National Grid plc stock (GB00BDR05C01): earnings, UK grid investments and outlook for US-focused investors

National Grid plc has reported fresh full-year figures and outlined billions in grid investments between the UK and the US Northeast. What the latest numbers and strategy mean for shareholders watching the utility from a US perspective.

National Grid plc, the London-listed electricity and gas network operator, has recently published new full-year results and updated its investment plans for its regulated networks in the UK and the US. The group reported earnings for the financial year ended 31 March 2025 and detailed a multi?year capital expenditure program, according to a company release dated 05/16/2025 and subsequent updates as of 05/15/2026 on the investor relations website and coverage by Reuters on 05/15/2025 (National Grid investors as of 05/15/2026, Reuters as of 05/15/2025).

As of: 19.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: National Grid
• Sector/industry: Regulated electric and gas utilities
• Headquarters/country: London, United Kingdom
• Core markets: UK electricity and gas transmission, US Northeast regulated networks
• Key revenue drivers: Regulated network tariffs, allowed returns on capital investments, grid connection services
• Home exchange/listing venue: London Stock Exchange (ticker: NG.)
• Trading currency: British pound (GBP)

National Grid plc: core business model

National Grid plc operates as a regulated utility focused on electricity and gas transmission and distribution. In the UK, its core activities include owning and operating the high?voltage electricity transmission network in England and Wales and gas transmission infrastructure, while in the US it runs electricity and gas distribution utilities in states such as New York, Massachusetts and Rhode Island, according to company information described in its 2024/25 annual report published on 05/16/2025 (National Grid annual report as of 05/16/2025).

The group’s business model is largely based on regulated returns set by national and state?level regulators. In the UK, allowed revenues are determined by the Office of Gas and Electricity Markets (Ofgem) under the RIIO?2 price control framework, which runs for transmission networks until 2026 and for certain distribution activities to 2028. In the US, state public utility commissions approve rate cases and capital plans that define how much National Grid can recover from customers, as explained in its filings summarizing regulatory frameworks as of 05/16/2025 (National Grid regulatory overview as of 05/16/2025).

This structure typically results in relatively predictable cash flows and earnings, in exchange for heavy capital investment commitments and strict regulatory oversight. The company earns a return on its regulated asset base, which grows as it invests in new grid infrastructure, such as offshore wind connections, onshore reinforcement, interconnectors and modernized gas networks. For investors, this means that growth is closely linked to the allowed equity returns and the pace of approved capital expenditure across its jurisdictions.

Main revenue and product drivers for National Grid plc

A key driver of National Grid’s revenue is its regulated asset base in the UK transmission businesses, which increases as the company builds new lines, substations and gas infrastructure. The group has outlined multi?year capital expenditure plans exceeding £30 billion across a five?year period, with a significant focus on enabling the UK’s energy transition, including connections for offshore wind projects and upgrades to handle rising renewable generation, according to presentations and trading updates published between 05/16/2024 and 05/16/2025 (National Grid presentations as of 05/16/2025).

In the US, revenues stem from electricity and gas distribution in service territories such as upstate New York and Massachusetts. These businesses benefit from rate plans that allow recovery of operating costs and approved investments, including programs to modernize aging networks and prepare for electrification of heating and transport. National Grid has highlighted that grid resilience, storm hardening and reliability improvements remain priorities, which supports a pipeline of projects in areas like substation upgrades and undergrounding, according to its US investor materials released on 03/28/2025 (National Grid US investors as of 03/28/2025).

The company also generates income from system operator roles and ancillary services, though part of the UK system operator function has been or is being transferred into an independent entity under reforms designed to create a future system operator. While this reduces some direct responsibility for balancing the system, National Grid continues to see opportunities in providing critical network infrastructure and related services, as discussed in regulatory documents and briefings published in 2024 and 2025 (Ofgem updates as of 10/31/2024).

Recent earnings and dividend developments

For the financial year ended 31 March 2025, National Grid reported higher underlying earnings compared with the prior year, supported by continued growth in its regulated asset base and contributions from both UK and US operations. The company highlighted an increase in underlying operating profit and earnings per share versus the 2023/24 period, driven by higher investment and updated tariff frameworks, according to its full?year results release on 05/16/2025 (National Grid full?year results as of 05/16/2025).

Management also announced an updated dividend for the 2024/25 year, maintaining a policy of growing the dividend in line with or slightly ahead of UK inflation over the medium term, subject to business conditions. The declared dividend for the year represented an increase on the prior period, reflecting the board’s confidence in the visibility of future cash flows under existing regulatory frameworks, as stated in the same results communication dated 05/16/2025 (National Grid dividend announcement as of 05/16/2025).

In addition to the ordinary dividend, National Grid has discussed its capital allocation priorities, balancing significant capital expenditure with the need to maintain credit metrics consistent with strong investment?grade ratings. The company has emphasized that equity issuance is not planned as a routine funding tool, preferring to rely on retained earnings, debt, and where appropriate, hybrid instruments, according to its capital markets presentations made available on 11/20/2024 (National Grid capital markets day as of 11/20/2024).

Strategic grid investments and energy transition

National Grid’s strategy is closely tied to the decarbonization plans of the UK and US Northeast. In the UK, the company is investing heavily in projects to connect offshore wind farms in the North Sea and Irish Sea to the onshore grid, as well as reinforcing transmission corridors in England and Wales. It has identified a multi?decade pipeline of projects designed to deliver on the UK government’s net?zero ambitions and support electrification of transport and heating, according to strategic updates and investment plans published in 2024 and 2025 (National Grid net zero strategy as of 09/30/2024).

In the US, National Grid is similarly focused on enabling clean energy policies in its service territories. This includes investments in grid modernization to accommodate distributed energy resources such as rooftop solar, the integration of large?scale renewables, and programs to encourage energy efficiency and demand response. The company has also highlighted pilot projects in areas like battery storage and advanced metering, which are designed to improve visibility of grid conditions and support more flexible operations, as presented in US?focused briefings on 03/28/2025 (National Grid US clean energy update as of 03/28/2025).

These investment programs are expected to expand the group’s regulated asset base significantly over time. However, they also require coordination with regulators and policymakers to ensure that consumer affordability is managed and that regulatory frameworks remain supportive. National Grid has stated that it continues to engage actively with stakeholders to balance the pace of investment with bill impacts, emphasizing the role of efficient planning and competitive procurement in controlling costs, as outlined in its stakeholder reports and ESG disclosures released on 07/15/2024 (National Grid ESG report as of 07/15/2024).

Why National Grid plc matters for US investors

Although National Grid is primarily listed in London and reports in British pounds, the company owns substantial regulated utility operations in the US Northeast. For US?based investors, this creates exposure to familiar regulatory environments in states such as New York and Massachusetts, while also adding currency and policy diversification compared with purely domestic utilities. The group’s American Depositary Receipts trade in the US, offering a way to access the stock in US dollars on US markets, according to information from major exchanges as of 11/30/2024 (NYSE listing data as of 11/30/2024).

From a sector perspective, National Grid sits at the intersection of traditional regulated utilities and the energy transition theme. US investors seeking companies with long?duration infrastructure assets tied to grid reinforcement, renewable integration and electrification may see National Grid as part of a broader allocation to utilities and infrastructure. At the same time, its UK exposure introduces additional regulatory and macroeconomic factors, such as UK inflation trends, interest rates and political decisions around energy policy, which may behave differently from US conditions, as discussed in sector research reports covering European utilities in 2024 (Financial Times utilities coverage as of 10/05/2024).

US investors also often compare National Grid’s dividend yield and growth profile with that of US regulated utilities. The company’s policy of progressive dividends linked to UK inflation can offer a different pattern of payouts compared with some US peers that target specific annual percentage increases. However, exchange?rate movements between the pound and the dollar can affect the dividend amount when translated into USD, which adds another layer of consideration for US?domiciled shareholders.

Conclusion

National Grid plc combines relatively predictable regulated utility earnings with sizable investment plans tied to the energy transition in the UK and the US Northeast. Recent full?year results for 2024/25 showed higher underlying earnings and a growing dividend, supported by an expanding regulated asset base and visible project pipeline. At the same time, the company must navigate evolving regulatory frameworks, large capital requirements and affordability concerns for customers, while US?based investors also face currency considerations and exposure to UK policy. Overall, the stock offers a window into long?term grid infrastructure trends across two major energy markets without constituting a recommendation for any particular investment strategy.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.