Equity Snap: National Grid (NG/ LN) FY26 in line, confirming FY27 and 5-year guidance

Research evidence excerpt

Equity Snap: National Grid (NG/ LN) FY26 in line, confirming FY27 and 5-year guidance

14 May 2026

Equity Snap: National Grid (NG/ Equities Multi-Utilities

LN)

FY26 in line, confirming FY27 and 5-year guidance United Kingdom

◆ FY26 EPS in line with expectations; affirming FY27 EPS Charles Swabey*

growth of 13-15% and FY27-31 guidance Global Utilities & Renewables Analyst HSBC Bank plc

charles.swabey@hsbc.com

◆ Company highlighting business model resilience given strong +44 20 3268 3954

investment visibility and good progress on procurement. Meike Becker*

Senior Global Utilities & Renewables Analyst

HSBC Bank plc

meike.becker@hsbc.com

National Grid (NG/ LN, GBPp1,276, Buy, TP GBPp1,500) +44 20 7991 6441

(Priced as of 13 May 2026)

Headline: National Grid reported FY26 group underlying EBIT of GBP5,680m, up * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

(6% YoY; 9% at constant currency), -1% lower compared to company consensus.

Adj. EPS for FY26 came in at 78.0p, in line with company consensus, and up 8%

YoY at constant currency, reflecting a good operational performance, which more

than offset several headwinds: storm costs, divestments, a higher share count and

the FERC refund. The FY26 dividend growth of 3.8% YoY to 48.49p is mechanical

and reflects the policy to grow the dividend in line with UK CPIH.

Net debt came in at GBP44.2bn, slightly ahead of consensus at GBP43.3bn due to

FX translation impacts and higher commodity costs in the US gas networks (both

largely timing related). A record year for investment with capex amounting to

GBP11.6bn, compared to GBP9.8bn in FY25, reflecting the step-up in investment

across all regulated networks in the US and UK. We note capex deployment for UK