National Grid Transco (NNGD) Q2 2027 Earnings Report

The call was predominantly positive. National Grid reported strong earnings growth, record capital investment, upgraded FY '27 guidance, substantial project and supply-chain progress, improved operational productivity and confidence in its FY '31 framework. The principal challenges were higher debt and finance costs, lower operating cash-flow growth guidance, cost pressures, a New England profit decline, the EGL 1 delay and uncertainty around selected non-regulated projects.

National Grid now expects full year investment of GBP 13.5 billion, putting it on the run rate required to deliver at least GBP 70 billion by the end of FY '31, with full year EPS growth guidance upgraded to 15% to 16%; its 5-year framework remains at least GBP 70 billion of capital investment, underpinning around 10% annual asset growth and underlying EPS growth of 8% to 10% per annum from the FY '26 baseline. The company expects net debt to increase by a further GBP 4 billion, including the remaining Joulent funding, expects to maintain credit metrics above its current thresholds to at least FY '31, and continues to offer a progressive inflation-protected dividend policy. It is reaffirming planned ED3 investment of GBP 9 billion over the coming 5 years, has not changed its view on the GBP 40 billion U.K. investment outlook over the next 5-year period, and expects regulated controllable cost growth CAGR to be below U.K. CPIH over the 5-year period to FY '31.