Live News • 19h
National Grid Protests FERC Transmission Rules Raising Uncertainty for Future Project Returns National Grid has filed a formal protest with the US Federal Energy Regulatory Commission (FERC) over proposed rules governing competitive bidding for transmission projects.
The company argues that aspects of the proposed framework could affect how future US transmission projects are awarded and how project costs are determined.
The outcome of FERC’s rulemaking process may influence how competition is structured in US transmission tenders and how returns on these long-term assets are set.
The core issue here is regulatory clarity, since any change to how projects are tendered or how allowed returns are structured can affect the risk and reward profile of National Grid’s US transmission investments.
Investors may want to watch for updates from FERC, as the final rules could shape the balance between competition, project cost recovery and potential returns on new US grid infrastructure. Announcement • Jun 05
National Grid plc, Annual General Meeting, Jul 14, 2026 National Grid plc, Annual General Meeting, Jul 14, 2026. Location: kings high school, venues & events warwick, banbury road, warwick, cv34 6ye., United Kingdom Declared Dividend • May 17
Final dividend increased to UK£0.32 Dividend of UK£0.32 is 4.1% higher than last year. Ex-date: 28th May 2026 Payment date: 23rd July 2026 Dividend yield will be 4.1%, which is lower than the industry average of 4.5%. Sustainability & Growth Dividend is covered by earnings (74% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 34% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 14
Full year 2026 earnings: EPS and revenues miss analyst expectations Full year 2026 results: EPS: UK£0.66 (up from UK£0.60 in FY 2025). Revenue: UK£17.7b (down 3.8% from FY 2025). Net income: UK£3.24b (up 15% from FY 2025). Profit margin: 18% (up from 15% in FY 2025). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 6.0%. Earnings per share (EPS) also missed analyst estimates by 17%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Integrated Utilities industry in Europe. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • Nov 28
Centrica plc (LSE:CNA) and Energy Capital Partners, LLC completed the acquisition of National Grid Grain LNG Limited and Thamesport Interchange Limited from National Grid plc (LSE:NG.) Centrica plc (LSE:CNA) and Energy Capital Partners, LLC entered into a sale and purchase agreement to acquire National Grid Grain LNG Limited/Thamesport Interchange Limited from National Grid plc (LSE:NG.) for an enterprise value of £1.5 billion on August 14, 2025. A cash consideration will be paid by Centrica plc and Energy Capital Partners, LLC. The purchase of Grain LNG is for an enterprise value of £1.5 billion.
Centrica's 50% share of the equity investment of approximately £200 million will be funded from it's existing cash resources. Centrica plc and Energy Capital Partners has also secured approximately £1.1 billion of committed financing, which will be drawn at closing, to fund a portion of the enterprise value.
The transaction is conditional upon certain regulatory approvals being received, including approval under the National Security and Investment Act and certain mandatory anti-trust approvals. The completion of the transaction is expected to occur in Q4 this calendar year.
Brian O'Keeffe, Conor Hennebry and Martin Weltman Banco Santander, S.A., London Branch acted as financial advisor for Centrica plc and Energy Capital Partners, LLC. Slaughter and May acted as legal advisor for Centrica plc. Latham & Watkins LLP acted as legal advisor for Centrica plc and Energy Capital Partners, LLC. Morgan Stanley acted as financial advisor to National Grid plc. Charles Steward, Caroline Rae, Reza Dadbakhsh, Silke Goldberg, David Coulling, Veronica Roberts, Howard Murray and Tim Leaver of Herbert Smith Freehills LLP acted as legal advisor to National Grid plc (LSE:NG.)
Centrica plc (LSE:CNA) and Energy Capital Partners, LLC completed the acquisition of National Grid Grain LNG Limited and Thamesport Interchange Limited from National Grid plc (LSE:NG.) on November 28, 2025. Declared Dividend • Nov 09
First half dividend increased to UK£0.16 Dividend of UK£0.16 is 3.2% higher than last year. Ex-date: 20th November 2025 Payment date: 13th January 2026 Dividend yield will be 4.0%, which is lower than the industry average of 4.5%. Sustainability & Growth Dividend is covered by earnings (81% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 39% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 07
First half 2026 earnings: EPS and revenues miss analyst expectations First half 2026 results: EPS: UK£0.13. Revenue: UK£7.07b (down 11% from 1H 2025). Net income: UK£617.0m (up 8.1% from 1H 2025). Profit margin: 8.7% (up from 7.2% in 1H 2025). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 15%. Earnings per share (EPS) also missed analyst estimates by 55%. Revenue is forecast to grow 9.1% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Integrated Utilities industry in Europe. Announcement • Nov 07
National Grid plc Proposes Interim Dividend for the Year Ending 31 March 2026, Payable on 13 January 2026 National Grid plc announced the Directors proposed an interim dividend of 16.35 pence per ordinary share ($1.0657 per American Depositary Share) in respect of the year ending 31 March 2026. The interim dividend is expected to be paid on 13 January 2026 to shareholders on the register as at 21 November 2025. Ex-dividend date for 2025-2026 interim dividend - ordinary shares was 20 November 2025. Ex-dividend date for 2025-2026 interim dividend – ADRs was 21 November 2025. Announcement • Oct 02
National Grid plc Provides Earnings Guidance for the Six Months Ended 30 September 2025 National Grid plc provided earnings guidance for the six months ended 30 September 2025. For the period, the group's performance is in line with expectations and, as usual, underlying EPS is expected to be weighted to the second half of the year. In UK Electricity Transmission and UK Electricity Distribution, company anticipate operating profit to be broadly evenly split across the year. In US regulated businesses, operating profits are expected to be weighted to the second half. Relative to the same period last year there have been fewer storms in New York business, as well as new electricity distribution rates in New England business. As such, company expect a slightly higher contribution to operating profit from both businesses in the first half relative to the profile last year. In National Grid Ventures company expect a roughly even weighting of profitability across the year. Announcement • Aug 14
Centrica plc (LSE:CNA) and Energy Capital Partners, LLC entered into a sale and purchase agreement to acquire National Grid Grain LNG Limited/Thamesport Interchange Limited from National Grid plc (LSE:NG.). Centrica plc (LSE:CNA) and Energy Capital Partners, LLC entered into a sale and purchase agreement to acquire National Grid Grain LNG Limited/Thamesport Interchange Limited from National Grid plc (LSE:NG.) on August 14, 2025. A cash consideration will be paid by Centrica plc and Energy Capital Partners, LLC. The purchase of Grain LNG is for an enterprise value of £1.5 billion.
Centrica's 50% share of the equity investment of approximately £200 million will be funded from it's existing cash resources. Centrica plc and Energy Capital Partners has also secured approximately £1.1 billion of committed financing, which will be drawn at closing, to fund a portion of the enterprise value.
The transaction is conditional upon certain regulatory approvals being received, including approval under the National Security and Investment Act and certain mandatory anti-trust approvals. The completion of the transaction is expected to occur in Q4 this calendar year.
Brian O'Keeffe, Conor Hennebry and Martin Weltman Banco Santander, S.A., London Branch acted as financial advisor for Centrica plc and Energy Capital Partners, LLC. Slaughter and May acted as legal advisor for Centrica plc. Latham & Watkins LLP acted as legal advisor for Centrica plc and Energy Capital Partners, LLC. Morgan Stanley acted as financial advisor to National Grid plc. Board Change • Aug 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 9 experienced directors. 1 highly experienced director. Independent Non-Executive Director Jacqui Ferguson was the last director to join the board, commencing their role in 2024. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Buy Or Sell Opportunity • Jul 02
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.0% to UK£10.32. The fair value is estimated to be UK£12.95, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 15%. For the next 3 years, revenue is forecast to grow by 6.8% per annum. Earnings are also forecast to grow by 11% per annum over the same time period. Declared Dividend • May 18
Final dividend reduced to UK£0.31 Dividend of UK£0.31 is 21% lower than last year. Ex-date: 29th May 2025 Payment date: 17th July 2025 Dividend yield will be 4.4%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (78% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 33% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 15
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: UK£0.60 (in line with FY 2024). Revenue: UK£18.4b (down 7.4% from FY 2024). Net income: UK£2.83b (up 28% from FY 2024). Profit margin: 15% (up from 11% in FY 2024). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 7.9%. Earnings per share (EPS) also missed analyst estimates by 12%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Integrated Utilities industry in Europe. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Announcement • May 15
National Grid plc to Report First Half, 2026 Results on Nov 06, 2025 National Grid plc announced that they will report first half, 2026 results on Nov 06, 2025 Announcement • May 01
National Grid plc Announces Chief Executive Succession Plan National Grid plc announced the appointment of Zoë Yujnovich as its next Chief Executive. She will succeed John Pettigrew who, after almost 10 years in post, has decided to retire from his role effective 16 November 2025. Following a comprehensive succession planning process both the Board and John believe it is the right time to transition leadership at National Grid. Zoë's proven track record makes her ideally qualified to guide National Grid into its next phase of growth. Zoë will join from Shell plc where she was, until recently, Integrated Gas and Upstream Director and a member of the Executive Committee. Prior to Shell, Zoë held a number of progressively senior roles at Rio Tinto, including President and Chief Executive of the Iron Ore company of Canada. She has recently joined the board of Unilever plc as a Non-Executive Director. Zoë will join the National Grid Board as Chief Executive Designate on 1 September 2025 and will be appointed Chief Executive on 17 November 2025. John will retire from the Board of Directors and his role as Chief Executive on 16 November 2025, enabling a seamless transition and orderly handover of responsibilities. John joined National Grid as a graduate in 1991. During his time at the company he has held a variety of senior roles, including UK Director of Engineering, Chief Operating Officer and Executive Vice President for the US Electricity Distribution & Generation business, Chief Operating Officer for UK Gas Distribution, and UK Chief Operating Officer, joining the National Grid Board as Executive Director, UK in 2014. He became Group Chief Executive in 2016. Zoë Yujnovich is an international business leader recognised for her prominent roles in the energy sector and delivering performance transformation. Zoë began her career with Rio Tinto, holding senior management positions across diverse international markets including Australia, USA, UK, Brazil and Canada. Her significant experience managing cross-cultural teams and driving consistent outperformance through better workforce engagement at Rio Tinto positioned her as a respected figure in international business. In 2014, Zoë joined Shell plc, initially as Executive Vice President in Canada, where she successfully led major infrastructure projects critical to the company's strategy and operational delivery. Subsequently, as Shell's Country Chair and Executive Vice President for Australia and New Zealand, she led the local operational and cultural integration of BG, a USD 70 billion acquisition. Zoë's strategic capabilities were further recognized by her appointment as Shell's Executive Vice President of Conventional Oil and Gas, based in The Hague, where she managed global operations. In October 2021, Zoë was elevated to Shell's Executive Committee, based in London, as Director of Integrated Gas and Upstream, further underscoring her key role in navigating complex global energy challenges. Zoë also serves as an Independent Non-Executive Director at Unilever PLC. John Pettigrew will remain as Chief Executive until 16 November 2025, but will continue to be available to the Group through to the end of his 12 month notice period, which expires on 30 April 2026. His departure will be treated in accordance with the Directors' Remuneration Policy and his service contract. Announcement • Apr 10
National Grid plc to Report Fiscal Year 2025 Results on May 15, 2025 National Grid plc announced that they will report fiscal year 2025 results on May 15, 2025 Buy Or Sell Opportunity • Mar 06
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.0% to UK£9.20. The fair value is estimated to be UK£11.67, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.7% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 7.6% per annum. Earnings are also forecast to grow by 16% per annum over the same time period. Announcement • Feb 24
Brookfield Asset Management Ltd. (TSX:BAM) and its institutional partners including Brookfield Renewable Partners L.P. (TSX:BEP.UN) agreed to acquire National Grid Renewables, LLC from National Grid plc (LSE:NG.) for an enterprise value of $1.7 billion. Brookfield Asset Management Ltd. (TSX:BAM) and its institutional partners including Brookfield Renewable Partners L.P. (TSX:BEP.UN) agreed to acquire National Grid Renewables, LLC from National Grid plc (LSE:NG.) for an enterprise value of $1.7 billion on February 24, 2025. Under the terms of the transaction imply an enterprise value for National Grid Renewables of $1.735 billion. The final cash consideration will be subject to customary completion adjustments. Completion of the transaction will be subject to certain consents and regulatory approvals. Subject to these clearances, National Grid expects that the transaction will complete in the first half of the financial year ending 31 March 2026. Buy Or Sell Opportunity • Feb 06
Now 21% undervalued The stock has been flat over the last 90 days, currently trading at UK£9.77. The fair value is estimated to be UK£12.34, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.7% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 7.6% per annum. Earnings are also forecast to grow by 16% per annum over the same time period. New Risk • Jan 16
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 32% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Payout ratio: 131% Paying a dividend despite having no free cash flows. Shareholders have been substantially diluted in the past year (32% increase in shares outstanding). Minor Risk Large one-off items impacting financial results. Buy Or Sell Opportunity • Nov 26
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 1.9% to UK£9.85. The fair value is estimated to be UK£12.35, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.7% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 9.1% per annum. Earnings are also forecast to grow by 15% per annum over the same time period. Announcement • Nov 20
National Grid Appoints Steve Smith as Chief Strategy and Regulation Officer National Grid announced that Steve Smith has been appointed as the company's Chief Strategy and Regulation Officer. As National Grid works to progress the energy transition at speed, Steve will lead the company's work on future strategy and regulation across the US and UK. Steve will sit on National Grid's executive committee. Steve has been leading this work on an interim basis since August 2024, following Ben Wilson's move to lead National Grid Ventures. His appointment is effective immediately. Steve Smith joined National Grid in October 2021 and previously held the roles of Group Head of Strategy and President of National Grid Partners. Before joining National Grid, he spent 11 years at Lloyds Banking Group and was a member of the Retail Executive Committee. Prior to this, he was a Board member and Managing Director at Ofgem. His early career included roles at American Electric Power and PricewaterhouseCoopers (PwC). With more than 25 years of experience in the energy and finance sectors, Steve's career spans venture capital, fintech, innovation and competition, government and policy, markets, regulatory reform and regulatory strategy. Declared Dividend • Nov 10
First half dividend of UK£0.16 announced Shareholders will receive a dividend of UK£0.16. Ex-date: 21st November 2024 Payment date: 14th January 2025 Dividend yield will be 5.6%, which is higher than the industry average of 4.5%. Sustainability & Growth Dividend is not covered by earnings (131% earnings payout ratio) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 2.8% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 46% to bring the payout ratio under control. EPS is expected to grow by 43% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Reported Earnings • Nov 08
First half 2025 earnings released: EPS: UK£0.13 (vs UK£0.29 in 1H 2024) First half 2025 results: EPS: UK£0.13 (down from UK£0.29 in 1H 2024). Revenue: UK£7.96b (down 6.2% from 1H 2024). Net income: UK£571.0m (down 46% from 1H 2024). Profit margin: 7.2% (down from 13% in 1H 2024). Revenue is forecast to grow 8.4% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Integrated Utilities industry in Europe. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has remained flat. Buy Or Sell Opportunity • Oct 30
Now 20% undervalued The stock has been flat over the last 90 days, currently trading at UK£9.88. The fair value is estimated to be UK£12.39, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 20%. For the next 3 years, revenue is forecast to grow by 6.8% per annum. Earnings are also forecast to grow by 12% per annum over the same time period. Buy Or Sell Opportunity • Oct 07
Now 20% undervalued Over the last 90 days, the stock has risen 6.7% to UK£9.92. The fair value is estimated to be UK£12.44, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 20%. For the next 3 years, revenue is forecast to grow by 6.7% per annum. Earnings are also forecast to grow by 12% per annum over the same time period. Recent Insider Transactions • Oct 06
CEO & Executive Director recently sold UK£2.3m worth of stock On the 1st of October, John Pettigrew sold around 220k shares on-market at roughly UK£10.39 per share. This transaction amounted to 10% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. John has been a net seller over the last 12 months, reducing personal holdings by UK£4.0m. Announcement • Oct 03
National Grid plc Provides Earnings Guidance for the Six Months Ended September 30, 2024 National Grid plc provided earnings guidance for the six months ended September 30, 2024. Overall, the group's performance is in line with expectations and, as usual, underlying EPS is expected to be weighted to the second half of the year. Contribution to operating profit is expected to be consistent with historical periods: In UK Electricity Transmission and UK Electricity Distribution, the company anticipates operating profit to be broadly evenly split across the year. The company expects an additional £70 million contribution from the Electricity System Operator compared to guidance, reflecting ownership and held for sale accounting treatment up to 30 September 2024. In US regulated businesses, operating profits are expected to be weighted to the second half. This includes New York business where operating profit weighting is expected to be more typical of historical trends than the same period last year (first half of fiscal year 2024 was impacted by an environmental provision charge). In NG Ventures the company anticipates a roughly 40:60 weighting for operating profit between the first and second half. Announcement • Sep 26
A consortium of investors led by Macquarie Asset Management completed the acquisition of the remaining 20% equity interest in National Gas Transmission Plc from National Grid plc (LSE:NG.). A consortium of investors led by Macquarie Asset Management exercised its option to acquire the remaining 20% equity interest in National Gas Transmission Plc from National Grid plc (LSE:NG.) on July 26, 2024. Following completion of this transaction, a consortium led by Macquarie Asset Management will own 100 per cent of National Gas. The acquisition of National Grid’s remaining 20 per cent interest in National Gas has been agreed on equivalent financial terms, following certain adjustments. The Remaining Interest is on equivalent financial terms to the original transaction. Completion of the Remaining Interest is expected by the first quarter of calendar year 2025, subject to the satisfaction of customary closing conditions and regulatory approvals. Tim Sheddick, Tom Pound, Marc Israel, Katie Hicks, Martin Forbes, Elizaveta Bazarova, Anthony Colegrove, Nicholas Greenacre, Lindsay Canning and Will Smith of White & Case acted as legal advisor to Macquarie Asset Management.
A consortium of investors led by Macquarie Asset Management completed the acquisition of the remaining 20% equity interest in National Gas Transmission Plc from National Grid plc (LSE:NG.) on September 26, 2024. Announcement • Aug 02
National Grid Announces Executive Changes National Grid announced that Sally Librera will join National Grid as President of its New York business, and sit on the Group Executive Committee, further strengthening National Grid's leadership team and reinforcing its credentials as a leader in the energy transition. Sally will report to National Grid plc CEO John Pettigrew. She joins the company in September. Sally joins from AECOM, where she is currently Senior Vice President and Transit Market Sector Leader for the company's Americas region, focused on the design and delivery of complex infrastructure projects and public private partnerships. She joined AECOM in January 2022 from HNTB where she led the NY/NJ Rail Infrastructure Practice. Sally is also the former Senior Vice President for Subways at MTA New York City Transit, where she led North America's largest urban rail transit operation, overseeing a team of 30,000 employees and safely delivering service for 5.6 million daily riders while improving system performance and modernizing key infrastructure. Sally will succeed Rudy Wynter, who is leaving National Grid after 36 years of service. Rudy led the Company through an unprecedented level of growth and delivered historically strong performance for the New York Business Unit during his tenure. Recent Insider Transactions • Jul 10
CEO & Executive Director recently sold UK£1.8m worth of stock On the 2nd of July, John Pettigrew sold around 197k shares on-market at roughly UK£8.92 per share. This transaction amounted to 8.6% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was John's only on-market trade for the last 12 months. Announcement • Jun 29
National Grid Appoints Julian Baddeley as Group Company Secretary, with Effect from 1 July 2024 National Grid announced that Julian Baddeley has been appointed as Group Company Secretary, with effect from 1 July 2024. Justine Campbell, National Grid's current Group General Counsel and Company Secretary will remain a member of the Group Executive Committee and will assume the role of Group Chief Legal Officer. Julian is a Chartered Company Secretary and corporate lawyer and joins from abrdn plc, where he was Group Company Secretary. New Risk • Jun 13
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 31% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (15% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Payout ratio: 97% Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (31% increase in shares outstanding). Valuation Update With 7 Day Price Move • May 30
Investor sentiment deteriorates as stock falls 26% After last week's 26% share price decline to UK£8.38, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 11x in the Integrated Utilities industry in Europe. Total returns to shareholders of 10% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£12.58 per share. Major Estimate Revision • May 30
Consensus EPS estimates fall by 10%, revenue upgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from UK£21.3b to UK£21.8b. EPS estimate fell from UK£0.772 to UK£0.693 per share. Net income forecast to grow 35% next year vs 12% growth forecast for Integrated Utilities industry in the United Kingdom. Consensus price target down from UK£12.00 to UK£11.47. Share price fell 26% to UK£8.38 over the past week. Declared Dividend • May 26
Final dividend increased to UK£0.39 Dividend of UK£0.39 is 4.0% higher than last year. Ex-date: 6th June 2024 Payment date: 19th July 2024 Dividend yield will be 6.6%, which is higher than the industry average of 4.5%. Sustainability & Growth Dividend is not adequately covered by earnings (97% earnings payout ratio) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 2.8% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 8.3% to bring the payout ratio under control. EPS is expected to grow by 26% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Announcement • May 25
National Grid plc Recommends Final Dividend The Board of National Grid plc has recommended a final dividend of 39.12 pence, taking the full year dividend to 58.52 pence per share, representing a 5.55% increase compared to the prior year, reflecting 2024 average CPIH inflation. The outstanding ordinary shares trading will go ex dividend on the 6 June, with the 7 June being the record date for the final dividend. Announcement • May 24
National Grid plc has filed a Follow-on Equity Offering in the amount of £7.001146 billion. National Grid plc has filed a Follow-on Equity Offering in the amount of £7.001146 billion.
Security Name: Shares
Security Type: Common Stock
Securities Offered: 1,085,448,980
Price\Range: £6.45
Discount Per Security: £0.129
Transaction Features: Rights Offering Reported Earnings • May 24
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: UK£0.60 (down from UK£0.74 in FY 2023). Revenue: UK£19.9b (down 8.4% from FY 2023). Net income: UK£2.22b (down 18% from FY 2023). Profit margin: 11% (down from 13% in FY 2023). Revenue missed analyst estimates by 7.9%. Earnings per share (EPS) also missed analyst estimates by 18%. Revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 2.1% growth forecast for the Integrated Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. New Risk • May 24
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 25% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Payout ratio: 97% Paying a dividend despite having no free cash flows. Minor Risk Large one-off items impacting financial results. Announcement • May 24
National Grid plc Provides Earnings Guidance for the 2023/24 National Grid plc provided earnings guidance for the 2023/24. For the period, The company expects underlying EPS to be broadly in line with their underlying 2023/24 EPS once this has been adjusted by the number of bonus shares issued as part of the Rights Issue. Announcement • Dec 11
National Grid plc Announces Board Changes National Grid announced that Jacqui Ferguson will be joining its Board as an independent Non-Executive Director with effect from 1 January 2024. Jacqui will be a member of the Audit & Risk Committee. Jacqui will bring a broad perspective to the Board through her wealth of knowledge in large-scale, growth-oriented technology environments across a number of continents, industries and business functions. She is currently Chair of Tesco Bank, Senior Independent Director and Chair of the Remuneration Committee of Croda International plc, Deputy Chair of Engineering UK(a charity focused on the engineering and technology skills agenda) and Chair of the Remuneration Committee and Non-Executive Director at John Wood Group PLC. National Grid further announced that Liz Hewitt will be stepping down from the Board on 31 January 2024. When Liz joined the Board, she undertook a singularly comprehensive immersion in Company, all done virtually. She used this background to make important changes to the Board's stewardship of controls and risk as Chair of the redefined Audit & Risk Committee". Jacqui is currently Chair of Tesco Bank, Senior Independent Directorand Chair of the Remuneration Committeeof Croda International plc, and Deputy Chair of Engineering UK, a charity focused on inspiring young people from all kinds of background into engineering careers. She is also currently Chair of the Remuneration Committee and Non-Executive Director at John Wood Group PLC but will be stepping down fromits Board post their AGM on 9 May 2024 and as Chair of its Remuneration Committee on 1 January 2024. From 1 January 2024, Jacqui will be joining the Board of Softcat plc as a Non-Executive Director. Previously, she held several significant executive roles at Hewlett Packard Enterprise, including SVP and MD.Prior to this, Jacqui held executive roles at Electronic Data Systems, including Director of EMEA Strategic Business Planning. Announcement • Nov 30
National Grid plc Approves Interim Dividend, Payable on 11 January 2024 National Grid plc approved an interim dividend of 19.40 pence per ordinary share($1.1899 per American Depositary Share). The interim dividend is expected to be paid on 11 January 2024. Record date for the 2023/24 interim dividend is 24 November 2023. Buying Opportunity • Nov 23
Now 20% undervalued Over the last 90 days, the stock is up 2.7%. The fair value is estimated to be UK£12.63, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Earnings per share has grown by 31%. For the next 3 years, revenue is forecast to grow by 5.6% per annum. Earnings is also forecast to grow by 6.3% per annum over the same time period. Upcoming Dividend • Nov 16
Upcoming dividend of UK£0.19 per share at 5.6% yield Eligible shareholders must have bought the stock before 23 November 2023. Payment date: 11 January 2024. Payout ratio is on the higher end at 82%, and the cash payout ratio is above 100%. Trailing yield: 5.6%. Lower than top quartile of British dividend payers (6.2%). In line with average of industry peers (5.7%). Reported Earnings • Nov 12
First half 2024 earnings released: EPS: UK£0.29 (vs UK£0.33 in 1H 2023) First half 2024 results: EPS: UK£0.29 (down from UK£0.33 in 1H 2023). Revenue: UK£8.49b (down 10% from 1H 2023). Net income: UK£1.06b (down 13% from 1H 2023). Profit margin: 13% (in line with 1H 2023). Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, while revenues in the Integrated Utilities industry in Europe are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. 
