers. We recognise it has been a challenging process for some
of our customers, and so we are doing all we can to support our
customers through the process, including leveraging innovation to
move faster where we can, in what is a complex wider
ecosystem.
In UK Electricity Distribution, we are scaling up consistent,
customer-led ways of working to improve our customer journeys,
which has improved our Broad Measure Customer Satisfaction,
currently 9/10. We are further enhancing proactive customer
communications and winter resilience, issuing proactive
communications to over 1.4 million affected customers and providing
advice to those most vulnerable ahead of the periods of extreme
heat in the summer. Our DSO achieved further improvements in their
annual stakeholder satisfaction survey, and achieved a second year
of the maximum DSO incentive reward.
The continued strong performance of our interconnectors in NGV has
enabled payments of an additional £45 million to
consumers in the period. This is part of almost £400 million
in payments to consumers over the past three and a half years, with
a further >£300 million forecast to be paid over the next
two and a half years, subject to Ofgem approval.
In the US, AMI-enabled remote services are reducing truck rolls and
operating costs, while digital self-service now supports over 50%
of customer journeys, reducing call demand and making it easier for
customers to interact with us. We have also deployed AI in our
contact centres to strengthen performance management and provide
agents with more targeted coaching, supporting customer service
agent satisfaction of over 87%. Strong US “meter-to-cash
right first time” billing success metric performance,
measuring above 96% in New England, is helping deliver better
customer outcomes. In addition, a focus on supporting vulnerable
customers has led to the enrolment of an additional 28,000
customers onto low-income discount rates in Massachusetts, and over
38,000 in New York since September 2025.
At the same time, we are partnering with major commercial and
industrial customers to support innovation, electrification and
large-load growth across Massachusetts and New York. In New York we
have partnered with 56 distributed generation developers on over
300 projects to deliver milestones on time or ahead of schedule
during the half year, across 1.4 GW of future clean energy
capacity. This is more than three times the project volume
completed in 2025 and was enabled by operational improvements that
are strengthening governance, increasing developer visibility and
accelerating project delivery.
Functions: enhancing control and oversight while reducing friction
in how we operate
Our functions play a critical role in supporting safe and efficient
delivery. During the period, we continued to simplify governance,
strengthen planning and controls, and identify opportunities for AI
to support efficient processes while maintaining appropriate
oversight.
For instance, in our Finance function we have been consolidating
our data onto a single platform, to create a stronger and more
consistent data foundation. We are also developing AI agents to
support some of our processes, and transferring further global
process activities to our Enterprise Business Services (our central
shared services function) to leverage our scale as we grow. In
August 2026, we successfully launched the first phase of our
NextGen ERP programme in the US as we modernise our core financial
systems. This release standardised the financial data model across
our US businesses and automated complex regulatory and financial
reporting, with approximately 400 end users across Finance
transitioned to the new platform. In our legal function, we have
enabled our businesses to get easier access to legal support
through a digital front-end, and are using AI-enabled tools such as
Harvey and Brief AI.
Driving the Big Shifts to define our future
The changing energy system requires us to transform how we lead,
how we innovate, and how we shape our external environment. To
achieve that transformation we are focussed on three Big
Shifts:
Leadership, People & Performance: accountability, performance
management and investment in leadership
We are focused on delivering clearer accountability, stronger
performance management and we are investing in leadership across
the Group. We launched a new simplified operating model in August,
and reduced the Group Executive Committee (GEC), from 13 to 8
members. This strengthens accountability for performance and
strategic delivery, and supports better-quality decisions at
pace, more consistent execution and a stronger focus on stakeholder
outcomes.
We are also investing in our capabilities and leadership, which
includes the strengthening of our leadership and talent pipeline to
build succession, depth and critical capabilities through a
streamlined leadership framework for the Group’s top 140
leaders. Delivering our investment programme requires the expansion
of our workforce including across specialist skills and delivery
capacity. This includes skilled trade, engineering and network and
capital delivery project management roles. We are on track to
deliver our workforce plans, having recruited over 3,600 new
employees during the first half of the year, including more than
400 graduates and apprentices.
We also recognise the need to support the next generation of
talent. During the period, we committed £5 million to launch
the Power within Employability fund to help 5,000 young people
enter the workforce over the next five years, through practical
training for the energy, construction, and infrastructure
sector.
We also made progress in the period in our relations with trade
unions, including pay and conditions agreements secured through our
constructive, long-standing partnerships with UK trade unions
supporting workforce stability and enabling delivery of our Great
Grid Upgrade and wider transformation agenda. In the US, a number
of multi-year union agreements were secured across our New York and
New England jurisdictions, providing greater labour certainty while
supporting productivity, operational flexibility and
transformation.
Technology & Innovation: using technology more systematically
to enable productivity and delivery
Technology and innovation are central to improving the performance
of our networks and delivering more capacity at lower whole-system
cost. During the period, we advanced digital, data and AI
capabilities to strengthen our cyber defences, accelerate our
capital delivery, unlock capacity on our existing networks,
optimise our reliability and asset management, and enhance the
customer experience. We recognise that cyber and AI-enabled threats
are evolving rapidly, and we continue to build our understanding
and adapt our approach in response.
Across capital delivery we are leveraging technology to help us
deliver our capital investment programmes to schedule and budget.
Our Capital Control Tower is helping us identify efficiencies from
initiatives including direct sourcing, alternative haulage routes,
and substation standardisation. Generative scheduling also allowed
us to identify 100 days of schedule acceleration across our Eastern
Green Link 1 joint venture project timeline. Using the Exodigo
mapping tool to visualise infrastructure underground derisked our
Walpole substation and Propel NY joint venture projects by
providing accurate information on underground assets thereby
reducing future change orders and supporting project
scheduling. Elsewhere we are using Sensat to create digital twins
of our project sites to allow multiple organisations involved in a
project to view the same visual information. This allows testing of
different options against real world constraints ahead of
construction. We have also used Sensat successfully on our North
London Reinforcement project to reduce site visits, enable earlier
decisions, and reduce overhead costs.
New construction technology is also helping us simplify and speed
up our delivery. For example we have moved innovative 3D-printed,
low-carbon concrete foundations from trial stage into
business-as-usual deployment, with the first supplier order now
placed following successful testing. This technology can
significantly reduce the volume of concrete required for substation
foundations, supporting faster and lower-carbon network
construction.
Across our assets we are using technology to unlock capacity on our
existing networks, supporting network planning and resilience. For
instance, in New England we are using Envelio’s mapping
analytics to help identify where capacity exists on our network to
assist developers with site selection and speed up customer
connections. Having successfully deployed GridCare in our NY
business to identify 600 MW of additional capacity earlier this
year, we are now working with them in UK Electricity Transmission
to unlock spare capacity and faster connections for large loads
like data centres that can flex their load. Emerald AI provides one
way for large data centres to flex their load without impacting
their performance. After a successful pilot in the UK we are now
exploring how we can leverage it more widely in our distribution
network.
Technology also enables us to optimise reliability and enhance our
asset management. In New England, we were awarded $49 million from
the Department of Energy to support the Dynamic Rating Enhancement
Advancements and Modernization (DREAM) project. This will establish
dynamic line rating as a system-wide operational capability across
New England Power’s approximately 2,600-mile overhead
transmission network, maximising the utilisation of our
transmission system. Sees.AI drone technology has also been
successfully piloted to complete inspections, and its use is being
extended across our business.
We are investing in our customer service platforms to support
improved customer experience, enabled by better use of data. Our US
businesses are introducing the Kraken platform to support
end-to-end ownership of the customer experience, including issue
resolution, accurate billing, and more proactive, timely
communication. Kraken moved into the customer trial stage in the
first half, and phased migration will start in the second half of
the year, as we target deployment to our c.6.5 million US
customers. In the UK, we modernised our Electricity Distribution
contact centre with Amazon Connect strengthening resilience and
service for our c.8 million customers and reducing call abandonment
by around 10%. Further insights from AWS have improved customer
experience and resolution, with a first contact resolution rate of
90%.
External Positioning: shaping outcomes that support affordability,
resilience and growth
We have continued to engage constructively with governments,
regulators and other stakeholders on the policy and regulatory
choices required to support economic growth, energy security,
affordability and decarbonisation. Our focus is on shaping
practical reforms that enable timely investment and connections
while protecting customers and maintaining system
reliability.
We have continued to progress our price controls and rate cases in
the period across a number of our jurisdictions. In the UK,
priorities have included RIIO-T3 implementation and submitting our
reopener filings, driving planning reform, delivering connections
reform and supporting strategic spatial planning.
In the US, we filed a one-year rate stabilisation proposal for
KEDNY and KEDLI, our downstate gas distribution businesses in New
York. This proposal would extend the current rate plan by one year
to 31 March 2028, and supports rate stability and affordability,
while enabling continued investment with the ability to defer for
future recovery the costs associated with necessary capital
expenditures to maintain a safe and reliable service. In
Massachusetts, our Massachusetts Gas rate case continued to
progress with the completion of evidentiary hearings and briefings,
ahead of an order expected in late November 2026.
Our external positioning work also includes helping to shape
industry-wide policy direction, through working in coalitions on
the future evolution of energy systems. In the UK we have played a
leading role in developing the Electricity Networks Sector Growth
Plan, bringing together industry, Government, the regulator and the
supply chain to support a shared plan to translate the
unprecedented expansion of Britain’s electricity networks
into wider UK economic growth. The Plan sets out the scale of the
opportunity through to 2035, including £181 billion of
regulated network investment, £58 billion of direct value
added to the UK economy and more than 210,000 jobs supported,
alongside practical commitments on supply-chain investment, skills,
demand visibility and UK manufacturing. National Grid is committed
to supporting this and has recently announced a new long-term
ambition for 70 per cent of the value of its future UK supply chain
spend to be delivered in the UK, supporting domestic jobs in
manufacturing and services.
In the US, we engaged with regulators and policy makers on
large-load policy, affordability, resilience and transmission
development. This included working with a bipartisan group to
support the introduction of a reform bill in the US Senate to speed
up federal permitting for infrastructure projects.
We recognise the role we play in delivering reliable, secure,
affordable energy systems that support economic growth and enable
decarbonisation. We continue to monitor developments in the
external environment and will ensure that we adapt our Responsible
Business Charter and Climate Transition Plan to reflect both our
own progress and the policy and regulatory landscape we are now
operating in, with publication planned ahead of the 2027
AGM.
Building optionality for Disciplined Growth
Delivering our Brilliant Basics and driving the Big Shifts will
build a stronger platform for future long-term growth. Our priority
remains execution of the high-quality, visible investment
opportunities across our regulated networks, while selectively
exploring new growth opportunities emerging from the transforming
energy landscape. This approach allows us to sustain strong growth
across our businesses, while creating additional growth options
in parallel.
Regulated networks growth
Our regulated networks remain the principal driver of growth within
our investment programme and we are focused on executing the
significant organic growth opportunity it presents. We are also
working with policy makers, regulators, customers and our supply
chain to shape the policy and regulatory environments of the
future, across both the UK and the US, not just for the next price
control, but for the longer term.
For instance, having received the ED3 SSMD in May 2026, we are in
the final stages of drafting our ED3 Business Plan, ahead of its
submission to Ofgem in November 2026. This is expected to drive
further growth in capital investment across the next five-year
distribution price control. While in the US, across our upstate and
downstate New York businesses, we are progressing the planning of
our next multi-year rate cases.
Exploring new growth opportunities through National Grid
Ventures
Alongside our regulated networks growth, National Grid Ventures
continues to manage our portfolio of interconnectors and US
generation assets and to assess selective opportunities. We are
disciplined in our approach and will only consider opportunities
where National Grid can leverage its capabilities whilst delivering
long-duration cash flows and attractive returns with an appropriate
risk profile.
During the half year, the Propel NY Energy transmission project, a
project owned by our joint venture New York Transco, made
significant progress in receiving approval of its Article VII
permit from the New York Public Service Commission, a critical
milestone to authorise advancing activities to complete all
construction permits for an expected start by the end of
FY2027.
In July 2026, we agreed to invest $1.75 billion to secure a 35%
interest in Joulent LLC (“Joulent”), as part of a
broader strategic partnership. Joulent will focus on developing
contracted power generation and high voltage infrastructure for US
large load customers, providing integrated solutions to help meet
rapidly rising demand for reliable, scaled power at speed. The
investment in Joulent is expected to deliver risk-adjusted returns
in excess of our regulatory returns.
The majority of NGV’s investment will be used to enable the
progression of Joulent’s foundational project, Project Kilby
(“Kilby”), a 50/50 partnership with Chevron
Corporation. Kilby is a 2.7 GW co-located power facility in West
Texas that will provide dedicated electricity to a
Microsoft-operated data centre campus under a 20-year power
purchase agreement. Development of the project is at an advanced
stage with all turbines and critical equipment secured, EPC
capacity being arranged with leading contractors, and first power
delivery targeted for 2028.
Our power-system expertise in energy management and high voltage
substation development will be critical in delivering complex
multi-gigawatt islanded mini-grid projects like Kilby. We also
bring deep supply chain relationships for the necessary electrical
equipment and we have longstanding experience of operating gas
turbine power equipment at our US GenCo facilities on Long
Island.
Beyond Project Kilby, Joulent has a multi-gigawatt pipeline, with
three further projects being advanced in discussions
with hyperscalers. We will progress that pipeline selectively
and with discipline, through strict hurdle rate and
risk criteria.
Elsewhere, we also continue to progress the next generation of
hybrid interconnectors, with the LionLink offshore hybrid
interconnector, being developed with TenneT in the Netherlands,
achieving its multi-terminal direct current FEED award during the
period. Our project pipeline includes two recent memoranda of
understanding signed with joint venture partners.
2026/27 Half Year Financial Performance
Strong first half of delivery of our five-year financial
framework
For detailed financial performance commentary, please refer to the
Financial Review section on page 15. Our statutory operating profit is presented
on page 3 which includes the impact of exceptional items,
remeasurements, major storms, and timing. Underlying earnings
further excludes the impact of deferred tax in our UK regulated
businesses (NGET and NGED). A reconciliation between statutory
performance and our Alternative Performance Measures (APMs) is
presented on page 51.
Underlying operating profit for
continuing operations increased by £292 million at constant
currency to £2,591 million, a year-on-year increase of
13%. This improvement was driven by strong performance across our
regulated businesses, predominantly in our UK Electricity
Transmission business with the start of the RIIO-T3 price control,
reflecting higher allowed revenue supporting the financing of the
step-up in pace and scale of investment and delivery in RIIO-T3.
New York benefitted from higher revenues reflecting higher rate
base and recovery of historical storm and environmental costs, and
National Grid Partners saw the benefit of two capital markets
transactions within our investment portfolio. National Grid
Ventures saw higher performance from the Interconnector portfolio,
partly offsetting the divestment of Grain LNG.
Underlying EPS of 36.5p
increased by 6.7p per share at constant currency, a 22%
year-on-year increase, reflecting the underlying operating profit
increase, a lower tax charge and income from the National Grid
Partners fair value gain within our share of Joint Ventures and
Associates, partly offset by the increased weighted average number
of shares reflecting the issuance of shares under the scrip
dividend programme.
Capital investment for
continuing operations increased by £1,631 million at constant
currency to £6,707 million, an increase of 32% relative
to the prior year period. This increase was principally driven by
the step-up in spend on ASTI projects in our UK Electricity
Transmission business, increased connections and reinforcement
spend in UK Electricity Distribution, and increased
electricity transmission investments in both New England and
New York.
Net debt was £48.6 billion
at 30 September 2026, £4.4 billion higher than at 31 March
2026. This increase primarily reflects capital investment in the
first half, and the funding of the investment in Joulent, along
with interest costs, partially offset by operating cash inflows of
£4.1 billion and the impact of foreign exchange
movements.
Five-year financial
framework*
In March 2026, we set out our updated five-year financial framework
for the period to 2030/31.
Capital investment and asset growth
We expect to invest at least £70 billion across our energy
networks and adjacent businesses, in the UK and US, over the
five-year period to March 2031, with Group assets trending towards
£115 billion by March 2031. Of this investment, around 85% is
considered to be aligned with the principles of the EU Taxonomy
legislation as at the date of reporting, directly invested into the
decarbonisation of energy networks.
In the UK, we expect around £31 billion of investment in UK
Electricity Transmission increasing network capacity to support
increased renewable generation, and reduce constraint costs,
connecting new customers, and maintaining the resilience of the
network. This includes investment across our 17 ASTI projects, as
we invest in the critical infrastructure required to enable the
energy transition and a decarbonised electricity network in the
2030s. We expect our UK Electricity Distribution network to invest
around £9 billion in asset replacement, reinforcement and new
connections, facilitating the infrastructure for electric vehicles,
heat pumps and directly connected generation.
In our US regulated businesses, we expect to invest around £17
billion in New York, and £12 billion in New England. Of this
investment, we expect over 60% to be into our electricity networks,
as we see a step-up in investment for renewable connections,
transmission network upgrades, and digital capabilities to enable
the energy transition, and the remainder in our gas business on
pipeline replacement, safety and resilience
programmes.
National Grid Ventures (NGV) has committed capital investment of
around £1 billion, including maintenance investment across the
six operational interconnectors.
With the large step-up in investment, we expect to see asset growth
of around 10% CAGR through to 2030/31.
Group earnings growth and dividend growth
We expect our CAGR in underlying EPS to be in the 8–10% range
from our 2025/26 baseline of 78.0p. This includes our long-run
average scrip uptake assumption of 25% per annum, which will
support our sustainable, progressive dividend policy into the
future.
We will maintain a progressive level of total dividend aiming to
grow the dividend per share in line with UK CPIH in keeping with
the current dividend policy (for details of our dividend policy
please refer to page 19).
Balance sheet visibility
We remain committed to a strong, overall investment grade credit
rating. We expect to maintain credit metrics above our thresholds
for our current group credit ratings through to at least 2030/31,
with current thresholds of 10% for S&P and Moody’s Funds
from Operations (FFO)/adjusted net debt, and 7% for Moody’s
Retained Cash Flow (RCF)/adjusted net debt. Regulatory gearing was
61% at March 2026, and is expected to increase to the high-60%
range by March 2030/31. This balance sheet strength extends beyond
2030/31, complemented by significant hybrid capacity.
*Our five-year financial framework is set from a 2025/26 baseline.
Forward years are based on an assumed USD exchange rate of
£1:$1.35, long run UK CPIH and US CPI inflation, long run
interest rate assumptions, and scrip dividend uptake of
25%.
Macro resilience
Our investment case is underpinned by the visibility and resilience
of our business model, our robust operational delivery, and
supported by our regulatory frameworks. We are resilient to the
impacts of the broader macro environment.
– Inflation:
In our UK businesses, inflation
protections across our regulated asset base, together with
regulatory mechanisms that provide protection against the impact of
inflation on our cost base, provide a strong natural hedge and
underpin real equity returns. Around 10% of our debt book is
inflation linked, aligned with UK regulatory mechanisms. In the US,
our regulatory frameworks have mechanisms to manage the impacts of
changes in inflation, including revenue indexation, the ability to
pace activity to remain within agreed allowances, and mechanisms to
recover efficiently incurred unremunerated spend over
time.
– Commodity
costs: Our businesses have
limited exposure to volatility in wholesale energy prices. In the
US, customer commodity costs are treated as pass through costs, and
we use hedging programmes agreed with our regulators to manage the
cost of energy procured for our customers.
– Interest
rates: Our financing strategy
is designed to ensure stability. Over the five-year framework
around 75% of our debt is subject to operating company level
recovery mechanisms enabling the efficient recovery of debt costs;
with 25% of our debt having a relatively small interest rate
exposure that we actively manage. Approximately 10% of our net debt
is sensitive to interest rates, limiting the exposure to changes in
rates on our embedded debt. Our five-year financial framework
reflects a forward view of interest rates and our refinancing
profile. From an earnings sensitivity perspective, a
sustained
increase in interest rates of 100 basis points across the five-year
financial framework versus our forward rate assumptions would
impact 2030/31 EPS by around 1 pence after accounting for
capitalised interest.
– Foreign
exchange: We are deliberate in
managing our currency exposure. We hedge around 70% of our
US gross assets with dollar-denominated debt. From an earnings
perspective, that means a five cent move in the
dollar–sterling exchange rate across a year translates to
around a 1p impact on EPS, limiting volatility for
shareholders.
Investment Case
National Grid offers a differentiated investment case, combining
high-visibility growth with a resilient business
model.
Our investment programme is supported by multiple structural
drivers: network resilience and modernisation, connecting
low-carbon generation, and the expansion of our networks to support
electrification and rapidly growing demand, including from AI and
data centres, and industrial reshoring. Importantly, that
investment is going into critical infrastructure assets, generating
long-duration cash flows with attractive, low-risk
returns.
Alongside that growth, our business model is highly resilient. Our
regulatory capabilities, delivery track record, disciplined balance
sheet and resilience to macroeconomic volatility provide a unique
stability, even as the energy system becomes more
complex.
That combination supports our five-year framework, including
8–10% annual underlying EPS growth and a progressive
inflation-protected dividend, designed to deliver attractive and
consistent double-digit investor returns.
2026/27 forward guidance
The outlook and forward guidance contained in this statement should
be reviewed, together with the forward looking statements set out
in this release, in the context of the cautionary statement. The
forward guidance in this section is presented on an underlying
basis and excludes remeasurements and exceptional items, deferrable
major storm costs, net of in-year allowances in the US (when
greater than $100 million), timing and the impact on underlying
results of deferred tax in our UK regulated businesses (NGET and
NGED). The 2026/27 forward guidance assumes an exchange rate of
£1:$1.35, reflecting nearer term exchange rates.
UK Electricity Transmission
Underlying net revenue is
expected to increase by just under £850 million compared to
2025/26 primarily driven by the first year of RIIO-T3, reflecting
semi-nominal returns and higher levels of totex from increased ASTI
investment. Depreciation is expected to be around £80 million
higher, while costs are expected to increase by around
£50 million,
both linked to the step-up in
investment programmes.
We expect to deliver around 9% Return on Equity
in 2026/27. Across the RIIO-T3 price
control we aim to achieve an overall return on equity above 9%
including operating and financing performance.
UK Electricity Distribution
Underlying net revenue growth is
expected to be broadly offset by higher depreciation, reflecting
the increasing asset base.
We expect to deliver up to 70 basis points of Return on Equity
operational outperformance in the
fourth year of RIIO-ED2, increasing from 2025/26, primarily
delivered through improved totex performance. We continue to expect
outperformance to improve towards 100bps over the remainder of
RIIO-ED2.
New England
Underlying net revenue is
expected to be around $450 million higher, driven by updated rates,
higher tracker revenues and the non-repeat of the 2025/26 FERC
order impact. This is expected to be partly offset by higher
depreciation of around $70 million and around $140 million of costs
including those linked to increased investment.
Return on Equity for New
England is expected to be in line with 2025/26.
New York
Underlying net revenue is
expected to be around $450 million higher, reflecting updated rates
and recovery of previously unremunerated costs. Depreciation is
expected to be around $150 million higher and other costs are
expected to be around $20 million higher, linked to increased
investment.
Return on Equity for New York
is expected to slightly improve compared to
2025/26.
National Grid Ventures and Other activities
In NGV, we expect operating profit
to be around £100 million lower
than 2025/26 primarily reflecting the sale of the Grain LNG
business and one-off costs. This is expected to be partly offset by
the higher interconnector performance over the first
half.
We also expect underlying operating losses
from other activities to be around
£70 million higher compared to 2025/26, reflecting lower
property disposals and higher other costs, partly offset by
investment gains within the NG Partners
portfolio.
Joint Ventures and Associates
Our share of the profit after tax
of joint ventures and associates is
expected to be around £40 million higher than 2025/26,
reflecting fair value gains from NG Partners investments in the
first half.
Interest and Tax
Net finance costs in 2026/27
are expected to be around £300 million
higher than 2025/26 reflecting
increased debt issuance to fund capital investment and our
investment in Joulent, net of higher capitalised
interest.
For the full year 2026/27, the underlying effective tax
rate, excluding the share of
post-tax profits from joint ventures and associates, is expected to
be around 12%. This is calculated following our definition of
underlying earnings which excludes the impact on underlying results
of deferred tax in our UK regulated businesses (NGET and
NGED).
Investment, Growth and Net Debt
Overall Group capital investment
in 2026/27 is expected to grow by over
15% to around £13.5 billion.
Asset Growth is expected to be
around 11%.
Operating cash flow generated
from operations is expected to increase by around 15% compared to
2025/26 driven by increased underlying performance and the recovery
of timing balances.
Net debt is expected to
increase by around £4 billion (from £48.6 billion as at
30 September 2026). Reflecting this, regulatory gearing is expected
to be around 65%.
Weighted average number of shares (WAV) is expected to be
approximately 5,020 million in 2026/27.
Financial review – HY 2026/27
Performance for the six months ended 30 September
Financial summary
|
(£ million)
|
2026
|
2025
|
change %
|
|
Accounting profit
|
|
|
|
|
Gross
revenue
|
8,138
|
7,065
|
15%
|
|
Operating
costs
|
(5,779)
|
(5,539)
|
(4%)
|
|
Statutory operating profit
|
2,359
|
1,526
|
55%
|
|
Net
finance costs
|
(718)
|
(739)
|
3%
|
|
Share
of joint ventures and associates (after tax)
|
89
|
39
|
128%
|
|
Tax
|
(386)
|
(208)
|
(86%)
|
|
Non-controlling
interest
|
(1)
|
(1)
|
—%
|
|
Statutory earnings
|
1,343
|
617
|
118%
|
|
Exceptional items
and remeasurements
|
(213)
|
150
|
(242%)
|
|
Tax on
exceptional and remeasurements
|
37
|
(15)
|
347%
|
|
Timing
|
441
|
677
|
(35%)
|
|
Tax on
timing
|
(116)
|
(182)
|
36%
|
|
Deferred tax on
underlying profits in NGET and NGED
|
329
|
223
|
48%
|
|
Underlying earnings1
|
1,821
|
1,470
|
24%
|
|
|
|
|
|
|
Statutory EPS
|
26.9
|
12.6
|
113%
|
|
Underlying EPS1
|
36.5
|
29.8
|
22%
|
|
Interim
dividend per share (pence)
|
16.97
|
16.35
|
4%
|
|
|
|
|
|
|
Capital investment
|
|
|
|
|
Capital
investment
|
6,707
|
5,052
|
33%
|
1. Non-GAAP
alternative performance measures (APMs). For further details and
reconciliation to GAAP measures, see ‘Alternative performance
measures/non-IFRS reconciliations’
on pages 49
to
53.
Reconciliation of different measures of profitability and
earnings
The table below reconciles our statutory profit measures at actual
exchange rates, to underlying profit. Details of exceptional items
and remeasurements are provided in notes 4 and 5 to the financial
statements.
|
Reconciliation of profit and earnings
|
|||||||||
|
|
|
Operating profit
|
|
Profit after tax
|
|
Earnings per share (pence)
|
|||
|
(£ million)
|
|
2026
|
2025
|
|
2026
|
2025
|
|
2026
|
2025
|
|
Statutory results
|
|
2,359
|
1,526
|
|
1,344
|
618
|
|
26.9
|
12.6
|
|
Exceptional
items
|
|
(228)
|
105
|
|
(186)
|
103
|
|
(3.7)
|
2.1
|
|
Remeasurements
|
|
19
|
(16)
|
|
10
|
32
|
|
0.2
|
0.6
|
|
Timing
|
|
441
|
677
|
|
325
|
495
|
|
6.5
|
10.0
|
|
Deferred
tax in NGET and NGED
|
|
—
|
—
|
|
329
|
223
|
|
6.6
|
4.5
|
|
Underlying results
|
|
2,591
|
2,292
|
|
1,822
|
1,471
|
|
36.5
|
29.8
|
Statutory IFRS earnings were £1,343 million in the first six
months of the year, £726 million, or 118% higher than the six
months to September 2025. Statutory revenues were £1,073
million higher, primarily driven by increased returns on our
growing asset base, driven by our ongoing investment programme,
along with an impact from £380 million higher revenues in UK
Electricity Transmission (from increased fast money as a result of
higher investment and the impact of the change to semi-nominal
returns under RIIO-T3), £440 million higher revenues in New
York (higher rate base and a smaller timing under-recovery). In
addition, favourable fair value gains in NG Partners generated
a £197 million increase in statutory revenues compared with
the prior period. These increases were partly offset by a £127
million higher charge for depreciation and amortisation and
£113 million higher operating costs (including the impact of
exceptional items and commodity remeasurements). Financing costs
increased £21 million compared with the first six months of
2025/26 and the total tax charge increased by £178 million
linked to the higher level of taxable profits. This resulted in
statutory EPS of 26.9p in the first six months of the year, up
14.3p or 113% on the comparative period.
Statutory earnings include a £170 million favourable
period-on-period swing in post-tax timing (see page
53) a £22 million post-tax favourable
period-on-period movement in derivative remeasurements (see note 4
to the financial statements). Exceptional post-tax gains of
£186 million in the current period comprise a
£142 million NG Partners’ fair value gain on
our investment in Uniphore and £86 million (impairment
reversal and currency translation recycling) for our interest in
Community Offshore Wind, LLC, which was sold in August 2026. In the
comparative period exceptional post-tax losses were
£103 million (see note 4 for further details).
Statutory earnings include the full impact of deferred tax on our
UK regulated businesses (NGET and NGED), but this is excluded from
our underlying results. For measuring and monitoring performance of
the businesses across the Group, management routinely refers
to alternative performance measures (APMs) including
‘underlying profit’. See pages 49–53
for further details and
reconciliations between statutory IFRS performance measures and our
APMs.
Underlying operating profit of £2,591 million was up 13% and
underlying EPS of 36.5p was up 22% against the prior period. This
was primarily driven by higher revenues in UK Electricity
Transmission under the new RIIO-T3 price control.
Underlying net revenues of £6,476 million were
£676 million higher compared to the prior period driven
by higher UK Electricity Transmission regulated revenues under
RIIO-T3 (up £441 million) along with increases in
New York (up £188 million) and New England
(up £81 million), both driven by the increased asset
base from ongoing investment in US assets, partly offset by lower
revenues in NGV following the sale of Grain LNG during the second
half of 2025/26.
Regulated controllable costs were up by 8% on a constant currency
basis, with increases from higher workload, inflation and other
non-recurring items, being partly offset by efficiencies. After
excluding the impact of non-recurring items, regulated controllable
costs have only increased by an estimated 2%, well below the
inflation levels in the UK and the US. Depreciation was
£127 million higher as a result of the higher level of
assets in service related to our ongoing capital investment
programme. Other costs were higher related to increased
US property taxes, capital investment related costs and also
higher costs to deliver outputs as agreed with our regulators
(which are offset by higher revenues). These factors resulted
in underlying earnings of £1,821 million for the first
six months of 2026/27, up £351 million or
24%.
Segmental income statement
|
Segmental analysis for continuing operations
|
|||||||
|
|
Statutory results
|
|
Underlying results
|
||||
|
£ million
|
2026
|
2025
|
change %
|
|
2026
|
2025
|
change %
|
|
UK
Electricity Transmission
|
1,147
|
810
|
42%
|
|
1,227
|
846
|
45%
|
|
UK
Electricity Distribution
|
477
|
488
|
(2%)
|
|
550
|
551
|
—%
|
|
New
England
|
65
|
61
|
7%
|
|
266
|
292
|
(9%)
|
|
New
York
|
377
|
78
|
383%
|
|
487
|
443
|
10%
|
|
National
Grid Ventures
|
217
|
126
|
72%
|
|
127
|
187
|
(32%)
|
|
Other
|
76
|
(37)
|
305%
|
|
(66)
|
(27)
|
(144%)
|
|
Total operating profit
|
2,359
|
1,526
|
55%
|
|
2,591
|
2,292
|
13%
|
|
Net
finance costs
|
(718)
|
(739)
|
(3%)
|
|
(722)
|
(678)
|
6%
|
|
Share
of JVs and associates (post-tax)
|
89
|
39
|
128%
|
|
89
|
39
|
128%
|
|
Profit before tax
|
1,730
|
826
|
109%
|
|
1,958
|
1,653
|
18%
|
|
Tax
|
(386)
|
(208)
|
86%
|
|
(136)
|
(182)
|
(25%)
|
|
Profit after tax
|
1,344
|
618
|
117%
|
|
1,822
|
1,471
|
24%
|
|
EPS (pence)
|
26.9
|
12.6
|
113%
|
|
36.5
|
29.8
|
22%
|
UK Electricity Transmission statutory operating profit of
£1,147 million was up from £810 million in the
prior period. Capital investment in the first half of the year
increased by more than £1 billion compared to the equivalent
period last year. The new RIIO-T3 price control has increased
revenues to help finance this step-up in investment. Higher levels
of investment in the electricity transmission network have resulted
in increased ‘fast money’. Revenues are also higher
from the change to semi-nominal returns on RAV, along with higher
returns from the growth in the asset base. The prior period
included £3 million of exceptional charges related to a
major transformation programme. Timing movements were
£47 million adverse to the comparative period (primarily
an under-collection of TNUoS revenues).
UK Electricity Transmission underlying operating profit was
£1,227 million compared with £846 million in
the prior period. This increase was driven by
£441 million higher underlying net revenues, driven by
the ongoing delivery of our capital investment programme, partially
offset by a £23 million increase in controllable costs, and
higher depreciation as a result of the higher level of assets
placed in service.
UK Electricity Distribution statutory operating profit of
£477 million was down from £488 million in the
prior period with revenue increases being broadly offset by higher
pass-through costs and higher depreciation. Timing movements were
£10 million adverse to the prior period mainly related to
volumes and inflation true-ups.
UK Electricity Distribution underlying operating profit was broadly
flat on the comparative period at £550 million (2025:
£551 million). Underlying net revenues increased by
£13 million from a combination of higher returns from a
higher asset base, but offset by lower fast money from a decrease
in overall totex. This increase was offset by higher
controllable costs driven by increased workload and higher
depreciation due to the higher investment.
New England statutory operating profit of £65 million was
up from £61 million in the prior period. However,
this included a £38 million less adverse period-on-period
timing swing (mainly due to commodity movements and the pass back
of energy efficiency balances in the prior year). Statutory
operating profit includes commodity derivative remeasurement losses
of £27 million (2025: £19 million losses) and a
£1 million exceptional charge in the prior period related
to a major transformation programme.
New England underlying operating profit of £266 million
was £29 million lower than the prior period (on a
constant currency basis), with higher underlying net revenues from
higher capital tracker revenues and formula rate revenues being
more than offset by higher controllable costs (including an
estimated £40 million from non-recurring items), higher
depreciation (up £40 million from the higher asset base due to
ongoing investment) and increased investment-related costs,
property taxes, storm costs and programme-related
costs incurred.
New York statutory operating profit of £377 million was
significantly higher than £78 million in the prior
period. Total revenues were up £440 million (16%), but this
included a £259 million favourable period-on-period
timing swing (including deferred recoveries along with volume and
commodity movements). Statutory operating profit included commodity
derivative remeasurement gains of £4 million (2025:
£18 million losses) and the prior period also included a
£2 million major transformation programme exceptional
charge and a £25 million exceptional credit on environmental
provisions.
New York’s underlying operating profit was
£487 million, £40 million higher than the prior
period (on a constant currency basis). Underlying net revenues were
£188 million higher driven by increased revenues from
increased rate bases in both our upstate and downstate New York
businesses of £126 million along with other regulatory asset
recoveries. Controllable costs were £28 million higher
compared with the prior period, principally related to inflation,
workload and some other non-recurring items, partly offset by
efficiency savings. Depreciation increased by £44 million (at
constant currency) from the higher asset base due to ongoing
investment. Other costs were higher compared to the prior
period, primarily driven by increased property taxes,
investment-related costs, storms expenses and environmental costs
along with higher provision for bad debts, partly offset by lower
energy efficiency programme costs.
National Grid Ventures’ statutory operating profit of
£217 million was up from £126 million in the
prior period. On 4 August 2026 we sold our 27.27% interest in
Community Offshore Wind (COSW) to RWE, resulting in a net
exceptional impairment reversal of £86 million (including
£11 million from the impact of FX recycling). This joint
venture investment was fully written down in 2024/25. The prior
period included a £96 million loss on the disposal of
National Grid Renewables (sold in May 2025) and £18 million of
exceptional transaction costs related to the disposal of Grain LNG
(sold in November 2025). Derivative remeasurement gains on capacity
contracts in North Sea Link were £4 million (2025: £53
million gains).
National Grid Ventures’ underlying operating profit of
£127 million was £60 million lower than the
prior period, driven by the loss of contribution from Grain LNG
(£91 million). Higher UK interconnectors revenues improved
profit by £35 million compared with the prior period, and
operating losses in US Ventures were £7 million higher than
the prior period, primarily related to transaction costs for the
investment in Joulent.
‘Other’ activities’ statutory operating profit of
£76 million (2025: £37 million operating loss)
was £113 million higher than the prior period. Statutory
profit was significantly impacted by gains on the NG Partners
investment portfolio (primarily Uniphore, but gains were made
across the portfolio in aggregate). The gain of £142 million
on the Uniphore investment has been classified as exceptional and
hence is excluded from our underlying results. The prior period
also included major transformation programme exceptional charges of
£9 million.
‘Other’ activities underlying operating loss of
£66 million (2025: £27 million loss) was
adverse to the prior period, with the favourable impact from the
result of NG Partners’ investment fair value gains (excluding
Uniphore), being more than offset by higher central costs and lower
profits in our captive insurance business.
The NG Partners portfolio valuation (including JVs) at 30 September
2026 was £567 million (31 March 2026: £433 million).
Movements in the portfolio’s valuation are attributable to
additional investment of £25 million, dividend distributions
of £31 million, disposals of investments for £110 million
and total revaluation gains of £253 million (including
exchange movements).
Financing costs and tax
Net finance costs
Statutory net finance costs of £718 million were down
from £739 million in the prior period and included
derivative remeasurement gains of £4 million (2025:
£61 million losses). Underlying net finance costs of
£722 million (2025: £678 million) were
£44 million, or 6% higher than the prior period
(£41 million, or 6% higher at constant currency).
This was driven by the increase in borrowings to finance our
investment programme along with lower interest income.
Joint ventures and associates
The Group’s share of net statutory profits from JVs and
associates was £89 million (2025: £39 million).
On an underlying basis, the share of net profits from joint
ventures and associates increased to £89 million (2025:
£39 million) due to the valuation of the Energy Impact
Fund’s investment in E-Rock which completed an IPO in July,
and increased profits in BritNed and Transco.
Tax
The statutory tax charge for continuing operations was £386
million (2025: £208 million) including the impact of tax
on exceptional items and remeasurements of £37 million charge
(2025: £15 million credit). The adjusted tax charge for
continuing operations was £349 million (2025:
£223 million), resulting in an effective tax rate
for continuing operations (excluding profits from joint
ventures and associates) of 24.4% (2025: 23.8%). The underlying
effective tax rate for continuing operations (excluding profits
from joint ventures and associates) was 7.3% (2025: 11.3%).
Underlying tax (a non-GAAP measure) excludes the tax impacts
on exceptional items, remeasurements, timing and major storm
costs (in line with our exclusion of these items in calculating
underlying profit before tax). We also exclude deferred tax in our
UK regulated businesses (NGET and NGED), as regulated revenues
provide an allowance for current tax but not deferred tax. This
ensures greater alignment between our underlying results and
regulatory performance measures. The underlying effective tax
rate of 7.3% is lower than the prior period (11.3%), primarily due
to increased capital investment in our UK regulated businesses
resulting in higher deferred tax exclusion as well as a change in
profit mix.
Net debt
Net debt is a measure derived from IFRS (comprising cash and cash
equivalents, current financial investments, borrowings and bank
overdrafts and financing derivatives) and is defined and reconciled
to these balances in note 10 to the financial
statements.
During the first six months of the year, net debt increased
£4.4 billion (10%) to £48.6 billion. Cash inflows were
made up of cash generated from operations of
£4,146 million along with dividends received of
£57 million, £75 million of proceeds on
disposal of COSW and £96 million of other net inflows
from financial investments outside net debt (including NG
Partners). These inflows were offset by £5,932 million of
investment cash outflows and a £941 million investment in
Joulent in the first six months of the year. In addition, there
were outflows of £4 million for tax payments,
£943 million of interest outflows, £990 million
paid in dividends, £94 million of accretions on
index-linked debt and other non-cash movements. Exchange rate
movements reduced reported opening net debt by
£64 million.
Since 1 April we have raised around £5.6 billion of new
long-term senior debt to fund a portion of our significant capital
programme and to refinance maturing debt. The debt was raised
across a diverse range of funding sources, with £1.1 billion
drawn through loans and the remaining £4.5 billion through
bond markets. Bond issuance was across six different currencies,
including bonds denominated in Canadian dollars and Swiss francs.
In addition, we signed a new loan guaranteed by a European Export
Credit Agency, which is aligned with our green financing framework
and which was undrawn as at 30 September 2026. During the period we
raised around £3.2 billion of additional committed loan
facilities from our relationship banking group, which will provide
incremental liquidity headroom to support our increased capital
investment programme. As at 30 September 2026, we have £10.9
billion of undrawn committed facilities available for
liquidity purposes. In June, Fitch upgraded the long-term ratings
of NG plc, NGET and NEP by one notch, referencing strong earnings
visibility. There are no other significant updates relating to
credit rating agency actions. National Grid’s balance sheet
remains robust and we remain committed to a strong, overall
investment grade credit rating.
Interim dividend
The Board has approved an interim dividend of 16.97p per ordinary
share ($1.1433) per American Depositary Share). The interim
dividend is expected to be paid on 12 January 2027 to
shareholders on the register as at 20 November
2026.
The Board aims to grow the annual dividend per share in line with
UK CPIH, thus maintaining the dividend per share in real terms. The
Board reviews this policy regularly, taking into account a range of
factors including expected business performance and regulatory
developments.
The scrip dividend alternative will again be offered in respect of
the 2026/27 interim dividend.
Growth
A balanced portfolio to deliver asset and dividend
growth
National Grid seeks to create value for shareholders through
developing a balanced portfolio of businesses that offer an
attractive combination of asset growth and cash
returns.
£6.7 billion of capital investment across the
Group
We continued to make significant investment in energy
infrastructure in the first six months of the year. Capital
investment across the Group was £6,707 million, an increase of
£1,655 million or 33% at actual exchange rates (32% at
constant currency) compared to the first half of
2025/26.
|
Group capital investment
|
|
|
|
|
|
|
|
|
Six months ended 30 September
(£ million)
|
|
At actual exchange rates
|
|
At constant currency
|
|||
|
|
2026
|
2025
|
% change
|
|
2025
|
% change
|
|
|
UK
Electricity Transmission
|
|
2,888
|
1,684
|
71%
|
|
1,684
|
71%
|
|
UK
Electricity Distribution
|
|
834
|
756
|
10%
|
|
756
|
10%
|
|
New
England
|
|
1,105
|
958
|
15%
|
|
967
|
14%
|
|
New
York
|
|
1,775
|
1,585
|
12%
|
|
1,599
|
11%
|
|
Capital investment (regulated networks)
|
|
6,602
|
4,983
|
32%
|
|
5,006
|
32%
|
|
National
Grid Ventures
|
|
100
|
69
|
45%
|
|
70
|
43%
|
|
Other
|
|
5
|
—
|
n/m
|
|
—
|
n/m
|
|
Total capital investment
|
|
6,707
|
5,052
|
33%
|
|
5,076
|
32%
|
UK Electricity Transmission invested £2,888 million, up
£1,204 million on the prior period, including £433
million more on ASTI offshore, £306 million more on ASTI
onshore, increased investment in infrastructure and delivery (e.g.
Margam, Willesden and Uxbridge Moor) along with more investment in
customer connections, completion of the transmission control
centre, increased spend on IT and cyber and also capitalised
interest (up £51 million).
UK Electricity Distribution invested £834 million,
£78 million higher, including £33 million of
increased connections spend and £21 million higher network
reinforcement activities, along with smaller increases in non-load
capital investment such as higher faults work due to the summer
heat.
In New England, £1,105 million of investment was an
increase of £147 million (or £138 million
higher at constant currency). This was mainly driven by £80
million more investment in electric transmission driven by major
and complex asset condition works, £34 million more investment
on electric distribution (reflecting higher spend on system
capacity, facilities and telecoms) and £22 million of
increased investment in gas distribution.
Investment in New York was £1,775 million,
£190 million higher (or £176 million higher at
constant currency), driven by £194 million higher electric
capital investment (primarily CLCPA Phases 1 & 2, but also
direct transmission and distribution investment along with network
reinforcement and upgrades).
National Grid Ventures capital investment was £31 million
higher, driven by spend on LionLink and IFA.
In the year to date, National Grid Ventures has also invested
£941 million in Joulent, a business which aims to develop
integrated power solutions for US large-load customers (including
data centres), including co-located gas generation, battery
storage, renewables integration and ‘Across-the-Meter’
grid connections. This investment has been accounted for as a
non-current financial investment, so is not included within our
‘capital investment’ measure.
Alternative Performance Measures
Unless otherwise stated, all financial commentaries in this results
statement are given on an underlying basis at actual exchange
rates. Underlying represents statutory results excluding
exceptional items, remeasurements, timing and major storm costs.
The following are terms or metrics that are reconciled to IFRS
measures and are defined on pages 49
to
53, including
but not limited to: net revenue, underlying net revenue, adjusted
profit measures, underlying results, constant currency, timing
impacts, capital investment (regulated networks), net debt (defined
in note 10 on page 43).
Provisional 2026/27 financial timetable
|
Date
|
Event
|
|
5
November 2026
|
2026/27
Half Year Results
|
|
19
November 2026
|
Ex-dividend
date for 2026/27 interim dividend – ordinary
shares
|
|
20
November 2026
|
Ex-dividend
date for 2026/27 interim dividend – ADRs
|
|
20 November
2026
|
Record
date for 2026/27 interim dividend
|
|
26
November 2026
|
Scrip
reference price announced for 2026/27 interim dividend
|
|
7
December 2026 (5pm EST)
|
Scrip
election date for 2026/27 interim dividend –
ADRs
|
|
10
December 2026 (5pm GMT)
|
Scrip
election date for 2026/27 interim dividend – ordinary
shares
|
|
12 January
2027
|
2026/27
interim dividend paid to qualifying shareholders
|
|
13 May
2027
|
2026/27
Full Year Results
|
|
27 May
2027
|
Ex-dividend
date for 2026/27 final dividend – ordinary
shares
|
|
28 May
2027
|
Ex-dividend
date for 2026/27 final dividend – ADRs
|
|
28 May
2027
|
Record
date for 2026/27 final dividend
|
|
3 June
2027
|
Scrip
reference price announced for 2026/27 final dividend
|
|
14 June
2027 (5pm EDT)
|
Scrip
election date for 2026/27 final dividend – ADRs
|
|
17 June
2027 (5pm BST)
|
Scrip
election date for 2026/27 final dividend – ordinary
shares
|
|
22 July
2027
|
2026/27
final dividend paid to qualifying shareholders
|
|
10
November 2027
|
2027/28
Half Year Results
|
Cautionary statement
This announcement contains certain statements that are neither
reported financial results nor other historical information. These
statements are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. These
statements include information with respect to National
Grid’s (the Company) financial condition, its results of
operations and businesses, strategy, plans and objectives. Words
such as ‘aims’, ‘anticipates’,
‘expects’, ‘should’, ‘intends’,
‘plans’, ‘believes’, ‘outlook’,
‘seeks’, ‘estimates’,
‘targets’, ‘may’, ‘will’,
‘continue’, ‘project’ and similar
expressions, as well as statements in the future tense, identify
forward-looking statements. This announcement also references
sustainability-related targets and sustainability-related risks
(including climate-related targets and climate-related risks) which
differ from conventional financial risks in that they are complex,
novel and tend to involve projection over long-term scenarios which
are subject to significant uncertainty and change. These
forward-looking statements and targets are not guarantees of
National Grid’s future performance and are subject to
assumptions, risks and uncertainties that could cause actual future
results to differ materially from those expressed in or implied by
such forward-looking statements and targets. Many of these
assumptions, risks and uncertainties relate to factors that are
beyond National Grid’s ability to control or estimate
precisely, such as changes in laws or regulations and decisions by
governmental bodies or regulators, including those relating to
current and upcoming price controls in the UK and rate cases in the
US; the timing of construction and delivery by third parties of new
generation projects requiring connection; breaches of, or changes
in, environmental, climate change and health and safety laws or
regulations, including breaches or other incidents arising from the
potentially harmful nature of its activities; network failure or
interruption, the inability to carry out critical non-network
operations and damage to infrastructure, due to adverse weather
conditions including the impact of major storms as well as the
results of climate change, due to counterparties being unable to
deliver physical commodities; reliability of and access to IT
systems, including due to the failure of or unauthorised access to
or deliberate breaches of National Grid’s systems and
supporting technology; failure to adequately forecast and respond
to disruptions in energy supply; performance against regulatory
targets and standards and against National Grid’s peers with
the aim of delivering stakeholder expectations regarding costs and
efficiency savings, including affordability considerations, as well
as against targets and standards designed to support its role in
the energy transition; and customers and counterparties (including
financial institutions) failing to perform their obligations to the
Company. Other factors that could cause actual results to differ
materially from those described in this announcement include
fluctuations in exchange rates, interest rates and commodity price
indices; restrictions and conditions (including filing
requirements) in National Grid’s borrowing and debt
arrangements, funding costs and access to financing; regulatory
requirements for the Company to maintain financial resources in
certain parts of its business and restrictions on some
subsidiaries’ transactions such as paying dividends, lending
or levying charges; the delayed timing of recoveries and payments
in National Grid’s regulated businesses, and whether aspects
of its activities are contestable; the funding requirements and
performance of National Grid’s pension schemes and other
post-retirement benefit schemes; the failure to attract, develop
and retain employees with the necessary competencies, including
leadership and business capabilities, and any significant disputes
arising with National Grid’s employees or breaches of laws or
regulations by its employees; the failure to respond to market
developments, including competition for onshore transmission; the
threats and opportunities presented by emerging technology,
including AI; the risk that global actions may not be effective in
transitioning to net zero and in managing relevant ESG risks,
including in particular climate, nature-related and human rights
risks; the failure by the Company to respond to, or meet its own
commitments as a leader in relation to, climate change development
activities relating to energy transition, including the integration
of distributed energy resources, which may result in the
Company’s failure to achieve the expected benefits of its
strategic priorities; and the need to grow the Company’s
business to deliver its strategy, as well as incorrect or
unforeseen assumptions or conclusions (including unanticipated
costs and liabilities) relating to business development activity,
including its strategic infrastructure projects and joint venture
investments. Furthermore, in preparing the ESG-related information
contained in this document, National Grid has made a number of key
judgements, estimations and assumptions, and the processes and
issues involved are complex. The ESG data, models and methodologies
used are often relatively new, are rapidly evolving and are not of
the same standard as those available in the context of other
financial information, nor are they subject to the same or
equivalent disclosure standards, historical reference points,
benchmarks or globally accepted accounting principles. This means
the ESG-related forward-looking statements and ESG metrics
discussed in this document carry an additional degree of inherent
risk and uncertainty. For further details regarding these and other
assumptions, risks and uncertainties that may affect National Grid,
please read the Strategic Report section (including the
‘Group Principal Risks’ on pages 31 to 37) and the
‘Risk factors’ on pages 227 to 232 of National
Grid’s Annual Report and Accounts and Form 20-F for the year
ended 31 March 2026 as updated by the principal risks and
uncertainties statement on page 46 of this announcement. In addition, new factors
emerge from time to time and National Grid cannot assess the
potential impact of any such factor on its activities or the extent
to which any factor, or combination of factors, may cause actual
future results to differ materially from those contained in
any forward-looking statement. Except as may be required by law or
regulation, the Company undertakes no obligation to update any of
its forward-looking statements, which speak only as of the date of
this announcement.
Glossary
|
Term
|
Meaning
|
|
ADR
|
American Depositary Receipt
|
|
APM
|
Alternative Performance Measure
|
|
ASTI
|
Accelerated Strategic Transmission Investment
|
|
CAGR
|
Compound Annual Growth Rate
|
|
CLCPA
|
Climate Leadership and Community Protection Act
|
|
CPIH
|
UK Consumer Prices Index including Owner Occupiers’ Housing
Costs
|
|
DPS
|
Dividend Per Share
|
|
DSO
|
Distribution System Operator
|
|
ED3
|
Electricity Distribution price control which will run from 1 April
2028 to 31 March 2033
|
|
EGL1
|
Eastern Green Link 1: Torness to Hawthorn Pit (ASTI project); JV
with SP Energy Networks
|
|
EGL2
|
Eastern Green Link 2: Peterhead to Drax (ASTI Project); JV with
SSEN
|
|
EGL3
|
Eastern Green Link 3: Aberdeenshire to Anderby Creek (ASTI
Project); JV with SSEN
|
|
EGL4
|
Eastern Green Link 4: Fife to Anderby Creek (ASTI Project); JV with
SP Energy Networks
|
|
ESO
|
Electricity System Operator
|
|
FERC
|
Federal Energy Regulatory Commission
|
|
FFO
|
Funds from Operations
|
|
FLISR
|
Fault Location Isolation and Service Restoration
|
|
IFA
|
Interconnexion France-Angleterre – subsea electric
interconnector between Great Britain and France
|
|
IPO
|
Initial Public Offering
|
|
KEDNY and KEDLI (KEDNY/LI)
|
KeySpan Energy Delivery New York (KEDNY) and KeySpan Energy
Delivery Long Island (KEDLI)
|
|
LNG
|
Liquefied Natural Gas
|
|
LTIFR
|
Lost Time Injury Frequency Rate (LTIs per 100,000 hours
worked)
|
|
NESO
|
National Energy System Operator
|
|
NGED/UK ED
|
National Grid Electricity Distribution
|
|
NGET/UK ET
|
National Grid Electricity Transmission
|
|
NGP
|
National Grid Partners
|
|
NGV
|
National Grid Ventures
|
|
NIMO
|
Niagara Mohawk (National Grid’s electric and gas distribution
business in Upstate New York)
|
|
NYPSC
|
New
York Public Service Commission (state energy
regulator)
|
|
RAV
|
Regulated Asset Value
|
|
RCF
|
Retained Cash Flow
|
|
RIIO
|
“Revenue = Incentives + Innovation + Outputs” a Price
control Framework used by the
UK
regulator OFGEM
|
|
RoE
|
Return on Equity
|
|
RPI
|
Retail Price Index
|
|
RPM
|
Regulatory Performance Measure
|
|
SSMD
|
Sector Specific Methodology Decision
|
|
UK CPIH
|
UK Consumer Prices Index including Owner Occupiers’ Housing
Costs
|
|
US CPI
|
US Consumer Prices Index
|
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
|
Consolidated income statement
|
|
|
|
|
|
|
for the six months ended 30 September
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2026
|
Notes
|
|
Before
exceptional
items and remeasurements
£m
|
Exceptional
items and remeasurements
£m
|
Total
£m
|
|
Revenue
|
2(a),3,4
|
|
7,996
|
142
|
8,138
|
|
Impairment
losses on financial assets
|
|
|
(73)
|
—
|
(73)
|
|
Other
operating costs
|
4
|
|
(5,773)
|
67
|
(5,706)
|
|
Operating profit
|
2(b),4
|
|
2,150
|
209
|
2,359
|
|
Finance
income
|
5
|
|
121
|
—
|
121
|
|
Finance
costs
|
4,5
|
|
(843)
|
4
|
(839)
|
|
Share
of post-tax results of joint ventures and associates
|
2(b)
|
|
89
|
—
|
89
|
|
Profit before tax
|
2(b),4
|
|
1,517
|
213
|
1,730
|
|
Tax
|
4,6
|
|
(349)
|
(37)
|
(386)
|
|
Total profit for the period
|
|
|
1,168
|
176
|
1,344
|
|
Attributable
to:
|
|
|
|
|
|
|
Equity
shareholders of the parent
|
|
|
1,167
|
176
|
1,343
|
|
Non-controlling
interests
|
|
|
1
|
—
|
1
|
|
Earnings per share (pence)
|
|
|
|
|
|
|
Basic
earnings per share
|
7
|
|
|
|
26.9
|
|
Diluted
earnings per share
|
7
|
|
|
|
26.8
|
|
|
|
|
|
|
|
|
2025
|
Notes
|
|
Before
exceptional
items and remeasurements
£m
|
Exceptional
items and remeasurements
£m
|
Total
£m
|
|
Revenue
|
2(a),3
|
|
7,065
|
—
|
7,065
|
|
Impairment
losses on financial assets
|
|
|
(58)
|
—
|
(58)
|
|
Other
operating costs
|
4
|
|
(5,392)
|
(89)
|
(5,481)
|
|
Operating profit
|
2(b),4
|
|
1,615
|
(89)
|
1,526
|
|
Finance
income
|
4,5
|
|
206
|
2
|
208
|
|
Finance
costs
|
4,5
|
|
(884)
|
(63)
|
(947)
|
|
Share
of post-tax results of joint ventures and associates
|
2(b),4
|
|
39
|
—
|
39
|
|
Profit before tax
|
2(b),4
|
|
976
|
(150)
|
826
|
|
Tax
|
4,6
|
|
(223)
|
15
|
(208)
|
|
Total profit for the period
|
|
|
753
|
(135)
|
618
|
|
Attributable
to:
|
|
|
|
|
|
|
Equity
shareholders of the parent
|
|
|
752
|
(135)
|
617
|
|
Non-controlling
interests
|
|
|
1
|
—
|
1
|
|
Earnings per share (pence)
|
|
|
|
|
|
|
Basic
earnings per share
|
7
|
|
|
|
12.6
|
|
Diluted
earnings per share
|
7
|
|
|
|
12.5
|
|
Consolidated statement of comprehensive income
|
|
|
|
|
|
for the six months ended 30 September
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2026
|
2025
|
|
|
Notes
|
|
£m
|
£m
|
|
Profit after tax
|
|
|
1,344
|
618
|
|
Other
comprehensive income
|
|
|
|
|
|
Items that will never be reclassified to profit or
loss:
|
|
|
|
|
|
Remeasurement
gains on pension assets and post-retirement benefit
obligations
|
|
|
115
|
147
|
|
Net
(losses)/gains in respect of cash flow hedging of capital
expenditure
|
|
|
(74)
|
42
|
|
Tax
on items that will never be reclassified to profit or
loss
|
|
|
(12)
|
(54)
|
|
Total items that will never be reclassified to profit or
loss
|
|
|
29
|
135
|
|
Items that may be reclassified subsequently to profit or
loss:
|
|
|
|
|
|
Retranslation
of net assets offset by net investment hedge
|
|
|
(37)
|
(588)
|
|
Exchange
differences reclassified to the consolidated income statement on
disposal
|
|
|
(11)
|
76
|
|
Net
gains/(losses) in respect of cash flow hedges
|
|
|
127
|
(68)
|
|
Net
gains in respect of cost of hedging
|
|
|
9
|
35
|
|
Net
(losses)/gains on investments in debt instruments measured at fair
value through other
comprehensive
income
|
|
|
(5)
|
13
|
|
Tax
on items that may be reclassified subsequently to profit or
loss
|
|
|
(34)
|
8
|
|
Total items that may be reclassified subsequently to profit or
loss
|
|
|
49
|
(524)
|
|
Other comprehensive income/(loss) for the period, net of
tax
|
|
|
78
|
(389)
|
|
Total comprehensive income for the period
|
|
|
1,422
|
229
|
|
Attributable
to:
|
|
|
|
|
|
Equity shareholders of the parent
|
|
|
1,421
|
228
|
|
Non-controlling interests
|
|
|
1
|
1
|
|
Consolidated statement of changes in equity
|
||||||||
|
for the six months ended 30 September
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
capital
|
Share premium account
|
Retained earnings
|
Other equity reserves
|
Total
share-holders’ equity
|
Non-controlling interests
|
Total
equity
|
|
|
Notes
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
At 1
April 2026
|
|
647
|
1,285
|
41,909
|
(4,542)
|
39,299
|
31
|
39,330
|
|
Profit
for the period
|
|
—
|
—
|
1,343
|
—
|
1,343
|
1
|
1,344
|
|
Other
comprehensive income/(loss) for the period
|
|
—
|
—
|
84
|
(6)
|
78
|
—
|
78
|
|
Total
comprehensive income/(loss) for the period
|
|
—
|
—
|
1,427
|
(6)
|
1,421
|
1
|
1,422
|
|
Equity
dividends
|
8
|
—
|
—
|
(990)
|
—
|
(990)
|
—
|
(990)
|
|
Scrip
dividend-related share issue
|
|
6
|
(8)
|
—
|
—
|
(2)
|
—
|
(2)
|
|
Issue
of treasury shares
|
|
—
|
—
|
22
|
—
|
22
|
—
|
22
|
|
Transactions
in own shares
|
|
—
|
—
|
(2)
|
—
|
(2)
|
—
|
(2)
|
|
Other
movements in non-controlling interests
|
|
—
|
—
|
—
|
—
|
—
|
4
|
4
|
|
Share-based
payments
|
|
—
|
—
|
25
|
—
|
25
|
—
|
25
|
|
Cash
flow hedges transferred to the statement of financial
position, net of tax
|
|
—
|
—
|
—
|
6
|
6
|
—
|
6
|
|
At 30 September 2026
|
|
653
|
1,277
|
42,391
|
(4,542)
|
39,779
|
36
|
39,815
|
|
At 1
April 2025
|
|
638
|
1,292
|
40,106
|
(4,233)
|
37,803
|
23
|
37,826
|
|
Profit
for the period
|
|
—
|
—
|
617
|
—
|
617
|
1
|
618
|
|
Other
comprehensive income/(loss) for the period
|
|
—
|
—
|
102
|
(491)
|
(389)
|
—
|
(389)
|
|
Total
comprehensive income/(loss) for the period
|
|
—
|
—
|
719
|
(491)
|
228
|
1
|
229
|
|
Equity
dividends
|
8
|
—
|
—
|
(894)
|
—
|
(894)
|
—
|
(894)
|
|
Scrip
dividend-related share issue
|
|
7
|
(8)
|
—
|
—
|
(1)
|
—
|
(1)
|
|
Issue
of treasury shares
|
|
—
|
—
|
38
|
—
|
38
|
—
|
38
|
|
Transactions
in own shares
|
|
—
|
—
|
(1)
|
—
|
(1)
|
—
|
(1)
|
|
Other
movements in non-controlling interests
|
|
—
|
—
|
—
|
—
|
—
|
4
|
4
|
|
Share-based
payments
|
|
—
|
—
|
17
|
—
|
17
|
—
|
17
|
|
At 30
September 2025
|
|
645
|
1,284
|
39,985
|
(4,724)
|
37,190
|
28
|
37,218
|
|
Consolidated statement of financial position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 September 2026
|
31 March 2026
|
|
|
Notes
|
|
£m
|
£m
|
|
Non-current assets
|
|
|
|
|
|
Goodwill
|
|
|
9,406
|
9,417
|
|
Other
intangible assets
|
2(c)
|
|
3,973
|
3,879
|
|
Property,
plant and equipment
|
2(c)
|
|
86,667
|
81,520
|
|
Other
non-current assets
|
|
|
1,424
|
1,384
|
|
Pensions
and other post-retirement benefit assets
|
11
|
|
2,617
|
2,507
|
|
Financial
and other investments
|
9
|
|
1,898
|
842
|
|
Investments
in joint ventures and associates
|
|
|
681
|
624
|
|
Derivative
financial assets
|
9
|
|
558
|
623
|
|
Total
non-current assets
|
|
|
107,224
|
100,796
|
|
Current assets
|
|
|
|
|
|
Inventories
|
|
|
738
|
559
|
|
Trade
and other receivables
|
|
|
2,965
|
3,867
|
|
Current
tax assets
|
|
|
10
|
16
|
|
Financial
and other investments
|
9,10
|
|
3,015
|
2,453
|
|
Derivative
financial assets
|
9
|
|
162
|
215
|
|
Cash
and cash equivalents
|
10
|
|
308
|
375
|
|
Total
current assets
|
|
|
7,198
|
7,485
|
|
Total assets
|
|
|
114,422
|
108,281
|
|
Current liabilities
|
|
|
|
|
|
Borrowings
|
10
|
|
(5,474)
|
(3,900)
|
|
Derivative
financial liabilities
|
9
|
|
(339)
|
(268)
|
|
Trade
and other payables
|
|
|
(5,108)
|
(5,049)
|
|
Contract
liabilities
|
|
|
(96)
|
(110)
|
|
Current
tax liabilities
|
|
|
(48)
|
(45)
|
|
Provisions
|
|
|
(596)
|
(425)
|
|
Total
current liabilities
|
|
|
(11,661)
|
(9,797)
|
|
Non-current liabilities
|
|
|
|
|
|
Borrowings
|
10
|
|
(45,748)
|
(42,855)
|
|
Derivative
financial liabilities
|
9
|
|
(1,046)
|
(750)
|
|
Other
non-current liabilities
|
|
|
(1,147)
|
(1,114)
|
|
Contract
liabilities
|
|
|
(2,875)
|
(2,699)
|
|
Deferred
tax liabilities
|
|
|
(9,470)
|
(9,040)
|
|
Pensions
and other post-retirement benefit obligations
|
11
|
|
(326)
|
(360)
|
|
Provisions
|
|
|
(2,334)
|
(2,336)
|
|
Total
non-current liabilities
|
|
|
(62,946)
|
(59,154)
|
|
Total liabilities
|
|
|
(74,607)
|
(68,951)
|
|
Net assets
|
|
|
39,815
|
39,330
|
|
Equity
|
|
|
|
|
|
Share
capital
|
|
|
653
|
647
|
|
Share
premium account
|
|
|
1,277
|
1,285
|
|
Retained
earnings
|
|
|
42,391
|
41,909
|
|
Other
equity reserves
|
|
|
(4,542)
|
(4,542)
|
|
Total shareholders’ equity
|
|
|
39,779
|
39,299
|
|
Non-controlling
interests
|
|
|
36
|
31
|
|
Total equity
|
|
|
39,815
|
39,330
|
|
Consolidated cash flow statement
|
|
|
|
|
|
for the six months ended 30 September
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2026
|
2025
|
|
|
Notes
|
|
£m
|
£m
|
|
Cash flows from operating activities
|
|
|
|
|
|
Operating
profit
|
2(b)
|
|
2,359
|
1,526
|
|
Adjustments
for:
|
|
|
|
|
|
Exceptional
items and remeasurements
|
4
|
|
(209)
|
89
|
|
Other
fair value movements
|
|
|
(56)
|
(7)
|
|
Depreciation,
amortisation and impairment
|
2(b)
|
|
1,229
|
1,102
|
|
Share-based
payments
|
|
|
25
|
17
|
|
Changes
in working capital
|
|
|
729
|
922
|
|
Changes
in provisions
|
|
|
111
|
(10)
|
|
Changes
in pensions and other post-retirement benefit
obligations
|
|
|
10
|
26
|
|
Cash
flows relating to exceptional items
|
|
|
(52)
|
(27)
|
|
Cash
generated from operations
|
|
|
4,146
|
3,638
|
|
Tax
paid
|
|
|
(4)
|
(12)
|
|
Net cash flow from operating activities
|
|
|
4,142
|
3,626
|
|
Cash flows from investing activities
|
|
|
|
|
|
Purchases
of intangible assets
|
|
|
(298)
|
(260)
|
|
Purchases
of property, plant and equipment
|
|
|
(5,650)
|
(4,444)
|
|
Disposals
of property, plant and equipment
|
|
|
31
|
10
|
|
Investments
in joint ventures and associates
|
|
|
(15)
|
(77)
|
|
Dividends
received from joint ventures, associates and other
investments
|
|
|
57
|
49
|
|
Disposal
of interest in Community Offshore Wind
|
|
|
75
|
—
|
|
Disposal
of interest in National Grid Renewables1
|
|
|
—
|
1,481
|
|
Disposal
of financial and other investments
|
|
|
134
|
31
|
|
Acquisition
of financial investments
|
|
|
(979)
|
(44)
|
|
Net
movements in short-term financial investments
|
|
|
(551)
|
2,555
|
|
Interest
received
|
|
|
59
|
143
|
|
Cash
inflows on derivatives
|
|
|
13
|
20
|
|
Net cash flow used in investing activities
|
|
|
(7,124)
|
(536)
|
|
Cash flows from financing activities
|
|
|
|
|
|
Proceeds
from issue of treasury shares
|
|
|
22
|
38
|
|
Transactions
in own shares
|
|
|
(2)
|
(1)
|
|
Proceeds
received from loans
|
|
|
5,623
|
2,235
|
|
Repayments
of loans
|
|
|
(1,767)
|
(1,638)
|
|
Payments
of lease liabilities
|
|
|
(86)
|
(76)
|
|
Net
movements in short-term borrowings
|
|
|
1,074
|
(2,104)
|
|
Cash
inflows on derivatives
|
|
|
74
|
71
|
|
Cash
outflows on derivatives
|
|
|
(66)
|
(40)
|
|
Interest
paid
|
|
|
(1,002)
|
(996)
|
|
Dividends
paid to shareholders
|
8
|
|
(990)
|
(894)
|
|
Net cash flow from/(used in) financing activities
|
|
|
2,880
|
(3,405)
|
|
Net decrease in cash and cash equivalents
|
|
|
(102)
|
(315)
|
|
Reclassification
to held for sale
|
|
|
—
|
31
|
|
Exchange
movements
|
|
|
5
|
(7)
|
|
Net
cash and cash equivalents at start of period
|
|
|
375
|
1,178
|
|
Net cash and cash equivalents at end
of period2
|
|
|
278
|
887
|
2. Net
cash and cash equivalents at the end of period are shown net of the
Group’s bank overdraft as at 30 September 2026 of
£30 million (2025: £nil).
Notes to the financial statements
1. Basis of preparation and new accounting standards,
interpretations and amendments
The half year financial information covers the six month period
ended 30 September 2026 and has been prepared in
accordance with IAS 34 ‘Interim Financial Reporting’ as
issued by the International Accounting Standards Board (IASB) and
as adopted by the United Kingdom (UK); and the Disclosure and
Transparency Rules of the Financial Conduct Authority. This
condensed set of financial statements comprises the unaudited
financial information for the half years ended 30 September
2026 and 2025, together with the audited consolidated statement of
financial position as at 31 March 2026. The half year
financial information has been prepared applying consistent
accounting policies to those applied by the Group for the year
ended 31 March 2026 and are expected to be applicable for the
year ending 31 March 2027. The notes to the unaudited
financial information are prepared on a continuing basis unless
otherwise stated.
The financial information for the six months ended
30 September 2026 does not constitute statutory accounts
as defined in Section 434 of the Companies Act 2006. It should
be read in conjunction with the Annual Report and Accounts and Form
20-F for the year ended 31 March 2026, which were prepared in
accordance with IFRS® Accounting
Standards (IFRSs) as issued by the IASB and as adopted by the UK,
and have been filed with the Registrar of Companies. The
Deloitte LLP audit report on those Annual Report and Accounts was
unqualified, did not contain an emphasis of matter and did not
contain a statement under Section 498 of the Companies Act
2006.
The key sources of estimation uncertainty, other areas of
estimation uncertainty and areas of judgement for the period ended
30 September 2026 are aligned to those disclosed in the Annual
Report and Accounts for year ended 31 March 2026, with an
additional key source of estimation uncertainty in respect of the
valuation of the Group’s £952 million investment in
Joulent LLC. This investment, which is accounted for at fair value
through profit and loss, is described in note 9 with valuation
sensitivity analysis also set out in that note.
Our consolidated income statement and segmental analysis (see note
2) separately identify financial results before and after
exceptional items and remeasurements. The Directors believe that
presentation of the results in this way is relevant to an
understanding of the Group’s financial performance.
Presenting financial results before exceptional items and
remeasurements is consistent with the way that financial
performance is measured by management and reported to the Board and
improves the comparability of reported financial performance from
year to year. Items which are classified as exceptional items or
remeasurements are defined in the Annual Report and Accounts
for the year ended 31 March 2026.
1. Basis of preparation and new accounting standards,
interpretations and amendments continued
A.
Going concern
As part of the Directors’ consideration of the
appropriateness of adopting the going concern basis of
accounting in preparing the half year financial information,
the Directors have considered the Group’s principal risks
(discussed on page 46)
alongside potential downside business cash flow scenarios impacting
the Group’s operations. The Directors specifically considered
both a base case and a reasonable worst-case scenario for business
cash flows.
The main cash flow impacts identified in the reasonable worst-case
scenario are:
– adverse
impacts of higher spend on our investment
programme;
– adverse
impact from timing across the Group (i.e. a net under-recovery of
allowed revenues or reductions in over-collections) and slower
collections of outstanding receivables;
– higher
operating and financing costs than expected; including non-delivery
of planned efficiencies across the Group;
and
– the
potential impact of further significant storm costs in the
US.
As part of their analysis, the Board also considered the following
potential levers at their discretion to improve the position
identified by the analysis if the debt capital markets are not
accessible:
– the
payment of dividends to shareholders;
– significant
changes in the phasing of the Group’s capital programme, with
elements of non-essential works and programmes delayed;
and
– a
number of further reductions in operating expenditure across the
Group.
Having considered the reasonable worst-case scenario and the
further levers at the Board’s discretion, the Group continues
to have headroom against the Group’s committed
facilities.
In addition to the above, the ability to raise new and extend
existing financing was separately included in the analysis, and the
Directors noted over £9.1 billion of new long-term senior
debt and facilities had been executed in the period from
1 April 2026 to 30 September 2026 as evidence of the
Group’s ability to continue to have access to capital,
including via the debt capital markets if needed.
Based on the above, the Directors have concluded the Group is well
placed to manage its financing and other business risks
satisfactorily, and have a reasonable expectation that the Group
will have adequate resources to continue in operation for at
least 12 months from the signing date of these consolidated interim
financial statements. They therefore consider it appropriate to
adopt the going concern basis of accounting in preparing
the half year financial information.
B.
New IFRS accounting standards, interpretations and amendments
adopted in the period
There are no new standards, interpretations or amendments, issued
by the IASB or by the IFRS Interpretations Committee (IFRIC), that
are applicable for the period commencing on 1 April 2026 and
that have had a material impact on the Group’s
results.
C.
New IFRS accounting standards, interpretations and amendments not
yet adopted
The following new accounting standards and amendments to existing
standards have been issued during the period but are not yet
effective or have not yet been endorsed by the UK:
– IFRS
18 ‘Presentation and Disclosure in Financial
Statements’;
– Amendments
to IAS 28 ‘Investments in Associates and Joint
Ventures’: Fair Value Option for Investments
in Associates and Joint Ventures;
– IFRS
20 ‘Regulatory Assets and Regulatory
Liabilities’.
The potential impact of IFRS 18 ‘Presentation and Disclosure
in Financial Statements’, and IFRS 20 ‘Regulatory
Assets and Regulatory Liabilities’ are given below. The Group
does not expect the amendments to IAS 28 ‘Investments in
Associates and Joint Ventures’ to have a material impact on
its financial statements.
1. Basis of preparation and new accounting standards,
interpretations and amendments continued
C.
New IFRS accounting standards,
interpretations and amendments not yet adopted continued
IFRS 18 ‘Presentation and Disclosure in Financial
Statements’
IFRS 18 will replace IAS 1 ‘Presentation of Financial
Statements’. The standard is effective for accounting periods
beginning on or after 1 January 2027 and will be applied by the
Group from 1 April 2027, with comparative information
restated.
The Group is continuing to assess the impact of IFRS 18 on its
consolidated financial statements. Based on the assessment
performed to date, the adoption of IFRS 18 is not expected to
affect the recognition or measurement of the Group’s assets,
liabilities, equity, income or expenses, nor its profit after tax.
However, the standard is expected to result in changes to the
presentation and disclosure of information within the consolidated
financial statements.
IFRS 18 introduces specified categories within the consolidated
income statement, namely operating, investing, financing, income
tax and discontinued operations, together with new mandatory
subtotals, including ‘Profit before financing and income
taxes’. The standard also introduces enhanced requirements
relating to the aggregation and disaggregation of information and
the presentation of a ‘useful structured summary’ of an
entity’s financial performance.
Based on the assessment performed to date, the results of
associates and joint ventures accounted for using the equity method
and investment income will be classified within the investing
category. The Group will also provide additional disaggregation of
expenses currently included within other operating costs where this
is necessary to meet the requirements of IFRS 18. No significant
changes to the presentation of the consolidated statement of
financial position are expected.
IFRS 18 also introduces disclosure requirements for
management-defined performance measures (MPM), requiring qualifying
measures to be disclosed and reconciled to the most directly
comparable IFRS-defined subtotal within a single note. The Group is
continuing to evaluate the impact of these requirements on its
existing alternative performance measures and related disclosures.
Based on the assessment performed to date, certain measures
currently presented as part of the Group’s unaudited
Alternative Performance Measures disclosures, including adjusted
and underlying profit measures and the regulated financial
performance measure used as the numerator in the calculation of
Group return on equity, may meet the definition of an MPM and
consequently be required to be included within the audited
financial statements, together with an explanation of their
purpose, calculation methodology and a reconciliation to the
relevant IFRS-defined subtotal. In addition, the Group is reviewing
whether its current Group Income Statement presentation of
‘Exceptional items and remeasurements’ of financial
instruments in a separate column, adheres with the IFRS 18
requirement for any additional subtotals presented to be recognised
and measured in accordance with IFRS. In the event that the current
presentation is not compliant, the Group Income Statement will
revert to a single column, with the additional ‘Exceptional
items and remeasurements’ column information provided in a
separate note.
As the Group continues to assess the impact of IFRS 18 and refine
its implementation approach, additional changes to the presentation
and disclosure of information within the consolidated financial
statements may be identified prior to adoption.
IFRS 20 ‘Regulatory Assets and Regulatory
Liabilities’
In May 2026, the IASB issued IFRS 20 ‘Regulatory Assets and
Regulatory Liabilities’, a new accounting standard governing
rate-regulated activities which replaces IFRS 14 ‘Regulatory
Deferral Accounts’. IFRS 20 supplements IFRS 15
‘Revenue from Contracts with Customers’, by requiring
entities to reflect the total allowed compensation for regulated
goods and services in the period which they are supplied. Where
there is a difference between when regulated goods or services are
supplied and when the related amounts are recovered from or
returned to customers through regulated rates, IFRS 20 requires
entities to recognise regulatory assets and regulatory liabilities,
together with the related regulatory income and regulatory
expense.
IFRS 20 is effective for annual reporting periods beginning on or
after 1 January 2029, with earlier application permitted (subject
to UK endorsement). The Group is currently assessing the impact of
IFRS 20 on its financial statements, including the application of
IFRS 20 to its regulated activities and the resulting effect on the
recognition, measurement, presentation and disclosure of regulatory
balances.
2. Segmental analysis
Revenue and the results of the business are analysed by operating
segment, based on the information the Board of Directors uses
internally for the purposes of evaluating the performance of each
operating segment and determining resource allocation between them.
The Board is National Grid’s chief operating decision maker
(as defined by IFRS 8 ‘Operating Segments’) and as a
matter of course, the Board considers multiple profitability
measures by segment, being ‘adjusted profit’ and
‘underlying profit’. Adjusted profit excludes
exceptional items and remeasurements (as defined in note 4) and is
used by management and the Board to monitor financial performance
as it is considered that it aids the comparability of our reported
financial performance from year to year. Underlying profit, as
presented in the Annual Report and Accounts, represents adjusted
profit and also excludes the effects of timing, major storm costs
and deferred tax expenses in our UK Electricity Transmission and UK
Electricity Distribution businesses. The measure of profit
disclosed in this note and the primary profitability benchmark
considered by the chief operating decision maker is adjusted
profit, as this is the measure that is most consistent with the
IFRS results reported within these financial
statements.
The results of our five principal businesses are reported to the
Board and are accordingly treated as reportable operating
segments. All other operating segments are reported to the Board on
an aggregated basis. The following table describes the main
activities for each reportable operating segment:
|
UK
Electricity Transmission
|
The
high-voltage electricity transmission networks in England and
Wales. This includes our Accelerated Strategic Transmission
Investment projects to connect more clean, low-carbon power to
the transmission network in England and Wales.
|
|
UK
Electricity Distribution
|
The
electricity distribution networks of NGED in the East Midlands,
West Midlands and South West of England and South
Wales.
|
|
New
England
|
Electricity
distribution networks, high-voltage electricity transmission
networks and gas distribution networks in New England.
|
|
New
York
|
Electricity
distribution networks, high-voltage electricity transmission
networks and gas distribution networks in New York.
|
|
National
Grid Ventures
|
Comprises
our electricity interconnectors in the UK, our electricity
generation business in the US and all commercial operations in
LNG at Providence, Rhode Island in the US. While NGV operates
outside our regulated core business, the electricity
interconnectors in the UK are subject to indirect regulation
by Ofgem regarding the level of returns they can earn. During the
prior year, the Group sold its interest in NG Renewables and
Grain LNG.
|
The New England and New York segments typically experience seasonal
fluctuations in revenue and operating profit due to higher delivery
volumes during the second half of the financial year, for example
as a result of colder weather over the winter months driving
increased heating demand. These seasonal fluctuations have
a consequential impact on the working capital balances
(primarily trade debtors and accrued income) in the consolidated
statement of financial position at 30 September 2026 when
compared to 31 March 2026. The majority of UK revenues are
derived from the supply of network capacity rather than the supply
of commodities and therefore are not subject to the same seasonal
fluctuations as in New York and New England.
Other activities that do not form part of any of the segments in
the above table primarily relate to our UK property business
together with insurance and corporate activities in the UK and US
and the Group’s investments in technology and innovation
companies through National Grid Partners.
2. Segmental analysis continued
a.
Revenue
|
Six months ended 30 September
|
2026
|
|
2025
|
||||
|
Total sales
|
Sales between
segments1
|
Sales to third parties
|
|
Total sales
|
Sales between segments1
|
Sales to third
parties
|
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
Operating
segments:
|
|
|
|
|
|
|
|
|
UK
Electricity Transmission
|
1,823
|
(57)
|
1,766
|
|
1,443
|
(37)
|
1,406
|
|
UK
Electricity Distribution
|
922
|
(3)
|
919
|
|
901
|
(5)
|
896
|
|
New
England
|
1,630
|
—
|
1,630
|
|
1,493
|
—
|
1,493
|
|
New
York
|
3,107
|
—
|
3,107
|
|
2,667
|
—
|
2,667
|
|
National Grid
Ventures
|
516
|
(23)
|
493
|
|
601
|
(20)
|
581
|
|
Other2
|
226
|
(3)
|
223
|
|
25
|
(3)
|
22
|
|
Total revenue
|
8,224
|
(86)
|
8,138
|
|
7,130
|
(65)
|
7,065
|
|
|
|
|
|
|
|
|
|
|
Geographical
areas:
|
|
|
|
|
|
|
|
|
UK
|
|
|
3,167
|
|
|
|
2,702
|
|
US
|
|
|
4,971
|
|
|
|
4,363
|
|
Total revenue
|
|
|
8,138
|
|
|
|
7,065
|
1. Sales
between operating segments are priced having regard to the
regulatory and legal requirements to which the businesses are
subject. The analysis of revenue by geographical area is on
the basis of destination. There are no material sales between the
UK and US geographical areas.
2. In
the current period, Other segmental revenue includes
£142 million of exceptional revenue. Further details are
provided in notes 3 and 4.
The principal revenues of the UK Electricity Transmission segment
arise from the provision of electricity transmission services and
are invoiced to, and collected from, National Energy System
Operator (NESO). Amounts are invoiced and settled in equal monthly
instalments throughout the financial year. No other single customer
contributed 10% or more of the Group’s revenue in either of
the periods presented.
b.
Operating profit/(loss)
|
|
Total operating profit/(loss) before exceptional items
and remeasurements
|
|
Exceptional items and remeasurements
|
|
Total operating profit/(loss) after exceptional items
and remeasurements
|
|||
|
Six months ended 30 September
|
2026
|
2025
|
|
2026
|
2025
|
|
2026
|
2025
|
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
|
|
Operating
segments:
|
|
|
|
|
|
|
|
|
|
UK
Electricity Transmission
|
1,147
|
813
|
|
—
|
(3)
|
|
1,147
|
810
|
|
UK
Electricity Distribution
|
477
|
488
|
|
—
|
—
|
|
477
|
488
|
|
New
England
|
92
|
81
|
|
(27)
|
(20)
|
|
65
|
61
|
|
New
York
|
373
|
73
|
|
4
|
5
|
|
377
|
78
|
|
National
Grid Ventures
|
127
|
187
|
|
90
|
(61)
|
|
217
|
126
|
|
Other
|
(66)
|
(27)
|
|
142
|
(10)
|
|
76
|
(37)
|
|
Total Group
|
2,150
|
1,615
|
|
209
|
(89)
|
|
2,359
|
1,526
|
|
|
|
|
|
|
|
|
|
|
|
Geographical
areas:
|
|
|
|
|
|
|
|
|
|
UK
|
1,713
|
1,476
|
|
146
|
22
|
|
1,859
|
1,498
|
|
US
|
437
|
139
|
|
63
|
(111)
|
|
500
|
28
|
|
Total Group
|
2,150
|
1,615
|
|
209
|
(89)
|
|
2,359
|
1,526
|
|
|
Total operating profit/(loss) before exceptional items and
remeasurements
|
|
Exceptional items and remeasurements
|
|
Total operating profit/(loss) after exceptional items
and remeasurements
|
|||
|
Six months ended 30 September
|
2026
|
2025
|
|
2026
|
2025
|
|
2026
|
2025
|
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
|
|
Reconciliation
to profit before tax:
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
2,150
|
1,615
|
|
209
|
(89)
|
|
2,359
|
1,526
|
|
Share
of post-tax results of joint ventures
and associates
|
89
|
39
|
|
—
|
—
|
|
89
|
39
|
|
Finance
income
|
121
|
206
|
|
—
|
2
|
|
121
|
208
|
|
Finance
costs
|
(843)
|
(884)
|
|
4
|
(63)
|
|
(839)
|
(947)
|
|
Total Group
|
1,517
|
976
|
|
213
|
(150)
|
|
1,730
|
826
|
2. Segmental analysis continued
The following items are included in the total operating profit by
segment:
|
Depreciation, amortisation and impairment
|
30 September 2026
|
30 September 2025
|
|
£m
|
£m
|
|
|
Operating
segments:
|
|
|
|
UK
Electricity Transmission
|
(308)
|
(278)
|
|
UK
Electricity Distribution
|
(145)
|
(133)
|
|
New
England
|
(276)
|
(236)
|
|
New
York
|
(423)
|
(376)
|
|
National
Grid Ventures
|
(75)
|
(76)
|
|
Other
|
(2)
|
(3)
|
|
Total
|
(1,229)
|
(1,102)
|
|
|
|
|
|
Asset
type:
|
|
|
|
Property,
plant and equipment
|
(1,022)
|
(950)
|
|
Non-current
intangible assets
|
(207)
|
(152)
|
|
Total
|
(1,229)
|
(1,102)
|
c.
Capital investment
Capital investment represents additions to property, plant and
equipment, prepayments to suppliers to secure production capacity
in relation to our capital projects, non-current intangibles and
additional equity investments in joint ventures and associates.
Capital investments exclude additions for assets or businesses from
the point they are classified as held for sale.
|
|
30 September 2026
|
30 September 2025
|
|
|
£m
|
£m
|
|
Operating
segments:
|
|
|
|
UK
Electricity Transmission
|
2,888
|
1,684
|
|
UK
Electricity Distribution
|
834
|
756
|
|
New
England
|
1,105
|
958
|
|
New
York
|
1,775
|
1,585
|
|
National
Grid Ventures
|
100
|
69
|
|
Other
|
5
|
—
|
|
Total
|
6,707
|
5,052
|
|
|
|
|
|
Asset
type:
|
|
|
|
Property,
plant and equipment
|
6,047
|
4,551
|
|
Non-current
intangible assets
|
310
|
323
|
|
Equity
investments in joint ventures and associates
|
15
|
15
|
|
Capital
expenditure prepayments
|
335
|
163
|
|
Total
|
6,707
|
5,052
|
d.
Geographical analysis of non-current
assets
Non-current assets by geography comprise goodwill, other intangible
assets, property, plant and equipment, investments in joint
ventures and associates and other non-current assets.
|
|
30 September 2026
|
31 March
2026
|
|
|
£m
|
£m
|
|
Split
by geographical area:
|
|
|
|
UK
|
50,781
|
47,551
|
|
US
|
51,370
|
49,273
|
|
Total
|
102,151
|
96,824
|
|
|
|
|
|
Reconciliation
to total non-current assets:
|
|
|
|
Pension
assets
|
2,617
|
2,507
|
|
Financial
and other investments
|
1,898
|
842
|
|
Derivative
financial assets
|
558
|
623
|
|
Non-current assets
|
107,224
|
100,796
|
3. Revenue
Under IFRS 15 ‘Revenue from Contracts with Customers’,
revenue is recorded as or when the Group satisfies
a performance obligation by transferring a promised good or
service to a customer. A good or service is transferred when the
customer obtains control of that good or service.
The transfer of control of our distribution or transmission
services coincides with the use of our network, as electricity
and gas pass through our network and reach our customers. The Group
principally satisfies its performance obligations over time
and the amount of revenue recorded corresponds to the amounts
billed and accrued for volumes of gas and electricity
delivered/transferred to/from our customers.
|
Revenue for the six months
ended 30 September 2026
|
UK Electricity Transmission
£m
|
UK Electricity Distribution
£m
|
New
England
£m
|
New
York
£m
|
National Grid Ventures
£m
|
Other
£m
|
Total
£m
|
|
Revenue under IFRS 15
|
|
|
|
|
|
|
|
|
Transmission
|
1,706
|
—
|
50
|
221
|
333
|
—
|
2,310
|
|
Distribution
|
—
|
882
|
1,553
|
2,861
|
—
|
—
|
5,296
|
|
Other1
|
16
|
35
|
5
|
9
|
6
|
3
|
74
|
|
Total IFRS 15 revenue
|
1,722
|
917
|
1,608
|
3,091
|
339
|
3
|
7,680
|
|
Other revenue
|
|
|
|
|
|
|
|
|
Generation
|
—
|
—
|
—
|
—
|
211
|
—
|
211
|
|
Other2
|
44
|
2
|
22
|
16
|
(57)
|
78
|
105
|
|
Total other revenue
|
44
|
2
|
22
|
16
|
154
|
78
|
316
|
|
Total revenue before exceptional items
|
1,766
|
919
|
1,630
|
3,107
|
493
|
81
|
7,996
|
|
Exceptional items3
|
—
|
—
|
—
|
—
|
—
|
142
|
142
|
|
Total revenue
|
1,766
|
919
|
1,630
|
3,107
|
493
|
223
|
8,138
|
|
Geographic split of revenue for the six months ended
30 September 2026
|
UK Electricity Transmission
£m
|
UK Electricity Distribution
£m
|
New
England
£m
|
New
York
£m
|
National Grid Ventures
£m
|
Other
£m
|
Total
£m
|
|
Revenue under IFRS 15
|
|
|
|
|
|
|
|
|
UK
|
1,722
|
917
|
—
|
—
|
333
|
—
|
2,972
|
|
US
|
—
|
—
|
1,608
|
3,091
|
6
|
3
|
4,708
|
|
Total IFRS 15 revenue
|
1,722
|
917
|
1,608
|
3,091
|
339
|
3
|
7,680
|
|
Other revenue
|
|
|
|
|
|
|
|
|
UK
|
44
|
2
|
—
|
—
|
(61)
|
210
|
195
|
|
US
|
—
|
—
|
22
|
16
|
215
|
10
|
263
|
|
Total other revenue
|
44
|
2
|
22
|
16
|
154
|
220
|
458
|
|
Total revenue
|
1,766
|
919
|
1,630
|
3,107
|
493
|
223
|
8,138
|
1. The
UK Electricity Transmission and UK Electricity Distribution other
IFRS 15 revenue principally relates to engineering recharges, which
are the recovery of costs incurred for construction work
requested by customers, such as the re-routing of existing network
assets.
2. Other
revenue, recognised in accordance with accounting standards other
than IFRS 15, includes net fair value gains and losses in
respect of investments in our National Grid Partners business,
rental income, income arising in connection with the Transition
Services Agreements in place following the sale of the ESO,
and an adjustment to
NGV
revenue in respect of the interconnector cap and floor and Use
of Revenue regimes constructed by Ofgem.
3. Exceptional
items included in revenue relate to a fair value gain recognised on
an investment held by NG Partners. Further details are provided in
note 4.
3. Revenue continued
|
Revenue for the six months ended 30 September
2025
|
UK Electricity Transmission
£m
|
UK Electricity Distribution
£m
|
New England
£m
|
New York
£m
|
National Grid Ventures
£m
|
Other
£m
|
Total
£m
|
|
Revenue under IFRS 15
|
|
|
|
|
|
|
|
|
Transmission
|
1,293
|
—
|
49
|
163
|
423
|
—
|
1,928
|
|
Distribution
|
—
|
860
|
1,421
|
2,477
|
—
|
—
|
4,758
|
|
Other1
|
13
|
34
|
4
|
8
|
14
|
2
|
75
|
|
Total IFRS 15 revenue
|
1,306
|
894
|
1,474
|
2,648
|
437
|
2
|
6,761
|
|
Other revenue
|
|
|
|
|
|
|
|
|
Generation
|
—
|
—
|
(1)
|
—
|
178
|
—
|
177
|
|
Other2
|
100
|
2
|
20
|
19
|
(34)
|
20
|
127
|
|
Total other revenue
|
100
|
2
|
19
|
19
|
144
|
20
|
304
|
|
Total revenue
|
1,406
|
896
|
1,493
|
2,667
|
581
|
22
|
7,065
|
|
Geographic split of revenue for the six months ended
30 September 2025
|
UK Electricity Transmission
£m
|
UK Electricity Distribution
£m
|
New England
£m
|
New York
£m
|
National Grid Ventures
£m
|
Other
£m
|
Total
£m
|
|
Revenue under IFRS 15
|
|
|
|
|
|
|
|
|
UK
|
1,306
|
894
|
—
|
—
|
423
|
—
|
2,623
|
|
US
|
—
|
—
|
1,474
|
2,648
|
14
|
2
|
4,138
|
|
Total IFRS 15 revenue
|
1,306
|
894
|
1,474
|
2,648
|
437
|
2
|
6,761
|
|
Other revenue
|
|
|
|
|
|
|
|
|
UK
|
100
|
2
|
—
|
—
|
(38)
|
15
|
79
|
|
US
|
—
|
—
|
19
|
19
|
182
|
5
|
225
|
|
Total other revenue
|
100
|
2
|
19
|
19
|
144
|
20
|
304
|
|
Total revenue
|
1,406
|
896
|
1,493
|
2,667
|
581
|
22
|
7,065
|
1. The
UK Electricity Transmission and UK Electricity Distribution other
IFRS 15 revenue principally relates to engineering recharges, which
are the recovery of costs incurred for construction work
requested by customers, such as the re-routing of existing network
assets.
2. Other
revenue, recognised in accordance with accounting standards other
than IFRS 15, includes property sales by our UK commercial property
business, net fair value gains and losses in respect of
investments in our National Grid Partners business, rental income,
income arising in connection with the Transition Services
Agreements in
place
following the sales of the UK Gas Transmission business and the
ESO, and an adjustment to NGV revenue in respect of the
interconnector cap and floor and Use of Revenue regimes constructed
by Ofgem.
4. Exceptional items and remeasurements
To monitor our financial performance, we use an adjusted profit
measure that excludes exceptional items and remeasurements. We
exclude certain income and expenses from adjusted profit because,
if included, these items could distort understanding of our
performance for the period and the comparability between
periods.
In determining the facts and circumstances of exceptional items and
remeasurements, management considers factors such as ensuring
consistent treatment between favourable and unfavourable
transactions, the precedent for similar items, the number of
periods over which costs will be spread or gains earned, and the
commercial context for the particular transaction. Management uses
an exceptional items framework that has been discussed and approved
by the Audit & Risk Committee, as detailed in note 5 of the
Annual Report and Accounts for the year ended 31 March
2026.
Remeasurements comprise unrealised gains or losses recorded in the
consolidated income statement arising from changes in the fair
value of certain of our financial assets and liabilities accounted
for at fair value through profit and loss (FVTPL). Once the fair
value movements are realised (for example, when the derivative
matures), the previously recognised fair value movements are then
reversed through remeasurements and recognised within earnings
before exceptional items and remeasurements. These assets and
liabilities include commodity contract derivatives and financing
derivatives to the extent that hedge accounting is not available or
is not fully effective. The unrealised gains or losses reported in
profit and loss on certain additional assets and liabilities
treated at FVTPL are also classified within remeasurements. These
relate to financial assets (which fail the ‘solely payments
of principal and interest test’ under IFRS 9), the money
market fund investments used by Group Treasury for cash management
purposes and the net foreign exchange gains and losses on borrowing
activities. These are offset by foreign exchange gains and losses
on financing derivatives measured at fair value. In all cases,
these fair values increase or decrease because of changes in
foreign exchange, commodity or other financial indices over which
we have no control.
|
Six months ended 30 September 2026
|
Exceptional items
£m
|
Remeasurements
£m
|
Total
£m
|
|
Included within revenue
|
|
|
|
|
Net
gain on investment held by NG Partners
|
142
|
—
|
142
|
|
|
|
|
|
|
Included within operating costs
|
|
|
|
|
Impairment
reversal of joint venture
|
75
|
—
|
75
|
|
Reclassification
of foreign currency translation reserve
|
11
|
—
|
11
|
|
Net
gains on commodity contract derivatives
|
—
|
(19)
|
(19)
|
|
Total included within operating profit
|
228
|
(19)
|
209
|
|
|
|
|
|
|
Included within net finance costs (note 5)
|
|
|
|
|
Net
gains on derivative financial instruments
|
—
|
4
|
4
|
|
|
—
|
4
|
4
|
|
|
|
|
|
|
Total included within profit before tax
|
228
|
(15)
|
213
|
|
Tax on
exceptional items and remeasurements
|
(42)
|
5
|
(37)
|
|
Total exceptional items and remeasurements after tax
|
186
|
(10)
|
176
|
|
Six months ended 30 September 2025
|
Exceptional items
£m
|
Remeasurements
£m
|
Total
£m
|
|
Included within operating profit
|
|
|
|
|
Net
loss on disposal of NG Renewables
|
(96)
|
—
|
(96)
|
|
Major
transformation programme
|
(15)
|
—
|
(15)
|
|
Transaction,
separation and integration costs
|
(19)
|
—
|
(19)
|
|
Changes
in environmental provisions
|
25
|
—
|
25
|
|
Net
gains on commodity contract derivatives
|
—
|
16
|
16
|
|
|
(105)
|
16
|
(89)
|
|
Included within net finance costs (note 5)
|
|
|
|
|
Net
losses on derivative financial instruments
|
—
|
(63)
|
(63)
|
|
Net
gains on financial assets at fair value through profit and
loss
|
—
|
2
|
2
|
|
|
—
|
(61)
|
(61)
|
|
|
|
|
|
|
Total included within profit before tax
|
(105)
|
(45)
|
(150)
|
|
Tax on
exceptional items and remeasurements
|
2
|
13
|
15
|
|
Total exceptional items and remeasurements after tax
|
(103)
|
(32)
|
(135)
|
4. Exceptional items and remeasurements continued
Net gain on investment held by NG Partners
One of the investments held by National Grid Partners commenced a
capital raise during the period. The resulting increase in the
valuation of the investee gave rise to a fair value gain of
£142 million on the Group’s investment. The Group
assessed the gain in accordance with its exceptional items
framework and concluded that it met the criteria for classification
as an exceptional item.
Impairment reversal of joint venture and reclassification of
foreign currency translation reserve
In the year ended 31 March 2025, we agreed with our joint venture
partner, RWE Renewables, that our investment in Community
Offshore Wind, LLC would pause project development for the time
being. As a result of this decision, the Group assessed the
recoverable amount of its investment and recognised an impairment
charge of £303 million, reducing the carrying value of
the investment to £nil.
During the current period, the Group entered into an agreement with
RWE Renewables to sell its 27.27% interest in Community Offshore
Wind, LLC for £75 million ($100 million). As a result, the
Group reassessed the recoverable amount of the investment and
recognised a partial reversal of the impairment previously
recognised, increasing the carrying value of the investment to
£75 million ($100 million), equivalent to the agreed
sale consideration.
The sale completed on 4 August 2026, at which point the Group
disposed of its 27.27% interest in Community Offshore Wind, LLC for
cash consideration of £75 million ($100 million). As the
carrying value of the investment immediately prior to disposal
equalled the sale proceeds, no gain or loss was recognised on
disposal before the recycling of foreign currency translation
reserves. On disposal, a net gain of £11 million was
recognised in profit for the period on reclassification of
cumulative foreign currency translation reserves, comprising a
£14 million gain relating to the investment and a £3
million loss relating to net investment hedge
instruments.
Net loss on disposal of NG Renewables
During the prior period, the Group recognised a net loss of
£96 million (before tax) on the disposal of its interest in
National Grid Renewables Development LLC (NG Renewables) to
Brookfield Asset Management for cash consideration of £1.5
billion ($2.1 billion). The receipt of cash was recognised
within net cash used in investing activities within the
consolidated cash flow statement.
Major transformation programme
Following the appointment of a new Chief Executive Officer in
November 2025, strategic priorities were updated and as a result
the transformation programme launched in 2024 was reshaped. As
disclosed in the Annual Report and Accounts for the year ended 31
March 2026, the costs expected to be incurred in aggregate going
forward no longer meet the quantitative threshold to be presented
as exceptional. Accordingly, in line with our exceptional items
policy, these costs, including the £15 million recognised
in the six months ended 30 September 2025, were reclassified
from exceptional items to other operating costs before exceptional
items and remeasurements.
Transaction, separation and integration costs
During the prior period, the Group incurred £19 million
of transaction and separation costs in relation to the disposals of
NG Renewables and Grain LNG, which completed during the year ended
31 March 2026. The costs incurred primarily related to
professional fees and employee costs. The total cash outflow
for the prior period was £11 million.
Changes in environmental provisions
In the US, we recognise environmental provisions related to the
remediation of the Gowanus Canal, Newtown Creek and the former
manufacturing gas plant facilities previously owned or operated by
the Group or its predecessor companies. The sites are subject to
both state and federal environmental remediation laws in the US.
Potential liability for the historical contamination may be imposed
on responsible parties jointly and severally, without regard to
fault, even if the activities were lawful when they occurred. The
provisions and the Group’s share of estimated costs are
re-evaluated at each reporting period. In the prior period,
following discussions with the Environmental Protection Agency on
the scope and design of remediation activities related to the
Gowanus site, we re-evaluated our estimates of total costs and
recognised a reduction of £25 million. Under the terms of
our rate plans, we are entitled to recovery of environmental
clean-up costs from rate payers in future reporting periods. Such
recoveries through overall allowed revenues are not classified as
exceptional in the future periods that they occur due to the
extended duration over which such costs are recovered and the
immateriality of the recoveries in any given year.
5. Finance income and costs
|
|
|
|
2026
|
2025
|
|
Six months ended 30 September
|
Notes
|
|
£m
|
£m
|
|
Finance income before exceptional items and
remeasurements
|
|
|
|
|
|
Interest
income from financing activities
|
|
|
40
|
126
|
|
Net
interest on pensions and other post-retirement benefit
obligations
|
|
|
58
|
50
|
|
Other
interest income
|
|
|
23
|
30
|
|
|
|
|
121
|
206
|
|
Finance costs before exceptional items and
remeasurements
|
|
|
|
|
|
Interest
expense on financial instruments1
|
|
|
(1,030)
|
(999)
|
|
Unwinding
of discount on provisions and other liabilities
|
|
|
(62)
|
(63)
|
|
Other
interest
|
|
|
(18)
|
(11)
|
|
Less:
interest capitalised2
|
|
|
267
|
189
|
|
|
|
|
(843)
|
(884)
|
|
|
|
|
|
|
|
Net finance costs before exceptional items and
remeasurements
|
|
|
(722)
|
(678)
|
|
Total
exceptional items and remeasurements3
|
4
|
|
4
|
(61)
|
|
Net finance costs including exceptional items and
remeasurements
|
|
|
(718)
|
(739)
|
1. Finance
costs include principal accretion on inflation-linked debt of
£86 million (2025: £115 million) and principal
accretion on inflation-linked swaps of £8 million
(2025: £nil).
2. Interest
on funding attributable to assets in the course of construction in
the current period was capitalised at a rate of 4.4% (2025: 4.5%).
In the UK, capitalised interest qualifies for a current
year tax deduction with tax relief claimed of £41 million
(2025: £27 million). In the US, capitalised interest is
added to the cost of property, plant
and
equipment
and qualifies for tax depreciation allowances.
3. Includes
a net foreign exchange gain on borrowing activities, offset by
foreign exchange gains and losses on financing derivatives measured
at fair value.
6. Tax
The tax charge for the six month period ended 30 September
2026 is £386 million (2025: £208 million), and before tax
on exceptional items and remeasurements, is £349 million
(2025: £223 million). It is based on management’s
estimate of the weighted average effective tax rate by jurisdiction
expected for the full year. The effective tax rate excluding tax on
exceptional items and remeasurements is 23.0% (2025: 22.8%),
which includes the impact of our share of post-tax results of joint
ventures and associates. The half year effective tax rate before
exceptional items and remeasurements, including our share of
post-tax results of joint ventures and associates, is lower than
the Group’s full year effective tax rate, as shown below,
primarily as a result of seasonality of earnings in the
US Group.
For the full year, we expect the Group’s effective tax rate
excluding tax on exceptional items and remeasurements to be
around 25% which includes the impact of our share of post-tax
results of joint ventures and associates. The effective tax rate
for the year ended 31 March 2026 before exceptional
items and remeasurements was 24.8% including the impact
of our share of post-tax results of joint ventures
and associates.
7. Earnings per share (EPS)
EPS, excluding exceptional items and remeasurements are provided to
reflect the adjusted profit subtotals used by the Group, as set out
in note 1. The earnings per share calculations are based on profit
after tax attributable to equity shareholders of the parent company
which excludes non-controlling interests.
a.
Basic EPS
|
|
Earnings
|
EPS
|
Earnings
|
EPS
|
|
Six months ended 30 September
|
2026
|
2026
|
2025
|
2025
|
|
£m
|
pence
|
£m
|
pence
|
|
|
Total
profit after tax before exceptional items and
remeasurements
|
1,167
|
23.4
|
752
|
15.3
|
|
Total
exceptional items and remeasurements after tax
|
176
|
3.5
|
(135)
|
(2.7)
|
|
Total profit after tax attributable to the parent
|
1,343
|
26.9
|
617
|
12.6
|
|
|
|
|
|
|
|
|
|
2026
|
|
2025
|
|
|
|
millions
|
|
millions
|
|
Weighted
average number of shares – basic
|
|
4,995
|
|
4,926
|
b.
Diluted
EPS
|
|
Earnings
|
EPS
|
Earnings
|
EPS
|
|
Six months ended 30 September
|
2026
|
2026
|
2025
|
2025
|
|
£m
|
pence
|
£m
|
pence
|
|
|
Total
profit after tax before exceptional items and
remeasurements
|
1,167
|
23.3
|
752
|
15.2
|
|
Total
exceptional items and remeasurements after tax
|
176
|
3.5
|
(135)
|
(2.7)
|
|
Total profit after tax attributable to the parent
|
1,343
|
26.8
|
617
|
12.5
|
|
|
|
|
|
|
|
|
|
2026
|
|
2025
|
|
|
|
millions
|
|
millions
|
|
Weighted
average number of shares – diluted
|
|
5,020
|
|
4,950
|
8. Dividends
|
|
Pence
per share
|
Cash
dividend
paid
£m
|
Scrip
dividend
£m
|
|
Ordinary dividends
|
|
|
|
|
Final
dividend in respect of the year ended 31 March
2026
|
32.14
|
990
|
609
|
|
Interim
dividend in respect of the year ended 31 March
2026
|
16.35
|
729
|
80
|
|
Final
dividend in respect of the year ended 31 March
2025
|
30.88
|
894
|
617
|
The Directors are proposing an interim dividend of 16.97 pence per
share to be paid in respect of the year ending 31 March 2027.
This would distribute approximately £853 million of
shareholders’ equity.
A final dividend for the year ended 31 March 2026 of 32.14
pence per share was paid in July 2026. The cash dividend paid was
£990 million with an additional £609 million settled via
a scrip issue.
9. Fair value measurement
Assets and liabilities measured at fair value
Included in the statement of financial position are certain
financial assets and liabilities which are measured
at fair value. The following table categorises these
assets and liabilities by the valuation methodology applied
in determining their fair value using the fair value hierarchy
described on page 203 of the Annual Report and Accounts for the
year ended 31 March 2026.
|
|
30 September 2026
|
|
31 March 2026
|
||||||
|
|
Level 1
£m
|
Level 2
£m
|
Level 3
£m
|
Total
£m
|
|
Level 1
£m
|
Level 2
£m
|
Level 3
£m
|
Total
£m
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Investments
held at fair value through profit and loss
|
2,341
|
—
|
1,637
|
3,978
|
|
1,914
|
—
|
450
|
2,364
|
|
Investments
held at fair value through other comprehensive income1
|
—
|
374
|
—
|
374
|
|
—
|
385
|
—
|
385
|
|
Financing
derivatives
|
—
|
551
|
21
|
572
|
|
—
|
691
|
26
|
717
|
|
Commodity
contract derivatives
|
—
|
134
|
14
|
148
|
|
—
|
111
|
10
|
121
|
|
|
2,341
|
1,059
|
1,672
|
5,072
|
|
1,914
|
1,187
|
486
|
3,587
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Financing
derivatives
|
—
|
(1,231)
|
(41)
|
(1,272)
|
|
—
|
(864)
|
(86)
|
(950)
|
|
Commodity
contract derivatives
|
—
|
(90)
|
(23)
|
(113)
|
|
—
|
(55)
|
(13)
|
(68)
|
|
|
—
|
(1,321)
|
(64)
|
(1,385)
|
|
—
|
(919)
|
(99)
|
(1,018)
|
|
Total
|
2,341
|
(262)
|
1,608
|
3,687
|
|
1,914
|
268
|
387
|
2,569
|
1. Investments
held include instruments which meet the criteria of IFRS 9 or IAS
19.
The estimated fair value of total borrowings, excluding lease
liabilities, using market values at 30 September 2026 is
£45,769 million (31 March 2026: £42,505
million).
Our Level 1 financial investments and liabilities held at fair
value are valued using quoted prices from liquid markets and
primarily comprise investments in short-term money market
funds.
Our Level 2 financial investments held at fair value primarily
include bonds with a tenor greater than one year and are
valued using quoted prices for similar instruments in active
markets, or quoted prices for identical or similar instruments in
inactive markets. Alternatively, they are valued using models where
all significant inputs are based directly or indirectly on
observable market data.
Our Level 2 financing derivatives include cross-currency, interest
rate and foreign exchange derivatives. We value these derivatives
by discounting all future cash flows by externally sourced market
yield curves at the reporting date, taking into account the credit
quality of both parties. These derivatives can be priced using
liquidly traded interest rate curves and foreign exchange rates,
and therefore we classify our vanilla trades as Level 2 under the
IFRS 13 framework.
Our Level 2 US commodity contract derivatives include
over-the-counter gas and power swaps as well as forward physical
gas deals. We value our contracts based on market data obtained
from the New York Mercantile Exchange (NYMEX) and the
Intercontinental Exchange (ICE), where monthly prices are
available. We discount based on externally sourced market yield
curves at the reporting date, taking into account the credit
quality of both parties and liquidity in the market. Our commodity
contracts can be priced using liquidly traded swaps. Therefore, we
classify our vanilla trades as Level 2 under the IFRS 13
framework.
Our Level 3 financing derivatives include inflation-linked swaps,
where the market is illiquid. In valuing these instruments we
use in-house valuation models and obtain external valuations to
support each reported fair value.
Our Level 3 UK commodity contract derivatives consist of UK
electricity capacity swaps.
Our Level 3 US commodity contract derivatives primarily consist of
our forward purchases of electricity and gas that we value using
proprietary models. Derivatives are classified as Level 3 where
significant inputs into the valuation technique are neither
directly nor indirectly observable (including our own data, which
are adjusted, if necessary, to reflect the assumptions market
participants would use in the circumstances).
9. Fair value measurement continued
Our Level 3 investments include equity instruments accounted for at
fair value through profit and loss. These equity holdings are part
of our corporate venture capital portfolio held by National Grid
Partners and comprise a series of relatively small,
early-stage non-controlling minority interest unquoted investments
where prices or valuation inputs are unobservable. Out of 42
equity investments, 27 are fair valued based on the latest
transaction price (a price within the last 12 months), either being
the price we paid for the investments, marked to a latest round of
funding and adjusted for our preferential rights or based on an
internal model. In addition, we have 15 investments with no
transaction in the last 12 months which are fair valued using an
internal valuation process. Between 12 and 18 months a blend
between Black-Scholes Murton Option Pricing Model Backsolve and
other techniques are utilised such as proxy group revenue
multiples, discounted cash flow, comparable company analysis and
probability weighted expected return approach in order to
triangulate a valuation. After 18 months the valuation is based on
these alternative methods as the last fundraising price or other
observable market price is no longer a reliable basis for
valuation.
Our Level 3 investments also include our investment in Sunrun
Neptune 2016 LLC, which is accounted for at fair value through
profit and loss. The investment is fair valued by discounting
expected cash flows using a weighted average cost of capital
specific to Sunrun Neptune 2016 LLC.
On 30 June 2026, the Group acquired an investment in Joulent LLC, a
US-based technology-driven energy company that develops power
solutions for large-load customers. The investment is measured at
fair value through profit and loss in accordance with IFRS 9 and is
classified within Level 3 of the fair value hierarchy due to the
absence of observable market inputs. At 30 September 2026, the
investment was recognised at £952 million ($1,263
million), comprising the initial consideration paid on acquisition
together with capital contributions funded to date. Given the
limited period between acquisition and the reporting date, and the
absence of observable transactions or other market evidence
subsequent to acquisition, management has concluded that the
transaction price together with capital contributions funded
represents the best evidence of fair value at 30 September
2026. Accordingly, no fair value gain or loss has been recognised
since acquisition. The Group has also committed to provide further
capital contributions of up to £366 million ($486 million) to
support Joulent LLC’s capital investment programme and
development activities as costs are incurred.
In addition, the Group entered into a 364-day funding facility with
Joulent LLC during the period. The facility includes both interest
and equity participation features and is therefore measured at fair
value through profit and loss in accordance with IFRS 9. The
facility loan receivable is classified within Level 3 of the fair
value hierarchy as valuation requires the use of unobservable
inputs. At 30 September 2026, £120 million ($159 million) had
been drawn under the facility. Given the proximity of the loan
receivable’s inception to the reporting date, we have
concluded that its fair value is not materially different from its
carrying value.
The impacts on a post-tax basis of reasonably possible changes in
significant assumptions used in valuing assets and liabilities
classified within Level 3 of the fair value hierarchy are as
follows:
|
|
Financing derivatives
|
|
Commodity contract derivatives
|
|
Other
|
|||
|
Six months ended 30 September
|
2026
|
2025
|
|
2026
|
2025
|
|
2026
|
2025
|
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
|
|
10%
increase in commodity prices
|
—
|
—
|
|
20
|
3
|
|
—
|
—
|
|
10%
decrease in commodity prices
|
—
|
—
|
|
(20)
|
(2)
|
|
—
|
—
|
|
+10%
market area price change
|
—
|
—
|
|
13
|
1
|
|
—
|
—
|
|
-10%
market area price change
|
—
|
—
|
|
(15)
|
(2)
|
|
—
|
—
|
|
+20
basis point increase in Limited Price Index
(LPI)
market curve
|
(12)
|
(32)
|
|
—
|
—
|
|
—
|
—
|
|
-20
basis point decrease in LPI market curve
|
12
|
30
|
|
—
|
—
|
|
—
|
—
|
|
+20
basis point increase between Retail Price Index (RPI)
and Consumer Price Index (CPI)
|
24
|
29
|
|
—
|
—
|
|
—
|
—
|
|
-20
basis point decrease between RPI and CPI
|
(23)
|
(27)
|
|
—
|
—
|
|
—
|
—
|
|
+100
basis points change in discount rate
|
—
|
—
|
|
—
|
—
|
|
(6)
|
(6)
|
|
-100
basis points change in discount rate
|
—
|
—
|
|
—
|
—
|
|
7
|
7
|
|
+10%
change in venture capital price
|
—
|
—
|
|
—
|
—
|
|
107
|
26
|
|
-10%
change in venture capital price¹
|
—
|
—
|
|
—
|
—
|
|
(107)
|
(26)
|
The impacts disclosed above were considered on a contract by
contract basis with the most significant unobservable inputs
identified. A reasonably possible change in assumptions for other
Level 3 assets and liabilities would not result in a material
change in fair values.
9. Fair value measurement continued
The changes in fair value of our level 3 financial assets and
liabilities in the six months to 30 September are presented
below:
|
|
Financing derivatives
|
|
Commodity contract derivatives
|
|
Other1
|
|
Total
|
||||
|
|
2026
|
2025
|
|
2026
|
2025
|
|
2026
|
2025
|
|
2026
|
2025
|
|
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
|
At 1
April
|
(60)
|
(64)
|
|
(3)
|
(20)
|
|
450
|
407
|
|
387
|
323
|
|
Net
(losses)/gains through the consolidated income statement for the
period2,3
|
(3)
|
3
|
|
(6)
|
72
|
|
197
|
(9)
|
|
188
|
66
|
|
Purchases
|
—
|
—
|
|
—
|
—
|
|
1,097
|
9
|
|
1,097
|
9
|
|
Settlements
|
43
|
—
|
|
—
|
(12)
|
|
(107)
|
(1)
|
|
(64)
|
(13)
|
|
At 30 September
|
(20)
|
(61)
|
|
(9)
|
40
|
|
1,637
|
406
|
|
1,608
|
385
|
1. Other
comprises our investments in Joulent LLC, Sunrun Neptune 2016 LLC
and the investments made by National Grid Partners, which
are accounted for at fair value through profit and
loss.
2. Losses
of £7 million (2025: gains of £3 million) are
attributable to derivative financial instruments held at the end of
the reporting period and have been recognised in finance costs
in the consolidated income statement.
3. Losses
of £6 million (2025: gains of £72 million) are
attributable to the commodity contract derivative financial
instruments held at the end of the reporting period
and have been recognised in other operating costs in the
consolidated income statement.
The Group also has a number of financial instruments which are not
measured at fair value in the balance sheet. The carrying value of
current financial assets at amortised cost approximates their fair
values, primarily due to short-dated maturities.
10. Net debt
Net debt is comprised as follows:
|
|
30 September 2026
|
31 March 2026
|
|
|
£m
|
£m
|
|
Cash
and cash equivalents
|
308
|
375
|
|
Current
financial investments
|
3,015
|
2,453
|
|
Borrowings
and bank overdrafts
|
(51,222)
|
(46,755)
|
|
Financing
derivatives1
|
(700)
|
(233)
|
|
Net debt (net of related derivative financial
instruments)
|
(48,599)
|
(44,160)
|
included
in net debt exclude the commodity derivatives.
The following table splits out the total derivative balances on the
face of the consolidated statement of financial position by
category:
|
|
30 September 2026
|
|
31 March 2026
|
||||
|
|
Assets
£m
|
Liabilities
£m
|
Total
£m
|
|
Assets
£m
|
Liabilities
£m
|
Total
£m
|
|
Financing
derivatives
|
572
|
(1,272)
|
(700)
|
|
717
|
(950)
|
(233)
|
|
Commodity
contract derivatives
|
148
|
(113)
|
35
|
|
121
|
(68)
|
53
|
|
Total derivative financial instruments
|
720
|
(1,385)
|
(665)
|
|
838
|
(1,018)
|
(180)
|
11. Pensions and other post-retirement benefit
obligations
|
|
30 September 2026
|
31 March 2026
|
|
|
£m
|
£m
|
|
Present
value of funded obligations
|
(14,127)
|
(15,098)
|
|
Fair
value of plan assets
|
17,184
|
17,780
|
|
|
3,057
|
2,682
|
|
Present
value of unfunded obligations
|
(229)
|
(247)
|
|
Other
post-employment liabilities
|
(45)
|
(44)
|
|
|
2,783
|
2,391
|
|
Restrictions
on asset recognised
|
(492)
|
(244)
|
|
Net defined benefit asset
|
2,291
|
2,147
|
|
Presented
in consolidated statement of financial position:
|
|
|
|
Assets
|
2,617
|
2,507
|
|
Liabilities
|
(326)
|
(360)
|
|
|
2,291
|
2,147
|
|
Key actuarial assumptions
|
30 September 2026
|
31 March 2026
|
|
Discount
rate – UK
|
6.45%
|
6.00%
|
|
Discount
rate – US
|
6.40%
|
5.60%
|
|
Rate of
increase in RPI – UK
|
3.05%
|
3.17%
|
The movement in the net pensions and other post-retirement benefit
(OPEB) obligations position in the period can be analysed as
follows:
|
|
30 September 2026
|
30 September 2025
|
|
|
£m
|
£m
|
|
Net
defined benefit asset at 1 April
|
2,147
|
1,916
|
|
Cost
recognised in the income statement
|
(16)
|
(25)
|
|
Employer
contributions
|
45
|
62
|
|
Remeasurements
and foreign exchange
|
353
|
260
|
|
Other
movements
|
—
|
2
|
|
Movements
on restrictions on asset recognised
|
(238)
|
(140)
|
|
Net defined benefit asset at 30 September
|
2,291
|
2,075
|
|
Changes in restrictions on asset recognised
|
30 September 2026
|
30 September 2025
|
|
£m
|
£m
|
|
|
Opening
restrictions on asset recognised at 1 April
|
(244)
|
(77)
|
|
Interest
on restrictions on asset recognised
|
(9)
|
(5)
|
|
Other
change in restrictions on asset recognised
|
(238)
|
(140)
|
|
Exchange
adjustment on restrictions on asset recognised
|
(1)
|
1
|
|
Closing restrictions on asset recognised at 30
September
|
(492)
|
(221)
|
The pension and OPEB surpluses in both the UK and the US of
£1,201 million and £1,416 million respectively
(31 March 2026: £1,122 million and
£1,385 million) continue to be recognised as assets under
IFRIC 14 as explained on page 182 of the Annual Report and
Accounts for the year ended 31 March 2026. The pension and
OPEB surpluses are presented net of an irrecoverable surplus of
£492 million (31 March 2026: £244 million)
related to three OPEB plans (31 March 2026: one OPEB plan).
The economic benefit from reductions in projected future
contributions to the plans is not sufficient to cover the surplus
and the plans do not have an unconditional right to a refund of
surplus assets in the event of a winding up without incurring
significant tax charges.
12. Commitments and contingencies
At 30 September 2026, there were commitments for future energy
purchase agreements of £16,785 million (31 March
2026: £16,757 million) and future capital expenditure
contracted but not provided for in relation to the acquisition of
property, plant and equipment of £7,271 million
(31 March 2026: £6,909 million).
The Group also had capital commitments of £475 million
(31 March 2026: £526 million) in relation to its
joint ventures and associates, primarily relating to the funding of
capital investment projects. In addition, in relation to the
Group’s investment in Joulent LLC (see note 9), the Group has
committed to provide further capital contributions of up to
£366 million to support Joulent LLC’s capital
investment programme and development activities as costs are
incurred.
Legal and regulatory proceedings
Through the ordinary course of our operations, we are party to
various litigation, claims and investigations, including
Ofgem’s investigation into the North Hyde substation
incident. These investigations are ongoing. We continue to
monitor this position and engage with ongoing investigations.
We do not expect the ultimate resolution of any
proceedings, including the Ofgem investigation, to have a material
adverse effect on our results of operations, cash flows or
financial position.
13. Exchange rates
The consolidated results are affected by the exchange rates used to
translate the results of our US operations and US dollar
transactions. The US dollar to pound sterling exchange rates used
were:
|
30 September
|
2026
|
2025
|
Year ended 31 March 2026
|
|
Closing
rate applied at period end
|
1.33
|
1.34
|
1.32
|
|
Average
rate applied for the period
|
1.34
|
1.35
|
1.34
|
14. Related party transactions
Related party transactions in the six months ended
30 September 2026 were substantially the same in nature to
those disclosed in note 31 of the Annual Report and Accounts for
the year ended 31 March 2026. During the period, the Group
acquired a 35% interest in Joulent LLC. While the investment is
measured at fair value through profit and loss in accordance with
IFRS 9 (see note 9), the Group has assessed that it has significant
influence over Joulent LLC and therefore considers it to be a
related party. During the period, the Group made capital
contributions of £268 million ($355 million) to Joulent LLC
and entered into a 364-day funding facility with Joulent LLC. At
30 September 2026, £120 million ($159 million) had been
drawn under the facility (see note 9). Other than these
transactions, there were no related party transactions in the
period that materially affected the financial position or
performance of the Group.
15. Post balance sheet events
In the period between 1 October 2026 and 4 November 2026, there
have been no significant post balance
sheet events.
Principal risks and uncertainties
When preparing the half year financial information the risks as
reported in the Annual Report and Accounts for the year
ended 31 March 2026 (Group Principal Risks on pages
31–37 and inherent risks on pages 226–232) were
reviewed to ensure that the disclosures remained appropriate and
adequate. Below is a summary of our key risks as at
30 September 2026:
Financial risks
– There
is a risk that we are unable to fund our business efficiently as a
result of a lack of access to a wide pool of equity and debt
investors, market volatility, unsatisfactory regulatory outcomes or
unsatisfactory financial or operational performance of the
business, leading to a lack of access to capital, impacting our
ability to achieve our strategic objectives, including our proposed
capital investment programme.
Strategic risks
– There
is a risk that we do not have the right workforce, now and in the
future, to deliver on our strategic ambitions because of: (1)
inadequate leadership to create the required performance culture;
(2) failure to manage the change impacts on the business in an
agile way; (3) failure to attract, develop and retain people with
the right skills in critical roles to deliver our investment plan;
and (4) ineffective management of the deployment, use and impacts
of AI adoption on our workforce, leading to a lack of capability
and capacity to deliver our strategic goals (including capital
deployment and asset management goals).
– There
is a risk that we fail to influence future energy policies and
secure satisfactory regulatory agreements because of lack of
insight, unsuccessful negotiations or political influence leading
to poor regulatory outcomes, energy policies that negatively impact
our operations, reduced financial performance, fines/penalties,
increased costs to remain compliant and/or reputational
damage.
– There
is a risk that we fail to identify and/or deliver upon the actions
necessary to meet our climate change targets, because of poor
monitoring and response to external developments associated with
mitigating climate change, leading to legal risks or reputational
impacts of not meeting our climate change targets and in the longer
term not reaching net zero by 2050.
– There
is a risk that we don’t maintain alignment with evolving
political, regulatory and societal expectations, because of a
rapidly changing political landscape, insufficient stakeholder
engagement, ineffective horizon scanning or an insufficient
proactive communications programme to consistently land key
messages leading to a reduction in our ability to secure the
support, approvals and policy environment necessary to deliver our
strategic and commercial objectives.
Operational risks
– There
is a risk that we are unable to adequately anticipate and manage
disruptive forces on our critical systems, facilities and personnel
because of cyber-attacks, physical attacks, malicious internal or
external actors, or inadequate recovery capabilities resulting in
disruption of business operations, tampering or abuse of assets,
safety hazards, or loss of confidentiality, integrity, and/or
availability of systems and data.
– There
is a risk of a loss of supply event because of network asset
failures or operability issues, upstream supply issues, extreme
weather, third party damage or security attacks, resulting in a
disruption of energy to our customers.
– There
is a risk of a significant safety or environmental event (where an
asset, site or location becomes unsafe), because of network asset
failures or operability issues, extreme weather, third party damage
or security attacks, resulting in a major public or employee safety
impact, or environmental damage.
– There
is a risk that we are unable to deliver on our major capital
project programme within the required time-frames, because of
misalignment, or lack of clarity with regulatory expectations,
unclear financial frameworks to incentivise investment, complex
planning requirements, external impacts on supply chain or a
failure to demonstrate clear long-term economic benefits to
communities leading to increased costs, compromised quality,
reputational damage and detrimentally impacting our ability to
deliver our clean energy transition strategy.
Statement of Directors’ responsibilities
The half year financial information is the responsibility of, and
has been approved by, the Directors. The Directors are responsible
for preparing the half year financial information in accordance
with the Disclosure Guidance and Transparency Rules (DTR) of the
United Kingdom’s Financial Conduct Authority.
The Directors confirm that to the best of their
knowledge:
a.
the
condensed consolidated interim financial statements have been
prepared in accordance with IAS 34 ‘Interim Financial
Reporting’ as issued by the International Accounting
Standards Board and as adopted by the United
Kingdom;
b.
the
half year management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events
during the first six months and description of principal risks and
uncertainties for the remaining six months of the year);
and
c.
the
half year management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related
parties’ transactions and changes
therein).
By order of the Board
|
....................................................
|
....................................................
|
|
Zoë Yujnovich
|
Andy Agg
|
|
4 November 2026
|
4 November 2026
|
|
Chief Executive
|
Chief Financial Officer
|
Independent Review Report to National Grid plc
Conclusion
We have been engaged by National Grid plc and its subsidiaries
(together the “Group”) to review the condensed set of
financial statements in the half-yearly financial report for the
six months ended 30 September 2026 which comprises the
consolidated income statement, the consolidated statement of
comprehensive income, the consolidated statement of changes in
equity, the consolidated statement of financial position, the
consolidated cash flow statement and related notes 1 to
15.
Based on our review, nothing has come to our attention that causes
us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended
30 September 2026 is not prepared, in all material respects,
in accordance with United Kingdom adopted International Accounting
Standard 34 and the Disclosure Guidance and Transparency Rules of
the United Kingdom’s Financial Conduct
Authority.
Basis for conclusion
We conducted our review in accordance with International Standard
on Review Engagements (UK) 2410 ‘Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity’ issued by the Financial Reporting Council for use in
the United Kingdom (ISRE (UK) 2410). A review of interim financial
information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying
analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with
International Standards on Auditing (UK) and consequently does not
enable us to obtain assurance that we would become aware of
all significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
As disclosed in note 1, the annual financial statements of the
Group are prepared in accordance with United Kingdom adopted
international accounting standards. The condensed set of financial
statements included in this half-yearly financial report has
been prepared in accordance with United Kingdom adopted
International Accounting Standard 34, ‘Interim Financial
Reporting’.
Conclusion relating to going concern
Based on our review procedures, which are less extensive than those
performed in an audit as described in the Basis for Conclusion
section of this report, nothing has come to our attention to
suggest that the Directors have inappropriately adopted the going
concern basis of accounting or that the Directors have identified
material uncertainties relating to going concern that are not
appropriately disclosed.
This Conclusion is based on the review procedures performed in
accordance with ISRE (UK) 2410; however future events or conditions
may cause the entity to cease to continue as a going
concern.
Responsibilities of the Directors
The Directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure Guidance and
Transparency Rules of the United Kingdom’s Financial Conduct
Authority.
In preparing the half-yearly financial report, the Directors are
responsible for assessing the Group’s ability to continue as
a going concern, disclosing as applicable, matters related to going
concern and using the going concern basis of accounting unless the
Directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do
so.
Auditor’s responsibilities for the review of the financial
information
In reviewing the half-yearly financial report, we are responsible
for expressing to the Group a conclusion on the condensed set
of financial statements in the half-yearly financial report. Our
Conclusion, including our Conclusion Relating to Going Concern, are
based on procedures that are less extensive than audit procedures,
as described in the Basis for Conclusion paragraph of this
report.
Use of our report
This report is made solely to the Group in accordance with ISRE
(UK) 2410. Our work has been undertaken so that we might state
to the Group those matters we are required to state to it in an
independent review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Group, for our review work, for this
report, or for the conclusions we have formed.
Deloitte LLP
Statutory
Auditor
London,
United Kingdom
4
November 2026
Alternative performance measures/non-IFRS
reconciliations
Within the Half Year Results Statement, a number of financial
measures are presented. Some of these measures have been
categorised as alternative performance measures (APMs), as per the
European Securities and Markets Authority (ESMA) guidelines and the
Securities and Exchange Commission (SEC) conditions for use of
non-IFRS Financial Measures.
An APM is a financial measure of historical or future financial
performance, financial position, or cash flows, other than a
financial measure defined under IFRS. The Group uses a range of
these measures to provide a better understanding of its
underlying performance. APMs are reconciled to the most directly
comparable IFRS financial measure where
practicable.
The Group has defined the following financial measures as APMs
derived from IFRS within the Half Year Results Statement: net
revenue, the various adjusted operating profit, earnings and
earnings per share metrics detailed in the ‘adjusted
profit measures’ section below. For each of these we
present a reconciliation to the most directly comparable IFRS
measure. We present ‘constant currency’ comparative
period performance and capital investment by applying the current
period average exchange rate to the relevant US dollar amounts in
the comparative periods presented, to remove the year-on-year
impact of foreign exchange translation.
Net revenue and underlying net revenue
‘Net revenue’ is revenue less pass-through costs, such
as system balancing costs, and gas and electricity commodity costs
in the US. Pass-through costs are fully recoverable from our
customers and are recovered through separate charges that are
designed to recover those costs with no profit. Any over- or
under-recovery of these costs is returned to, or recovered
from, our customers. Underlying net revenue further adjusts this to
reflect the impact of ‘timing’, i.e. the in-year
difference between allowed and collected revenues, including
revenue incentives, as governed by our rate plans in the US or
regulatory price controls in the UK (but excluding totex-related
allowances and adjustments).
|
|
2026
|
|||||
|
Six months ended 30 September
|
Gross revenue
£m
|
Exceptional revenue
£m
|
Pass-
through
costs
£m
|
Net revenue
£m
|
Timing
£m
|
Underlying net revenue
£m
|
|
UK
Electricity Transmission
|
1,823
|
—
|
(180)
|
1,643
|
80
|
1,723
|
|
UK
Electricity Distribution
|
922
|
—
|
(116)
|
806
|
73
|
879
|
|
New
England
|
1,630
|
—
|
(623)
|
1,007
|
174
|
1,181
|
|
New
York
|
3,107
|
—
|
(1,042)
|
2,065
|
114
|
2,179
|
|
National
Grid Ventures
|
516
|
—
|
—
|
516
|
—
|
516
|
|
Other
|
226
|
(142)
|
—
|
84
|
—
|
84
|
|
Sales
between segments
|
(86)
|
—
|
—
|
(86)
|
—
|
(86)
|
|
Total from continuing operations
|
8,138
|
(142)
|
(1,961)
|
6,035
|
441
|
6,476
|
|
|
2025
|
|||||
|
Six months ended 30 September
|
Gross revenue
£m
|
Exceptional revenue
£m
|
Pass-
through
costs
£m
|
Net revenue
£m
|
Timing
£m
|
Underlying net revenue
£m
|
|
UK
Electricity Transmission
|
1,443
|
—
|
(194)
|
1,249
|
33
|
1,282
|
|
UK
Electricity Distribution
|
901
|
—
|
(98)
|
803
|
63
|
866
|
|
New
England
|
1,493
|
—
|
(604)
|
889
|
211
|
1,100
|
|
New
York
|
2,667
|
—
|
(1,046)
|
1,621
|
370
|
1,991
|
|
National
Grid Ventures
|
601
|
—
|
—
|
601
|
—
|
601
|
|
Other
|
25
|
—
|
—
|
25
|
—
|
25
|
|
Sales
between segments
|
(65)
|
—
|
—
|
(65)
|
—
|
(65)
|
|
Total from continuing operations
|
7,065
|
—
|
(1,942)
|
5,123
|
677
|
5,800
|
Adjusted profit measures
In considering the financial performance of our business and
segments, we use various adjusted profit measures in order to aid
comparability of results year-on-year. The various measures are
presented on page 15
and reconciled
below.
Adjusted results: These exclude
the impact of exceptional items and remeasurements that are treated
as discrete transactions under IFRS and can accordingly be
classified as such. Further details of these items are included in
note 4.
Underlying results: Further
adapts our adjusted results to take account of volumetric and other
revenue timing differences arising due to the in-year difference
between allowed and collected revenues, including revenue
incentives, as governed by our rate plans in the US or regulatory
price controls in the UK (but excluding totex-related allowances
and adjustments). As defined on page 73 of the Annual Report and
Accounts for the year ended 31 March 2026, major storm costs
are costs (net of deductibles and allowances) that are recoverable
under our US rate plans but expensed as incurred under
IFRS. Where the total incurred costs (after deductibles
and allowances) exceed $100 million in any given year we also
exclude the net amount from underlying earnings. Underlying results
also exclude deferred tax in our UK regulated business (NGET and
NGED). Our UK regulated revenue contain an allowance for current
tax, but not for deferred tax, so excluding the IFRS deferred tax
charge aligns our underlying results APM more closely with our
regulatory performance measures. Group underlying EPS is one of the
incentive targets set annually and part of the LTPP target for
remunerating certain Executive Directors.
Constant currency: ‘Constant Currency Basis’ refers to
the reporting of the actual results against the results for the
same period last year which, in respect of any US dollar
currency-denominated activity, have been translated using the
weighted average US dollar exchange rate for the six months ended
30 September 2026, which was $1.34 to £1.00. The weighted
average rate for the six months ended 30 September 2025, was
$1.35 to £1.00. Assets and liabilities as at 30 September
2026 have been retranslated at the closing rate at
30 September 2026 of $1.33 to £1.00. The closing rate for
the balance sheet date 31 March 2026 was $1.32 to
£1.00.
Reconciliation of Statutory, Adjusted and Underlying Profits and
Earnings – at actual exchange rates
|
Six months ended 30 September 2026
|
Statutory
|
Exceptionals and remeasurements
|
Adjusted
|
Timing
|
Deferred tax on underlying profits in NGET and NGED
|
Underlying
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
UK
Electricity Transmission
|
1,147
|
—
|
1,147
|
80
|
—
|
1,227
|
|
UK
Electricity Distribution
|
477
|
—
|
477
|
73
|
—
|
550
|
|
New
England
|
65
|
27
|
92
|
174
|
—
|
266
|
|
New
York
|
377
|
(4)
|
373
|
114
|
—
|
487
|
|
National
Grid Ventures
|
217
|
(90)
|
127
|
—
|
—
|
127
|
|
Other
|
76
|
(142)
|
(66)
|
—
|
—
|
(66)
|
|
Total operating profit
|
2,359
|
(209)
|
2,150
|
441
|
—
|
2,591
|
|
Net
finance costs
|
(718)
|
(4)
|
(722)
|
—
|
—
|
(722)
|
|
Share
of JVs and associates (post tax)
|
89
|
—
|
89
|
—
|
—
|
89
|
|
Profit before tax
|
1,730
|
(213)
|
1,517
|
441
|
—
|
1,958
|
|
Tax
|
(386)
|
37
|
(349)
|
(116)
|
329
|
(136)
|
|
Profit after tax
|
1,344
|
(176)
|
1,168
|
325
|
329
|
1,822
|
|
Six months ended 30 September 2025
|
Statutory
|
Exceptionals and remeasurements
|
Adjusted
|
Timing
|
Deferred tax on underlying profits in NGET and NGED
|
Underlying
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
UK
Electricity Transmission
|
810
|
3
|
813
|
33
|
—
|
846
|
|
UK
Electricity Distribution
|
488
|
—
|
488
|
63
|
—
|
551
|
|
New
England
|
61
|
20
|
81
|
211
|
—
|
292
|
|
New
York
|
78
|
(5)
|
73
|
370
|
—
|
443
|
|
National
Grid Ventures
|
126
|
61
|
187
|
—
|
—
|
187
|
|
Other
|
(37)
|
10
|
(27)
|
—
|
—
|
(27)
|
|
Total operating profit
|
1,526
|
89
|
1,615
|
677
|
—
|
2,292
|
|
Net
finance costs
|
(739)
|
61
|
(678)
|
—
|
—
|
(678)
|
|
Share
of JVs and associates (post tax)
|
39
|
—
|
39
|
—
|
—
|
39
|
|
Profit before tax
|
826
|
150
|
976
|
677
|
—
|
1,653
|
|
Tax
|
(208)
|
(15)
|
(223)
|
(182)
|
223
|
(182)
|
|
Profit after tax
|
618
|
135
|
753
|
495
|
223
|
1,471
|
Reconciliation of Adjusted and Underlying Profits – at
constant currency
|
|
|
|
At constant currency
|
|||
|
Six months ended 30 September 2025
|
Adjusted
at actual exchange rate
|
|
Constant currency adjustment
|
Adjusted
|
Timing
|
Underlying
|
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
|
UK
Electricity Transmission
|
813
|
|
—
|
813
|
33
|
846
|
|
UK
Electricity Distribution
|
488
|
|
—
|
488
|
63
|
551
|
|
New
England
|
81
|
|
2
|
83
|
212
|
295
|
|
New
York
|
73
|
|
1
|
74
|
373
|
447
|
|
National
Grid Ventures
|
187
|
|
—
|
187
|
—
|
187
|
|
Other
|
(27)
|
|
—
|
(27)
|
—
|
(27)
|
|
Total operating profit
|
1,615
|
|
3
|
1,618
|
681
|
2,299
|
|
Net
finance costs
|
(678)
|
|
(3)
|
(681)
|
—
|
(681)
|
|
Share
of JVs and associates (post tax)
|
39
|
|
—
|
39
|
—
|
39
|
|
Profit before tax
|
976
|
|
—
|
976
|
681
|
1,657
|
Earnings per share calculations – at actual exchange
rates
The table below reconciles the profit after tax per the previous
tables back to the earnings per share for each of the adjusted
profit measures. Earnings per share is only presented for
those adjusted profit measures that are at actual exchange rates,
and not for those at constant currency.
|
Six months ended 30 September 2026
|
Profit after tax
£m
|
Non-controlling interest
£m
|
Profit after tax attributable to the parent
£m
|
Weighted average number of shares
Millions
|
Earnings
per share
pence
|
|
Statutory
|
1,344
|
(1)
|
1,343
|
4,995
|
26.9
|
|
Adjusted
|
1,168
|
(1)
|
1,167
|
4,995
|
23.4
|
|
Underlying
|
1,822
|
(1)
|
1,821
|
4,995
|
36.5
|
|
Six months ended 30 September 2025
|
Profit after tax
£m
|
Non-controlling interest
£m
|
Profit after tax attributable to the parent
£m
|
Weighted average number of shares
Millions
|
Earnings
per share
pence
|
|
Statutory
|
618
|
(1)
|
617
|
4,926
|
12.6
|
|
Adjusted
|
753
|
(1)
|
752
|
4,926
|
15.3
|
|
Underlying
|
1,471
|
(1)
|
1,470
|
4,926
|
29.8
|
Timing impacts
Under the Group’s regulatory frameworks, the majority of the
revenues that National Grid is allowed to collect each year are
governed by a regulatory price control or rate plan. If National
Grid collects more than this allowed level of revenue, the balance
must be returned to customers in subsequent years, and if it
collects less than this level of revenue, it may recover the
balance from customers in subsequent years. These variances between
allowed and collected revenues give rise to ‘over and
under-recoveries’. A number of costs in the UK and the
US are pass-through costs (including commodity and energy
efficiency costs in the US), and are fully recoverable from
customers. Timing differences between costs of this type being
incurred and their recovery through revenues are also included in
over and under-recoveries. In the UK, timing differences include an
estimation of the difference between revenues earned under revenue
incentive mechanisms and associated revenues collected. UK timing
balances and movements exclude adjustments associated with changes
to controllable cost (totex) allowances or adjustments under the
totex incentive mechanism. Opening balances of over and
under-recoveries have been restated where appropriate to correspond
with regulatory filings and calculations.
|
|
UK Electricity Transmission
£m
|
UK Electricity Distribution
£m
|
New
England1
£m
|
New
York1
£m
|
Total
£m
|
|
1 April
2026 opening balance2
|
(71)
|
2
|
(274)
|
(236)
|
(579)
|
|
Over/(under)-recovery
|
(80)
|
(73)
|
(174)
|
(114)
|
(441)
|
|
30 September 2026 closing balance to
(recover)/return
|
(151)
|
(71)
|
(448)
|
(350)
|
(1,020)
|
|
|
|
|
|
|
|
|
|
UK Electricity Transmission
£m
|
UK Electricity Distribution
£m
|
New
England1
£m
|
New
York1
£m
|
Total
£m
|
|
1 April
2025 opening balance2
|
9
|
124
|
(369)
|
300
|
64
|
|
Over/(under)-recovery
|
(33)
|
(63)
|
(212)
|
(373)
|
(681)
|
|
30 September 2025 closing balance to
(recover)/return
|
(24)
|
61
|
(581)
|
(73)
|
(617)
|
1. New
England and New York in-year over/(under)-recovery and all New
England and New York balances have been translated using the
average exchange rate for the half year ended 30 September
2026.
2. Opening
balances are eligible to be restated to reflect the finalisation of
calculated over/(under)-recoveries in the UK and the US and also
adjusted for the regulatory time value of money impact on opening
balances, where appropriate, in the UK.
Capital investment – at constant currency
‘Capital investment’ or ‘investment’ both
refer to additions to property, plant and equipment and intangible
assets, including capital prepayments plus equity
contributions to joint ventures and associates during
the period. This measure of capital investment is aligned with
how we present our segmental information (see note 2(c) to the
financial statements for further details). References to
‘capital investment’ in our regulated networks include
the following segments: UK Electricity Transmission, UK Electricity
Distribution, New England and New York, but exclude National Grid
Ventures and ‘Other’. Capital investment measures are
presented at actual exchange rates, but are also shown on a
constant currency basis to show the year-on-year comparisons
excluding any impact of foreign currency translation
movements.
|
|
At actual exchange rates
|
|
At constant currency
|
||||
|
Six months ended 30 September
|
2026
|
2025
|
% change
|
|
2026
|
2025
|
% change
|
|
£m
|
£m
|
|
£m
|
£m
|
|||
|
UK
Electricity Transmission
|
2,888
|
1,684
|
71
|
|
2,888
|
1,684
|
71
|
|
UK
Electricity Distribution
|
834
|
756
|
10
|
|
834
|
756
|
10
|
|
New
England
|
1,105
|
958
|
15
|
|
1,105
|
967
|
14
|
|
New
York
|
1,775
|
1,585
|
12
|
|
1,775
|
1,599
|
11
|
|
Capital investment (regulated networks)
|
6,602
|
4,983
|
32
|
|
6,602
|
5,006
|
32
|
|
National
Grid Ventures
|
100
|
69
|
45
|
|
100
|
70
|
43
|
|
Other
|
5
|
—
|
—
|
|
5
|
—
|
—
|
|
Group capital investment – total
|
6,707
|
5,052
|
33
|
|
6,707
|
5,076
|
32
|
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly
authorized.
|
|
NATIONAL GRID
plc
|
|
|
|
|
|
|
|
By:
|
Ceri Jamond
|
|
|
|
Ceri Jamond
Co-Deputy Company Secretary, Corporate
|
Date: 05
November 2026