Company Reports

National Grid owns and operates energy networks in the UK and the Northeastern United States. The former accounts for around 60% of the profits, the latter for 40%.

National Grid announced on July 1 that it agreed to invest USD 1.75 billion through National Grid Ventures for a 35% stake in Joulent, a newly launched, Texas-based energy infrastructure developer providing integrated power solutions for data centers.

The Morningstar Developed Markets Europe Utilities Index declined 3.6% on May 15, underperforming the market by 2.1 percentage points. The key driver was a global selloff of government bonds that pushed yields of European government bond yields about 15 basis points higher on May 15.

National Grid's fiscal 2026 underlying earnings per share increased 6% to GBX 78, in line with our expectations and company-compiled consensus. Management confirmed its guidance for 13%-15% EPS growth in 2027 and an 8%-10% compound annual growth rate through 2031.

We remove SSE from European utilities top picks after 40% increase and 35% outperformance versus the S&P 500 since its addition in early November 2025. We replace it with United Utilities and National Grid, which offer more attractive long-duration compounding at current valuations.

National Grid released an update ahead of its fiscal 2026 results due on May 14. It said that recognition of customer refund recharges at New England Transmission and storm costs will shave GBX 1 off its fiscal 2026 EPS, or about 1.3%.

National Grid owns and operates energy networks in the UK and the Northeastern United States. The former accounts for around 60% of the profits, the latter for 40%.

On March 2, National Grid accepted the final determination for the RIIO-T3 2026-31 regulatory period and rolled over its business plan to 2031, maintaining its annual asset growth guidance at about 10% but raising its EPS guidance to 8%-10% from 6%-8%.

The European utilities sector increased by nearly 8% since the end of September, outperforming the market by 5% due to stabilizing interest rates, solid third-quarter results, and hopes that artificial intelligence growth will boost electricity consumption in Europe.

National Grid owns and operates energy networks in the United States and the United Kingdom.

On Dec. 4, UK watchdog Ofgem released its final determination for the 2026-31 RIIO-3 regulatory regime. For electricity transmission networks, it approved a baseline total expenditure of GBP 10.3 billion, up from GBP 8.8 billion in the July draft determination.

National Grid reported first-half operating profit of GBP 2.3 billion, slightly above company-compiled consensus and up 12% year over year. Management raised its full-year EPS growth guidance, now expecting an increase of 6%–8% from last year’s level, from 6% previously.

European utilities shares decreased by 3% since the end of June, underperforming the market by about 6%.

On July 1, UK watchdog Ofgem released its draft determination for the RIIO-3 five-year regulatory regime that will apply to gas networks and electricity transmission networks as of April 2026.

European utilities rose by 12% in the second quarter, outperforming the market by 10%.

National Grid owns and operates energy networks in the United States and the United Kingdom.

National Grid reported fiscal 2025 results broadly in line with company-compiled consensus. EBIT came in at GBP 5.4 billion, up 12% year over year and ahead of the 10% guidance. Management issued an EPS growth target for fiscal 2026 that is above the FactSet consensus.

National Grid owns and operates energy networks in the United States and the United Kingdom.

After rallying on April 3 together with government bonds, European utilities have been caught in the market rout since April 4.

European utilities increased by about 10% in the first quarter of 2025 thanks to good full-year results, attractive shareholder remuneration, and limited exposure to US tariffs. The latter was key in the material outperformance of the sector.