NMKBP 6-K
National Grid PLC (NGG)
6-K
2026-05-14
For: 2026-05-14
View Original
Added on
May 14, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
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FORM 6-K
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REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
Date: 14 May 2026
Commission File Number: 001-14958
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NATIONAL GRID plc
(Translation
of registrant’s name into English)
England and Wales
(Jurisdiction
of Incorporation)
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1-3 Strand, London, WC2N 5EH, United Kingdom
(Address
of principal executive office)
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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
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 14 May
2026 —
FY2026 Full Year Results Statement
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Exhibit
99.1
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London | 14 May 2026: National Grid
plc today announces its
Full Year results for the period ended 31 March
2026.
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We bring energy to power possibilities
Zoë Yujnovich, Chief Executive, said: "National Grid is
embarking on the largest investment programme in our history,
committing at least £70 billion over the next five years to
modernise and expand energy networks across the UK and the US
Northeast - networks that underpin economic growth, strengthen
energy security and enable the transition to a cleaner, more
flexible energy system. At the same time, we are building the
skilled workforce needed to deliver this investment at pace,
creating thousands of jobs across our markets.
This year, we have delivered strong financial performance,
including underlying EPS growth of 8% at constant currency, and
record investment of £11.6 billion. This sets the foundation
to deliver compound annual growth rates across our five-year
financial framework of around 10% asset growth and 8-10% underlying
EPS growth.
Through executing today's programme with pace and precision, and
transforming our capabilities we will be able to meet the rapidly
growing demand and enable a more efficient energy system - one that
supports long-term affordability and reliability for customers. Our
operational focus and commitment to innovation will deliver
for customers and communities, and create long-term value for
shareholders. I am energised by the determination of our colleagues
to step up and meet this moment."
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Financial summary
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Year ended 31 March
(continuing operations)
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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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5,431
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4,934
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10%
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5,680
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5,357
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6%
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5,221
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9%
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Earnings (£m)
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3,241
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2,826
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15%
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3,859
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3,452
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12%
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3,388
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14%
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Earnings per share (EPS) (p)3
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65.5
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60.0
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9%
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78.0
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73.3
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6%
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72.0
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8%
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Dividend per share (p)
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48.49
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46.72
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3.8%
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Capital investment (£m)
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11,576
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9,847
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18%
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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 62 to 79. 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
$1.343 (2024/25: actual average exchange rate was
$1.266).
3.
4,946
million weighted average shares for 2025/26 (2024/25: 4,707
million).
Highlights
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Financial performance
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Record
capital investment of £11.6 billion (2024/25: £9.8
billion), driving asset growth of 10.9% (2024/25:
9.0%).
–
Underlying EPS of 78.0p up 8% at
constant currency, with strong operating performance partially
offset by divestments, storm costs, a higher share
count, and the impact of a recent FERC* order. Statutory EPS of
65.5p up 9%.
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Recommended
final dividend of 32.14p, resulting in a total dividend of 48.49p
up 3.8% compared to prior year, in line with policy aim to
increase with UK CPIH inflation.
Strategic progress
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Extended
and upgraded our Five-Year Financial Framework to 2030/31, with at
least £70 billion capital investment over the period,
reflecting increased clarity across our businesses and the outcomes
of the RIIO-T3* price control.
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Supply
chain and delivery mechanisms secured for around three-quarters of
£70 billion capital investment plan.
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Completed
the divestments of National Grid Renewables and Grain
LNG.
Regulatory progress
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Around
two-thirds of the at least £70 billion capital investment
covered by regulatory agreements. The agreements balance the need
for investment with customer affordability, demand growth and
system reliability.
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Increased
regulatory visibility with approval of our Niagara Mohawk rate case
in New York, ESMP* investments in Massachusetts, and
acceptance of the RIIO-T3 price control in UK Electricity
Transmission.
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Filed
our rate case proposal for Massachusetts Gas, focused on balancing
bill impacts with asset health and network
reliability.
*See glossary on page 33.
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;
- asset
growth CAGR1 of
around 10%;
- driving
underlying EPS CAGR2 of
8-10% from a 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 strong operational performance across the Group
with underlying EPS expected to increase 13-15% from the
2025/26 baseline reflecting higher allowed revenue as we step up
delivery from RIIO-T2 to RIIO-T3.
- For
further detail, please refer to the five-year financial framework
and 2026/27 forward guidance on pages 10 to 13.
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 interest rate assumptions and
scrip uptake of 25%.
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Contacts
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Investor Relations
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Angela Broad
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+44 (0) 7825 351 918
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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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Peter Hesse
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+44 (0) 7834 502 412
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Brunswick
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Dan Roberts
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+44 (0) 7980 959 590
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Results presentation and webcast
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Zoë Yujnovich (CEO) and Andy Agg (CFO) will host the results
presentation at Think Tank, 8 Bishopsgate, London, EC2N
4BQ, at
15:00 (BST)/10:00
(EDT) today. A live webcast and Q&A will also be available.
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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UK (and International)
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+44 (0) 330 551 0200
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UK (Toll Free)
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0808 109 0700
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US (Local)
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+1 786 697 3501
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Password
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Quote "National Grid" when prompted by the operator
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The Annual Report and Accounts 2025/26 (ARA) is expected to be
publicly available on 3 June 2026. When published, the ARA will be
available on National Grid's website at nationalgrid.com/investors
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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 62 to 79.
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Financial performance
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Year ended 31 March
(£ million)
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2026
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2025
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change %
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Underlying operating profit at
constant currency1
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UK Electricity Transmission
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1,682
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1,428
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18%
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UK Electricity Distribution
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1,238
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1,203
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3%
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UK Electricity System Operator
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-
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115
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(100)%
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New England
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866
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871
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(1)%
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New York
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1,709
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1,367
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25%
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National Grid Ventures
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327
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380
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(14)%
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Other
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(142)
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(143)
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1%
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Group
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5,680
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5,221
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9%
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Capital investment at constant
currency1
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UK Electricity Transmission
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4,372
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2,999
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46%
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UK Electricity Distribution
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1,617
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1,426
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13%
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New England
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2,043
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1,650
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24%
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New York
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3,428
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3,101
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11%
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National Grid Ventures
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109
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362
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(70)%
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Other
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7
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4
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75%
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Group
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11,576
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9,542
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21%
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FFO/Net debt
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13.0
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13.7
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-70bps
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RCF/Net debt
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9.3
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9.8
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-50bps
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As at 31 March
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Net debt
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(44,160)
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(41,371)
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7%
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UK Regulated Asset Value (RAV)
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36,986
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32,779
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13%
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US rate base (£m at constant currency)2
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29,452
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26,694
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10%
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Total Group RAV and rate base (£m)
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66,438
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59,473
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12%
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NGV and Other businesses (£m)
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5,545
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7,266
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(24)%
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Total (£m)
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71,983
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66,739
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8%
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Asset growth3
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10.9%
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9.0%
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190bps
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Regulated asset growth3
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11.7%
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10.5%
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120bps
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Group return on equity
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9.8%
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9.0%
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80bps
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1.
Constant currency calculated
using 2025/26 average exchange rate of $1.343 (2025:
actual average rate was $1.266). See pages 66 and 68 for details.
2.
US rate base constant currency calculated using 31
March 2026 closing rate of $1.323 (2025: actual closing
rate was $1.292). See page 78 for details.
3.
Calculated excluding the reduction in RAV and
non-regulated businesses assets as a result of significant business
disposals. See page 79 for details.
Responsible Business performance
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Externally assured1
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2026
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2025
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change
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Scope 1 and 2 greenhouse gas emissions (ktCO2e)
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7,511
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7,422
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1%
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Scope 3 greenhouse gas emissions (ktCO2e)
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29,503
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28,435
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4%
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Renewable energy connected to the UK Transmission
and Distribution Grids (MW)
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576
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2,244
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(74)%
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Renewable energy connected to the US Transmission
and Distribution Grids (MW)
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548
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772
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(29)%
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Group Lost Time Injury Frequency Rate (LTIFR)
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0.11
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0.10
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0.01
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1.
We engaged Deloitte LLP to undertake a limited
assurance engagement, using the International Standard on Assurance
Engagements (ISAE) 3000 (Revised): 'Assurance Engagements Other
Than Audits or Reviews of Historical Financial Information' and
ISAE 3410: 'Assurance Engagements on Greenhouse Gas Statements'
over a range of data points within our Responsible Business data
tables. Renewable energy connected refers to connected capacity
that is energised within the reporting year - see explanation on
page 8. Further details of National Grid's Reporting
Methodology and Deloitte's full limited assurance opinion
are available on our website.
Strategic overview
Safety and operational performance: Retained focus on reliability
and resilience
Our Lost Time Injury Frequency Rate (LTIFR)1 stood
at 0.11 compared to 0.10 in 2024/25 and against our Group target of
0.10. The primary causes of Lost Time Injuries are associated with
slips, trips and falls, musculoskeletal injuries, and 'struck-by'
events. In response, we have implemented targeted initiatives to
further strengthen risk awareness, leadership engagement and
control effectiveness. The safety of our people and those working
on our behalf remains our highest priority. By sharpening our focus
on high-energy risks and critical controls, we continue to build
safer, more resilient operations that support reliable performance
over the long term.
Reliability underpins everything we do, with our regulated
electricity networks having reliability of over 99.9%, and our UK
Electricity Transmission (UK ET) network having a world-class
reliability of 99.99999%, with just one loss of supply event in
2025/26 - the lowest number in a decade. Our European
interconnectors delivered over 90% availability across the fleet,
up from 86% in 2024/25.
With our focus on delivering a reliable service for our customers,
we continue to navigate storm impacts across our UK and US
businesses successfully. Following Storm Goretti in our South West
England territory, the largest in the region for two decades, 73%
of customers affected by outages were restored within 24 hours.
During severe winter storms in our US service territories, crews
worked around the clock to restore power to impacted customers. Our
gas networks in Massachusetts, New York and Long Island delivered
some of the highest throughput days on record during Storm Fern,
consistently serving customers amidst record-breaking demand and
significant strains on the region's energy grids. Our generation
fleet on Long Island provided reliable energy during peak demand
for Long Island Power Authority (LIPA), meeting around half of the
power needed during the June 2025 heatwave and almost two-thirds
during winter storms.
We continue to utilise technology to improve the safety,
reliability and cost effectiveness of our operations, including in
our New England business, where tree-related outages were reduced
by nearly 30% using satellite imagery and AI to improve vegetation
management, and drones were used to inspect lines in hard to reach
locations during winter storms. In our UK ET business, autonomous
drones were used for overhead line inspections increasing the
speed, efficiency and consistency of data processing and reducing
the risk and environmental impact of alternative inspection
methods.
1. Employee and contractor lost time injury frequency rate
per 100,000 hours worked.
Financial performance: sets a strong baseline for our five-year
framework
For detailed financial performance commentary, please refer to the
Financial Review section on page 14.
Our statutory operating profit is presented on
page 14 which
includes the impact of exceptional items, remeasurements, major
storms, timing and 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 65.
Our updated five-year financial framework is
on page 10.
The Group's financial performance in 2025/26 demonstrates continued
resilience to the impacts of inflation and cost pressures, changes
in interest rates and exchange rate fluctuations.
Underlying operating profit increased by £459 million at
constant currency to £5,680 million, 9% higher than the
previous year. This improvement was driven by strong performance
across our regulated businesses including new rates for our Niagara
Mohawk (NIMO) business in upstate New York, recovery of prior year
storms and environmental costs, higher revenues supported by
increased allowances in the UK and delivery of strong cost
efficiencies. This was partly offset by the impact of the
divestments of the Electricity System Operator, National Grid
Renewables and Grain LNG, and the impact of customer refunds
related to the March 2026 FERC order on New England transmission
returns.
Underlying EPS of 78.0p increased by 6.0p or 8% at constant
currency compared to the previous year, with the underlying
operating profit increase more than offsetting the impact of the
increased number of shares. At actual exchange rates, this
increase was 4.7p per share, or 6% reflecting a weaker
dollar.
Capital investment for continuing operations increased by
£2,034 million at constant currency to a record
£11,576 million, an increase of 21% on the prior year at
constant currency, up 18% at actual exchange rates. This increase
was principally driven by the ramp up in spend on Accelerated
Strategic Transmission Investment (ASTI) projects including
construction activity and capacity reservation payments, substation
developments in our UK ET business, higher asset replacement in UK
Electricity Distribution (UK ED), increased spend on electricity
distribution and transmission networks in New England, and
electricity transmission projects in New York. This was partially
offset by lower investment in National Grid Ventures (NGV) with the
divestment of National Grid Renewables and Grain LNG, and lower
spend on the Viking interconnector.
Capital investment and RAV indexation helped drive Group asset
growth of 10.9%, with regulated asset growth of 11.7%.
Net debt was £44.2 billion at 31 March 2026, £2.8 billion
higher than the prior year. This increase reflected the increased
capital investment in the year, partly offset by £2.8 billion
of net cash proceeds from the divestments of National Grid
Renewables and Grain LNG.
Return on Equity (RoE)
We achieved a Group RoE of 9.8% in 2025/26, an
increase of 80 basis points (bps) on the prior year. This
increase was principally due to increased regulated revenue in our
UK ET and New York businesses.
In 2025/26, UK ET achieved operational returns of 8.2%, delivering
100bps of outperformance under RIIO-T2, mainly from totex
performance related to savings on capital delivery (2025: 8.3%
achieved return, or 100bps outperformance). UK ED achieved an
operational return of 8.1% in 2025/26, including 50bps
outperformance, mostly consisting of Distribution System
Operator performance incentives. (2025: 7.9% achieved return, or
20bps outperformance).
New England's achieved return of 9.2% was 96% of the allowed return
in 2025/26 compared with an achieved return of 9.1% in 2024/25.
This excludes the impact of the historical adjustments to returns
following the FERC order in March 2026, but includes the 2025/26
impact. New York's achieved return of 9.0% was 96% of the allowed
return in 2025/26 compared with an achieved return of 8.7% in
2024/25. The quoted returns for New England and New York represent
the weighted average return across operating companies within each
jurisdiction.
For further information on RoEs for each of our business entities,
please refer to pages 77 and 78 of
the APM section.
Key investments and strategic initiatives: continued progress
modernising our networks
In our continuing businesses, capital investment reached a
record £11.6 billion in 2025/26 reflecting progress on
major transmission projects in both the UK and the US, continued
connections and enhancements to our electricity distribution
networks and ongoing asset replacement in our gas
networks.
Strong capital delivery
–
In
UK ET, construction is progressing as planned on all six Wave 1
ASTI projects. We also submitted Development Consent Order (DCO)
applications to the UK Government for the Sea Link and Norwich to
Tilbury Wave 2 ASTI projects both of which were accepted and are
now in examination.
–
We connected a total of 14 GW of generation and 3.8 GW of
demand in UK ET across the five-year RIIO-T2 price control,
doubling the pace of generation connection versus RIIO-T1 and
delivering a 15% increase on demand connections compared to our
RIIO-T2 business plan.
–
In
UK ED, we are connecting new sources of renewable low-carbon
generation to our network, increasing the total amount across our
region to over 14 GW. We also enabled more than 120,000 low-carbon
technology connections, including a 30% increase in Electric
Vehicle chargers.
–
Our
asset health investment in UK ED increased by 20% aligned to our
regulatory commitments, maintaining network reliability of over
99.9% for our 20 million customers.
–
In
New York, we energised our Smart Path Connect transmission project
with two 345 kV overhead lines covering over 100 miles, delivered
on time and on budget and allowing transmission of more than 1 GW
of renewable energy to high-demand regions. In New England, we
completed construction of a transmission line from Vermont to New
Hampshire, upgrading a line that had been in service for more than
100 years.
–
Our
US gas distribution businesses replaced a further 315 miles of
leak-prone pipe.
–
In
New York and Massachusetts, we installed more than 800,000 and
490,000 smart meters respectively supporting customers to
understand their usage, enhancing management of distributed energy
resources and reducing response times in the event of service
disruption.
Delivery mechanisms secured for around three-quarters of the at
least £70 billion capital investment
–
Primary
contracting completed for the Wave 2 ASTI offshore projects in UK
ET including cables and converter systems for Eastern Green
Links (EGL) 3 and 4, and Sea Link.
–
For
Wave 2 ASTI onshore projects, our Great Grid Partnership with seven
partners will deliver nine major infrastructure projects across
England and Wales covering design, consenting services and
construction.
–
Launched
the Electricity Transmission Partnership to accelerate the delivery
of £8 billion of substation infrastructure by adopting a
regional model with a number of strategic suppliers across the
RIIO-T3 price control. This strengthens supply-chain capability and
creates a platform to deploy innovation and productivity
improvements at scale.
–
Agreed
supply chain partners to support over $3 billion of capital
investment in electricity networks in New England across the next
five years.
–
Executed
construction and commercial contracts for our Climate Leadership
and Community Protection Act (CLCPA) Phase 1 and 2 projects in New
York, representing more than $3.5 billion of investment to unlock
almost 4.8 GW of network capacity when
fully operational.
Strategic initiatives to support continued momentum
–
We
supported the UK Government in its development of AI Growth Zones,
providing early network insight to inform site identification, and
feasibility, with four zones now announced each targeting 500 MW of
AI-ready data centre capacity by 2030. Overall, our RIIO-T3
investment plan is expected to deliver 19 GW of additional demand
capacity, including 10 GW to enable over 30 data centre connections
to the system.
–
We
delivered our three-year target of £100 million cumulative
synergies from the acquisition of UK Electricity Distribution, six
months ahead of schedule.
–
We
completed the divestments of National Grid Renewables and Grain
LNG.
–
We
continued to progress project opportunities including work on
competitive transmission bids for FERC regulated transmission in
the US, alongside signing a Joint Development Agreement with TenneT
to progress our LionLink hybrid interconnection project linking
Dutch offshore wind farms to both the UK and the
Netherlands.
Regulatory, policy and market environment
Our networks have always been central to providing resilient and
secure energy but are now also critical to enabling economic
growth by connecting new large load demand including industrial
load and data centres. We work closely with our policy-makers and
regulators across our jurisdictions, as they recognise the need
to balance supporting this economic growth together with
affordability, reliability and decarbonisation.
In the UK, we have seen significant regulatory and policy
progress:
–
The
RIIO-T3 price control agreed for the period until March 2031
empowers us to invest at the scale required to meet increasing
electricity demand and connect new generation, while aligning
performance with what matters to consumers. Our RIIO-T3 plans will
nearly double the amount of power that can flow across the country,
avoiding constraint costs and ensuring a resilient, clean, and
future proof transmission network that supports Britain's economic
competitiveness and growth.
–
We
contributed to Ofgem's Sector Specific Methodology Consultation for
ED3 in December 2025, shaping proposals that strengthen
planning, operational coordination and flexibility to aid the
energy transition and support consumer needs. We are preparing
for Ofgem's ED3 Sector Specific Methodology Decision and Business
Plan guidance expected in May 2026.
–
We
engaged on the DESNZ review of Ofgem and support many of the
recommendations published in April 2026 including: streamlining
duties and remit; a more strategic outcome-focused approach to
regulation that supports innovation and timely delivery; and
ensuring Ofgem is a high-performing, expert organisation. We will
continue to work closely with DESNZ and Ofgem on the next stage of
implementing the recommendations.
–
As
co-chair of the Electricity Network Sector Growth Plan, we are
helping to steer a ten-year road map for GB electricity
network investments, including supply chain, workforce and skills
development.
–
The
Planning & Infrastructure Act achieved Royal Assent in December
2025 and includes measures to streamline planning for our
infrastructure projects. The Government has also announced its
intent to make legislation changes following the Electricity
Infrastructure Consents, Land Access and Rights consultation, which
should speed up delivery.
–
NESO
has published its reformed generation connection queue, removing
221 GW of projects to better align to Government targets and
prioritise those ready to connect. We have now re-issued offers to
our first wave of customers and, building on extensive preparations
and network analysis carried out in 2025, we are on track to
deliver the next sets of offers in line with reform programme
milestones.
–
We
supported Ofgem's 'Curate, Plan, Connect' framework set out in its
Demand Connections Reform Call for Input in February 2026. We also
responded to DESNZ's consultation on accelerating electricity
network connections for strategic demand in April 2026 where we
highlighted the need for a Government-led approach to
prioritisation, clear investment signals and regulatory frameworks
to enable delivery at pace.
–
Following
the Government's decision in July 2025 to retain a single national
electricity market and not to implement zonal pricing, in April
2026, DESNZ published its Reformed National Pricing (RNP) Delivery
Plan. This sets out proposals for how the upcoming Strategic
Spatial Energy Plan (SSEP) is translated into what gets built,
where and when - in turn, this will provide clearer long-term
investment signals for networks. We are engaging with DESNZ and
Ofgem to shape these proposals.
In the US, regulators and policy makers continue to seek a balance
across rising demand, reliability, affordability and
decarbonisation. Key developments in the year include:
–
In
upstate New York, our NIMO Electric and Gas rate plan was approved
for three years to April 2028 enabling us to maintain reliable,
resilient, and cost-effective energy for over two million
customers. In downstate New York, we are preparing to file a rate
proposal for KEDNY and KEDLI, our gas distribution businesses with
filing expected before summer 2026.
–
Our
Massachusetts Gas rate case proposal, filed in January 2026 for a
five-year period, balances bill impact with essential
infrastructure upgrades, emergency preparedness and support for
low-income customers. A Rate Order is expected in November
2026, with new rates effective from 1 December 2026.
–
The Massachusetts Department of Public Utilities
(DPU) approved $600 million for our Electric Sector Modernization
Plan (ESMP) investments, supporting
networks, technology, and non-wires alternatives, and runs in
addition to our Massachusetts Electric (MECO) rate
order.
–
The
New York PSC's Order on our Long-Term Gas Plan addendum includes
the need for Williams' Northeast Supply Enhancement (NESE) pipeline
project, where National Grid will have the sole offtake agreement.
The pipeline will significantly enhance reliability and potentially
lower wholesale electric costs when commissioned in late
2027.
–
The
New York State Energy plan adopts a balanced approach, expanding
renewable energy, electrification, and continuing natural gas for
reliability, while calling for upgrades to transmission and
distribution infrastructure, prioritising affordability and
equitable access to clean energy benefits.
–
We
are evaluating contract options with the Long Island Power
Authority for our Long Island Generation assets, ahead of
renegotiations over the next two years.
–
We
responded to the Massachusetts DPU Delivery Charge Investigation
which aims to address energy price volatility and improve bill
transparency with proposals that support these aims. Both New York
and Massachusetts commission dockets are exploring policies around
the connection of large loads and customer bill transparency, with
both promoting clear state policies and customer confidence in what
they are paying.
–
In
March 2026, FERC issued an order regarding four long-pending New
England Transmission Owners (NETOs) base ROE complaints. The order
set a lower base ROE and requires the NETOs to issue refunds with
interest. National Grid will challenge the decision through the
required regulatory and legal procedures. In April 2026,
National Grid, together with the other NETOs, filed a request with
FERC under Section 205 of the Federal Power Act proposing a
forward-looking base return on equity of 11.39%. The proposal
reflects application of the Commission's current return on equity
methodology using updated market data.
Delivering as a Responsible Business
Network companies have a unique role to play in delivering a
reliable, secure, affordable energy system that supports economic
growth and enables decarbonisation. While we remain focused on
reducing our own carbon emissions, by building out the
network of the future, we are enabling the deployment
of renewable energy generation and low carbon
technologies including for heat and transport, to meet
society's growing electricity needs while bringing down its
emissions.
In 2025/26 our Scope 1 and Scope 2 emissions totalled 7.5 mtCO2e,
an increase of 1.2% versus 2024/25, and outside the range set out
in our Climate Transition Plan, but 3.3% lower than the 2018/19
baseline. The main driver for this increase was the increased
utilisation of our Long Island Generation assets which we operate
on behalf of the Long Island Power Authority, where these assets
played a critical role in meeting demand amid third-party outages,
and extreme weather events, partially offset by lower Scope 2
emissions due to reduced grid carbon intensity. We will remain
vigilant, closely monitoring developments in the external
environment and adapting our climate strategy as needed, ahead of
our next Climate Transition Plan expected
in 2027.
We made continued progress in the year, including:
–
85% of
our £11.6 billion capital investment classified
as Green capital expenditure under the principles of the
EU taxonomy.
–
Reduced SF6 emissions
by 11% through leak repairs and continued to invest in
alternatives to SF6 including
the decision for our Uxbridge Moor substation to use a gas
alternative with 1-2% of the global warming potential of
SF6.
–
Connected 1.1
GW of energised renewable generation, and over 120,000 low
carbon technologies to our networks. Renewable energy connected was
lower in 2025/26 than the prior year largely due
to third-party project delays.
–
Issued £1.2 billion
of bonds under our Green Financing framework.
Affordability is a critical issue:
Affordability has always been a critical issue for customers and
the company alike, and has become a whole system challenge
including the impact of commodity and policy costs. Our role is to
ensure that the network - the part we control - is delivered
efficiently and reliably, that investment is targeted to where it
delivers the greatest system benefit, and that customers see value
from that investment over time. This is reflected in how we plan,
invest and support our customers:
–
As
we propose new rate plans in our US businesses, we are focusing our
proposals on investments that are needed to maintain safe, reliable
systems, mitigating the impact on customer bills where
possible.
–
We
implemented tiered discount rates for low-income MECO customers,
with discounts ranging from around 30% to 70%. Multi-lingual
outreach and automated enrolment from data-sharing supported the
enrolment of an additional 63,000 eligible customers since the rate
order. We are working with the DPU, government, community agencies,
and other utilities to develop a standardised tiered low-income
discount programme for all Massachusetts utility
customers.
–
Our
NIMO rate case included $290 million for low-income support within
the rate case.
–
In
our UK ET business, the operational outperformance across the
RIIO-T2 price control delivered direct consumer savings of nearly
£1 billion. Our business plan for the RIIO-T3 price control,
while adding around £21 per year to the customer bill,
supports the avoidance of around £12 billion of constraint
costs, equivalent to £40 per year savings for consumers over
the RIIO-T3 period.
–
The
continued strong performance of our interconnectors in NGV has
enabled the return of an additional £77 million to
customers in the current year. This is part of £354 million in
returns to customers over the past three years, with a further
£313 million forecast to be returned over the next two years
subject to Ofgem approval.
–
In
UK ED, our winter campaign increased engagement and awareness
leading to a 168% increase in Priority Services Register activity
which provides additional help and support for 2.6 million
including the elderly, very ill and disabled
customers.
–
Our
UK ED business has supported more than 21,000 customers to save
£22 million through our fuel poverty support programme, in our
latest reported figures to March 2025.
Strategic framework
Meeting our ambitions and responding to the rapidly changing energy
system requires a relentless focus on efficiency and continuous
improvement in the way we deliver. Our new strategic framework
builds on our strengths and underpins delivery of our five-year
financial framework. It introduces a set of fundamental priorities
to sharpen and simplify our approach to create value for
shareholders, and deliver for our customers
and stakeholders.
Deliver brilliant basics to lead on performance:
–
Capital:
best-in-class delivery of our largest-ever capital
programme.
–
Asset:
getting the most from our transmission and distribution
assets.
–
Customer:
providing consistently strong customer experiences.
–
Functions:
enhancing control and oversight while reducing friction in how we
operate.
Drive big shifts to define our future:
To enable this and position us for the future, we are focused on
transforming our capabilities across three key areas - deliberate,
high-impact shifts in response to structural market
change:
–
developing
the leaders, capabilities and performance culture we need for our
people to deliver our strategy;
–
building
technology capabilities that enable all our teams to step up
performance; and
–
taking
bold positions on topics that matter for customers to inform
policies and regulation.
Building optionality for disciplined growth:
Delivering our brilliant basics and transforming our business by
embracing the big shifts will enable us to build a platform
for future growth optionality.
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 regulated
energy networks and adjacent businesses, in the UK and US, over the
five-year period to 2030/31, 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
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 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% 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 capex 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 underlying earnings per share CAGR to be 8-10% from a
2025/26 baseline of 78.0p, more aligned with our asset growth.
For 2026/27, we expect underlying EPS growth of 13-15%, reflecting
higher allowed revenue as we step up delivery from RIIO-T2 to
RIIO-T3. 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 (DPS) in line with UK CPIH (for
details of our dividend policy please refer to
page 28).
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 is 61% at
March 2026, and is expected to trend back towards the high-60%
range by the end of 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. In
the US, our regulatory frameworks have mechanisms to manage 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, with
operating company leverage broadly matched to their regulatory
frameworks enabling the efficient recovery of debt costs. Around
30% of our debt is held at the HoldCo level, with maturities
extending into the 2030s. In addition, we have fixed interest rates
for around 80% of the total debt book. Our five-year financial
framework reflects the interest rate outlook and our refinancing
profile.
–
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.
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 around 70 basis points
of Return on
Equity operational
outperformance in the fourth year of RIIO-ED2, increasing
from 2025/26, primarily delivered through both improved
incentive and 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
£120 million lower than 2025/26 primarily reflecting
the sale of the Grain LNG business.
We also expect underlying operating
losses from other
activities to be around £100 million higher than 2025/26,
including lower property disposals.
Joint
Ventures
and Associates
Our share of the profit after
tax of joint ventures and
associates is expected to be broadly in line
with 2025/26.
Interest and Tax
Net finance costs in 2026/27 are
expected to be around £200 million higher
than 2025/26 reflecting our debt issuance programme net
of higher capitalised interest, both driven by our investment
programme.
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 13%. 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
around 10% to nearly £13 billion.
Asset Growth is
expected to be around 10%.
Operating cash flow generated
from operations is expected to increase by
around 20% compared to 2025/26 driven by
increased underlying performance and the recovery of timing
balances.
Net debt is
expected to increase by just over £6 billion
(from £44.2 billion as at 31 March 2026), with
operating cash inflows more than offset by our continued levels of
significant investment in critical energy infrastructure.
Reflecting this, regulatory gearing is expected to be around
64%.
Weighted average number of shares (WAV) is expected to be
approximately 5,000 million in 2026/27.
Financial review
In managing the business, we focus on various non-IFRS alternative
performance measures (APMs) and regulatory performance measures
(RPMs) which provide meaningful comparisons of performance between
years, monitor the strength of the Group's balance sheet and ensure
profitability reflects the Group's regulatory economic
arrangements. Such APMs and RPMs are supplementary to, and should
not be regarded as a substitute for IFRS measures, which we refer
to as statutory results. We explain the basis of these measures
and, where practicable, reconcile to statutory results on
pages 62 to 79. Adjusted results exclude exceptional items and
remeasurements whereas underlying results exclude (i) revenue
timing differences arising from our regulatory contracts;
(ii) major storm costs recoverable in future periods, where
above $100 million (in aggregate, net of in-year allowances and
deductibles) in the year; and (iii) impact on underlying results of
deferred tax in our UK regulated businesses (NGET and NGED); none
of which give rise to economic gains/losses.
Performance for the year ended 31 March
Financial summary for continuing operations
|
(£ million)
|
2025/26
|
2024/25
|
change %
|
|
Accounting profit
|
|
|
|
|
Gross revenue
|
17,687
|
18,378
|
(4)%
|
|
Operating costs
|
(12,745)
|
(13,444)
|
5%
|
|
Statutory operating profit
|
5,431
|
4,934
|
10%
|
|
Net finance costs
|
(1,325)
|
(1,357)
|
2%
|
|
Share of joint ventures and associates
|
76
|
73
|
4%
|
|
Tax
|
(939)
|
(821)
|
(14)%
|
|
Non-controlling interest
|
(2)
|
(3)
|
33%
|
|
Statutory IFRS earnings (note 7)
|
3,241
|
2,826
|
15%
|
|
Exceptional items and
remeasurements1
|
(333)
|
(171)
|
n/m
|
|
Tax on exceptional items and
remeasurements1
|
(16)
|
(40)
|
60%
|
|
Adjusted earnings1
|
2,892
|
2,615
|
11%
|
|
Timing and major storm costs1
|
636
|
592
|
n/m
|
|
Tax on timing and major storm
costs1
|
(168)
|
(156)
|
n/m
|
|
Deferred tax on underlying profits in NGET
and NGED1
|
499
|
401
|
24%
|
|
Underlying earnings1
|
3,859
|
3,452
|
12%
|
|
|
|
|
|
|
Statutory EPS - (pence) (note 7)
|
65.5p
|
60.0p
|
9%
|
|
Adjusted EPS - (pence) (note
7)1
|
58.5p
|
55.6p
|
5%
|
|
Underlying EPS1
|
78.0p
|
73.3p
|
6%
|
|
Dividend per share
|
48.49p
|
46.72p
|
4%
|
|
Dividend cover - underlying1
|
1.6x
|
1.6x
|
3%
|
|
|
|
|
|
|
Capital investment and asset growth
|
|
|
|
|
Capital investment
|
11,576
|
9,847
|
18%
|
|
Regulated asset growth1
|
11.7%
|
10.5%
|
120bps
|
|
Asset growth1
|
10.9%
|
9.0%
|
190bps
|
|
|
|
|
|
|
Balance sheet strength
|
|
|
|
|
FFO/adjusted net debt1
|
13.0%
|
13.7%
|
-70bps
|
|
RCF/adjusted net debt1
|
9.3%
|
9.8%
|
-50bps
|
|
Net debt (note 11)
|
44,160
|
41,371
|
7%
|
|
Add:
held for sale net debt
|
-
|
(55)
|
n/m
|
|
Net debt (including held for sale)1
|
44,160
|
41,316
|
7%
|
|
Group regulatory gearing1
|
61%
|
61%
|
0bps
|
1. Non-GAAP alternative performance measures
(APMs) and/or regulatory performance measures (RPMs). For further
details see pages 62 to 79.
Statutory IFRS earnings were £3,241 million in 2025/26,
£415 million (15%) higher than the prior year. Statutory
earnings benefited from pre-tax net exceptional gains of £376
million related to the sale of our two non-core businesses (Grain
LNG and National Grid Renewables) in 2025/26; and pre-tax
remeasurement losses of £43 million (2025: pre-tax net
exceptional credits of £42 million and pre-tax
remeasurement gains of £129 million). For details on
exceptional items refer to note 4. Timing swings were £131
million adverse year on year, with a £636 million
net under-recovery in 2025/26 (2025: £505 million net
under-recovery). These factors, the net impact of tax on
these items and an improvement in underlying business
performance meant that statutory EPS for continuing operations
of 65.5p was 5.5p higher than the prior year.
Our 'adjusted' results exclude the impacts from exceptional items
and remeasurements as explained on page 64. In 2025/26, adjusted earnings from continuing
operations were £2,892 million, up £277 million (11%)
from the prior year. Adjusted earnings in 2025/26 included a timing
net under-recovery after tax of £468 million (2025: £372
million net under-recovery). As a result, adjusted operating profit
of £5,044 million was up £279 million (2025:
£4,765 million). Adjusted net finance costs of £1,271
million were £90 million lower, as a result of higher average
net debt and higher interest rates being more than offset by higher
capitalised interest and other interest income. Share of profits
from joint ventures and associates of £76 million were
£1 million. Adjusted tax of £955 million
was £94 million higher, driven by the increase in
profits, but resulted in a stable effective tax rate of 25.3%
(2025: 25.3%).
As explained above, our 'underlying' results exclude the total
impact of exceptional items, remeasurements, timing, major storm
costs and deferred tax in UK regulated businesses (NGET and
NGED). A reconciliation between these alternative performance
measures and our statutory performance is detailed on
page 65.
Our policy is to exclude deferrable storm costs (net of allowances
and deductibles) from underlying results if these exceed a $100
million aggregate pre-tax threshold. In 2024/25, we included $110
million (£87 million) of storm costs in our adjusted results,
but excluded these from underlying results. In 2025/26 our
allowances were higher and deferrable storm costs were below this
threshold, so $52 million (£39 million) of deferrable storm
costs that are recoverable in future periods are included in our
underlying results.
Underlying operating profit was up 6% driven by improved
performance in New York (from updated rates and the collection of
unremunerated costs in prior periods) along with higher allowed
revenues in UK Electricity Transmission (RAV growth and increased
ASTI-related 'fast money'). New England was lower with updated
rates and capital trackers being more than offset by a FERC order
on Transmission Owner RoEs across New England (mostly related to
historical years). National Grid Ventures was lower mainly
as a result of the sale of two businesses in the
year (Grain LNG and National Grid Renewables). Other activities and
the contribution from joint ventures and associates were broadly
flat year on year. Regulated controllable costs were 2% higher (at
constant currency), with inflation and workload increases
being partly offset by efficiency savings. Depreciation and
amortisation were higher than the prior year due to our growing
asset base. Net debt-related financing costs were higher, driven
by our ongoing investment programme. Other interest was
favourable year on year driven by higher levels of
capitalised interest. After accounting for non-controlling
interests, underlying earnings increased by 12% and resulted
in a 6% increase in underlying EPS to
78.0p.
Capital investment of £11,576 million was
£1,729 million (18%) higher than 2024/25, driven by
a step up in investment across our regulated businesses, partly
offset by lower investment in National Grid Ventures. Higher
capital investment and the impact of RAV indexation have helped
deliver asset growth of 10.9% (2025: 9.0%).
Reconciliation of different measures of profitability and
earnings
In calculating adjusted profit measures, where we consider it is in
the interests of users of the financial statements to do so we
exclude certain discrete items of income or expense that we
consider to be exceptional in nature. The table below reconciles
our statutory profit measures for continuing operations, at actual
exchange rates, to adjusted and underlying versions. Further
information on exceptional items and remeasurements is provided in
notes 2, 4 and 5. Further information on non-GAAP alternative
performance measures (APMs) and regulatory performance measures
(RPMs) is provided on pages 62 to 79.
Reconciliation of profit and earnings from continuing
operations
|
|
Operating profit
|
|
Profit after tax
|
|
Earnings per share (pence)
|
|||
|
(£ million)
|
2026
|
2025
|
|
2026
|
2025
|
|
2026
|
2025
|
|
Statutory results
|
5,431
|
4,934
|
|
3,243
|
2,829
|
|
65.5
|
60.0
|
|
Exceptional items
|
(376)
|
(42)
|
|
(384)
|
(118)
|
|
(7.7)
|
(2.4)
|
|
Remeasurements
|
(11)
|
(127)
|
|
35
|
(93)
|
|
0.7
|
(2.0)
|
|
Adjusted results
|
5,044
|
4,765
|
|
2,894
|
2,618
|
|
58.5
|
55.6
|
|
Timing
|
636
|
505
|
|
468
|
372
|
|
9.5
|
7.9
|
|
Major storm costs
|
-
|
87
|
|
-
|
64
|
|
-
|
1.3
|
|
Deferred tax on underlying results in NGET and
NGED
|
-
|
-
|
|
499
|
401
|
|
10.0
|
8.5
|
|
Underlying results
|
5,680
|
5,357
|
|
3,861
|
3,455
|
|
78.0
|
73.3
|
Statutory operating profit increased in the year, primarily as
a result of exceptional net gains of £376 million in
2025/26 compared with net gains of £42 million in the prior
year. For details on exceptional items refer to note 4.
This was largely offset by £131 million adverse
year-on-year movements in timing, £116 million adverse
year-on-year movements in commodity derivative remeasurements
and the impact of a weaker exchange rate. Statutory operating
profit was also supported by an improved underlying
performance in our UK Electricity Transmission, UK Electricity
Distribution and New York businesses, partially offset by the
prior year including a contribution from the UK Electricity System
Operator prior to its disposal, along with lower underlying profits
in New England, adversely impacted by the FERC order (mainly
related to historical periods) and lower underlying profits
in National Grid Ventures, with the latter being driven by the
sales of National Grid Renewables and Grain LNG in
2025/26.
Timing over/(under)-recoveries
In calculating underlying profit, we exclude regulatory
revenue timing over- and under-recoveries, major storm
costs (defined below) and deferred tax on underlying results of our
UK regulated business (NGET and NGED), also defined below. Under
the Group's regulatory frameworks, most of the revenues we are
allowed to collect each year are governed by regulatory price
controls in the UK and rate plans in the US. If more than this
allowed level of revenue is collected, an adjustment will be made
to future prices to reflect this over-recovery; likewise,
if less than this level of revenue is collected, an adjustment
will be made to future prices in respect of the
under-recovery. These variances between allowed and collected
revenues and timing of revenue collections for pass-through costs
give rise to 'timing' over-
and under-recoveries.
The following table summarises management's estimates of such
amounts for the two years ended 31 March 2026 and 31 March
2025 for continuing operations. All amounts are shown on a pre-tax
basis and, where appropriate, opening balances are restated
for exchange adjustments and to correspond with subsequent
regulatory filings and calculations, and are translated at the
2025/26 average exchange rate of $1.343:£1.
|
Timing over/(under)-recoveries
|
||
|
(£ million)
|
2026
|
20251
|
|
Balance at start of year (restated)
|
60
|
1,018
|
|
UK Electricity Transmission
|
(77)
|
(151)
|
|
UK Electricity Distribution
|
(116)
|
407
|
|
UK Electricity System Operator (sold in 2024/25)
|
-
|
(479)
|
|
New England
|
94
|
57
|
|
New York
|
(537)
|
(323)
|
|
In-year (under)/over-recovery - continuing operations
|
(636)
|
(489)
|
|
Disposal of UK Electricity System Operator
|
-
|
(462)
|
|
Balance at end of year
|
(576)
|
67
|
1.
March 2025 balances restated to correspond with 2024/25
regulatory filings and calculations.
In relation to timing under-recoveries, the estimated closing net
under-recovered balance at 31 March 2026 (at an average exchange
rate of $1.34) was £576 million, comprising: a net £68
million asset to be recovered in UK Electricity Transmission; a net
£2 million liability to be returned in UK Electricity
Distribution; a net £274 million asset to be recovered in New
England; and a net £236 million asset to be recovered in New
York (for further details see page 67). In calculating the post-tax effect of these
in-year timing recoveries, we impute a tax rate based
on the regional marginal tax rates, consistent with the
relative mix of UK and US balances.
Major storm costs
We exclude the impact of major storm costs in the US where the
aggregate amount is sufficiently material in any given year.
Such costs (net of in-year allowances and deductibles) are
recoverable under our rate plans but are expensed as incurred under
IFRS. Accordingly, where the aggregate total US major storm
costs incurred (net of in-year allowances and deductibles) exceeds
$100 million in any given year, we exclude the net costs
from underlying earnings. In 2025/26, we incurred deferrable
storm costs (net of allowances) which are eligible for future
recovery of $52 million, but this did not exceed our
pre-set $100 million threshold to be excluded from underlying
results. In the prior year, we incurred $110 million
(£87 million) of deferrable storm costs (net of
allowances) before tax, or £64 million post-tax and
consequently these were all excluded from our reported underlying
results.
Deferred tax in UK regulated businesses
We exclude deferred tax in our UK regulated businesses (NGET and
NGED) in our underlying earnings measure. Tax is generally
considered to be a pass-through cost by our UK regulator, with
revenue tax allowances linked to the level of cash tax
expected to be paid in the year. In 2025/26, we excluded
£499 million (2025: £401 million) of deferred
tax charges from our underlying results.
Segmental operating profit
|
|
Statutory results
|
|
Underlying results
|
||||
|
(£ million)
|
2026
|
2025
|
change %
|
|
2026
|
2025
|
change %
|
|
UK Electricity Transmission
|
1,605
|
1,277
|
26
|
|
1,682
|
1,428
|
18
|
|
UK Electricity Distribution
|
1,122
|
1,598
|
(30)
|
|
1,238
|
1,203
|
3
|
|
UK Electricity System Operator
|
-
|
(213)
|
(100)
|
|
-
|
115
|
(100)
|
|
New England
|
947
|
1,008
|
(6)
|
|
866
|
924
|
(6)
|
|
New York
|
1,184
|
1,269
|
(7)
|
|
1,709
|
1,450
|
18
|
|
National Grid Ventures
|
715
|
5
|
n/m
|
|
327
|
380
|
(14)
|
|
Other activities
|
(142)
|
(10)
|
n/m
|
|
(142)
|
(143)
|
(1)
|
|
Total operating profit - continuing
|
5,431
|
4,934
|
10
|
|
5,680
|
5,357
|
6
|
The following segmental commentaries describe the reasons for the
movements in statutory, adjusted and underlying operating
profit compared with the prior year. Unless otherwise stated, the
discussion of performance in the remainder of this
Financial review focuses on underlying
results.
|
UK Electricity Transmission
|
|
||
|
(£ million)
|
2026
|
2025
|
% change
|
|
Revenue
|
2,898
|
2,619
|
11
|
|
Operating costs
|
(1,293)
|
(1,342)
|
(4)
|
|
Statutory operating profit
|
1,605
|
1,277
|
26
|
|
Exceptional items
|
-
|
-
|
-
|
|
Adjusted operating profit
|
1,605
|
1,277
|
26
|
|
Timing
|
77
|
151
|
n/m
|
|
Underlying operating profit
|
1,682
|
1,428
|
18
|
|
|
|
|
|
|
Underlying net revenue
|
2,584
|
2,315
|
12
|
|
Regulated controllable costs (including pensions)
|
(290)
|
(293)
|
(1)
|
|
Other operating costs
|
(62)
|
(54)
|
15
|
|
Depreciation and amortisation
|
(550)
|
(540)
|
2
|
|
Underlying operating profit
|
1,682
|
1,428
|
18
|
|
Timing
|
(77)
|
(151)
|
n/m
|
|
Adjusted operating profit
|
1,605
|
1,277
|
26
|
UK Electricity Transmission statutory operating profit was
£328 million higher in the year. Timing under-recoveries
were £77 million in 2025/26 compared with an
under-recovery of £151 million in 2024/25.
This year-on-year less adverse under-recovery is mainly the
impact of the return in 2024/25 of prior period balances
(primarily tax allowances), a lower inflation true-up and a lower
in-year recovery on volumes and pass-through costs than
2024/25.
UK Electricity Transmission underlying operating profit increased
by 18%. Underlying net revenues were £269 million (12%)
higher principally from higher totex allowances (including fast
money on ASTI spend) but also the impact of inflationary increases
linked to RAV growth.
Regulated controllable costs including pensions were £3
million lower with the impact of inflationary
and workload increases, due to a larger workforce to support
the growing asset base, being more than offset by efficiency
savings, non-recurring benefits related to IT and support service
recharges and the reclassifications of insurance recharges. Other
costs were slightly higher than the prior year at £62
million, including cost reclassifications, but this was partly
offset by lower customer-funded diversions and favourable gains on
disposals of assets compared with 2024/25.
The higher depreciation and amortisation principally reflects a
higher asset base as a result of continued investment.
|
UK Electricity Distribution
|
|
|
|
|
(£ million)
|
2026
|
2025
|
% change
|
|
Revenue
|
1,937
|
2,424
|
(20)
|
|
Operating costs
|
(815)
|
(826)
|
(1)
|
|
Statutory operating profit
|
1,122
|
1,598
|
(30)
|
|
Exceptional items
|
-
|
12
|
(100)
|
|
Adjusted operating profit
|
1,122
|
1,610
|
(30)
|
|
Timing
|
116
|
(407)
|
n/m
|
|
Underlying operating profit
|
1,238
|
1,203
|
3
|
|
|
|
|
|
|
Underlying net revenue
|
1,869
|
1,832
|
2
|
|
Regulated controllable costs (including pensions)
|
(311)
|
(302)
|
3
|
|
Other operating costs
|
(49)
|
(78)
|
(37)
|
|
Depreciation and amortisation
|
(271)
|
(249)
|
9
|
|
Underlying operating profit
|
1,238
|
1,203
|
3
|
|
Timing
|
(116)
|
407
|
n/m
|
|
Adjusted operating profit
|
1,122
|
1,610
|
(30)
|
UK Electricity Distribution statutory operating profit was
£476 million lower in the year, reflecting the impact of
£523 million adverse year-on-year timing movements.
Timing under-recoveries of £116 million in 2025/26 were
mainly due to the return of prior period balances, principally
driven by an over-collection in K-factor (i.e.
volumes/prices) in 2024/25 which was effectively returned in
2025/26, partly offset by true-ups for pass-through costs and
inflation. This compares with a timing over-recovery of
£407 million in the prior year, which was favourably
driven by an over-collection of K-factor.
In 2025/26 there were no exceptional costs compared with £12
million of exceptional costs in 2024/25 related to our major
transformation programme.
UK Electricity Distribution underlying operating profit increased
by £35 million (3%). Underlying net revenues were
£37 million higher than the prior year due to the impact
of higher inflation, higher totex allowances and improved DSO
incentives performance partly offset by lower engineering
recharge income.
Regulated controllable costs including pensions were £9
million (3%) higher than the prior year from the impact of
increased inspection and maintenance work, combined with investment
in capability build and inflation impacts, partly offset by
efficiencies achieved. Other costs were £29 million lower,
reflecting costs incurred in the prior year associated with Storm
Darragh and lower engineering recharges.
Depreciation and amortisation increased by £22 million
compared with the prior year due to the increasing
asset base.
|
UK Electricity System Operator
|
|
||
|
(£ million)
|
2026
|
2025
|
% change
|
|
Revenue
|
-
|
1,029
|
(100)
|
|
Operating costs
|
-
|
(1,242)
|
(100)
|
|
Statutory operating profit
|
-
|
(213)
|
(100)
|
|
Exceptional items
|
-
|
(151)
|
(100)
|
|
Adjusted operating profit
|
-
|
(364)
|
(100)
|
|
Timing
|
-
|
479
|
(100)
|
|
Underlying operating profit
|
-
|
115
|
(100)
|
|
|
|
|
|
|
Underlying net revenue
|
-
|
291
|
(100)
|
|
Controllable costs
|
-
|
(159)
|
(100)
|
|
Post-retirement benefits
|
-
|
(10)
|
(100)
|
|
Other operating costs
|
-
|
(7)
|
(100)
|
|
Underlying operating profit
|
-
|
115
|
(100)
|
|
Timing
|
-
|
(479)
|
(100)
|
|
Adjusted operating profit
|
-
|
(364)
|
(100)
|
UK Electricity System Operator was purchased by the UK Government
on 1 October 2024 and had been classified as 'held for sale' since
October 2023. Based on the scale and pass-through nature of the
UK Electricity System Operator, it was not considered to be a
separate major line of business and hence, did not meet the
definition of a discontinued operation under IFRS 5.
UK Electricity System Operator had a statutory operating loss of
£213 million in 2024/25 as a result of adverse
timing (net of provisions for regulatory liabilities recognised
under IFRS). In 2023/24 a £498 million
exceptional provision was made for the return of the
estimated remaining balance of over-collected revenues at the
expected date of disposal (at that time, expected to be June 2024).
This provision was partially reversed in 2024/25 generating an
exceptional credit of £151 million. Under IFRS
a regulatory liability is not usually recognised on balance
sheet for the return of such over-recoveries, however due to the
intended disposal of this business during 2024/25, a liability was
recognised given these amounts were expected to be settled through
the planned sale process as opposed to reduced future revenues. The
remaining £347 million exceptional provision at the disposal
date was reflected in the reported gain on disposal of this
business.
During 2024/25, UK Electricity System Operator had a timing
under-recovery of £479 million arising from the return of
prior period over-recovered balances. The over-recovery was the
result of higher revenues collected through the BSUoS fixed price
charges compared with total system balancing costs incurred.
At the disposal date, the impact of the residual net
over-recovered position was assessed when calculating the overall
net disposal proceeds.
UK Electricity System Operator underlying operating profit in
2024/25 was £115 million. No depreciation and amortisation was
charged while the business was classified as 'held
for sale'.
|
New England
|
|
|
|
|
|
(£ million)
|
2026
|
2025
|
2025 at constant currency
|
% change at actual currency
|
|
Revenue
|
4,174
|
4,306
|
4,293
|
(3)
|
|
Operating costs
|
(3,227)
|
(3,298)
|
(3,343)
|
(2)
|
|
Statutory operating profit
|
947
|
1,008
|
950
|
(6)
|
|
Exceptional items
|
-
|
3
|
3
|
(100)
|
|
Remeasurements
|
13
|
(29)
|
(28)
|
n/m
|
|
Adjusted operating profit
|
960
|
982
|
925
|
(2)
|
|
Timing
|
(94)
|
(61)
|
(57)
|
n/m
|
|
Major storm costs
|
-
|
3
|
3
|
(100)
|
|
Underlying operating profit
|
866
|
924
|
871
|
(6)
|
|
|
|
|
|
|
|
Underlying net revenue
|
2,629
|
2,587
|
2,439
|
2
|
|
Regulated controllable costs
|
(668)
|
(706)
|
(665)
|
(5)
|
|
Post-retirement benefits
|
(9)
|
(21)
|
(20)
|
(57)
|
|
Bad debt expense
|
(84)
|
(62)
|
(59)
|
35
|
|
Other operating costs
|
(509)
|
(405)
|
(382)
|
26
|
|
Depreciation and amortisation
|
(493)
|
(469)
|
(442)
|
5
|
|
Underlying operating profit
|
866
|
924
|
871
|
(6)
|
|
Timing
|
94
|
61
|
57
|
n/m
|
|
Major storm costs
|
-
|
(3)
|
(3)
|
(100)
|
|
Adjusted operating profit
|
960
|
982
|
925
|
(2)
|
New England's statutory operating profit was £61 million lower
(or £3 million lower on a constant currency basis). This
included commodity derivative remeasurement losses of £13
million (£42 million adverse year on year), partially
offset by £33 million favourable year-on-year timing
movements. Timing over-recoveries of £94 million in
2025/26 are mainly due to the recognition of a receivable for FERC
RoE refunds in Mass Electric from New England Transmission Owners
(which will be returned to customers in future periods).
In 2024/25, timing was over-recovered by £61 million
mainly due to phasing of energy efficiency programme spend and
commodity costs. In 2024/25, there were £3 million
of exceptional items related to £7 million of
charges for our major transformation progress and a £4 million
gain related to environmental provision
movements.
New England's underlying operating profit decreased by £58
million (6%) or £5 million (1%) on a constant currency basis.
Underlying net revenue was £42 million higher (£190
million higher at constant currency) driven by updated rates,
higher revenues from capital trackers and storm recoveries, partly
offset by the adverse impact of the FERC order. New England
controllable costs were lower by £38 million
(£3 million higher at constant currency) as a result of
additional workload and inflation, which were offset by efficiency
savings. Bad debt expense increased by £22 million
(£25 million at constant currency) as a result of
higher accounts receivables and higher reserve rates. Depreciation
and amortisation increased by £24 million (£51 million at
constant currency) as a result of higher investment. Other
costs (on an underlying basis) were £101 million higher
(£124 million higher at constant currency) due to
higher investment-related expenses and higher property taxes,
both driven by the growth in asset base along with higher
funded programme costs.
|
New York
|
|
|
|
|
|
(£ million)
|
2026
|
2025
|
2025 at constant currency
|
% change at actual currency
|
|
Revenue
|
7,618
|
6,689
|
6,307
|
14
|
|
Operating costs
|
(6,434)
|
(5,420)
|
(5,111)
|
19
|
|
Statutory operating profit
|
1,184
|
1,269
|
1,196
|
(7)
|
|
Exceptional items
|
-
|
(133)
|
(125)
|
(100)
|
|
Remeasurements
|
(12)
|
(113)
|
(106)
|
n/m
|
|
Adjusted operating profit
|
1,172
|
1,023
|
965
|
15
|
|
Timing
|
537
|
343
|
323
|
n/m
|
|
Major storm costs
|
-
|
84
|
79
|
(100)
|
|
Underlying operating profit
|
1,709
|
1,450
|
1,367
|
18
|
|
|
|
|
|
|
|
Underlying net revenue
|
5,042
|
4,545
|
4,285
|
11
|
|
Regulated controllable costs
|
(1,032)
|
(1,049)
|
(989)
|
(2)
|
|
Post-retirement benefits
|
(19)
|
(33)
|
(31)
|
(42)
|
|
Bad debt expense
|
(156)
|
(141)
|
(133)
|
11
|
|
Other operating costs
|
(1,357)
|
(1,141)
|
(1,076)
|
19
|
|
Depreciation and amortisation
|
(769)
|
(731)
|
(689)
|
5
|
|
Underlying operating profit
|
1,709
|
1,450
|
1,367
|
18
|
|
Timing
|
(537)
|
(343)
|
(323)
|
n/m
|
|
Major storm costs
|
-
|
(84)
|
(79)
|
(100)
|
|
Adjusted operating profit
|
1,172
|
1,023
|
965
|
15
|
New York statutory operating profit was lower by £85 million
(or £12 million lower at constant currency).
In the prior year New York incurred
£133 million of net exceptional credits
(a £142 million credit on environmental provision
movements, partly offset by a £9 million charge on our major
transformation programme). Timing under-recoveries in 2025/26 were
£537 million (principally related to revenue decoupling in
KEDNY/KEDLI and the impact of levelisation of new rate increases in
NIMO, along with lower auction sale prices on transmission
wheeling). In 2024/25, timing under-recoveries were
£343 million (driven by transmission wheeling and
commodity under-recoveries due to colder weather
and KEDNY/KEDLI rate levelisation under-recoveries). This
resulted in a £194 million
adverse year-on-year timing swing (£214 million
adverse at constant currency).
New York underlying operating profit increased by £259 million
(18%), or £342 million (25% at constant currency). This was
driven by higher net underlying revenues which increased by
£497 million (11%), or £757 million at constant
currency) principally driven by updated rates including higher
storm cost allowances and the recovery of previously unremunerated
costs (e.g. environmental and property taxes). Regulated
controllable costs were £17 million lower (£43
million higher at constant currency) year on year, primarily
as a result of increased workload (gas safety and reliability
initiatives, CLCPA and increased IT spend on new digital
platforms) plus the impact of inflation, partly offset by
efficiency savings. Bad debt expense increased by
£15 million (£23 million at constant currency)
driven by increased customer billings. Depreciation and
amortisation increased due to the growth in assets. Other costs (on
an underlying basis) increased due to higher storm costs (partly
offset by increased storm cost allowances in revenues), higher
property taxes, inflation related environmental costs and
investment-related costs.
|
National Grid Ventures
|
|
|
|
|
|
(£ million)
|
2026
|
2025
|
2025 at constant currency
|
% change at actual currency
|
|
Revenue
|
1,098
|
1,397
|
1,362
|
(21)
|
|
Operating costs
|
(383)
|
(1,392)
|
(1,336)
|
(72)
|
|
Statutory operating profit
|
715
|
5
|
26
|
n/m
|
|
Exceptional items
|
(403)
|
375
|
356
|
n/m
|
|
Remeasurements
|
15
|
-
|
-
|
n/m
|
|
Underlying/adjusted operating profit
|
327
|
380
|
380
|
(14)
|
|
|
|
|
|
|
|
Statutory post-tax share of JVs and associates
|
76
|
73
|
71
|
4
|
|
Remeasurements
|
-
|
2
|
2
|
(100)
|
|
Adjusted post-tax share of JVs and associates
|
76
|
75
|
73
|
1
|
|
|
|
|
|
|
|
Analysed by business:
|
|
|
|
|
|
Interconnectors1
|
227
|
233
|
233
|
(3)
|
|
Grain LNG
|
115
|
150
|
150
|
(23)
|
|
US Ventures
|
(15)
|
(3)
|
(3)
|
n/m
|
|
Underlying/adjusted operating profit
|
327
|
380
|
380
|
(14)
|
|
|
|
|
|
|
|
Interconnectors2
|
70
|
49
|
49
|
43
|
|
NG Renewables
|
-
|
17
|
15
|
(100)
|
|
Other
|
4
|
9
|
9
|
(56)
|
|
Adjusted post-tax share of JVs and associates
|
74
|
75
|
73
|
(1)
|
|
Total NGV contribution (underlying/adjusted)
|
401
|
455
|
453
|
(12)
|
|
|
|
|
|
|
|
Interconnectors
|
7
|
74
|
74
|
(91)
|
|
NG Renewables
|
-
|
174
|
163
|
(100)
|
|
Grain LNG
|
-
|
47
|
47
|
(100)
|
|
NG Generation
|
48
|
36
|
33
|
33
|
|
Other
|
54
|
47
|
45
|
15
|
|
Capital investment
|
109
|
378
|
362
|
(71)
|
1.
Includes
interconnector business development costs and other UK
activities.
2.
Includes
BritNed and Nemo joint ventures.
National Grid Ventures' statutory operating profit improved by
£710 million, principally as a result of
a £489 million exceptional gain on sale on the
disposal of Grain LNG in November 2025, partly offset
by a £96 million exceptional loss on disposal
of National Grid Renewables sold in May 2025 (mainly driven by
the recycling of cumulative exchange rate adjustments since 2019/20
when this business was originally acquired). This compared
with exceptional charges in 2024/25 of £303 million
(impairment of our Community Offshore Wind investment), along
with £57 million of transaction and separation costs
for the planned disposal of National Grid Renewables.
Commodity remeasurements were gains of £12 million in
2025/26 compared with losses of £15 million in 2024/25. Our
underlying and adjusted results exclude the impact of these
exceptional items and remeasurements.
National Grid Ventures' underlying operating profit was £53
million lower than 2024/25. On 29 May 2025 the sale of National
Grid Renewables was completed, and on 28 November 2025 the
sale of Grain LNG was completed. The sale of Grain LNG in 2025/26
reduced underlying operating profit by £35 million year on
year. In the UK, interconnector profits decreased versus the prior
year primarily as a result of lower interconnector revenues as
market spreads remained low. In the US, profit was lower, due to a
£24 million Revolution Wind gain on sale recognised
in 2024/25, partly offset by lower development
expenditure.
|
Other
|
|
|
|
|
|
(£ million)
|
2026
|
2025
|
2025 at constant currency
|
% change at actual currency
|
|
Revenue
|
97
|
122
|
118
|
(20)
|
|
Operating costs
|
(239)
|
(132)
|
(128)
|
81
|
|
Statutory operating loss
|
(142)
|
(10)
|
(10)
|
n/m
|
|
Exceptional items
|
-
|
133
|
133
|
n/m
|
|
Underlying/adjusted operating loss
|
(142)
|
(143)
|
(143)
|
(1)
|
|
|
|
|
|
|
|
Analysed by business:
|
|
|
|
|
|
Property
|
46
|
54
|
54
|
(15)
|
|
NG Partners
|
11
|
(82)
|
(81)
|
(113)
|
|
Corporate and other activities
|
(199)
|
(115)
|
(116)
|
73
|
|
Adjusted operating loss
|
(142)
|
(143)
|
(143)
|
(1)
|
Other activities incurred a statutory operating loss of £142
million (2025: £10 million loss, which included
a £187 million exceptional gain on disposal of UK
Electricity System Operator, £46 million of exceptional
charges related to our major transformation programme and £8
million of exceptional transaction and separation costs incurred by
our corporate function related to the planned disposal of our Grain
LNG business). Following a review of strategic priorities in
2025/26, the major transformation programme launched in 2024 has
been reshaped and the associated programme costs in the current
year no longer meet the quantitative threshold to be treated as
exceptional.
Other activities' underlying operating loss was £142 million
(including corporate costs) in 2025/26 compared with
£143 million loss in 2024/25. This improvement was driven
by favourable year on year fair value movements in our NG
Partners investment portfolio and higher insurance captive profits,
mostly offset by increases in central costs to help
deliver our overall group efficiency programme and other corporate
centre cost increases along with lower UK property sales in
2025/26 compared with the prior year.
Summary income statement
|
|
Statutory results - continuing
|
|
Underlying results
|
||||
|
(£ million)
|
2026
|
2025
|
change %
|
|
2026
|
2025
|
change %
|
|
Total operating profit
|
5,431
|
4,934
|
10
|
|
5,680
|
5,357
|
6
|
|
Net finance costs
|
(1,325)
|
(1,357)
|
2
|
|
(1,271)
|
(1,361)
|
7
|
|
Share of post-tax results of joint ventures and
associates
|
76
|
73
|
4
|
|
76
|
75
|
1
|
|
Profit before tax
|
4,182
|
3,650
|
15
|
|
4,485
|
4,071
|
10
|
|
Tax
|
(939)
|
(821)
|
(14)
|
|
(624)
|
(616)
|
(1)
|
|
Profit after tax
|
3,243
|
2,829
|
15
|
|
3,861
|
3,455
|
12
|
|
Non-controlling interest
|
(2)
|
(3)
|
33
|
|
(2)
|
(3)
|
33
|
|
Earnings
|
3,241
|
2,826
|
15
|
|
3,859
|
3,452
|
12
|
|
EPS (pence)
|
65.5
|
60.0
|
9
|
|
78.0
|
73.3
|
6
|
Net finance costs
Statutory net finance costs of £1,325 million were down from
£1,357 million in 2024/25 and included derivative
remeasurement net losses of £54 million (2025:
£4 million net gains). Underlying net finance costs of
£1,271 million for 2025/26 were £90
million or 7% lower (£37 million or 3% lower at constant
currency) than 2024/25. Net debt related finance costs were
£89 million higher (£146 million higher at constant
currency), driven by higher levels of average net debt (to fund our
capex programme) and slightly higher interest rates, partly offset
by gains on favourable debt buy-backs. The effective interest rate
for continuing operations of 4.3% is 20bps higher than the prior
year rate. Other interest was favourable year on year
reflecting £122 million higher capitalised interest,
principally attributable to the step up in ASTI investment in
UK Electricity Transmission, along with favourable pension and OPEB
interest income, lower discount unwind on provisions and
higher other interest income.
Joint ventures and associates
The Group's share of net profits from joint ventures and associates
on a statutory basis increased to £76 million
(2025: £73 million). Due to the sale of our Emerald joint
venture on 29 May 2025, there are no derivative remeasurements
in the current year (2025: £2 million of losses). On an
adjusted basis, the share of net profits from joint ventures
and associates increased by £1 million compared with
2024/25, mostly reflecting higher BritNed revenues driven by
higher auction prices, offset by a shorter ownership period
of our Emerald joint venture, which was sold as part of the
National Grid Renewables disposal.
Tax
The statutory tax charge for continuing operations was £939
million (2025: £821 million) including the impact of tax on
exceptional items and remeasurements of £16 million credit
(2025: £40 million credit). The adjusted tax charge for
continuing operations was £955 million (2025: £861
million), resulting in an adjusted effective tax rate for
continuing operations (excluding profits from joint ventures and
associates) of 25.3% (2025: 25.3%).
The underlying tax charge for the year (a non-GAAP measure)
was £624 million (2025: £616 million).
The underlying effective tax rate (excluding joint ventures
and associates) of 14.2% was 120bps lower than last year
(2025: 15.4%). This is mainly due to profit mix within the Group
being more weighted towards NGET and higher levels of capital
investment in NGED leading to a lower underlying tax charge. Our
definition of underlying tax excludes deferred tax for NGET and
NGED (as these entities do not receive a regulatory revenue
allowance for tax that has not yet been paid i.e. current tax is
effectively a pass-through from a regulatory
perspective).
Cash flow, net debt and funding
Net debt is the aggregate of cash and cash equivalents, borrowings,
current financial and other investments and derivatives (excluding
commodity contract derivatives) as disclosed in note 11 to the
financial statements. 'Adjusted net debt' used for the RCF/adjusted
net debt calculation is principally adjusted for pension deficits
and hybrid debt instruments. For a full reconciliation see
page 69. The following table summarises the Group's
cash flow for the year, reconciling this to the change
in net debt.
|
Summary cash flow statement
|
|||
|
(£ million)
|
2026
|
2025
|
change %
|
|
Cash generated from continuing operations
|
7,861
|
6,991
|
12
|
|
Purchase of intangibles, PP&E, investments in JVs and
acquisition of financial investments (net of
disposals)
|
(10,601)
|
(9,713)
|
(9)
|
|
Dividends from JVs and associates
|
105
|
126
|
(17)
|
|
Business net cash outflow from continuing operations
|
(2,635)
|
(2,596)
|
(2)
|
|
Net interest paid
|
(1,701)
|
(1,588)
|
(7)
|
|
Net tax paid
|
(32)
|
(183)
|
83
|
|
Cash dividends paid
|
(1,623)
|
(1,529)
|
(6)
|
|
Other cash movements
|
39
|
11
|
255
|
|
Net cash outflow (continuing)
|
(5,952)
|
(5,885)
|
(1)
|
|
Disposals of subsidiaries and associates1
|
2,809
|
1,263
|
122
|
|
Discontinued operations
|
-
|
22
|
(100)
|
|
Rights Issue (net of costs)
|
-
|
6,839
|
(100)
|
|
Other, including net financing raised/(repaid) in year
|
2,195
|
(1,474)
|
n/m
|
|
(Decrease)/increase in cash
and cash equivalents
|
(948)
|
765
|
n/m
|
|
|
|
|
|
|
Reconciliation to movement in net debt
|
|
|
|
|
(Decrease)/increase in cash
and cash equivalents
|
(948)
|
765
|
n/m
|
|
Less: other net cash flows from investing and financing
transactions
|
(2,195)
|
1,474
|
n/m
|
|
Net debt reclassified to held for sale
|
-
|
(55)
|
100
|
|
Impact of foreign exchange movements on opening net
debt
|
624
|
528
|
18
|
|
Other non-cash movements
|
(270)
|
(476)
|
43
|
|
(Increase)/decrease in net debt
|
(2,789)
|
2,236
|
n/m
|
|
Net debt at start of year
|
(41,371)
|
(43,607)
|
5
|
|
Net debt at end of year
|
(44,160)
|
(41,371)
|
(7)
|
1.
Cash
proceeds of £1,499 million for Grain LNG (less £163
million balance of cash and cash equivalents disposed) and
£1,531 million for National Grid Renewables (less £58
million balance of cash and cash equivalents disposed) (2025: cash
proceeds of £628 million for ESO (less £51 million
balance of cash and cash equivalents disposed) and £686
million for the disposal of 20% retained interest in National Gas
Transmission.
Cash flow generated from continuing operations was £7.9
billion, £0.9 billion higher than last year, mainly due
to higher net revenues (i.e. after deducting pass-through costs)
increasing operating profit and favourable working capital
inflows. Cash expended on investment activities increased as a
result of continued growth in our regulated businesses including a
significant step-up of cash capital investment in UK Electricity
Transmission which was £1.1 billion higher than the prior
year, along with higher investment in New York, New England
and UK Electricity Distribution. This includes ongoing cash
investment in Grain LNG and National Grid Renewables, subsequent to
these businesses being reclassified as held for sale.
Net interest paid increased mainly as a result of lower interest
income following Rights Issue proceeds being utilised to fund the
capital investment programme across the Group, along with the
impact of the timing of cash interest payments (accrued interest
movements), partly offset by a higher average level of net debt.
The Group made net tax payments of £32 million (2025:
£183 million) during 2025/26. This decrease mainly
related to lower cash tax payable in our US business as a
result of offsetting losses and lower cash tax payable in
the UK as a result of our expanding capital
programme.
The higher cash dividend reflected a lower weighted average scrip
uptake of 28% in the current year (2025: 31%) along with the annual
inflationary increase and a higher share count.
In 2025/26, we completed the sale of our National Grid Renewables
business for net cash proceeds of £1,473 million and also
sold our UK Grain LNG business for net cash proceeds of £1,336
million. These net cash proceeds exclude cash balances sold
with these businesses and exclude a provision for estimated post
closing capital expenditure obligations (see note 9). In 2024/25 we
had cash inflows of £628 million from the sale of our UK
Electricity System Operator business to the UK. We also sold our
final 20% interest in National Gas Transmission for proceeds of
£686 million.
The Board has considered the Group's ability to finance normal
operations as well as funding a significant capital programme.
This includes stress testing of the Group's finances under a
'reasonable worst-case' scenario, assessing the timing of the sale
of businesses held for sale and the further levers at the
Board's discretion to ensure our businesses are adequately
financed. As a result, the Board has concluded that the Group will
have adequate resources to do so.
Financial strength
Our overall Group credit rating remains at a strong investment
grade level, BBB+/Baa1 with stable outlook
During the year we raised £4.2 billion of new long-term
senior debt to refinance maturing debt and to fund a
portion of our significant capital programme. In addition, we
signed £2.4 billion of new loan facilities, undrawn as at 31
March 2026, which we expect to draw in the future, including
£1.7 billion across two loan facilities that are guaranteed by
European Export Credit Agencies and which are aligned with our
Green Financing Framework. Finally, on 13 April 2026, National Grid
North America Inc. signed a new £0.7 billion equivalent
term loan.
As at 13 May 2026, we have £8.0 billion of undrawn committed
facilities available for general corporate purposes, all of which
have expiry dates no earlier than May 2027. National Grid's
balance sheet remains robust, with strong overall investment
grade ratings from Moody's, Standard & Poor's
(S&P) and Fitch.
Regulatory gearing was maintained at 61% as at 31 March 2026 (2025:
61%). Regulatory gearing is a non-GAAP measure and is
calculated as net debt as a proportion of total regulatory asset
value and other business invested capital. Beneficial inflows from
the proceeds for the sales of businesses (National Grid Renewables
and Grain LNG) were offset by financing outflows for net interest
and dividend payments. Taking into account the benefit of our
hybrid debt, adjusted gearing as at 31 March 2026 was 61%
(2025: 60%).
Retained cash flow as a proportion of adjusted net debt was 9.3%.
We remain committed to maintaining the current strong overall
investment grade credit rating for the Group. National Grid
currently has strong investment grade credit ratings across almost
all of its major operating companies, as well as senior unsecured
debt ratings at the holding company, National Grid plc, at
Baa2/BBB/BBB from Moody's, S&P and Fitch respectively. We
consider these ratings critical to optimising our cost of capital
and deliver appropriate access to capital markets. We expect to
maintain credit metrics above our thresholds for our current group
credit ratings through to at least the end of the RIIO-T3
price control period, with thresholds of 10% for S&P's and
Moody's FFO/adjusted net debt, and 7% for Moody's RCF/adjusted
net debt.
Dividend increase of 3.8% recommended for 2025/26
The Board has recommended a final dividend of 32.14p
per ordinary share ($2.1738 per American Depository Share),
which will be paid on 23 July 2026 to shareholders on the register
of members as at 29 May 2026. If approved, this will bring the
full-year dividend to 48.49p per ordinary share, representing an
increase of 3.8% to the dividend per share for 2024/25. This is in
line with the increase in average UK CPIH inflation for the
year ended 31 March 2026 as set out in our dividend
policy.
The Board aims to grow annual dividend per share (DPS) in line
with UK CPIH, thus maintaining the DPS in real terms. The
Board will review this policy regularly, taking into account
a range of factors including expected business performance and
regulatory developments.
At 31 March 2026, National Grid plc had £17.0 billion of
distributable reserves, which is sufficient to cover more than five
years of forecast Group dividends. If approved, the final
dividend will absorb approximately £1,598 million of
shareholders' funds. The 2025/26 full dividend is covered
approximately 1.6x by underlying earnings.
The Directors consider the Group's capital structure at least twice
a year when proposing an interim and final dividend and aim to
maintain distributable reserves that provide adequate cover for
dividend payments.
A scrip dividend alternative will again be offered in respect of
the 2025/26 final dividend.
Capital investment and asset 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.
Strong organic growth driven by critical investment
In 2025/26, we achieved asset growth of 10.9% driven by our capital
investment programme alongside RAV indexation. This investment
continued our focus on building and maintaining world-class
networks that are safe, reliable, resilient and ready for the
future. It is specifically focused on our regulated
businesses, with the objective of upgrading and modernising ageing
infrastructure, in both the UK and US, to meet the changing needs
of customers and to drive the decarbonisation of energy
supply.
In 2026/27, we expect Group capital investment to be around
£13 billion.
We are confident that this high-quality growth will continue to
generate attractive returns for shareholders and add to our
long-term investment proposition of sustainable asset and income
growth.
£11.6 billion of capital investment in 2025/26, 18% higher at
actual exchanges rates (21% higher at
constant currency)
We continued to make significant investments in critical energy
infrastructure during 2025/26. Total capital investment for
continuing operations across the Group was £11,576 million, an
increase of £1,729 million, 18% compared to the
prior year.
|
Capital investment
|
|
|
|
|
|
|
|
|
|
Year ended 31 March (£ million)
|
|
At actual exchange rates
|
|
At constant currency
|
||||
|
|
2026
|
2025
|
% change
|
|
2026
|
2025
|
% change
|
|
|
UK Electricity Transmission
|
|
4,372
|
2,999
|
46%
|
|
4,372
|
2,999
|
46%
|
|
UK Electricity Distribution
|
|
1,617
|
1,426
|
13%
|
|
1,617
|
1,426
|
13%
|
|
New England
|
|
2,043
|
1,751
|
17%
|
|
2,043
|
1,650
|
24%
|
|
New York
|
|
3,428
|
3,289
|
4%
|
|
3,428
|
3,101
|
11%
|
|
National Grid Ventures
|
|
109
|
378
|
(71%)
|
|
109
|
362
|
(70%)
|
|
Other
|
|
7
|
4
|
75%
|
|
7
|
4
|
75%
|
|
Total capital investment
|
|
11,576
|
9,847
|
18%
|
|
11,576
|
9,542
|
21%
|
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.
UK Electricity Transmission investment was £1,373 million
higher than 2024/25 with this 46% increase primarily driven by
expenditure on strategic investment (both Wave 1 and Wave 2
projects) including offshore spend on EGL4 and Sea Link capacity
reserve advance payments, and increased onshore spend including
North London Reinforcement, Yorkshire Green, Tilbury-Grain and
Norwich-Tilbury along with other smaller projects.
In addition, investment was higher from progress on projects
such as Uxbridge Moor, Wallend and Margam and also increased for IT
and cyber including a new state-of-the-art control room and
Supervisory Control and Data Acquisition (SCADA) system.
Capitalised interest and interest on prepayments of
£229 million was £86 million higher than
the prior year due to higher levels of assets
under construction.
UK Electricity Distribution increased by £191 million
primarily due to increased asset replacement
and refurbishment, higher reinforcement works (in line with
the scale up under RIIO-ED2), along with higher non-load capex
driven by higher volumes across overhead lines and diversions and
increased investment in IT and telecoms.
In New England capital investment increased by £292 million
(up £393 million at constant currency) compared with the prior
year. This was driven by spend on electric distribution including
increases in asset condition and system capacity, as well
as grid modernisation through Advanced Metering Infrastructure and
Fault Location Isolation and Service Restoration (FLISR), higher
electric transmission investment primarily from asset condition and
system capacity work, along with an increase in IT investment.
Investment in gas distribution remained relatively stable, with
lower Gas System Enhancement Plan activity being partly offset
by increased enhanced safety regulation compliance
investment.
Capital investment in New York was £139 million higher
(up £327 million at constant currency) compared with the prior
year. The principal driver of this was higher electric investment,
driven by system reinforcement and increasing capacity to fulfil
clean energy investment commitments (Upstate Upgrade and Climate
Leadership and Community Protection Act programmes) but also
higher from an increase in the level of IT system
development. Investment in our gas networks was lower than in the
prior year, with reduced investment on our mains replacement
programme, partly offset by higher spend on city state construction
and other mandated programme spend.
Capital investment in National Grid Ventures was £269 million
lower (£253 million lower at constant currency) with
£210 million of this decrease attributable to the disposals of
NG Renewables and Grain LNG, and £53 million
reflects the completion of construction of Viking Link
interconnector during 2024/25.
Achieved asset growth of 10.9% and regulated asset growth of
11.7%
During 2025/26, UK RAV increased by 12.8% (2025: 9.8%) including
the impact of CPIH inflation on RAV indexation, partly offset by
RAV depreciation. The US rate base grew strongly by 10.3% during
the year (2025: 11.5%). This resulted in an overall
'regulated asset growth' (i.e. UK RAV and US rate base) of 11.7%
(2025: 10.5%). Asset growth in NGV and Other was 4.3% primarily as
a result of investment in IT systems in our US Servco, which will
be used to support our US operating companies.
For 2025/26, asset growth was 10.9% and regulated asset growth was
11.7%, which excludes the impact of the reduction in assets
from the sales of NG Renewables and Grain LNG during the year
(2024/25: excluding the reduction in RAV as a result of the sale of
the UK Electricity System Operator business, based on an estimated
RAV value at the date of disposal).
For detailed calculations of asset growth and regulated asset
growth see page 79.
|
Assets
|
|
|
Sale of Grain LNG and NG Renewables
|
|
|
|
|
Year ended 31 March (£ million at constant
currency)
|
|
2026
|
2025
|
increase
|
% change
|
|
|
UK RAV
|
|
36,986
|
-
|
32,779
|
4,207
|
12.8%
|
|
US rate base
|
|
29,452
|
-
|
26,694
|
2,758
|
10.3%
|
|
Total RAV and rate base
('regulated asset growth')
|
|
66,438
|
-
|
59,473
|
6,965
|
11.7%
|
|
NGV and Other businesses
|
|
5,545
|
(2,032)
|
7,266
|
311
|
4.3%
|
|
Total assets ('asset growth')
|
|
71,983
|
(2,032)
|
66,739
|
7,276
|
10.9%
|
Provisional 2026/27 financial timetable
|
Date
|
Event
|
|
14 May 2026
|
2025/26 Full Year Results
|
|
28 May 2026
|
Ex-dividend date for 2025/26 final dividend - ordinary
shares
|
|
29 May 2026
|
Ex-dividend date for 2025/26 final dividend - ADRs
|
|
29 May 2026
|
Record date for 2025/26 final dividend
|
|
4 June 2026
|
Scrip reference price announced for 2025/26 final
dividend
|
|
15 June 2026 (5pm EDT)
|
Scrip election date for 2025/26 final dividend - ADRs
|
|
18 June 2026 (5pm BST)
|
Scrip election date for 2025/26 final dividend - ordinary
shares
|
|
14 July 2026
|
2026 Annual General Meeting
|
|
23 July 2026
|
2025/26 final dividend paid to qualifying shareholders
|
|
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
|
American Depositary Receipt (ADR) Deposit Agreement
The Company's Deposit agreement under which the ADRs are issued
allows a fee of up to $0.05 per ADR to be charged for any cash
distribution made to ADR holders, including cash dividends. ADR
holders who receive cash in relation to the 2025/26 final dividend
will be charged a fee of $0.02 per ADR by the Depositary prior to
distribution of the cash dividend.
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 ventures. 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 and the 'Risk factors' on pages 263 to 268
of National Grid's Annual Report and Accounts for the year ended 31
March 2025, as updated by the principal risks and uncertainties
statement on page 44 of the Company's half year results statement
published on 6 November 2025. 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
|
|
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
|
|
ESMP
|
Electric Sector Modernization Plan
|
|
ESO
|
Electricity System Operator
|
|
FERC
|
Federal Energy Regulatory Commission
|
|
FFO
|
Funds from Operations
|
|
FLISR
|
Fault Location Isolation and Service Restoration
|
|
HVDC
|
High Voltage Direct Current
|
|
KEDNY and KEDLI
|
KeySpan Energy Delivery New York (KEDNY) and KeySpan Energy
Delivery Long Island (KEDLI)
|
|
LIPA
|
Long Island Power Authority
|
|
LNG
|
Liquefied Natural Gas
|
|
LTIFR
|
Lost Time Injury Frequency Rate
|
|
MADPU
|
Massachusetts Department of Public Utilities (state energy
regulator)
|
|
MECO
|
Massachusetts Electric Company
|
|
NESE
|
Williams' Northeast Supply Enhancement pipeline
project
|
|
NESO
|
National Energy System Operator
|
|
NGED/UK ED
|
National Grid Electricity Distribution
|
|
NGET/UK ET
|
National Grid Electricity Transmission
|
|
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)
|
|
OpCo
|
Operating Company
|
|
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
|
|
SCADA
|
Supervisory Control and Data Acquisition
|
|
UK CPIH
|
UK Consumer Prices Index including Owner Occupiers' Housing
Costs
|
|
US CPI
|
US Consumer Prices Index
|
Consolidated income statement
for the years ended 31 March
|
2026
|
Notes
|
|
Before
exceptional
items and remeasurements
£m
|
Exceptional
items and remeasurements
(see note 4)
£m
|
Total
£m
|
|
|
|
||||||
|
Continuing operations
|
|
|
|
|
|
|
|
Revenue
|
2(a),3
|
|
17,687
|
-
|
17,687
|
|
|
Impairment losses on financial assets
|
|
|
(243)
|
-
|
(243)
|
|
|
Other operating costs
|
4
|
|
(12,400)
|
(102)
|
(12,502)
|
|
|
Operating profit
|
2(b)
|
|
5,044
|
387
|
5,431
|
|
|
Finance income
|
4,5
|
|
378
|
2
|
380
|
|
|
Finance costs
|
4,5
|
|
(1,649)
|
(56)
|
(1,705)
|
|
|
Share of post-tax results of joint ventures and
associates
|
|
|
76
|
-
|
76
|
|
|
Profit before tax
|
2(b)
|
|
3,849
|
333
|
4,182
|
|
|
Tax
|
4,6
|
|
(955)
|
16
|
(939)
|
|
|
Total profit for the year
|
|
|
2,894
|
349
|
3,243
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
Equity shareholders of the parent
|
|
|
2,892
|
349
|
3,241
|
|
|
Non-controlling interests
|
|
|
2
|
-
|
2
|
|
|
Earnings per share (pence)
|
|
|
|
|
|
|
|
Basic earnings per share - continuing
|
7
|
|
|
|
65.5
|
|
|
Diluted earnings per share - continuing
|
7
|
|
|
|
65.2
|
|
|
2025
|
Notes
|
|
Before
exceptional
items and remeasurements
£m
|
Exceptional
items and remeasurements
(see note 4)
£m
|
Total
£m
|
|
|
|
||||||
|
Continuing operations
|
|
|
|
|
|
|
|
Revenue
|
2(a),3
|
|
18,378
|
-
|
18,378
|
|
|
Impairment losses on financial assets
|
|
|
(200)
|
-
|
(200)
|
|
|
Other operating costs
|
4
|
|
(13,413)
|
169
|
(13,244)
|
|
|
Operating profit
|
2(b)
|
|
4,765
|
169
|
4,934
|
|
|
Finance income
|
4,5
|
|
449
|
1
|
450
|
|
|
Finance costs
|
4,5
|
|
(1,810)
|
3
|
(1,807)
|
|
|
Share of post-tax results of joint ventures and
associates
|
|
|
75
|
(2)
|
73
|
|
|
Profit before tax
|
2(b)
|
|
3,479
|
171
|
3,650
|
|
|
Tax
|
4,6
|
|
(861)
|
40
|
(821)
|
|
|
Profit after tax from continuing operations
|
|
|
2,618
|
211
|
2,829
|
|
|
Profit after tax from discontinued operations
|
9
|
|
4
|
72
|
76
|
|
|
Total profit for the year
|
|
|
2,622
|
283
|
2,905
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
Equity shareholders of the parent
|
|
|
2,619
|
283
|
2,902
|
|
|
Non-controlling interests
|
|
|
3
|
-
|
3
|
|
|
Earnings per share (pence)
|
|
|
|
|
|
|
|
Basic earnings per share (continuing)
|
7
|
|
|
|
60.0
|
|
|
Diluted earnings per share (continuing)
|
7
|
|
|
|
59.8
|
|
|
Basic earnings per share (continuing and discontinued)
|
7
|
|
|
|
61.6
|
|
|
Diluted earnings per share (continuing and
discontinued)
|
7
|
|
|
|
61.4
|
|
Consolidated statement of comprehensive income
for the years ended 31 March
|
|
|
|
|
2026
|
2025
|
|
|
|
Notes
|
|
£m
|
£m
|
|
Profit after tax from continuing operations
|
|
|
3,243
|
2,829
|
|
|
Profit after tax from discontinued operations
|
|
|
-
|
76
|
|
|
Other comprehensive income from continuing operations
|
|
|
|
|
|
|
Items from continuing operations that will never be reclassified to
profit or loss:
|
|
|
|
|
|
|
Remeasurement
gains/(losses) on pension assets and post-retirement benefit
obligations
|
|
|
132
|
(106)
|
|
|
Net
gains/(losses) in respect of cash flow hedging of capital
expenditure
|
|
|
22
|
(16)
|
|
|
Tax
on items that will never be reclassified to profit or
loss
|
|
|
(44)
|
27
|
|
|
Total items from continuing operations that will never be
reclassified to profit or loss
|
|
|
110
|
(95)
|
|
|
Items from continuing operations that may be reclassified
subsequently to profit or loss:
|
|
|
|
|
|
|
Retranslation
of net assets offset by net investment hedge
|
|
|
(348)
|
(352)
|
|
|
Exchange
differences reclassified to the consolidated income statement on
disposal
|
|
|
76
|
-
|
|
|
Net
(losses)/gains in respect of cash flow hedges
|
|
|
(120)
|
218
|
|
|
Net
gains/(losses) in respect of cost of hedging
|
|
|
36
|
(52)
|
|
|
Net
gains on investment in debt instruments measured at fair value
through other comprehensive income
|
|
|
8
|
1
|
|
|
Tax
on items that may be reclassified subsequently to profit or
loss
|
6
|
|
21
|
(40)
|
|
|
Total items from continuing operations that may be reclassified
subsequently to profit or loss
|
|
|
(327)
|
(225)
|
|
|
Other comprehensive loss
|
|
|
(217)
|
(320)
|
|
|
Other comprehensive (loss)/income for the year from discontinued
operations, net of tax
|
9
|
|
-
|
(10)
|
|
|
Other comprehensive loss
|
|
|
(217)
|
(330)
|
|
|
Total comprehensive income for the year from continuing
operations
|
|
|
3,026
|
2,509
|
|
|
Total comprehensive income for the year from discontinued
operations
|
9
|
|
-
|
66
|
|
|
Total comprehensive income for the year
|
|
|
3,026
|
2,575
|
|
|
Attributable to:
|
|
|
|
|
|
|
Equity shareholders of the parent
|
|
|
|
|
|
|
From
continuing operations
|
|
|
3,022
|
2,508
|
|
|
From
discontinued operations
|
|
|
-
|
66
|
|
|
|
|
|
3,022
|
2,574
|
|
|
Non-controlling interests
|
|
|
|
|
|
|
From continuing operations
|
|
|
4
|
1
|
|
Consolidated statement of changes in equity
for the years ended 31 March
|
|
Share
capital
£m
|
Share
premium account
£m
|
Retained
earnings
£m
|
Other equity reserves £m
|
|
Total
share-holders'
equity
£m
|
Non-
controlling interests
£m
|
|
Total
equity
£m
|
|
At 1 April 2024
|
493
|
1,298
|
32,066
|
(3,990)
|
|
29,867
|
25
|
|
29,892
|
|
Profit for the year
|
-
|
-
|
2,902
|
-
|
|
2,902
|
3
|
|
2,905
|
|
Other comprehensive loss for the year
|
-
|
-
|
(80)
|
(248)
|
|
(328)
|
(2)
|
|
(330)
|
|
Total comprehensive income/(loss) for the year
|
-
|
-
|
2,822
|
(248)
|
|
2,574
|
1
|
|
2,575
|
|
Rights Issue
|
135
|
-
|
-
|
6,704
|
|
6,839
|
-
|
|
6,839
|
|
Transfer between reserves
|
-
|
-
|
6,704
|
(6,704)
|
|
-
|
-
|
|
-
|
|
Equity dividends
|
-
|
-
|
(1,529)
|
-
|
|
(1,529)
|
-
|
|
(1,529)
|
|
Scrip dividend-related share issue1
|
10
|
(10)
|
-
|
-
|
|
-
|
-
|
|
-
|
|
Issue of treasury shares
|
-
|
-
|
18
|
-
|
|
18
|
-
|
|
18
|
|
Transactions in own shares
|
-
|
4
|
(11)
|
-
|
|
(7)
|
-
|
|
(7)
|
|
Other movements in non-controlling interests
|
-
|
-
|
-
|
-
|
|
-
|
(3)
|
|
(3)
|
|
Share-based payments
|
-
|
-
|
37
|
-
|
|
37
|
-
|
|
37
|
|
Tax on share-based payments
|
-
|
-
|
(1)
|
-
|
|
(1)
|
-
|
|
(1)
|
|
Cash flow hedges transferred to the statement
of financial position, net of tax
|
-
|
-
|
-
|
5
|
|
5
|
-
|
|
5
|
|
1 April 2025
|
638
|
1,292
|
40,106
|
(4,233)
|
|
37,803
|
23
|
|
37,826
|
|
Profit for the year
|
-
|
-
|
3,241
|
-
|
|
3,241
|
2
|
|
3,243
|
|
Other comprehensive income/(loss) for the year
|
-
|
-
|
93
|
(312)
|
|
(219)
|
2
|
|
(217)
|
|
Total comprehensive income/(loss) for the year
|
-
|
-
|
3,334
|
(312)
|
|
3,022
|
4
|
|
3,026
|
|
Equity dividends
|
-
|
-
|
(1,623)
|
-
|
|
(1,623)
|
-
|
|
(1,623)
|
|
Scrip dividend-related share issue1
|
9
|
(9)
|
-
|
-
|
|
-
|
-
|
|
-
|
|
Issue of treasury shares
|
-
|
-
|
40
|
-
|
|
40
|
-
|
|
40
|
|
Transactions in own shares
|
-
|
2
|
(3)
|
-
|
|
(1)
|
-
|
|
(1)
|
|
Other movements in non-controlling interests
|
-
|
-
|
-
|
-
|
|
-
|
4
|
|
4
|
|
Share-based payments
|
-
|
-
|
45
|
-
|
|
45
|
-
|
|
45
|
|
Tax on share-based payments
|
-
|
-
|
10
|
-
|
|
10
|
-
|
|
10
|
|
Cash flow hedges transferred to the statement
of financial position, net of tax
|
-
|
-
|
-
|
3
|
|
3
|
-
|
|
3
|
|
At 31 March 2026
|
647
|
1,285
|
41,909
|
(4,542)
|
|
39,299
|
31
|
|
39,330
|
1.
Included
within the share premium account are costs associated with scrip
dividends.
Consolidated statement of financial position
as at 31 March
|
|
|
|
2026
|
2025
|
|
|
Notes
|
|
£m
|
£m
|
|
Non-current assets
|
|
|
|
|
|
Goodwill
|
|
|
9,417
|
9,532
|
|
Other intangible assets
|
|
|
3,879
|
3,564
|
|
Property, plant and equipment
|
|
|
81,520
|
74,091
|
|
Other non-current assets
|
|
|
1,384
|
959
|
|
Pensions and other post-retirement benefit assets
|
10
|
|
2,507
|
2,489
|
|
Financial and other investments
|
|
|
842
|
798
|
|
Investments in joint ventures and associates
|
|
|
624
|
608
|
|
Derivative financial assets
|
|
|
623
|
369
|
|
Total non-current assets
|
|
|
100,796
|
92,410
|
|
Current assets
|
|
|
|
|
|
Inventories
|
|
|
559
|
557
|
|
Trade and other receivables
|
|
|
3,867
|
4,092
|
|
Current tax assets
|
|
|
16
|
11
|
|
Financial and other investments
|
|
|
2,453
|
5,753
|
|
Derivative financial assets
|
|
|
215
|
113
|
|
Cash and cash equivalents
|
|
|
375
|
1,178
|
|
Assets held for sale
|
9
|
|
-
|
2,628
|
|
Total current assets
|
|
|
7,485
|
14,332
|
|
Total assets
|
|
|
108,281
|
106,742
|
|
Current liabilities
|
|
|
|
|
|
Borrowings
|
|
|
(3,900)
|
(4,662)
|
|
Derivative financial liabilities
|
|
|
(268)
|
(381)
|
|
Trade and other payables
|
|
|
(5,049)
|
(4,472)
|
|
Contract liabilities
|
|
|
(110)
|
(96)
|
|
Current tax liabilities
|
|
|
(45)
|
(219)
|
|
Provisions
|
|
|
(425)
|
(357)
|
|
Liabilities held for sale
|
9
|
|
-
|
(434)
|
|
Total current liabilities
|
|
|
(9,797)
|
(10,621)
|
|
Non-current liabilities
|
|
|
|
|
|
Borrowings
|
|
|
(42,855)
|
(42,877)
|
|
Derivative financial liabilities
|
|
|
(750)
|
(821)
|
|
Other non-current liabilities
|
|
|
(1,114)
|
(876)
|
|
Contract liabilities
|
|
|
(2,699)
|
(2,418)
|
|
Deferred tax liabilities
|
|
|
(9,040)
|
(8,038)
|
|
Pensions and other post-retirement benefit obligations
|
10
|
|
(360)
|
(573)
|
|
Provisions
|
|
|
(2,336)
|
(2,692)
|
|
Total non-current liabilities
|
|
|
(59,154)
|
(58,295)
|
|
Total liabilities
|
|
|
(68,951)
|
(68,916)
|
|
Net assets
|
|
|
39,330
|
37,826
|
|
Equity
|
|
|
|
|
|
Share capital
|
|
|
647
|
638
|
|
Share premium account
|
|
|
1,285
|
1,292
|
|
Retained earnings
|
|
|
41,909
|
40,106
|
|
Other equity reserves
|
|
|
(4,542)
|
(4,233)
|
|
Total shareholders' equity
|
|
|
39,299
|
37,803
|
|
Non-controlling interests
|
|
|
31
|
23
|
|
Total equity
|
|
|
39,330
|
37,826
|
Consolidated cash flow statement
for the years ended 31 March
|
|
|
|
2026
|
2025
|
|
|
Notes
|
|
£m
|
£m
|
|
Cash flows from operating activities
|
|
|
|
|
|
Total operating profit from continuing operations
|
2(b)
|
|
5,431
|
4,934
|
|
Adjustments for:
|
|
|
|
|
|
Exceptional
items and remeasurements
|
4
|
|
(387)
|
(169)
|
|
Other
fair value movements
|
|
|
(31)
|
66
|
|
Depreciation,
amortisation and impairment
|
|
|
2,247
|
2,175
|
|
Share-based
payments
|
|
|
45
|
37
|
|
Changes
in working capital
|
|
|
759
|
104
|
|
Changes
in provisions
|
|
|
(127)
|
10
|
|
Changes
in pensions and other post-retirement
benefit obligations
|
|
|
(31)
|
(90)
|
|
Cash flows relating to exceptional items
|
|
|
(45)
|
(76)
|
|
Cash generated from operations - continuing operations
|
|
|
7,861
|
6,991
|
|
Tax paid
|
|
|
(32)
|
(183)
|
|
Net cash inflow from operating activities - continuing
operations
|
|
|
7,829
|
6,808
|
|
Cash flows from investing activities
|
|
|
|
|
|
Purchases of intangible assets
|
|
|
(586)
|
(526)
|
|
Purchases of property, plant and equipment
|
|
|
(9,989)
|
(8,780)
|
|
Disposals of property, plant and equipment
|
|
|
68
|
26
|
|
Investments in joint ventures and associates
|
|
|
(94)
|
(396)
|
|
Dividends received from joint ventures, associates and other
investments
|
|
|
105
|
126
|
|
Disposal of interest in National Grid Renewables1
|
9
|
|
1,473
|
-
|
|
Disposal of interest in Grain LNG1
|
9
|
|
1,336
|
-
|
|
Disposal of interest in the UK Electricity System
Operator1
|
|
|
-
|
577
|
|
Disposal of interest in the UK Gas Transmission
business1
|
9
|
|
-
|
686
|
|
Disposal of financial and other investments
|
|
|
67
|
85
|
|
Acquisition of financial investments
|
|
|
(67)
|
(122)
|
|
Net movements in short-term financial investments
|
|
|
3,285
|
(2,606)
|
|
Interest received
|
|
|
231
|
332
|
|
Cash inflows on derivatives
|
|
|
20
|
11
|
|
Cash outflows on derivatives
|
|
|
(6)
|
(6)
|
|
Net cash flow used in investing activities - continuing
operations
|
|
|
(4,157)
|
(10,593)
|
|
Net cash flow from investing activities - discontinued
operations
|
|
|
-
|
22
|
|
Cash flows from financing activities
|
|
|
|
|
|
Proceeds of Rights Issue
|
|
|
-
|
7,001
|
|
Transaction fees related to Rights Issue
|
|
|
-
|
(162)
|
|
Proceeds from issue of treasury shares
|
|
|
40
|
18
|
|
Transactions in own shares
|
|
|
(1)
|
(7)
|
|
Proceeds received from loans
|
|
|
4,172
|
3,237
|
|
Repayment of loans
|
|
|
(2,961)
|
(2,861)
|
|
Payments of lease liabilities
|
|
|
(145)
|
(130)
|
|
Net movements in short-term borrowings
|
|
|
(2,225)
|
925
|
|
Cash inflows on derivatives
|
|
|
93
|
62
|
|
Cash outflows on derivatives
|
|
|
(38)
|
(106)
|
|
Interest paid
|
|
|
(1,932)
|
(1,920)
|
|
Dividends paid to shareholders
|
|
|
(1,623)
|
(1,529)
|
|
Net cash flow (used in)/from financing activities - continuing
operations
|
|
|
(4,620)
|
4,528
|
|
Net (decrease)/increase in cash and cash equivalents
|
|
|
(948)
|
765
|
|
Reclassification to held for sale
|
|
|
153
|
(123)
|
|
Exchange movements
|
|
|
(8)
|
(23)
|
|
Cash and cash equivalents at start of year
|
|
|
1,178
|
559
|
|
Cash and cash equivalents at end of year
|
|
|
375
|
1,178
|
1.
Balances
consist of cash proceeds received, net of cash
disposed.
Notes
1. Basis of preparation and recent accounting
developments
The full year financial information contained in this announcement,
which does not constitute statutory accounts as defined in Section
434 of the Companies Act 2006, has been derived from the statutory
accounts for the year ended 31 March 2026, which will be filed
with the Registrar of Companies in due course. Statutory accounts
for the year ended 31 March 2025 have been filed with the
Registrar of Companies. The auditors' report on each of these
statutory accounts was unqualified and did not contain a statement
under Section 498 of the Companies Act 2006.
The full year financial information has been prepared in accordance
with the accounting policies applicable for the year ended 31
March 2026 which are consistent with those applied in the
preparation of our Annual Report and Accounts for the year
ended 31 March 2025, with the exception of any new standards
or interpretations adopted during the year.
Our income statement and segmental analysis separately identify
financial results before and after exceptional items and
remeasurements. We continue to use a columnar presentation as we
consider it improves the clarity of the presentation, and assists
users of the financial statements to understand the results. The
Directors believe that presentation of the results in this way is
relevant to an understanding of the Group's financial
performance. The inclusion of total profit for the period from
continuing operations before exceptional items and
remeasurements forms part of the incentive target set annually
for remunerating certain Executive Directors and accordingly we
believe it is important for users of the financial statements to
understand how this compares to our results on a statutory basis
and period on period.
Areas of judgement and key sources
of estimation uncertainty
Areas of judgement that have the most significant effect on the
amounts recognised in the financial statements are:
–
categorisation
of certain items as exceptional items or remeasurements and the
definition of adjusted earnings (see notes 4 and 7). In applying
the Group's exceptional items framework, we have considered a
number of key matters, as detailed in note 4; and
–
the judgement that, notwithstanding legislation
enacted and targets committing the states of New York and
Massachusetts to achieving net zero greenhouse gas emissions by
2050, these do not shorten the remaining useful economic lives
(UELs) of our US gas network assets, which we consider will have an
expected use and utility beyond 2050 (see other areas of estimation
uncertainty below).
Key sources of estimation uncertainty that have a significant risk
of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year
are:
–
the
future cash flows and real discount rates applied in determining
the US environmental provisions, in particular relating to two
Superfund sites and certain other legacy Manufacturing Gas Plant
(MGP) sites (see note 4); and
–
the
valuation of liabilities for pensions and other post-retirement
benefits (see note 10).
Other areas of estimation uncertainty
A further area of estimation uncertainty pertains to the estimates
made regarding the UELs of our gas network assets due to
uncertainty over the pace of delivery of the energy transition and
the multiple pathways by which it could be delivered. Our estimates
consider anticipated changes in customer behaviour and developments
in new technology, the potential to decarbonise fuel through the
use of renewable natural gas and green hydrogen, and the
feasibility and affordability of increased
electrification.
New accounting standards and interpretations effective for the year
ended 31 March 2026
The Group adopted the following amendments to standards which
have had no material impact on the Group's results or
financial statement disclosures:
–
amendments
to IAS 21 'Lack of exchangeability'.
1. Basis of preparation
and recent accounting developments continued
New accounting standards not yet adopted
The following new accounting standards and amendments to existing
standards have been issued but are not yet effective or have
not yet been endorsed by the UK:
–
IFRS
18 'Presentation and Disclosure in Financial
Statements';
–
IFRS
9 and IFRS 7 'Amendments to the Classification and Measurement of
Financial Instruments';
–
Amendments
to IFRS 9 and IFRS 7 'Contracts Referencing Nature-dependent
Electricity';
–
Annual
Improvements to IFRS Accounting Standards - Volume 11;
and
–
IFRS
19 'Subsidiaries without Public Accountability:
Disclosures'.
Effective dates will be subject to the UK endorsement
process.
The Group is currently assessing the impact of the above standards,
but they are not expected to have a material impact other than
in respect of IFRS 18.
IFRS 18 replaces IAS 1 and the Group will apply the new standard
from 1 April 2027, with retrospective application. The Group is in
the process of assessing the impact of IFRS 18 and anticipates
changes to certain presentational and disclosure-related matters in
its consolidated financial statements. The adoption of
IFRS 18 will not affect the Group's profit after tax;
however, it will result in changes to the presentation of the
primary financial statements and to certain disclosures. In
particular, income and expenses will be grouped into five
categories in the Consolidated income statement, namely the
operating, investing, financing, discontinued operations and income
tax categories. There will also be an additional mandatory subtotal
for 'Profit before financing and income taxes' and the 'useful
structured summary' concept will necessitate certain changes to
line items presented in the Consolidated income statement, although
the overall impact is not expected to be significant.
Management-defined performance measures will also require
disclosure in a single note. Preparatory work is currently underway
to support adoption, including updates to reporting systems and the
chart of accounts.
The Group has not adopted any other standard, amendment or
interpretation that has been issued but is not
yet effective.
Date of approval
This
announcement was approved by the Board of Directors on 13
May 2026.
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 operating profit before exceptional items
and remeasurements, 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 of Directors and are accordingly treated as reportable
operating segments. All other operating segments are reported
to the Board of Directors 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, all commercial
operations in LNG at Providence, Rhode Island in the US and the
Isle of Grain in the UK, and our investment in NG Renewables,
our renewables business 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. The Group
sold its interest in NG Renewables on 29 May 2025 and in Grain
LNG on 28 November 2025 (see note 9).
|
Included within the comparative years are the results of the UK
Electricity System Operator which also represented a separate
operating segment. The Group completed the disposal of the ESO to
the UK Government in the prior year.
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
Revenue primarily represents the sales value derived from the
generation, transmission and distribution of energy, together with
the sales value derived from the provision of other services
to customers. Refer to note 3 for further details.
Sales between operating segments are priced considering 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.
|
|
2026
|
|
2025
|
||||
|
|
Total
sales
|
Sales
between
segments
|
Sales
to third
parties
|
|
Total
sales
|
Sales
between
segments
|
Sales
to third
parties
|
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Operating segments - continuing operations:
|
|
|
|
|
|
|
|
|
UK
Electricity Transmission
|
2,898
|
(87)
|
2,811
|
|
2,619
|
(135)
|
2,484
|
|
UK
Electricity Distribution
|
1,937
|
-
|
1,937
|
|
2,424
|
(3)
|
2,421
|
|
UK
Electricity System Operator
|
-
|
-
|
-
|
|
1,029
|
(17)
|
1,012
|
|
New
England
|
4,174
|
-
|
4,174
|
|
4,306
|
-
|
4,306
|
|
New
York
|
7,618
|
-
|
7,618
|
|
6,689
|
-
|
6,689
|
|
National
Grid Ventures
|
1,098
|
(41)
|
1,057
|
|
1,397
|
(47)
|
1,350
|
|
Other
|
97
|
(7)
|
90
|
|
122
|
(6)
|
116
|
|
Total revenue from continuing operations
|
17,822
|
(135)
|
17,687
|
|
18,586
|
(208)
|
18,378
|
|
|
|
|
|
|
|
|
|
|
Split by geographical areas - continuing operations:
|
|
|
|
|
|
|
|
|
UK
|
|
|
5,472
|
|
|
|
6,707
|
|
US
|
|
|
12,215
|
|
|
|
11,671
|
|
Total revenue from continuing operations
|
|
|
17,687
|
|
|
|
18,378
|
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 any of the years
presented.
2. Segmental
analysis continued
(b) Operating profit
A reconciliation of the operating segments' measure of profit to
profit before tax from continuing operations is provided below.
Further details of the exceptional items and remeasurements are
provided in note 4.
|
|
Total operating profit/(loss) before exceptional items and
remeasurements
|
|
Exceptional items and remeasurements
|
|
Total operating profit/(loss) after exceptional items and
remeasurements
|
|||
|
|
2026
|
2025
|
|
2026
|
2025
|
|
2026
|
2025
|
|
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
|
Operating segments - continuing operations:
|
|
|
|
|
|
|
|
|
|
UK
Electricity Transmission
|
1,605
|
1,277
|
|
-
|
-
|
|
1,605
|
1,277
|
|
UK
Electricity Distribution
|
1,122
|
1,610
|
|
-
|
(12)
|
|
1,122
|
1,598
|
|
UK
Electricity System Operator
|
-
|
(364)
|
|
-
|
151
|
|
-
|
(213)
|
|
New
England
|
960
|
982
|
|
(13)
|
26
|
|
947
|
1,008
|
|
New
York
|
1,172
|
1,023
|
|
12
|
246
|
|
1,184
|
1,269
|
|
National
Grid Ventures
|
327
|
380
|
|
388
|
(375)
|
|
715
|
5
|
|
Other
|
(142)
|
(143)
|
|
-
|
133
|
|
(142)
|
(10)
|
|
Total Group
|
5,044
|
4,765
|
|
387
|
169
|
|
5,431
|
4,934
|
|
|
|
|
|
|
|
|
|
|
|
Split by geographical area - continuing operations:
|
|
|
|
|
|
|
|
|
|
UK
|
2,948
|
2,775
|
|
484
|
257
|
|
3,432
|
3,032
|
|
US
|
2,096
|
1,990
|
|
(97)
|
(88)
|
|
1,999
|
1,902
|
|
Total Group
|
5,044
|
4,765
|
|
387
|
169
|
|
5,431
|
4,934
|
|
|
Before exceptional items and remeasurements
|
|
Exceptional items and remeasurements
|
|
After exceptional items and remeasurements
|
|||
|
|
2026
|
2025
|
|
2026
|
2025
|
|
2026
|
2025
|
|
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
|
Reconciliation to profit before tax:
|
|
|
|
|
|
|
|
|
|
Operating
profit from continuing operations
|
5,044
|
4,765
|
|
387
|
169
|
|
5,431
|
4,934
|
|
Share
of post-tax results of joint ventures
and associates
|
76
|
75
|
|
-
|
(2)
|
|
76
|
73
|
|
Finance
income
|
378
|
449
|
|
2
|
1
|
|
380
|
450
|
|
Finance
costs
|
(1,649)
|
(1,810)
|
|
(56)
|
3
|
|
(1,705)
|
(1,807)
|
|
Total Group
|
3,849
|
3,479
|
|
333
|
171
|
|
4,182
|
3,650
|
The following items are included in the total operating profit by
segment:
|
Depreciation, amortisation and
impairment1
|
2026
|
2025
|
|
£m
|
£m
|
|
|
Operating segments:
|
|
|
|
UK
Electricity Transmission
|
(550)
|
(540)
|
|
UK
Electricity Distribution
|
(271)
|
(249)
|
|
New
England
|
(493)
|
(469)
|
|
New
York
|
(769)
|
(731)
|
|
National
Grid Ventures
|
(151)
|
(173)
|
|
Other
|
(13)
|
(13)
|
|
Total
|
(2,247)
|
(2,175)
|
|
|
|
|
|
Asset type:
|
|
|
|
Property,
plant and equipment
|
(1,929)
|
(1,878)
|
|
Non-current
intangible assets
|
(318)
|
(297)
|
|
Total
|
(2,247)
|
(2,175)
|
1.
Depreciation,
amortisation and impairment relates to property, plant and
equipment and other intangible assets. The charge is stated net of
depreciation and amortisation capitalised.
2. Segmental analysis continued
(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.
|
|
2026
|
2025
|
|
|
£m
|
£m
|
|
Operating segments:
|
|
|
|
UK
Electricity Transmission
|
4,372
|
2,999
|
|
UK
Electricity Distribution
|
1,617
|
1,426
|
|
New
England
|
2,043
|
1,751
|
|
New
York
|
3,428
|
3,289
|
|
National
Grid Ventures
|
109
|
378
|
|
Other
|
7
|
4
|
|
Total
|
11,576
|
9,847
|
|
|
|
|
|
Asset type:
|
|
|
|
Property,
plant and equipment
|
9,924
|
8,894
|
|
Non-current
intangible assets
|
693
|
478
|
|
Equity
investments in joint ventures and associates
|
27
|
116
|
|
Capital
expenditure prepayments
|
932
|
359
|
|
Total
|
11,576
|
9,847
|
(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.
|
|
2026
|
2025
|
|
|
£m
|
£m
|
|
Split by geographical area:
|
|
|
|
UK
|
47,551
|
42,623
|
|
US
|
49,273
|
46,131
|
|
|
96,824
|
88,754
|
|
|
|
|
|
Reconciliation to total non-current assets:
|
|
|
|
Pension
assets
|
2,507
|
2,489
|
|
Financial
and other investments
|
842
|
798
|
|
Derivative
financial assets
|
623
|
369
|
|
Non-current assets
|
100,796
|
92,410
|
3. Revenue
Revenue arises in the course of ordinary activities and principally
comprises:
–
transmission
services;
–
distribution
services; and
–
generation
services.
Transmission services, distribution services and certain other
services (excluding rental income) fall within the scope of IFRS 15
'Revenue from Contracts with Customers', whereas generation
services (which solely relate to the contract with the Long Island
Power Authority (LIPA) in the US) are accounted for under IFRS 16
'Leases' as rental income, also presented within revenue. Revenue
is recognised to reflect the transfer of goods or services to
customers at an amount that reflects the consideration to which the
Group expects to be entitled to in exchange for those goods or
services and excludes amounts collected on behalf of third parties
and value added tax. The Group recognises revenue when it transfers
control over a product or service to a customer.
Revenue in respect of regulated activities is determined by
regulatory agreements that set the price to be charged for services
in a given period based on pre-determined allowed revenues.
Variances in service usage can result in actual revenue collected
exceeding (over-recoveries) or falling short (under-recoveries) of
allowed revenues. Where regulatory agreements allow the recovery of
under-recoveries or require the return of over-recoveries, the
allowed revenue for future periods is typically adjusted. In these
instances, no assets or liabilities are recognised for under- or
over-recoveries respectively, because the adjustment relates to
future customers and services that have not yet been
delivered.
Revenue in respect of non-regulated activities primarily relates to
the sale of capacity on our interconnectors, which is determined at
auctions. Capacity is sold in either day, month, quarter or year
ahead tranches. The price charged is determined by market
fundamentals rather than regulatory agreement. The interconnectors
are subject to indirect regulation with regards to the levels of
returns they are allowed to earn. Where amounts fall below this
range they receive top-up revenues; where amounts exceed this
range, they must pass-back the excess. In these instances, assets
or liabilities are recognised for the top-up or pass-back
respectively.
The following is a description of principal activities, by
reportable segment, from which the Group generates its revenue. For
more detailed information about our segments, see
note 2.
(a) UK Electricity Transmission
The UK Electricity Transmission segment principally generates
revenue by providing electricity transmission services in England
and Wales. Our business operates as a monopoly regulated by
Ofgem, which has established price control mechanisms that set the
amount of annual allowed returns our business can earn (along
with the Scottish and Offshore transmission operators amongst
others).
The transmission of electricity encompasses the following principal
services:
–
the
supply of high-voltage electricity - revenue is recognised based on
usage. Our performance obligation is satisfied over time as our
customers make use of our network. We bill monthly in advance and
our payment terms are up to 60 days. Price is determined prior to
our financial year end with reference to the regulated allowed
returns and estimated annual volumes; and
–
construction
work (principally for connections) - revenue is recognised over
time, as we provide access to our network. Customers can either pay
over the useful life of the connection or up front. Where the
customer pays up front, revenues are deferred as a contract
liability and released over the life of the asset.
For other construction where there is no consideration for any
future services (for example diversions), revenues are recognised
as the construction work is completed.
3.
Revenue continued
(b) UK Electricity Distribution
The UK Electricity Distribution segment principally generates
revenue by providing electricity distribution services in the
Midlands and South West of England and South Wales. Similar to
UK Electricity Transmission, UK Electricity Distribution operates
as a monopoly in the jurisdictions that it operates
in and is regulated by Ofgem.
The
distribution of electricity encompasses the following principal
services:
–
electricity
distribution - revenue is recognised based on usage by customers
(over time), based upon volumes and price. The price control
mechanism that determines our annual allowances is similar to UK
Electricity Transmission. Revenues are billed monthly and payment
terms are typically within 14 days; and
–
construction
work (principally for connections) - revenue is recognised over
time as we provide access to our network. Where the customer pays
up front, revenues are deferred as a contract liability and
released over the life of the asset.
For other construction where there is no consideration for any
future services, revenues are recognised as the construction
work is completed.
(c) New England
The New England segment principally generates revenue by providing
electricity and gas supply and distribution services and
high-voltage electricity transmission services in New England.
Supply and distribution services are regulated by the Massachusetts
Department of Public Utilities (MADPU) and transmission services
are regulated by the Federal Energy Regulatory Commission
(FERC), both of whom regulate the rates that can be
charged to customers.
The supply and distribution of electricity and gas and the
provision of electricity transmission facilities encompasses the
following principal services:
–
electricity
and gas supply and distribution and electricity transmission -
revenue is recognised based on usage by customers (over time).
Revenues are billed monthly and payment terms are 30 days;
and
–
construction
work (principally for connections) - revenue is recognised over
time as we provide access to our network. Where the customer pays
up front, revenues are deferred as a contract liability or customer
contributions (where they relate to government entities) and
released over the life of the connection.
(d) New York
The New York segment principally generates revenue by providing
electricity and gas supply and distribution services and
high-voltage electricity transmission services in New York.
Supply and distribution services are regulated by the New York
Public Service Commission (NYPSC) and transmission services are
regulated by the FERC, both of which regulate the rates that
can be charged to customers.
The supply and distribution of electricity and gas and the
provision of electricity transmission facilities encompasses the
following principal services:
–
electricity
and gas supply and distribution and electricity transmission -
revenue is recognised based on usage by customers (over time).
Revenues are billed monthly and payment terms are 30 days;
and
–
construction
work (principally for connections) - revenue is recognised over
time as we provide access to our network. Where the customer pays
up front, revenues are deferred as a contract liability or customer
contributions (where they relate to government entities) and
released over the life of the connection.
3.
Revenue continued
(e) National Grid Ventures
National Grid Ventures generates revenue from electricity
interconnectors, LNG at the Isle of Grain in the UK and Providence,
Rhode Island in the US, NG Renewables and rental
income.
The Group recognises revenue from transmission services through
interconnectors and LNG importation at the Isle of Grain and
Providence by means of customers' use of capacity and volumes.
Revenue is recognised over time and is billed monthly. Payment
terms are up to 30 days. The Group disposed of its interest in
Grain LNG in November 2025 (see note 9).
Electricity generation revenue is earned from the provision of
energy services and supply capacity to produce energy for the use
of customers of LIPA through a power supply agreement, where LIPA
receives all of the energy and capacity from the asset until at
least 2028. The arrangement is treated as an operating lease within
the scope of the leasing standard where we act as lessor, with
rental income being recorded as other revenue, which forms part of
total revenue. Lease payments (capacity payments) are recognised on
a straight-line basis and variable lease payments are recognised as
the energy is generated.
Other revenue in the scope of IFRS 15 principally includes sales of
renewables projects from NG Renewables to Emerald Energy Venture
LLC (Emerald), which was jointly controlled by National Grid and
Washington State Investment Board (WSIB). The Group disposed of its
interest in NG Renewables, together with Emerald, in May 2025
(see note 9). NG Renewables developed wind and solar generation
assets in the US, while Emerald had a right of first refusal
to buy, build and operate those assets. Revenue was recognised
as it was earned.
Other revenue, recognised in accordance with standards other than
IFRS 15, primarily comprises adjustments in respect of the
interconnector cap and floor and Use of Revenue regimes
constructed by Ofgem for certain wholly owned interconnector
subsidiaries. Under the cap and floor regime, where
an interconnector expects to exceed its total five-year cap, a
provision and reduction in revenue is recognised in the current
reporting period. Where an interconnector does not expect to reach
its five-year floor, either an asset will be recognised where
a future inflow of economic benefits is considered virtually
certain, or a contingent asset will be disclosed where the future
inflow is concluded to be probable. Under the Use of
Revenue framework, any revenues in excess of an agreed incentive
level must be passed on as savings to consumers. Where
the obligation to transfer excess revenues arises, a payable and
reduction in revenue is recognised in the current
reporting period.
(f) Other
Revenue in Other relates to our UK commercial property business.
Revenue is predominantly recognised in accordance with standards
other than IFRS 15 and comprises property sales by our UK
commercial property business. Property sales are recorded when the
sale is legally completed.
3.
Revenue continued
(g) Disaggregation of revenue
In the following tables, revenue is disaggregated by primary
geographical market and major service lines. The table below
reconciles disaggregated revenue with the Group's reportable
segments (see note 2).
|
Revenue for the year ended
31 March 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
|
2,597
|
-
|
55
|
355
|
713
|
-
|
3,720
|
|
Distribution
|
-
|
1,859
|
4,061
|
7,204
|
-
|
-
|
13,124
|
|
Other1
|
29
|
73
|
9
|
17
|
20
|
4
|
152
|
|
Total IFRS 15 revenue
|
2,626
|
1,932
|
4,125
|
7,576
|
733
|
4
|
16,996
|
|
Other revenue
|
|
|
|
|
|
|
|
|
Generation
|
-
|
-
|
-
|
-
|
364
|
-
|
364
|
|
Other2
|
185
|
5
|
49
|
42
|
(40)
|
86
|
327
|
|
Total other revenue
|
185
|
5
|
49
|
42
|
324
|
86
|
691
|
|
Total revenue from continuing operations
|
2,811
|
1,937
|
4,174
|
7,618
|
1,057
|
90
|
17,687
|
1.
The
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
rerouting 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, rental income, income arising in connection with the
Transition Services Agreements 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.
|
Geographical split for the
year ended 31 March 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
|
2,626
|
1,932
|
-
|
-
|
713
|
-
|
5,271
|
|
US
|
-
|
-
|
4,125
|
7,576
|
20
|
4
|
11,725
|
|
Total IFRS 15 revenue
|
2,626
|
1,932
|
4,125
|
7,576
|
733
|
4
|
16,996
|
|
Other revenue
|
|
|
|
|
|
|
|
|
UK
|
185
|
5
|
-
|
-
|
(61)
|
72
|
201
|
|
US
|
-
|
-
|
49
|
42
|
385
|
14
|
490
|
|
Total other revenue
|
185
|
5
|
49
|
42
|
324
|
86
|
691
|
|
Total revenue from continuing operations
|
2,811
|
1,937
|
4,174
|
7,618
|
1,057
|
90
|
17,687
|
3.
Revenue continued
|
Revenue for the year ended
31 March 2025
|
UK Electricity Transmission
£m
|
UK Electricity Distribution
£m
|
UK Electricity System Operator
£m
|
New
England
£m
|
New
York
£m
|
National Grid Ventures
£m
|
Other
£m
|
Total
£m
|
|
Revenue under IFRS 15
|
|
|
|
|
|
|
|
|
|
Transmission1
|
2,265
|
-
|
46
|
85
|
252
|
879
|
1
|
3,528
|
|
Distribution
|
-
|
2,327
|
-
|
4,193
|
6,371
|
-
|
-
|
12,891
|
|
System Operator
|
-
|
-
|
966
|
-
|
-
|
-
|
-
|
966
|
|
Other2
|
29
|
90
|
-
|
9
|
16
|
171
|
3
|
318
|
|
Total IFRS 15 revenue
|
2,294
|
2,417
|
1,012
|
4,287
|
6,639
|
1,050
|
4
|
17,703
|
|
Other revenue
|
|
|
|
|
|
|
|
|
|
Generation
|
-
|
-
|
-
|
-
|
-
|
384
|
-
|
384
|
|
Other3
|
190
|
4
|
-
|
19
|
50
|
(84)
|
112
|
291
|
|
Total other revenue
|
190
|
4
|
-
|
19
|
50
|
300
|
112
|
675
|
|
Total revenue from continuing operations
|
2,484
|
2,421
|
1,012
|
4,306
|
6,689
|
1,350
|
116
|
18,378
|
1.
The
UK Electricity System Operator transmission revenue generated in
the period up until its disposal represented transmission revenues
collected, net of payments made to transmission
owners.
2.
The
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
rerouting of existing network assets. Within NGV, the other IFRS 15
revenue principally relates to revenue generated from our NG
Renewables business.
3.
Other
revenue, recognised in accordance with accounting standards other
than IFRS 15, includes property sales by our UK commercial property
business, rental income, income arising in connection with the
Transition Services Agreements following the sales of NECO, 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.
|
Geographical split for the year
ended 31 March 2025
|
UK Electricity Transmission
£m
|
UK Electricity Distribution
£m
|
UK Electricity System Operator
£m
|
New
England
£m
|
New
York
£m
|
National Grid Ventures
£m
|
Other
£m
|
Total
£m
|
|
Revenue under IFRS 15
|
|
|
|
|
|
|
|
|
|
UK
|
2,294
|
2,417
|
1,012
|
-
|
-
|
889
|
1
|
6,613
|
|
US
|
-
|
-
|
-
|
4,287
|
6,639
|
161
|
3
|
11,090
|
|
Total IFRS 15 revenue
|
2,294
|
2,417
|
1,012
|
4,287
|
6,639
|
1,050
|
4
|
17,703
|
|
Other revenue
|
|
|
|
|
|
|
|
|
|
UK
|
190
|
4
|
-
|
-
|
-
|
(111)
|
11
|
94
|
|
US
|
-
|
-
|
-
|
19
|
50
|
411
|
101
|
581
|
|
Total other revenue
|
190
|
4
|
-
|
19
|
50
|
300
|
112
|
675
|
|
Total revenue from continuing operations
|
2,484
|
2,421
|
1,012
|
4,306
|
6,689
|
1,350
|
116
|
18,378
|
Contract liabilities represent revenue to be recognised in future
periods relating to contributions in aid of construction of
£2,809 million (2025: £2,514 million).Revenue is
recognised over the life of the asset. The asset lives for
connections in UK Electricity Transmission, UK
Electricity Distribution, New England and New York are up to 40
years, 69 years, 51 years and 51 years respectively. The weighted
average amortisation period over which revenue for contract
liabilities is recognised is 26 years.
Future revenues in relation to unfulfilled performance obligations
amount to £1.4 billion (2025: £1.5 billion).
£1.4 billion (2025: £1.5 billion) relates to
connection contracts in UK Electricity Transmission which will be
recognised as revenue over a weighted average of
25 years.
The amount of revenue recognised for the year ended 31 March 2026
from performance obligations satisfied (or partially
satisfied) in previous periods, mainly due to changes in the
estimate of the stage of completion, is £nil (2025:
£nil).
4. Exceptional items and remeasurements
To monitor our financial performance, we use an adjusted
consolidated profit measure that excludes certain income and
expenses. We exclude items from adjusted profit because, if
included, these items could distort understanding of our
performance for the year and the comparability between periods.
This note analyses these items, which are included in our results
for the year but are excluded from adjusted profit.
|
|
2026
|
2025
|
|
|
£m
|
£m
|
|
Included within operating profit
|
|
|
|
Exceptional items:
|
|
|
|
Net
loss on disposal of NG Renewables
|
(96)
|
-
|
|
Net
gain on the sale of Grain LNG
|
489
|
-
|
|
Transaction, separation and integration
costs1
|
(17)
|
(65)
|
|
Changes
in environmental provisions
|
-
|
146
|
|
Net
gain on the sale of the ESO
|
-
|
187
|
|
Provision
for UK electricity balancing costs
|
-
|
151
|
|
Impairment
of joint venture
|
-
|
(303)
|
|
Major
transformation programme
|
-
|
(74)
|
|
|
376
|
42
|
|
Remeasurements - commodity contract derivatives
|
11
|
127
|
|
|
387
|
169
|
|
Included within finance income and costs
|
|
|
|
Remeasurements:
|
|
|
|
Net
gains on financial assets at fair value through profit and
loss
|
2
|
1
|
|
Net
(losses)/gains on financing derivatives
|
(56)
|
3
|
|
|
(54)
|
4
|
|
Included within share of post-tax results of joint ventures and
associates
|
|
|
|
Remeasurements:
|
|
|
|
Net
losses on financial instruments
|
-
|
(2)
|
|
Total included within profit before tax
|
333
|
171
|
|
Included within tax
|
|
|
|
Tax on exceptional items
|
8
|
76
|
|
Tax on remeasurements
|
8
|
(36)
|
|
|
16
|
40
|
|
Total exceptional items and remeasurements after tax
|
349
|
211
|
|
Analysis of total exceptional items and remeasurements after
tax
|
|
|
|
Exceptional items after tax
|
384
|
118
|
|
Remeasurements after tax
|
(35)
|
93
|
|
Total exceptional items and remeasurements after tax
|
349
|
211
|
1.
Transaction,
separation and integration costs represent the aggregate of
distinct activities undertaken by the Group in the years
presented.
Exceptional items
Management uses an exceptional items framework that has been
discussed and approved by the Audit & Risk Committee. This
follows a three-step process which considers the nature of the
event, the financial materiality involved and any particular facts
and circumstances. In considering the nature of the
event, management focuses on whether the event is within the
Group's control and how frequently such an event typically occurs.
With respect to restructuring costs, these represent
additional expenses incurred that are not related to the normal
business and day-to-day activities. These can take place over
multiple reporting periods given the scale of the Group, the nature
and complexity of the transformation initiatives and due to the
impact of strategic transactions. In determining the facts and
circumstances, 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. The
exceptional items framework was last updated in March
2022.
Items of income or expense that are considered by management for
designation as exceptional items include significant
restructurings, write-downs or impairments of non-current
assets, significant changes in environmental or
decommissioning provisions, integration of acquired businesses,
gains or losses on disposals of businesses or investments and
significant debt redemption costs as a consequence of transactions
such as significant disposals or issues of equity, and
the related tax, as well as deferred tax arising on changes to
corporation tax rates.
4. Exceptional items and
remeasurements continued
Costs arising from efficiency and transformation programmes include
redundancy costs. Redundancy costs are charged to the consolidated
income statement in the year in which a commitment
is made to incur the costs and the main features of the
restructuring plan have been announced to affected
employees.
Set out below are details of the transactions against which we have
considered the application of our exceptional items framework in
each of the years for which results are
presented.
2026
Net loss on disposal of NG Renewables
In the year 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
£1,531 million ($2,061 million) (see note 9).
The receipt of cash has been recognised within net cash used
in investing activities within the consolidated cash
flow statement.
Net gain on disposal of Grain LNG
In the year the Group recognised a net gain of
£489 million on the disposal of its interest in Grain LNG
to a consortium of multinational energy company, Centrica plc
and energy transition infrastructure investment firm, Energy
Capital Partners LLC, part of Bridgepoint Group plc for expected
consideration of £1.53 billion, which includes an
estimate for an adjustment to the consideration under the Sale and
Purchase Agreement (see note 9). The receipt of cash has
been recognised within net cash used in investing activities within
the consolidated cash flow statement.
Transaction, separation and integration costs
In May 2024, we announced the sale of NG Renewables and Grain LNG
as part of our strategic focus on becoming a leading pureplay
networks business. Both disposals were completed in the current
year, and the transaction costs were included in gain or loss on
disposal (see note 10). Separation costs of£17 million
were incurred in relation to the disposals of NG Renewables and
Grain LNG. The costs incurred primarily related to professional
fees and employee costs. These costs have been classified
as exceptional in accordance with our exceptional items
policy. While the costs incurred in isolation are not
sufficiently material to warrant classification as
an exceptional item, when taken in aggregate
with the respective disposals, the impact to the consolidated
income statement incurred over both years is sufficiently
material to be classified as exceptional in line with our policy.
The total cash outflow for the year was
£44 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 year, following
discussions with the Environmental Protection Agency on the scope
and design of remediation activities related to the Gowanus and
Newtown Creek, we have re-evaluated our estimates of total costs
and recognised a net movement in the associated provision of nil.
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.
Major transformation programme
Following the appointment of a new Chief Executive Office in
November 2025, strategic priorities were updated and as a result
the transformation programme launched in 2024 has been reshaped.
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 have been reclassified from exceptional items
to other operating costs before exceptional items and
remeasurements.
4. Exceptional items and
remeasurements continued
2025
Changes in environmental provisions
In the prior year, following discussions with the New York State
Department of Environmental Conservation and the Environmental
Protection Agency on the scope and design of remediation activities
related to certain of our responsible sites, we re-evaluated our
estimates of total costs and recognised a net decrease of
£64 million in relation to our provisions. 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.
In the year ended 31 March 2025, the real discount rate applied to
the Group's environmental provisions was also revised to 2.0%
to reflect the substantial and sustained change in US Government
bond yield curves. The principal impact of this rate increase was a
£82 million decrease in our US environmental provisions.
The weighted average remaining duration of our cash flows was
around 10 years.
Net gain on disposal of the ESO
In the year ended 31 March 2025, the Group completed the disposal
of the ESO to the UK Government for consideration of
£673 million. As a result, the Group derecognised net
assets of £486 million, resulting in a gain of
£187 million. The receipt of cash was recognised within
net cash used in investing activities within the consolidated
cash flow statement.
Provision for UK electricity balancing costs
In the year ended 31 March 2024, the ESO's operating profit
increased due to a substantial over-recovery of allowed revenues
received under its regulatory framework. Under IFRS a corresponding
liability is not recognised for the return of over-recoveries as
this relates to future customers and services that have not yet
been delivered. Following legislation to enable the separation of
the ESO and the formation of the NESO, the Group recognised a
liability of £498 million in the year ended 31 March 2024
representing the element of the over-recovery that was expected to
be settled through the sale process. In the prior year, the
liability was remeasured at £347 million to reflect the
final amount of over-recovered revenues that transferred through
with the ESO on disposal on 1 October 2024.
Impairment of joint venture
In the prior year, we agreed with our joint venture partner, RWE
Renewables, that our investment in Community Offshore Wind,
LLC will pause project development for the time being. The Group
determined that the investment has negligible value and an
impairment of £303 million was recognised.
Transaction, separation and integration costs
In the year ended 31 March 2025, transaction and separation costs
of £26 million were incurred in relation to the
planned disposal of NG Renewables and £8 million in
relation to the planned disposal of Grain LNG. The costs
incurred primarily related to professional fees and employee costs.
In remeasuring the NG Renewables disposal group to fair value
less costs to sell in accordance with IFRS 5, the Group also
recognised a £31 million impairment loss. These
costs were classified as exceptional in accordance with our
exceptional items policy. While the costs incurred in
isolation were not sufficiently material to warrant classification
as an exceptional item, when taken in aggregate with the respective
disposals, the impact to the consolidated income statement incurred
over both years would be sufficiently material to be classified as
exceptional in line with our policy. The total cash outflow
for the year was £6 million.
Major transformation programme
Following the announcement of our strategic priorities in May 2024,
the Group entered into a new four-year transformation programme
designed to implement our refreshed strategy to be a
pre-eminent pureplay networks business. In the prior year, the
Group incurred £74 million of costs in relation to
the programme. The costs recognised primarily related to technology
implementation costs, employee costs and professional
fees incurred in delivering the programme. While the costs
incurred since the commencement of the programme did not meet the
quantitative threshold to be classified as exceptional on a
standalone basis, when taken in aggregate with the costs expected
to be incurred over the duration of the programme, we concluded
that the costs should be classified as exceptional in line with our
exceptional items policy. The total cash outflow for the period was
£62 million.
4. Exceptional items and
remeasurements continued
Remeasurements
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.
We report unrealised gains or losses relating to certain discrete
classes of financial assets accounted for at FVTPL within
adjusted profit. These comprise our portfolio of investments made
by National Grid Partners and our investment in Sunrun Neptune 2016
LLC (both within NGV). The performance of these assets (including
changes in fair value) is included in our assessment of adjusted
profit for the relevant business units.
Remeasurements excluded from adjusted profit are made up of the
following categories:
i.
Net
gains/(losses) on commodity contract derivatives represent
mark-to-market movements on certain physical and financial
commodity contract obligations in the US and UK. These contracts
primarily relate to the forward purchase of energy for supply to
customers, or to the economic hedging thereof, that are required to
be measured at fair value and that do not qualify for hedge
accounting. Under the existing rate plans in the US, commodity
costs are recoverable from customers although the timing of
recovery may differ from the pattern of costs
incurred;
ii.
Net
gains/(losses) on financing derivatives comprise gains and losses
arising on derivative financial instruments, net of interest
accrued, used for the risk management of interest rate and foreign
exchange exposures and the offsetting foreign exchange losses and
gains on the associated borrowing activities. These exclude gains
and losses for which hedge accounting has been effective and have
been recognised directly in the consolidated statement of other
comprehensive income or are offset by adjustments to the carrying
value of debt. Net foreign exchange gains and losses on financing
derivatives used for the risk management of foreign exchange
exposures are offset by foreign exchange losses and gains on
borrowing activities; and
iii.
Net
gains/(losses) on financial assets measured at FVTPL comprise gains
and losses on the investment funds held by our insurance captives
which are categorised as FVTPL.
5. Finance income and costs
|
|
|
2026
|
2025
|
|
|
|
£m
|
£m
|
|
Finance income (excluding remeasurements)
|
|
|
|
|
Net interest income on pensions and other post-retirement benefit
obligations
|
|
114
|
98
|
|
Interest income on financial instruments:
|
|
|
|
|
Bank
deposits and other financial assets
|
|
263
|
341
|
|
Dividends
received on equities held at fair value through other comprehensive
income (FVOCI)
|
|
-
|
1
|
|
Other income
|
|
1
|
9
|
|
|
|
378
|
449
|
|
Finance costs (excluding remeasurements)
|
|
|
|
|
Interest expense on financial liabilities held at amortised
cost:
|
|
|
|
|
Bank
loans and overdrafts
|
|
(115)
|
(110)
|
|
Other borrowings1
|
|
(1,591)
|
(1,553)
|
|
Interest on derivatives
|
|
(229)
|
(285)
|
|
Unwinding of discount on provisions and other payables
|
|
(123)
|
(130)
|
|
Other interest
|
|
(15)
|
(26)
|
|
Less: interest capitalised2
|
|
424
|
294
|
|
|
|
(1,649)
|
(1,810)
|
|
Remeasurements - Finance income
|
|
|
|
|
Net gains on FVTPL financial assets
|
|
2
|
1
|
|
|
|
2
|
1
|
|
Remeasurements - Finance costs
|
|
|
|
|
Net (losses)/gains on financing derivatives³
|
|
|
|
|
Derivatives
designated as hedges for hedge accounting
|
|
(24)
|
4
|
|
Derivatives
not designated as hedges for hedge accounting
|
|
(32)
|
(1)
|
|
|
|
(56)
|
3
|
|
Total remeasurements - Finance income and costs
|
|
(54)
|
4
|
|
|
|
|
|
|
Finance income
|
|
380
|
450
|
|
Finance costs4
|
|
(1,705)
|
(1,807)
|
|
|
|
|
|
|
Net finance costs from continuing operations
|
|
(1,325)
|
(1,357)
|
1.
Includes
interest expense on lease liabilities.
2.
Interest
on funding attributable to assets in the course of construction in
the current year was capitalised at a rate of 4.4% (2025: 4.3%). In
the UK, capitalised interest qualifies for a current year tax
deduction with tax relief claimed of £65 million (2025:
£39 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 loss on borrowing and investment activities
of £711 million (2025: £241 million gain) offset by
foreign exchange gains and losses on financing derivatives measured
at fair value and the impacts of hedge accounting.
4.
Finance
costs include principal accretion on inflation-linked liabilities
of £168 million (2025: £152 million).
6. Tax
Tax charged to the consolidated income statement - continuing
operations
|
|
2026
|
2025
|
|
|
£m
|
£m
|
|
Tax before exceptional items and remeasurements
|
955
|
861
|
|
Total tax reported within exceptional items and
remeasurements
|
(16)
|
(40)
|
|
Total tax charge from continuing operations
|
939
|
821
|
Tax as a percentage of profit before tax - continuing
operations
|
|
2026
|
2025
|
|
|
%
|
%
|
|
Before exceptional items and remeasurements -
continuing operations
|
24.8
|
24.7
|
|
After exceptional items and remeasurements -
continuing operations
|
22.5
|
22.5
|
|
|
2026
|
2025
|
|
|
£m
|
£m
|
|
Current tax:
|
|
|
|
UK
corporation tax at 25% (2025: 25%)
|
9
|
66
|
|
UK
corporation tax adjustment in respect of prior years
|
(4)
|
(36)
|
|
|
5
|
30
|
|
Overseas
corporation tax
|
9
|
47
|
|
Overseas
corporation tax adjustment in respect of prior years
|
(168)
|
(39)
|
|
|
(159)
|
8
|
|
Total current tax from continuing operations
|
(154)
|
38
|
|
Deferred tax:
|
|
|
|
UK
deferred tax
|
642
|
524
|
|
UK
deferred tax adjustment in respect of prior years
|
(7)
|
25
|
|
|
635
|
549
|
|
Overseas
deferred tax
|
289
|
195
|
|
Overseas
deferred tax adjustment in respect of prior years
|
169
|
39
|
|
|
458
|
234
|
|
Total deferred tax from continuing operations
|
1,093
|
783
|
|
|
|
|
|
Total tax charge from continuing operations
|
939
|
821
|
Factors that may affect future tax charges
The main UK corporation tax rate is 25% and deferred tax balances
as at 31 March 2026 have been calculated at 25%.
There are currently no legislative federal tax proposals being
considered in the US that would impact National Grid. Therefore,
the income tax balances as of 31 March 2026 have been calculated at
the prevailing tax rates based on the current tax
laws.
7. Earnings per share (EPS)
Adjusted earnings and EPS, which exclude exceptional items and
remeasurements, are provided to reflect the adjusted profit
subtotals used by the Company. For further details of exceptional
items and remeasurements, see note 4. We have included
reconciliations from this additional EPS measure to earnings for
both basic and diluted EPS to provide additional detail
for these items. The EPS 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
|
|
|
2026
|
2026
|
2025
|
2025
|
|
|
£m
|
pence
|
£m
|
pence
|
|
Adjusted earnings from continuing operations
|
2,892
|
58.5
|
2,615
|
55.6
|
|
Exceptional items and remeasurements after tax from
continuing operations
(see note 4)
|
349
|
7.0
|
211
|
4.4
|
|
Earnings from continuing operations
|
3,241
|
65.5
|
2,826
|
60.0
|
|
Adjusted earnings from discontinued operations (see note
9)
|
-
|
-
|
4
|
-
|
|
Exceptional items and remeasurements after tax
from discontinued operations
|
-
|
-
|
72
|
1.6
|
|
Earnings from discontinued operations
|
-
|
-
|
76
|
1.6
|
|
Total adjusted earnings
|
2,892
|
58.5
|
2,619
|
55.6
|
|
Total exceptional items and remeasurements after tax
(including discontinued operations)
|
349
|
7.0
|
283
|
6.0
|
|
Total earnings
|
3,241
|
65.5
|
2,902
|
61.6
|
|
|
|
|
|
|
|
|
|
2026
|
|
2025
|
|
|
|
millions
|
|
millions
|
|
Weighted average number of ordinary shares -
basic
|
|
4,946
|
|
4,707
|
(b) Diluted EPS
|
|
Earnings
|
EPS
|
Earnings
|
EPS
|
|
|
2026
|
2026
|
2025
|
2025
|
|
|
£m
|
pence
|
£m
|
pence
|
|
Adjusted earnings from continuing operations
|
2,892
|
58.2
|
2,615
|
55.4
|
|
Exceptional items and remeasurements after tax from
continuing operations
(see note 4)
|
349
|
7.0
|
211
|
4.4
|
|
Earnings from continuing operations
|
3,241
|
65.2
|
2,826
|
59.8
|
|
Adjusted earnings from discontinued operations
|
-
|
-
|
4
|
-
|
|
Exceptional items and remeasurements after tax from
discontinued operations
(see note 9)
|
-
|
-
|
72
|
1.6
|
|
Earnings from discontinued operations
|
-
|
-
|
76
|
1.6
|
|
Total adjusted earnings
|
2,892
|
58.2
|
2,619
|
55.4
|
|
Total exceptional items and remeasurements after tax
(including discontinued operations)
|
349
|
7.0
|
283
|
6.0
|
|
Total earnings
|
3,241
|
65.2
|
2,902
|
61.4
|
|
|
|
|
|
|
|
|
|
2026
|
|
2025
|
|
|
|
millions
|
|
millions
|
|
Weighted average number of ordinary shares -
diluted
|
|
4,971
|
|
4,729
|
8. Dividends
Interim dividends are recognised when they become payable to the
Company's shareholders. Final dividends are recognised when they
are approved by shareholders.
|
|
2026
|
|
2025
|
||||
|
|
Pence
per share
|
Cash dividend
£m
|
Scrip dividend
£m
|
|
Pence
per share
|
Cash
dividend
£m
|
Scrip dividend
£m
|
|
Final dividend in respect of the prior year
|
30.88
|
894
|
617
|
|
39.12
|
811
|
643
|
|
Interim dividend in respect of the current year
|
16.35
|
729
|
80
|
|
15.84
|
718
|
59
|
|
|
47.23
|
1,623
|
697
|
|
54.96
|
1,529
|
702
|
The Directors are proposing a final dividend for the year ended 31
March 2026 of 32.14p per share that would absorb approximately
£1,598 million of shareholders' equity (assuming all
amounts are settled in cash). It will be paid on 23 July
2026 to shareholders who are on the register of members
at 29 May 2026 (subject to shareholders' approval at
the AGM). A scrip dividend will be offered as
an alternative.
9. Assets held for sale and discontinued
operations
Assets and businesses are classified as held for sale when their
carrying amounts are recovered through sale rather than through
continuing use. They only meet the held for sale condition
when the assets are ready for immediate sale in their present
condition, management is committed to the sale and it is highly
probable that the sale will complete within one year. Once
assets and businesses are classified as held for sale, depreciation
and equity accounting ceases and the assets and businesses are
remeasured if their carrying value exceeds their fair value less
expected costs to sell.
The results and cash flows of assets or businesses classified as
held for sale or sold during the year, that meet the criteria of
being a major separate line of business or geographical area of
operation, are shown separately from our continuing operations, and
presented within discontinued operations in the income statement
and cash flow statement.
National Grid Renewables
On 24 February 2025, the Group agreed to sell NG Renewables, its US
onshore renewables business, to Brookfield Asset Management.
The disposal subsequently completed on 29 May 2025 for
consideration of £1,531 million ($2,061 million). As NG
Renewables did not represent a separate major line of business or
geographical operation, it did not meet the criteria for
classification as discontinued operations and therefore the results
for the period until disposal are not separately disclosed on the
face of the income statement.
Financial information relating to the loss arising on the disposal
of NG Renewables is set out below:
|
|
|
£m
|
|
Goodwill
|
|
51
|
|
Property, plant and equipment
|
|
438
|
|
Investment in joint venture
|
|
906
|
|
Trade and other receivables
|
|
141
|
|
Cash and cash equivalents
|
|
58
|
|
Financial investments
|
|
41
|
|
Other assets
|
|
66
|
|
Total assets on disposal
|
|
1,701
|
|
Borrowings
|
|
(2)
|
|
Other liabilities
|
|
(159)
|
|
Total liabilities on disposal
|
|
(161)
|
|
Net assets on disposal
|
|
1,540
|
|
|
|
|
|
Satisfied by:
|
|
|
|
Proceeds
|
|
1,531
|
|
Total consideration
|
|
1,531
|
|
|
|
|
|
Less:
|
|
|
|
Disposal-related costs
|
|
(11)
|
|
Loss on disposal before tax and reclassification of foreign
currency translation reserve
|
|
(20)
|
|
|
|
|
|
Reclassification of foreign currency translation
reserve¹
|
|
(76)
|
|
Tax
|
|
5
|
|
Post-tax loss on disposal
|
|
(91)
|
1.
The
reclassification of the foreign currency translation reserve
attributable to NG Renewables comprises a loss of £84 million
relating to the retranslation of NG Renewables' operations offset
by a gain of £8 million relating to borrowings, cross-currency
swaps and foreign exchange forward contracts used to hedge the
Group's net investment in NG Renewables.
NG Renewables generated a loss after tax of £14 million
for the period until 29 May 2025 (2025: £60 million
loss).
9. Assets held for sale
and discontinued operations continued
Grain LNG
On 14 August 2025, the Group agreed to sell Grain LNG, its UK LNG
asset, to a consortium of multinational energy companies, Centrica
plc and energy transition infrastructure investment firm,
Energy Capital Partners LLC, part of Bridgepoint Group plc.
The disposal subsequently completed on 28 November 2025.
As Grain LNG did not represent a separate major line of
business or geographical operation, it did not meet the criteria
for classification as discontinued operations and therefore the
results for the period until disposal are not separately
disclosed on the face of the income statement.
The Group has recognised a £124 million liability as an
adjustment to the consideration under the Sale and Purchase
Agreement for post closing capital project obligations based on
management's best estimate of the expected outflow. Given the
inherent complexity of the project, and the number of parties
involved, the Group has considered a range of potential outcomes,
including the risk that costs could exceed our estimates.
The Group has concluded the risk of a materially adverse
impact to our operations, cash flows or financial position is
remote.
Financial information relating to the gain arising on the disposal
of Grain LNG is set out below:
|
|
£m
|
|
Other intangible assets
|
27
|
|
Property, plant and equipment
|
962
|
|
Trade and other receivables
|
27
|
|
Cash and cash equivalents
|
163
|
|
Other assets
|
20
|
|
Total assets on disposal
|
1,199
|
|
Borrowings
|
(135)
|
|
Other liabilities
|
(196)
|
|
Total liabilities on disposal
|
(331)
|
|
Net assets on disposal
|
868
|
|
|
|
|
Satisfied by:
|
|
|
Proceeds
|
1,375
|
|
Total consideration
|
1,375
|
|
|
|
|
Less:
|
|
|
Disposal-related costs
|
(18)
|
|
Gain on disposal
|
489
|
Grain LNG generated a profit after tax of £89 million for
the period until 28 November 2025 (2025:
£120 million).
9. Assets held for sale
and discontinued operations continued
The UK Gas Transmission business
In July 2024, the Group sold its remaining 20% equity interest in
the UK Gas Transmission business (held through its holding in
GasT TopCo Limited). This interest had been classified as held for
sale from 31 January 2023 until the date of disposal, as
detailed in the Annual Report and Accounts for the year ended
31 March 2025. The total sales proceeds were
£686 million and the gain on disposal, after transaction
costs, was £25 million.
The disposal of the Group's remaining interest in GasT TopCo
Limited was the final stage of the plan to dispose of the UK Gas
Transmission business first announced in 2021. As a result,
the gain on disposal and any remeasurements pertaining to the
financial derivatives noted above are shown separately from
the continuing business for all periods presented on the face
of the income statement as a discontinued operation. This is
also reflected in the statement of comprehensive income, as
well as earnings per share (EPS) being shown split between
continuing and discontinued operations.
The summary income statement for the year ended 31 March 2025 is as
follows:
|
|
Before exceptional items and remeasurements
|
|
Exceptional items and remeasurements
|
|
Total
|
|
|
£m
|
|
£m
|
|
£m
|
|
Operating profit
|
-
|
|
-
|
|
-
|
|
Finance income
|
5
|
|
-
|
|
5
|
|
Finance costs1
|
-
|
|
47
|
|
47
|
|
Profit before tax
|
5
|
|
47
|
|
52
|
|
Tax
|
(1)
|
|
-
|
|
(1)
|
|
Profit after tax from discontinued operations
|
4
|
|
47
|
|
51
|
|
Gain/(loss) on disposal
|
-
|
|
25
|
|
25
|
|
Total profit after tax from discontinued operations
|
4
|
|
72
|
|
76
|
1.
Exceptional finance costs included the remeasurement of the
Further Acquisition Agreement option and the Remaining Acquisition
Agreement, as detailed in the Annual Report and Accounts for the
year ended 31 March 2025.
The summary statement of comprehensive income for the year ended 31
March 2025 is as follows:
|
|
£m
|
|
Profit after tax from discontinued operations
|
76
|
|
Other comprehensive (loss)/income from discontinued
operations
|
|
|
Items from discontinued operations that may be reclassified
subsequently to profit or loss:
|
|
|
Net (losses)/gains on investments in debt instruments measured at
fair value through other comprehensive income
|
(13)
|
|
Tax on items that may be reclassified subsequently to profit or
loss
|
3
|
|
Total (losses)/gains from discontinued operations that may be
reclassified subsequently
to profit or loss
|
(10)
|
|
Other comprehensive (loss)/income for the year, net of tax from
discontinued operations
|
(10)
|
|
Total comprehensive income for the year from discontinued
operations
|
66
|
Details of the cash flows relating to discontinued operations are
set out within the consolidated cash
flow statement.
10. Pensions and other post-retirement benefit
obligations
|
|
2026
|
2025
|
|
|
£m
|
£m
|
|
Present value of funded obligations
|
(15,098)
|
(16,154)
|
|
Fair value of plan assets
|
17,780
|
18,441
|
|
|
2,682
|
2,287
|
|
Present value of unfunded obligations
|
(247)
|
(247)
|
|
Other post-employment liabilities
|
(44)
|
(47)
|
|
|
2,391
|
1,993
|
|
Restrictions on asset recognised
|
(244)
|
(77)
|
|
Net defined benefit asset
|
2,147
|
1,916
|
|
Represented by:
|
|
|
|
Liabilities
|
(360)
|
(573)
|
|
Assets
|
2,507
|
2,489
|
|
|
2,147
|
1,916
|
The net pensions and other post-retirement benefit obligations
position, as recorded under IAS 19, at 31 March
2026 was a net
asset of £2,147 million compared to a
net asset of £1,916 million at 31
March 2025. The movement
of £231 million reflects falls in gross asset
values, partially offset by changes in UK and US financial
assumptions that resulted in a decrease in
liabilities.
Actuarial Assumptions:
|
|
UK pensions
|
|
US pensions
|
|
US other
post-retirement benefits
|
|||
|
|
2026
|
2025
|
|
2026
|
2025
|
|
2026
|
2025
|
|
|
%
|
%
|
|
%
|
%
|
|
%
|
%
|
|
Discount rate - past service
|
6.00
|
5.73
|
|
5.60
|
5.50
|
|
5.60
|
5.50
|
|
Discount rate - future service
|
6.35
|
5.95
|
|
5.60
|
5.50
|
|
5.60
|
5.50
|
|
Rate of increase in RPI - past service
|
3.17
|
2.99
|
|
n/a
|
n/a
|
|
n/a
|
n/a
|
|
Rate of increase in RPI - future service
|
3.06
|
2.85
|
|
n/a
|
n/a
|
|
n/a
|
n/a
|
|
Salary increases
|
3.32
|
3.08
|
|
4.50
|
4.50
|
|
4.50
|
4.50
|
|
Initial healthcare cost trend rate
|
n/a
|
n/a
|
|
n/a
|
n/a
|
|
7.10
|
7.80
|
|
Ultimate healthcare cost trend rate
|
n/a
|
n/a
|
|
n/a
|
n/a
|
|
4.50
|
4.50
|
11. Net debt
Net debt is comprised as follows:
|
|
2026
|
2025
|
|
|
£m
|
£m
|
|
Cash and cash equivalents
|
375
|
1,178
|
|
Current financial investments
|
2,453
|
5,753
|
|
Borrowings
|
(46,755)
|
(47,539)
|
|
Financing derivatives1
|
(233)
|
(763)
|
|
|
(44,160)
|
(41,371)
|
1.
The derivatives balance included in net debt excludes the
commodity derivative liabilities of £53 million (2025: assets
of £43 million).
12. Reconciliation of net cash flow to movement in net
debt
|
|
2026
|
2025
|
|
|
£m
|
£m
|
|
(Decrease)/increase in cash and cash equivalents
|
(948)
|
765
|
|
(Decrease)/increase in financial investments
|
(3,516)
|
2,274
|
|
Decrease in borrowings
|
2,785
|
429
|
|
Increase in related derivatives1
|
210
|
352
|
|
Change in debt resulting from cash flows
|
(1,469)
|
3,820
|
|
Changes in fair value of financial assets and liabilities and
exchange movements
|
457
|
756
|
|
Net interest charge on the components of net debt
|
(1,705)
|
(1,610)
|
|
Other non-cash movements
|
(223)
|
(207)
|
|
Movement in net debt (net of related derivative financial
instruments) in the year
|
(2,940)
|
2,759
|
|
Net debt (net of related derivative financial instruments) at start
of year
|
(41,371)
|
(43,607)
|
|
Reclassification to held for sale
|
151
|
(523)
|
|
Net debt (net of related derivative financial instruments) at end
of year
|
(44,160)
|
(41,371)
|
1.
The
derivatives balance included in net debt excludes the commodity
derivative liabilities of £53 million (2025: assets of
£43 million).
|
|
2026
|
|
2025
|
||
|
|
Borrowings
and other
£m
|
Financing
derivatives
£m
|
|
Borrowings
and other
£m
|
Financing
derivatives
£m
|
|
Cash flows per financing activities section of cash flow
statement:
|
|
|
|
|
|
|
Proceeds
received from loans
|
4,172
|
-
|
|
3,237
|
-
|
|
Repayment
of loans
|
(2,961)
|
-
|
|
(2,861)
|
-
|
|
Payments
of lease liabilities
|
(145)
|
-
|
|
(130)
|
-
|
|
Net
movements in short-term borrowings
|
(2,225)
|
-
|
|
925
|
-
|
|
Cash
inflows on derivatives
|
-
|
93
|
|
-
|
62
|
|
Cash
outflows on derivatives
|
-
|
(38)
|
|
-
|
(106)
|
|
Interest
paid
|
(1,659)
|
(273)
|
|
(1,608)
|
(312)
|
|
Cash flows per financing activities section of cash flow
statement
|
(2,818)
|
(218)
|
|
(437)
|
(356)
|
|
Adjustments:
|
|
|
|
|
|
|
Non-net
debt-related items
|
33
|
-
|
|
8
|
-
|
|
Derivative
cash (outflow)/inflow in relation to capital
expenditure
|
-
|
(5)
|
|
-
|
(9)
|
|
Derivative
cash (outflow)/inflow included in revenue
|
-
|
(1)
|
|
-
|
8
|
|
Derivative
cash inflows per investing section of cash flow
statement
|
-
|
20
|
|
-
|
11
|
|
Derivative
cash outflows per investing section of cash flow
statement
|
-
|
(6)
|
|
-
|
(6)
|
|
Cash flows relating to financing liabilities within net
debt
|
(2,785)
|
(210)
|
|
(429)
|
(352)
|
|
|
|
|
|
|
|
|
Analysis of changes in net debt:
|
|
|
|
|
|
|
Borrowings
|
(2,785)
|
-
|
|
(429)
|
-
|
|
Financing
derivatives
|
-
|
(210)
|
|
-
|
(352)
|
|
Cash flow movements relating to financing liabilities within net
debt
|
(2,785)
|
(210)
|
|
(429)
|
(352)
|
13. Post balance sheet events
On 13 April 2026, National Grid North America Inc. entered into a
10-year loan of $864.9 million, with the proceeds received on
21 April 2026. As the loan was entered into after the reporting
date, it has not been reflected in the consolidated statement of
financial position as at 31 March 2026.
Alternative performance measures/
non-IFRS reconciliations
Within the Annual Report, a number of financial measures are
presented. 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-GAAP 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: net revenue, the various adjusted operating
profit, earnings and earnings per share metrics detailed in the
'adjusted profit measures' section below, net debt, funds from
operations (FFO), FFO interest cover and retained cash flow
(RCF)/adjusted net debt. 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 year 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.
We also have a number of APMs derived from regulatory measures
which have no basis under IFRS; we call these Regulatory
Performance Measures (RPMs). They comprise: Group RoE, operating
company RoE, regulated asset base, regulated financial performance,
regulatory gearing, asset growth and regulated asset growth. These
measures include the inputs used by utility regulators
to set the allowed revenues for many of
our businesses.
We use RPMs to monitor progress against our regulatory agreements
and certain aspects of our strategic objectives. Further, targets
for certain of these performance measures are included in the
Company's APP and LTPP and contribute to how we reward our
employees. As such, we believe that they provide close correlation
to the economic value we generate for our shareholders and are
therefore important supplemental measures for our shareholders to
understand the performance of the business and to ensure a
complete understanding of Group performance.
As the starting point for our RPMs is not IFRS, and these measures
are not governed by IFRS, we are unable to provide meaningful
reconciliations to any directly comparable IFRS measures, as
differences between IFRS and the regulatory recognition rules
applied have built up over many years. Instead, for each of these
we present an explanation of how the measure has been determined
and why it is important, and an overview as to why
it would not be meaningful to provide a reconciliation to
IFRS.
Alternative performance measures
Net revenue and underlying net revenue
'Net revenue' is revenue less pass-through costs, such as UK 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 charges that are designed to recover those costs
with no profit. Where revenue received or receivable exceeds
the maximum amount permitted by our regulatory agreement,
adjustments will be made to future prices to reflect this
over-recovery. No liability is recognised, as such an adjustment to
future prices relates to the provision of future services.
Similarly, no asset is recognised where a regulatory agreement
permits adjustments to be made to future prices in respect of an
under-recovery. 'Underlying net revenue' further adjusts net
revenue to remove 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 in NGET and certain other
adjustments).
|
Year ended 31 March 2026
|
Gross
revenue
£m
|
Pass-
through
costs
£m
|
Net revenue
£m
|
Timing
£m
|
Underlying
net revenue
£m
|
|
UK Electricity Transmission
|
2,898
|
(391)
|
2,507
|
77
|
2,584
|
|
UK Electricity Distribution
|
1,937
|
(184)
|
1,753
|
116
|
1,869
|
|
New England
|
4,174
|
(1,451)
|
2,723
|
(94)
|
2,629
|
|
New York
|
7,618
|
(3,113)
|
4,505
|
537
|
5,042
|
|
National Grid Ventures
|
1,098
|
-
|
1,098
|
-
|
1,098
|
|
Other
|
97
|
-
|
97
|
-
|
97
|
|
Sales between segments
|
(135)
|
-
|
(135)
|
-
|
(135)
|
|
Total
|
17,687
|
(5,139)
|
12,548
|
636
|
13,184
|
|
Year ended 31 March 2025
|
Gross
revenue
£m
|
Pass-
through
costs
£m
|
Net revenue
£m
|
Timing
£m
|
Underlying
net revenue
£m
|
|
UK Electricity Transmission
|
2,619
|
(455)
|
2,164
|
151
|
2,315
|
|
UK Electricity Distribution
|
2,424
|
(185)
|
2,239
|
(407)
|
1,832
|
|
UK Electricity System Operator
|
1,029
|
(1,217)
|
(188)
|
479
|
291
|
|
New England
|
4,306
|
(1,658)
|
2,648
|
(61)
|
2,587
|
|
New York
|
6,689
|
(2,487)
|
4,202
|
343
|
4,545
|
|
National Grid Ventures
|
1,397
|
-
|
1,397
|
-
|
1,397
|
|
Other
|
122
|
-
|
122
|
-
|
122
|
|
Sales between segments
|
(208)
|
-
|
(208)
|
-
|
(208)
|
|
Total
|
18,378
|
(6,002)
|
12,376
|
505
|
12,881
|
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 pages 14 to 27 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. This is a measure used by management that is
used to derive part of the incentive target set annually for
remunerating certain Executive Directors, and further details of
these items are included in note 4.
Underlying results: Further adapts our adjusted results for
continuing operations 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 certain totex-related
allowances in NGET and adjustments or allowances for pension
deficit contributions). For 2025/26, as highlighted below, our
underlying results exclude £636 million (2024/25: £505
million) of timing differences, but did include $52 million
(£39 million) of major storm costs (net of in-year allowances
and deductibles) as in the current year these did not exceed our
$100 million threshold to be excluded from underlying results. In
2024/25 we incurred $110 million (£87 million) of major storm
costs (net of in-year allowances) which were excluded from our
underlying results. We expect to recover major storm costs incurred
through regulatory mechanisms in the US. Underlying results also
exclude deferred tax in our UK regulated businesses (NGET and
NGED). Our UK regulated revenues 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.
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 average US dollar exchange
rate for the year ended 31 March 2026, which
was $1.34 to £1.00. The average rate for the year
ended 31 March 2025, was $1.27 to £1.00. Assets
and liabilities as at 31 March 2025 have been
retranslated at the closing rate at 31 March
2026 of $1.32 to £1.00. The closing rate for
the reporting date 31 March 2025 was $1.29 to
£1.00.
Reconciliation of statutory, adjusted and underlying profits from
continuing operations
at actual exchange rates
|
Year ended 31 March 2026
|
Statutory
£m
|
Exceptionals and remeasurements
£m
|
Adjusted
£m
|
Timing
£m
|
Major storm costs
£m
|
Deferred tax on underlying profits in
NGET and NGED
£m
|
Underlying
£m
|
|
UK Electricity Transmission
|
1,605
|
-
|
1,605
|
77
|
-
|
-
|
1,682
|
|
UK Electricity Distribution
|
1,122
|
-
|
1,122
|
116
|
-
|
-
|
1,238
|
|
New England
|
947
|
13
|
960
|
(94)
|
-
|
-
|
866
|
|
New York
|
1,184
|
(12)
|
1,172
|
537
|
-
|
-
|
1,709
|
|
National Grid Ventures
|
715
|
(388)
|
327
|
-
|
-
|
-
|
327
|
|
Other
|
(142)
|
-
|
(142)
|
-
|
-
|
-
|
(142)
|
|
Total operating profit
|
5,431
|
(387)
|
5,044
|
636
|
-
|
-
|
5,680
|
|
Net finance costs
|
(1,325)
|
54
|
(1,271)
|
-
|
-
|
-
|
(1,271)
|
|
Share of post-tax results of joint ventures and
associates
|
76
|
-
|
76
|
-
|
-
|
-
|
76
|
|
Profit before tax
|
4,182
|
(333)
|
3,849
|
636
|
-
|
-
|
4,485
|
|
Tax
|
(939)
|
(16)
|
(955)
|
(168)
|
-
|
499
|
(624)
|
|
Profit after tax
|
3,243
|
(349)
|
2,894
|
468
|
-
|
499
|
3,861
|
|
Year ended 31 March 2025
|
Statutory
£m
|
Exceptionals and remeasurements
£m
|
Adjusted
£m
|
Timing
£m
|
Major storm costs
£m
|
Deferred tax on underlying profits in
NGET and NGED
£m
|
Underlying
£m
|
|
UK Electricity Transmission
|
1,277
|
-
|
1,277
|
151
|
-
|
-
|
1,428
|
|
UK Electricity Distribution
|
1,598
|
12
|
1,610
|
(407)
|
-
|
-
|
1,203
|
|
UK Electricity System Operator
|
(213)
|
(151)
|
(364)
|
479
|
-
|
-
|
115
|
|
New England
|
1,008
|
(26)
|
982
|
(61)
|
3
|
-
|
924
|
|
New York
|
1,269
|
(246)
|
1,023
|
343
|
84
|
-
|
1,450
|
|
National Grid Ventures
|
5
|
375
|
380
|
-
|
-
|
-
|
380
|
|
Other
|
(10)
|
(133)
|
(143)
|
-
|
-
|
-
|
(143)
|
|
Total operating profit
|
4,934
|
(169)
|
4,765
|
505
|
87
|
-
|
5,357
|
|
Net finance costs
|
(1,357)
|
(4)
|
(1,361)
|
-
|
-
|
-
|
(1,361)
|
|
Share of post-tax results of joint ventures and
associates
|
73
|
2
|
75
|
-
|
-
|
-
|
75
|
|
Profit before tax
|
3,650
|
(171)
|
3,479
|
505
|
87
|
-
|
4,071
|
|
Tax
|
(821)
|
(40)
|
(861)
|
(133)
|
(23)
|
401
|
(616)
|
|
Profit after tax
|
2,829
|
(211)
|
2,618
|
372
|
64
|
401
|
3,455
|
Operating profit exceptional items and remeasurements split by
segment
|
Year ended 31 March 2026
|
Net loss on disposal of NG Renewables
|
Net gain on sale of LNG Grain
|
Environmental provision
|
Major transformation programme
|
Transaction, separation and integration costs
|
Exceptional impairment
|
Commodity remeasurements
|
Exceptionals and remeasurements
|
|
UK Electricity Transmission
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
UK Electricity Distribution
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
UK Electricity System Operator
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
New England
|
-
|
-
|
-
|
-
|
-
|
-
|
(13)
|
(13)
|
|
New York
|
-
|
-
|
-
|
-
|
-
|
-
|
12
|
12
|
|
National Grid Ventures
|
(96)
|
489
|
-
|
-
|
(17)
|
-
|
12
|
388
|
|
Other
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Total operating profit exceptional items and
remeasurements
|
(96)
|
489
|
-
|
-
|
(17)
|
-
|
11
|
387
|
|
Year ended 31 March 2025
|
ESO BSUoS provision
|
Gain on disposal of UK ESO
|
Environmental provision
|
Major transformation programme
|
Transaction, separation and integration costs
|
Exceptional impairment
|
Commodity remeasurements
|
Exceptionals and remeasurements
|
|
UK Electricity Transmission
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
UK Electricity Distribution
|
-
|
-
|
-
|
(12)
|
-
|
-
|
-
|
(12)
|
|
UK Electricity System Operator
|
151
|
-
|
-
|
-
|
-
|
-
|
-
|
151
|
|
New England
|
-
|
-
|
4
|
(7)
|
-
|
-
|
29
|
26
|
|
New York
|
-
|
-
|
142
|
(9)
|
-
|
-
|
113
|
246
|
|
National Grid Ventures
|
-
|
-
|
-
|
-
|
(57)
|
(303)
|
(15)
|
(375)
|
|
Other
|
-
|
187
|
-
|
(46)
|
(8)
|
-
|
-
|
133
|
|
Total operating profit exceptional items and
remeasurements
|
151
|
187
|
146
|
(74)
|
(65)
|
(303)
|
127
|
169
|
Reconciliation of adjusted and underlying earnings from continuing
operations at constant currency
|
|
|
|
At constant currency
|
|||||
|
Year ended 31 March 2025
|
Adjusted
at actual exchange rate
|
|
Constant currency adjustment
|
Adjusted
|
Timing
|
Major storm costs
|
Deferred tax on underlying profits in
NGET and NGED
|
Underlying
|
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
UK Electricity Transmission
|
1,277
|
|
-
|
1,277
|
151
|
-
|
-
|
1,428
|
|
UK Electricity Distribution
|
1,610
|
|
-
|
1,610
|
(407)
|
-
|
-
|
1,203
|
|
UK Electricity System Operator
|
(364)
|
|
-
|
(364)
|
479
|
-
|
-
|
115
|
|
New England
|
982
|
|
(57)
|
925
|
(57)
|
3
|
-
|
871
|
|
New York
|
1,023
|
|
(58)
|
965
|
323
|
79
|
-
|
1,367
|
|
National Grid Ventures
|
380
|
|
-
|
380
|
-
|
-
|
-
|
380
|
|
Other
|
(143)
|
|
-
|
(143)
|
-
|
-
|
-
|
(143)
|
|
Total operating profit
|
4,765
|
|
(115)
|
4,650
|
489
|
82
|
-
|
5,221
|
|
Net finance costs
|
(1,361)
|
|
53
|
(1,308)
|
-
|
-
|
-
|
(1,308)
|
|
Share of post-tax results of joint ventures
and associates
|
75
|
|
(2)
|
73
|
-
|
-
|
-
|
73
|
|
Profit before tax
|
3,479
|
|
(64)
|
3,415
|
489
|
82
|
-
|
3,986
|
|
Tax
|
(861)
|
|
15
|
(846)
|
(130)
|
(20)
|
401
|
(595)
|
|
Profit after tax
|
2,618
|
|
(49)
|
2,569
|
359
|
62
|
401
|
3,391
|
|
Attributable to non-controlling interests
|
(3)
|
|
-
|
(3)
|
-
|
-
|
-
|
(3)
|
|
Earnings
|
2,615
|
|
(49)
|
2,566
|
359
|
62
|
401
|
3,388
|
|
Earnings per share (pence)
|
55.6
|
|
(1.1)
|
54.5
|
7.7
|
1.3
|
8.5
|
72.0
|
Earnings per share calculations from continuing
operations
The table below reconciles the profit after tax from continuing
operations as per the previous tables back to the earnings per
share from continuing operations for each of the adjusted profit
measures.
|
Year ended 31 March 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
|
3,243
|
(2)
|
3,241
|
4,946
|
65.5
|
|
Adjusted
|
2,894
|
(2)
|
2,892
|
4,946
|
58.5
|
|
Underlying
|
3,861
|
(2)
|
3,859
|
4,946
|
78.0
|
|
Year ended 31 March 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
|
2,829
|
(3)
|
2,826
|
4,707
|
60.0
|
|
Adjusted
|
2,618
|
(3)
|
2,615
|
4,707
|
55.6
|
|
Underlying
|
3,455
|
(3)
|
3,452
|
4,707
|
73.3
|
|
Underlying at constant currency
|
3,391
|
(3)
|
3,388
|
4,707
|
72.0
|
Timing and regulated revenue adjustments
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 we collect
more than the allowed revenue, adjustments will be made to future
prices to reflect this over-recovery, and if we collect less than
the allowed level of revenue, adjustments will be made to future
prices to reflect the under-recovery. 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. 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 of
$1.34 for the year ended 31 March 2026.
|
|
UK
Electricity Transmission
£m
|
UK
Electricity Distribution
£m
|
UK
Electricity System Operator
£m
|
New
England
£m
|
New
York
£m
|
Total
£m
|
|
1 April 2025 opening balance1
|
9
|
118
|
-
|
(368)
|
301
|
60
|
|
(Under)/over-recovery
|
(77)
|
(116)
|
-
|
94
|
(537)
|
(636)
|
|
31 March 2026 closing balance to
(recover)/return2
|
(68)
|
2
|
-
|
(274)
|
(236)
|
(576)
|
|
|
UK
Electricity Transmission
£m
|
UK
Electricity Distribution
£m
|
UK
Electricity System Operator
£m
|
New
England
£m
|
New
York
£m
|
Total
£m
|
|
1 April 2024 opening balance1
|
160
|
(282)
|
941
|
(425)
|
624
|
1,018
|
|
(Under)/over-recovery
|
(151)
|
407
|
(479)
|
57
|
(323)
|
(489)
|
|
Disposal
|
-
|
-
|
(462)
|
-
|
-
|
(462)
|
|
31 March 2025 closing balance to
(recover)/return2
|
9
|
125
|
-
|
(368)
|
301
|
67
|
1.
Opening
balances have been restated to reflect the finalisation of
calculated over/(under)-recoveries in both the UK and the US and
also adjusted for the regulatory time value of money impact on
opening balances, where appropriate, in the UK.
2.
The
closing balance at 31 March 2026 was £584 million
under-recovered (translated at the closing rate of $1.32:£1).
31 March 2025 was £65 million over-recovered (translated at
the closing rate of $1.29:£1).
Capital investment at constant currency
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
|
||||
|
Year ended 31 March
|
2026
|
2025
|
%
|
|
2026
|
2025
|
%
|
|
£m
|
£m
|
change
|
|
£m
|
£m
|
change
|
|
|
UK Electricity Transmission
|
4,372
|
2,999
|
46
|
|
4,372
|
2,999
|
46
|
|
UK Electricity Distribution
|
1,617
|
1,426
|
13
|
|
1,617
|
1,426
|
13
|
|
New England
|
2,043
|
1,751
|
17
|
|
2,043
|
1,650
|
24
|
|
New York
|
3,428
|
3,289
|
4
|
|
3,428
|
3,101
|
11
|
|
Capital investment (regulated networks)
|
11,460
|
9,465
|
21
|
|
11,460
|
9,176
|
25
|
|
National Grid Ventures
|
109
|
378
|
(71)
|
|
109
|
362
|
(70)
|
|
Other
|
7
|
4
|
75
|
|
7
|
4
|
75
|
|
Group capital investment - total
|
11,576
|
9,847
|
18
|
|
11,576
|
9,542
|
21
|
Capital expenditure
Capital expenditure (for the purposes of measuring green capex
aligned to the EU Taxonomy) comprises additions to property, plant
and equipment and intangible assets, but excludes capital
prepayments and equity contributions to joint ventures and
associates during the period.
|
|
2026
|
2025
|
|
£m
|
£m
|
|
|
Asset type:
|
|
|
|
Property,
plant and equipment
|
9,924
|
8,894
|
|
Non-current
intangible assets
|
693
|
478
|
|
Transfers
from prepayments
|
501
|
87
|
|
Group capital expenditure
|
11,118
|
9,459
|
|
Equity
investments in joint ventures and associates
|
27
|
116
|
|
Capital
expenditure prepayments
|
932
|
359
|
|
Transfers
to capital expenditure additions
|
(501)
|
(87)
|
|
Group capital investment
|
11,576
|
9,847
|
Net debt
See notes 11 and 12 for reconciliation of net debt.
Funds from operations and interest cover
FFO are the cash flows generated by the operations of the Group.
Credit rating metrics, including FFO, are used as indicators of
balance sheet strength.
|
Year ended 31 March
|
2026
|
2025¹
|
|
£m
|
£m
|
|
|
Interest expense (income statement)
|
1,649
|
1,810
|
|
Hybrid interest reclassified as dividend
|
(13)
|
(37)
|
|
Capitalised interest
|
424
|
294
|
|
Pensions interest adjustment
|
12
|
13
|
|
Unwinding of discount on provisions
|
(123)
|
(130)
|
|
Adjusted interest expense
|
1,949
|
1,950
|
|
Net cash inflow from operating activities
|
7,829
|
6,808
|
|
Interest received on financial instruments
|
231
|
332
|
|
Interest paid on financial instruments
|
(1,932)
|
(1,920)
|
|
Dividends received
|
105
|
126
|
|
Working capital adjustment
|
(632)
|
(104)
|
|
Excess employer pension contributions
|
16
|
26
|
|
Hybrid interest reclassified as dividend
|
13
|
37
|
|
Add back accretions
|
168
|
152
|
|
Difference in net interest expense in income statement
to cash flow
|
14
|
(45)
|
|
Difference in current tax in income statement to cash
flow
|
186
|
145
|
|
Current tax related to prior periods
|
(172)
|
-
|
|
Funds from operations (FFO)
|
5,826
|
5,557
|
|
FFO interest cover ((FFO + adjusted interest expense)/adjusted
interest expense)
|
4.0x
|
3.8x
|
1.
Numbers
for 2025 reflect the calculations for the total Group as based on
the published accounts for that year.
Funds from operations/adjusted net debt and retained cash
flow/adjusted net debt
FFO/adjusted net debt and RCF/adjusted net debt are credit metrics
that we monitor in order to ensure the Group is generating
sufficient cash to service its debts, consistent with maintaining a
strong investment-grade credit rating.
|
Year ended 31 March
|
2026
|
20251
|
|
£m
|
£m
|
|
|
Funds from operations (FFO)
|
5,826
|
5,557
|
|
Hybrid interest reclassified as dividend
|
(13)
|
(37)
|
|
Ordinary dividends paid to shareholders
|
(1,623)
|
(1,529)
|
|
RCF
|
4,190
|
3,991
|
|
Borrowings
|
46,755
|
47,539
|
|
Less:
|
|
|
|
50%
hybrid debt
|
(328)
|
(814)
|
|
Cash
and cash equivalents
|
(375)
|
(1,178)
|
|
Financial
and other investments
|
(1,370)
|
(5,156)
|
|
Underfunded pension obligations
|
237
|
247
|
|
Adjusted net debt (includes pension deficit)
|
44,919
|
40,638
|
|
FFO/adjusted net debt
|
13.0%
|
13.7%
|
|
RCF/adjusted net debt
|
9.3%
|
9.8%
|
1.
Numbers
for 2025 reflect the calculations for the total Group as based on
the published accounts for that year.
Regulatory performance measures
Regulated financial performance - UK
Regulatory financial performance is a pre-interest and tax measure,
starting at segmental operating profit and making adjustments (such
as the elimination of all pass-through items included in
revenue allowances and timing) to approximate regulatory profit for
the UK regulated activities. This measure provides a bridge
for investors between a well-understood and comparable IFRS
starting point and the key adjustments required to approximate
regulatory profit. This measure also provides the foundation to
calculate Group RoE.
Under the UK RIIO regulatory arrangements the Company is
incentivised to deliver efficiencies against cost targets set by
the regulator. In total, these targets are set in terms of a
regulatory definition of combined total operating and capital
expenditure, also termed 'totex'. The definition
of totex differs from the total combined regulated
controllable operating costs and regulated capital expenditure as
reported in this statement according to IFRS accounting
principles. Key differences are capitalised interest, capital
contributions, exceptional costs, costs covered by
other regulatory arrangements and unregulated
costs.
For the reasons noted above, the table below shows the principal
differences between the IFRS operating profit and the
regulated financial performance, but is not a formal reconciliation
to an equivalent IFRS measure.
UK Electricity Transmission
|
Year ended 31 March
|
2026
|
2025
|
|
£m
|
£m
|
|
|
Adjusted operating profit
|
1,605
|
1,277
|
|
Movement in regulatory 'IOUs'
|
278
|
256
|
|
UK regulatory notional deferred taxation adjustment
|
276
|
238
|
|
RAV indexation - 2% CPIH long-run inflation
|
410
|
368
|
|
Regulatory vs IFRS depreciation difference
|
(622)
|
(575)
|
|
Fast money/other
|
(435)
|
(261)
|
|
Performance RAV created
|
76
|
65
|
|
Regulated financial performance
|
1,588
|
1,368
|
UK Electricity Distribution
|
Year ended 31 March
|
2026
|
2025
|
|
£m
|
£m
|
|
|
Adjusted operating profit
|
1,122
|
1,610
|
|
Less non-regulated profits
|
(11)
|
(7)
|
|
Movement in regulatory 'IOUs'
|
131
|
(417)
|
|
UK regulatory notional deferred taxation adjustment
|
36
|
15
|
|
RAV indexation - 2% CPIH long-run inflation
|
245
|
230
|
|
Regulatory vs IFRS depreciation difference
|
(551)
|
(547)
|
|
Fast money/other
|
(72)
|
(46)
|
|
Performance RAV created
|
5
|
(1)
|
|
Regulated financial performance
|
905
|
837
|
UK Electricity System Operator
|
Year ended 31 March
|
2026
|
2025
|
|
£m
|
£m
|
|
|
Adjusted operating profit
|
-
|
(364)
|
|
Movement in regulatory 'IOUs'
|
-
|
479
|
|
UK regulatory notional deferred taxation adjustment
|
-
|
3
|
|
RAV indexation - 2% CPIH long-run inflation
|
-
|
9
|
|
Regulatory vs IFRS depreciation difference
|
-
|
(50)
|
|
Fast money/other
|
-
|
(44)
|
|
Regulated financial performance
|
-
|
33
|
Regulated financial performance - US
New England
|
Year ended 31 March
|
2026
|
2025
|
|
£m
|
£m
|
|
|
Adjusted operating profit
|
960
|
982
|
|
Major storm costs
|
-
|
3
|
|
Timing
|
(94)
|
(61)
|
|
US GAAP pension adjustment and other1
|
79
|
60
|
|
Regulated financial performance
|
945
|
984
|
1.
£2
million unfavourable COVID-19 bad debt provision adjustment
included in 2025 other.
New York
|
Year ended 31 March
|
2026
|
2025
|
|
£m
|
£m
|
|
|
Adjusted operating profit
|
1,172
|
1,023
|
|
Provision for bad and doubtful debts (COVID-19),
net of recoveries1
|
(37)
|
(47)
|
|
Major storm costs
|
-
|
84
|
|
Timing
|
537
|
343
|
|
US GAAP pension adjustment
|
43
|
48
|
|
Regulated financial performance
|
1,715
|
1,451
|
1.
New
York financial performance includes an adjustment reflecting our
expectation for future recovery of COVID-19 related provisions
for bad and doubtful debts.
Total regulated financial performance
|
Year ended 31 March
|
2026
|
2025
|
|
£m
|
£m
|
|
|
UK Electricity Transmission
|
1,588
|
1,368
|
|
UK Electricity Distribution
|
905
|
837
|
|
UK Electricity System Operator
|
-
|
33
|
|
New England
|
945
|
984
|
|
New York
|
1,715
|
1,451
|
|
Total regulated financial performance
|
5,153
|
4,673
|
New England and New York timing, major storms costs and movement in
UK regulatory 'IOUs' - Revenue related to performance in one
year may be recovered in later years. Where revenue
received or receivable exceeds the maximum amount permitted by
our regulatory agreement, adjustments will be made to future
prices to reflect this over-recovery. No liability is recognised
under IFRS, as such an adjustment to future prices
relates to the provision of future services. Similarly, no
asset is recognised under IFRS where a regulatory agreement permits
adjustments to be made to future prices in respect of an
under-recovery. In the UK, this is calculated as the movement in
other regulated assets and liabilities.
Performance RAV - UK performance efficiencies are in part
remunerated by the creation of additional RAV which is expected to
result in future earnings under regulatory arrangements. This is
calculated as in-year totex outperformance multiplied by the
appropriate regulatory capitalisation ratio and multiplied by the
retained company incentive sharing ratio.
Pension adjustment - Cash payments against pension deficits in the
UK are recoverable under regulatory contracts. In US regulated
operations, US GAAP pension charges are generally recoverable
through rates. Revenue recoveries are recognised under IFRS but
payments are not charged against IFRS operating profits in the
year. In the UK this is calculated as cash payments against the
regulatory proportion of pension deficits in the
UK regulated business, whereas in the US it is the difference
between IFRS and US GAAP pension charges.
2% CPIH RAV indexation - Future UK revenues are expected to be set
using an asset base adjusted for inflation. This is calculated
as UK RAV multiplied by 2% long-run CPIH inflation
assumption under RIIO-2.
Total regulated financial performance continued
UK regulatory notional deferred taxation adjustment - Future UK
revenues are expected to recover cash taxation cost including the
unwinding of deferred taxation balances created in the current
year. This is the difference between: (1) IFRS underlying EBITDA
less other regulatory adjustments; and (2) IFRS underlying EBITDA
less other regulatory adjustments less current taxation (adjusted
for interest tax shield) then grossed up at full UK
statutory tax rate.
Regulatory depreciation - US and UK regulated revenues include
allowance for a return of regulatory capital in accordance
with regulatory assumed asset lives. This return does not form part
of regulatory profit.
Fast/slow money adjustment - The regulatory remuneration of costs
incurred is split between in-year revenue allowances and the
creation of additional RAV. This does not align with the
classification of operating costs and fixed asset additions under
IFRS accounting principles. This is calculated as the
difference between IFRS classification of operating costs versus
fixed asset additions and the regulatory
classification.
Regulated asset base
The regulated asset base is a regulatory construct, based on
predetermined principles not based on IFRS. It effectively
represents the invested capital on which we are authorised to
earn a cash return. By investing efficiently in our networks, we
add to our regulated asset base over the long term, and
this in turn contributes to delivering shareholder value.
Our regulated asset base comprises our regulatory asset
value in the UK plus our rate base in the
US.
Maintaining efficient investment in our regulated asset base
ensures we are well positioned to provide consistently high levels
of service to our customers and increases our revenue
allowances in future years. While we have no specific target,
our overall aim is to achieve around 10% growth in regulated
asset base each year through continued investment in our networks
in both the UK and US.
In the UK, the way in which our transactions impact RAV is driven
by principles set out by Ofgem. In a number of key areas these
principles differ from the requirements of IFRS, including
areas such as additions and the basis for depreciation. Further,
our UK RAV is adjusted annually for inflation. RAV in each of
our retained UK businesses has evolved over the period since
privatisation in 1990 and, as a result, historical differences
between the initial determination of RAV and balances reported
under UK GAAP at that time still persist. In the case of UK ED,
differences arise as the result of acquisition fair value
adjustments (where PP&E at acquisition has been valued above
RAV). Due to the above, substantial differences exist
in the measurement bases between RAV and an IFRS
balance metric, and therefore it is not possible to provide a
meaningful reconciliation between the two.
In the US, rate base is a regulatory measure determined for each of
our main US operating companies. It represents the value of
property and other assets or liabilities on which we are permitted
to earn a rate of return, as set out by the regulatory authorities
for each jurisdiction. The calculations are based on the
applicable regulatory agreements for each jurisdiction and include
the allowable elements of assets and liabilities from our US
companies. For this reason, it is not practical to provide a
meaningful reconciliation from the US rate base to an
equivalent IFRS measure.
'Total regulated and other balances' for our UK regulated
businesses include the under- or over-recovery of allowances that
those businesses target to collect in any year, which
are based on the regulator's forecasts for that year. Under
the UK price control arrangements, revenues will be adjusted in
future years to take account of actual levels of collected
revenue, costs and outputs delivered when they differ from those
regulatory forecasts. In the US, other regulatory assets and
liabilities include regulatory assets and liabilities which are not
included in the definition of rate base, including working capital
where appropriate.
'Total regulated and other balances' for NGV and other businesses
includes assets and liabilities as measured under IFRS, but
excludes certain assets and liabilities such as pensions, tax,
net debt and goodwill.
Regulated asset base continued
|
|
RAV, rate base or
other business assets (for asset growth)
|
|
Total regulated
and other balances
|
||
|
As at 31 March
(£m at constant currency)
|
2026
|
2025¹
|
|
20262,3
|
20251,2,3
|
|
UK Electricity Transmission
|
23,847
|
20,525
|
|
23,786
|
20,186
|
|
UK Electricity Distribution
|
13,139
|
12,254
|
|
13,026
|
12,010
|
|
New England
|
10,289
|
9,198
|
|
12,059
|
11,060
|
|
New York
|
19,163
|
17,496
|
|
21,840
|
19,281
|
|
Total regulated
|
66,438
|
59,473
|
|
70,711
|
62,537
|
|
National Grid Ventures and
other business balances
|
5,545
|
7,266
|
|
3,955
|
6,477
|
|
Total Group regulated and other balances
|
71,983
|
66,739
|
|
74,666
|
69,014
|
1.
Figures
relating to prior periods have, where appropriate, been
re-presented at constant currency, for segmental reorganisation,
opening balance adjustments following the completion of the UK
regulatory reporting pack process and finalisation of US
balances.
2.
Includes
totex-related regulatory IOUs of £105 million (2025: £250
million) and under-recovered timing balances of £568 million
(2025: £62 million over-recovered).
3.
Includes
assets for construction work-in-progress of £3,084 million
(2025: £2,468 million), other regulatory assets related to
timing and other cost deferrals of £1,230 million (2025:
£1,087 million) and net working capital assets of £134
million (2025: £93 million net working capital
assets).
New England and New York rate base and other total regulated and
other balances for 31 March 2025 have been re-presented in the
table above at constant currency. At actual currency
the values were £11.3 billion and
£19.8 billion respectively.
Group return on equity (RoE)
Group RoE provides investors with a view of the performance of the
Group as a whole compared with the amounts invested by the
Group in assets attributable to equity shareholders.
It reflects the regulated activities as well as the
contribution from our non-regulated businesses together with joint
ventures and non-controlling interests. We use Group RoE to measure
our performance in generating value for our shareholders, and
targets for Group RoE are included in APP and LTPP
incentive mechanisms for Executive members. Group RoE is
underpinned by our regulated asset base. Goodwill and
indefinite-lived intangible assets are amortised in the denominator
over 20 years, to reflect the estimated period over which the value
related to the premium paid on acquisition would be realised. For
the reasons noted above, no reconciliation to IFRS has been
presented, as we do not believe it would
be practical.
Calculation: Regulatory
financial performance including a long-run inflation assumption (2%
CPIH for RIIO-2), less adjusted interest and adjusted taxation
divided by equity investment in assets:
–
adjusted
interest removes accretions above long-run inflation rates,
interest on pensions, capitalised interest in regulated operations
and unwind of discount rate on provisions;
–
adjusted
taxation adjusts the Group taxation charge (before exceptional
items and remeasurements) for differences between IFRS profit
before tax and regulated financial performance less adjusted
interest; and
–
equity
investment in assets is calculated as opening UK RAV, opening US
rate base, goodwill and indefinite-lived intangibles (adjusted for
'asset swap' transactions and the 'value realisation' of goodwill
over 20 years), plus opening net book value of NGV and other
activities (excluding certain pensions, tax and commodities
balances) and our share of JVs and associates, minus opening net
debt as reported under IFRS restated to the weighted average
sterling-dollar exchange rate for the year.
Group RoE
|
Year ended 31 March
|
2026
|
2025
|
|
£m
|
£m
|
|
|
Regulated financial performance
|
5,153
|
4,673
|
|
Operating profit of other activities - continuing
and discontinued operations
|
231
|
275
|
|
Group financial performance
|
5,384
|
4,948
|
|
Share of post-tax results of joint ventures and
associates1
|
76
|
100
|
|
Non-controlling interests
|
(2)
|
(3)
|
|
Adjusted total Group interest charge (including
discontinued)
|
(1,633)
|
(1,590)
|
|
Total Group tax charge (including discontinued)
|
(955)
|
(861)
|
|
Tax on adjustments
|
(4)
|
8
|
|
Total Group financial performance after interest and
tax
|
2,866
|
2,602
|
|
|
|
|
|
Opening rate base/RAV
|
59,071
|
55,326
|
|
Opening other balances
|
7,212
|
8,223
|
|
Opening RAV, rate base and other balances
|
66,283
|
63,549
|
|
Opening goodwill
|
11,145
|
11,430
|
|
Opening goodwill adjustment (realisation of value over 20
years)
|
(4,599)
|
(4,441)
|
|
Opening strategic pivot (asset swap) adjustment2
|
(3,387)
|
(3,450)
|
|
Opening capital employed
|
69,442
|
67,088
|
|
Opening net debt
|
(40,343)
|
(43,509)
|
|
Rights Issue adjustment (£6.8 billion net proceeds pro-rated
from June 2024)
|
-
|
5,471
|
|
Opening equity
|
29,099
|
29,050
|
|
Group RoE
|
9.8%
|
9.0%
|
1.
2026
includes £nil (2025: £25 million; 2024: £73 million)
in respect of the Group's minority interest in National Gas
Transmission, which was fully divested during 2024/25.
2.
The
regulatory gains on disposal of NECO and UK Gas Transmission
(proceeds received less RAV, rate base and other related balances
used to calculate the Group RoE denominator) deducted against IFRS
goodwill and indefinite-lived intangibles recognised on acquisition
of NGED. For this metric, the purchase of NGED and sales of NECO
and UK Gas Transmission were deemed to be linked transactions with
the opening equity reflecting the impact of these as asset swaps
rather than as unrelated transactions.
UK and US regulated RoE
|
Year ended 31 March
|
Regulatory Debt:
Equity assumption
|
|
Achieved Return
on Equity
|
|
Base or Allowed
Return on Equity
|
||
|
|
2026
%
|
2025
%
|
|
2026
%
|
2025
%
|
||
|
UK Electricity Transmission
|
55/45
|
|
8.2
|
8.3
|
|
7.2
|
7.3
|
|
UK Electricity Distribution
|
60/40
|
|
8.1
|
7.9
|
|
7.6
|
7.7
|
|
New England
|
Avg. 45/55
|
|
9.2
|
9.1
|
|
9.6
|
9.9
|
|
New York
|
Avg. 52/48
|
|
9.0
|
8.7
|
|
9.4
|
9.2
|
UK businesses' regulated RoEs
UK regulated businesses' RoEs are a measure of how the businesses
are performing against the assumptions used by our UK regulator.
These returns are calculated using the assumption that the
businesses are financed in line with the regulatory adjudicated
capital structure, at the cost of debt assumed by the regulator,
and that inflation is equal to a long-run assumption of 2% CPIH
under RIIO-2. They are calculated by dividing elements of
out/under-performance versus the regulatory contract (i.e.
regulated financial performance disclosed above) by
the average equity RAV in line with the regulatory
assumed capital structure and adding to the base allowed
RoE.
These are important measures of UK regulated businesses'
performance, and our operational strategy continues to focus on
these metrics. These measures can be used to determine how we
are performing under the RIIO framework and also help investors to
compare our performance with similarly regulated
UK entities. Reflecting the importance of these metrics, they
are also key components of the APP scheme.
The respective businesses' UK RoEs are underpinned by their RAVs.
For the reasons noted above, no reconciliation to IFRS has been
presented, as we do not believe it would
be practical.
US businesses' regulated RoEs
US regulated businesses' RoEs are a measure of how the businesses
are performing against the assumptions used by the US regulators.
This US operational return measure is calculated using
the assumption that the businesses are financed in line with the
regulatory adjudicated capital structure and allowed cost
of debt. The returns are divided by the average rate base (or where
a reported rate base is not available, an estimate based on
rate base calculations used in previous rate filings)
multiplied by the adjudicated equity portion in the regulatory
adjudicated capital structure.
These are important measures of our New England and New York
regulated businesses' performance, and our operational strategy
continues to focus on these metrics. This measure can be used
to determine how we are performing and also helps investors compare
our performance with similarly regulated US entities. Reflecting
the importance of these metrics, they are also key components of
the APP scheme.
The New England and New York businesses' returns are based on a
calculation which gives proportionately more weighting to those
businesses which have a greater rate base. For the reasons noted
above, no reconciliations to IFRS for the RoE measures have been
presented, as we do not believe it would be practical to reconcile
our IFRS balance sheet to the equity base.
UK and US regulated RoE continued
The table below shows the principal differences between the IFRS
result of the New England and New York segments, and the
'returns' used to derive their respective US jurisdictional
RoEs. In outlining these differences, we also include the
aggregated business results under US GAAP for New England
and New York jurisdictions.
In respect of 2024/25, this measure is the aggregate operating
profit of our US OpCo entities' publicly available financial
statements prepared under US GAAP for the New England and
New York jurisdictions respectively. For 2025/26, this measure
represents our current estimate, since local financial statements
have yet to be prepared.
|
|
2026
|
2025
|
|
|
£m
|
£m
|
|
Underlying IFRS operating profit for New England
segment
|
866
|
924
|
|
Underlying IFRS operating profit for New York segment
|
1,709
|
1,450
|
|
Weighted average £/$ exchange rate
|
$1.343
|
$1.266
|
|
|
New England
|
|
New York
|
||
|
|
2026
|
2025
|
|
2026
|
2025
|
|
|
$m
|
$m
|
|
$m
|
$m
|
|
Underlying IFRS operating profit
for US segments
|
1,164
|
1,170
|
|
2,296
|
1,836
|
|
Adjustments to convert to US GAAP as applied in our
US OpCo entities
|
|
|
|
|
|
|
Adjustment in respect of customer contributions
|
(31)
|
(30)
|
|
(44)
|
(51)
|
|
Pension accounting differences1
|
108
|
78
|
|
59
|
61
|
|
Environmental charges recorded under US GAAP
|
11
|
5
|
|
(140)
|
(144)
|
|
Storm costs and recoveries recorded under US GAAP
|
(98)
|
(59)
|
|
57
|
(7)
|
|
Other regulatory deferrals, amortisation
and other items
|
(402)
|
(314)
|
|
(833)
|
(518)
|
|
Results for US
regulated OpCo entities, aggregated under US
GAAP2
|
752
|
850
|
|
1,395
|
1,177
|
|
Adjustments to determine regulatory operating profit used in
US RoE
|
|
|
|
|
|
|
Levelisation of rate increases
|
-
|
-
|
|
184
|
196
|
|
FERC RoE order3
|
157
|
-
|
|
-
|
-
|
|
Net other
|
116
|
96
|
|
157
|
178
|
|
Regulatory operating profit
|
1,025
|
946
|
|
1,736
|
1,551
|
|
Pensions1
|
95
|
70
|
|
308
|
169
|
|
Regulatory interest charge
|
(241)
|
(219)
|
|
(588)
|
(459)
|
|
Regulatory tax charge
|
(240)
|
(218)
|
|
(404)
|
(351)
|
|
Regulatory earnings used to determine US RoE
|
639
|
579
|
|
1,052
|
910
|
1.
An
element of the pensions charge is reported outside operating profit
under US GAAP.
2.
Based
on US GAAP accounting policies as applied by our US regulated OpCo
entities.
3.
The
US GAAP impact of the FERC rate order in March 2026 is not included
in New England's reported RoE for 2025/26 (as our US RoEs are a
measure of our current year performance against current year
allowances) and the FERC rate order relates to complaints filed
against FERC allowed RoE rates dating back to 2011 in relation to
reductions in historical years' revenues. The impact of lower rates
did not have a significant impact as applied to current year
allowed revenues.
|
|
New England
|
|
New York
|
||
|
|
2026
|
2025
|
|
2026
|
2025
|
|
|
$m
|
$m
|
|
$m
|
$m
|
|
Average US equity base
|
6,988
|
6,352
|
|
11,637
|
10,512
|
|
US jurisdiction RoE
|
9.2%
|
9.1%
|
|
9.0%
|
8.7%
|
Detailed RoE and Regulated Financial Position - UK Electricity
Transmission
RoE
|
|
2026
|
2025
|
|
Year ended 31 March
|
%
|
%
|
|
Base return (including avg. 2% long-run
inflation)1
|
7.2
|
7.3
|
|
Totex incentive mechanism2
|
1.0
|
1.1
|
|
Other revenue incentives
|
-
|
(0.1)
|
|
Return on Equity
|
8.2
|
8.3
|
1.
Assuming
regulatory gearing at 55%.
2.
Excludes
impact of exceptional restructuring costs (post
sharing)
For Regulated Financial Performance, please refer to
page 70.
Regulated Financial Position up 17%
|
|
2026
|
2025
|
|
|
£m
|
£m
|
|
Opening Regulated Asset Value (RAV)1
|
20,525
|
18,388
|
|
Asset additions (slow money) - actual
|
3,711
|
2,586
|
|
Performance RAV or assets created
|
76
|
65
|
|
Inflation adjustment (actual CPIH)
|
707
|
646
|
|
Depreciation and amortisation
|
(1,172)
|
(1,115)
|
|
Closing RAV
|
23,847
|
20,570
|
|
|
|
|
|
Opening balance of other regulated assets and
(liabilities)1
|
(339)
|
(536)
|
|
Movement
|
278
|
256
|
|
Closing balance
|
(61)
|
(280)
|
|
|
|
|
|
Closing Regulated Financial Position
|
23,786
|
20,290
|
1.
Opening
RAV and other regulated balances are re-presented to reflect
opening balance adjustments following the completion of the UK
regulatory reporting pack process and also for the finalisation of
calculated over/(under)-recoveries and the regulatory time value of
money impact where appropriate.
Detailed RoE and Regulated Financial Position - UK Electricity
Distribution
RoE
|
|
2026
|
2025
|
|
For the year ended 31 March
|
%
|
%
|
|
Base return (including avg. 2% long-run inflation)
|
7.6
|
7.7
|
|
Totex incentive mechanism
|
0.1
|
-
|
|
Other revenue incentives
|
0.4
|
0.2
|
|
Return on Equity
|
8.1
|
7.9
|
For Regulated Financial Performance, please refer to
page 70.
Regulated Financial Position up 9%
|
|
2026
|
2025
|
|
|
£m
|
£m
|
|
Opening Regulated Asset Value (RAV)1
|
12,254
|
11,497
|
|
Asset additions (slow money) - actual
|
1,287
|
1,137
|
|
Performance RAV or assets created
|
5
|
(1)
|
|
Inflation adjustment (actual CPIH)
|
415
|
398
|
|
Depreciation and amortisation
|
(822)
|
(796)
|
|
Closing RAV
|
13,139
|
12,235
|
|
|
|
|
|
Opening balance of other regulated assets and
(liabilities)1
|
(244)
|
136
|
|
Movement
|
131
|
(417)
|
|
Closing balance
|
(113)
|
(281)
|
|
|
|
|
|
Closing Regulated Financial Position
|
13,026
|
11,954
|
1.
Opening
RAV and other regulated balances are re-presented to reflect
opening balance adjustments following the completion of the UK
regulatory reporting pack process and also for the finalisation of
calculated over/(under)-recoveries and the regulatory time value of
money impact where appropriate.
Detailed RoE and Regulated Financial Position - New
England
RoE
|
|
|
Return on Equity (%)
|
|
Rate Base ($m) as at 31 March
|
|||||
|
Regulated Entity
|
|
2026
|
2025
|
2024
|
Allowed
most recent
|
|
2026
|
2025
|
% change
|
|
Massachusetts Gas
|
|
9.4
|
8.6
|
9.2
|
9.7
|
|
5,867
|
5,408
|
8
|
|
Massachusetts Electric
|
|
8.0
|
8.1
|
7.6
|
9.4
|
|
4,399
|
3,766
|
17
|
|
Total Massachusetts
|
|
8.8
|
8.4
|
8.6
|
9.5
|
|
10,266
|
9,174
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
New England Power
|
|
10.1
|
11.1
|
11.1
|
9.6
|
|
3,271
|
2,938
|
11
|
|
Canadian Interconnector & Other
|
|
11.1
|
11.1
|
11.1
|
11.1
|
|
76
|
58
|
31
|
|
Total FERC
|
|
10.1
|
11.1
|
11.1
|
9.6
|
|
3,347
|
2,996
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
Total New England
|
|
9.2
|
9.1
|
9.2
|
9.6
|
|
13,613
|
12,170
|
12
|
Regulated Financial Position
|
New England Regulated Assets
|
2026
|
2025
|
% change
|
|
As at 31 March
|
$bn
|
$bn
|
|
|
Rate Base excluding working capital
|
13.3
|
11.9
|
12
|
|
Working capital in Rate Base
|
0.3
|
0.3
|
3
|
|
Total Rate Base
|
13.6
|
12.2
|
12
|
|
Regulated assets outside Rate Base excluding working
capital
|
2.5
|
2.5
|
1
|
|
Working capital outside Rate Base
|
(0.2)
|
(0.1)
|
236
|
|
Total regulated assets outside Rate Base
|
2.3
|
2.4
|
(5)
|
|
Total New England Regulated Assets
|
15.9
|
14.6
|
9
|
|
|
|
|
|
|
|
2026
|
2025
|
% change
|
|
As at 31 March
|
£bn
|
£bn
|
|
|
Total New England Regulated Assets at actual currency
|
12.0
|
11.3
|
6
|
|
Total New England Regulated Assets at constant
currency
|
12.0
|
11.0
|
9
|
Detailed RoE and Regulated Financial Position - New
York
RoE
|
|
|
Return on Equity (%)
|
|
Rate Base ($m) as at 31 March
|
|||||
|
Regulated Entity
|
|
2026
|
2025
|
2024
|
Allowed
most recent
|
|
2026
|
2025
|
% change
|
|
KEDNY
|
|
9.6
|
10.5
|
9.0
|
9.4
|
|
8,025
|
7,212
|
11
|
|
KEDLI
|
|
10.5
|
10.6
|
9.7
|
9.4
|
|
4,760
|
4,439
|
7
|
|
NMPC Gas
|
|
7.5
|
4.6
|
6.0
|
9.5
|
|
2,569
|
2,266
|
13
|
|
NMPC Electric
|
|
8.3
|
7.2
|
8.1
|
9.5
|
|
10,000
|
9,232
|
8
|
|
Total New York
|
|
9.0
|
8.7
|
8.5
|
9.4
|
|
25,354
|
23,149
|
10
|
Regulated Financial Position
|
New York Regulated Assets
|
2026
|
2025
|
% change
|
|
As at 31 March
|
$bn
|
$bn
|
|
|
Rate Base excluding working capital
|
24.8
|
22.7
|
9
|
|
Working capital in Rate Base
|
0.5
|
0.4
|
32
|
|
Total Rate Base
|
25.4
|
23.1
|
10
|
|
Regulated assets outside Rate Base excluding working
capital
|
3.2
|
2.2
|
45
|
|
Working capital outside Rate Base
|
0.4
|
0.2
|
76
|
|
Total regulated assets outside Rate Base
|
3.5
|
2.4
|
48
|
|
Total New York Regulated Assets
|
28.9
|
25.5
|
13
|
|
|
|
|
|
|
|
2026
|
2025
|
% change
|
|
As at 31 March
|
£bn
|
£bn
|
|
|
Total New York Regulated Assets at actual currency
|
21.8
|
19.7
|
11
|
|
Total New York Regulated Assets at constant currency
|
21.8
|
19.3
|
13
|
Asset growth and regulated asset growth
To help readers' assessment of the financial position of the Group,
the table below shows an aggregated position for the Group, as
viewed from a regulatory perspective. The asset growth and
regulated asset growth measures included in the table below are
calculated in part from financial information used to derive
measures sent to and used by our regulators in the UK and US, and
accordingly inform certain of the Group's regulatory
performance measures, but are not derived from, and cannot be
reconciled to, IFRS. These alternative performance measures
include regulatory assets and liabilities and certain
IFRS assets and liabilities of businesses that were
classified as held for sale under IFRS 5.
Asset growth is the annual percentage increase in our RAV and US
rate base and other non-regulated business balances (including our
investments in NGV, UK property and other assets and US other
assets) calculated at constant currency.
Regulated asset growth is the annual percentage increase in our RAV
and US rate base (calculated at constant currency), but does
not include other non-regulated business balances.
|
|
2025/26
|
||||
|
£m constant currency
|
31 March 2026
|
Sale of Grain LNG and NG Renewables
|
31 March 2025
|
Increase
|
Asset growth
|
|
UK RAV
|
36,986
|
-
|
32,779
|
4,207
|
12.8%
|
|
US rate base
|
29,452
|
-
|
26,694
|
2,758
|
10.3%
|
|
Total RAV and rate base (used to calculate
regulated asset growth)
|
66,438
|
-
|
59,473
|
6,965
|
11.7%
|
|
National Grid Ventures and other
|
5,545
|
(2,032)
|
7,266
|
311
|
4.3%
|
|
Total assets (used to calculate asset growth)
|
71,983
|
(2,032)
|
66,739
|
7,276
|
10.9%
|
For 2025/26, asset growth was 10.9% and regulated asset growth was
11.7%, which excludes the impact of the reduction in assets
from the sales of NG Renewables and Grain LNG during the year
(2024/25: excluding the reduction in RAV as a result of the sale of
the UK Electricity System Operator business, based on an estimated
RAV value at the date of disposal).
|
|
2024/25
|
||||
|
£m constant currency
|
31 March 2025
|
Sale of ESO
|
31 March 2024
|
Increase
|
Asset growth
|
|
UK RAV
|
32,805
|
(469)
|
30,310
|
2,964
|
9.8%
|
|
US rate base
|
27,345
|
-
|
24,527
|
2,818
|
11.5%
|
|
Total RAV and rate base (used to calculate
regulated asset growth)
|
60,150
|
(469)
|
54,837
|
5,782
|
10.5%
|
|
National Grid Ventures and other
|
7,352
|
-
|
7,509
|
(157)
|
(2.1)%
|
|
Total assets (used to calculate asset growth)
|
67,502
|
(469)
|
62,346
|
5,625
|
9.0%
|
Figures relating to prior periods have, where appropriate, been
re-presented at constant currency, for opening balance adjustments
following the completion of the UK regulatory reporting pack
process and finalisation of US balances.
Regulatory gearing
Regulatory gearing is a measure of how much of our investment in
RAV and rate base and other elements of our invested capital
(including our investments in NGV, UK property and UK other assets
and US other assets) is funded through debt. Comparative amounts as
at 31 March 2025 are presented at historical exchange rates
and have not been restated for opening balance
adjustments.
|
As at 31 March
|
2026
|
2025
|
|
|
£m
|
£m
|
||
|
UK RAV
|
36,986
|
32,805
|
|
|
US rate base
|
29,452
|
27,345
|
|
|
Other invested capital included in gearing calculation
|
5,545
|
7,352
|
|
|
Total assets included in gearing calculation
|
71,983
|
67,502
|
|
|
Net debt (including 100% of hybrid debt and held for
sale)
|
(44,160)
|
(41,316)
|
change
|
|
Group gearing (based on 100% of net debt including held
for sale)
|
61%
|
61%
|
-% pts
|
|
Group gearing (excluding 50% of hybrid debt from net debt)
including held for sale
|
61%
|
60%
|
1% pts
|
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:
|
Beth Melges
|
|
|
|
Beth Melges
Head of Plc Governance
|
Date: 14
May 2026