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Exhibit No.	Description
99.1	Exhibit 99.1 Announcement sent to the London Stock Exchange on 15 May 2025— FY2025 Full Year Results Statement

 

 

Exhibit 99.1

 

London | 15 May 2025: National Grid plc today announces its Full Year results for the period ended 31 March 2025.

 

John Pettigrew, Chief Executive, said: "We've made significant progress in the first year of our five-year financial framework, with record capital investment of almost £10 billion, 20% higher than 2024, helping to drive regulated asset growth of around 10% this year. Strong performance across all areas of the business underpins our plans to successfully invest c.£60 billion over five years. At a time of international economic uncertainty, National Grid continues to provide stable and predictable growth through our resilient business model. We remain focused on delivering secure, affordable and clean energy to our customers and communities, and providing long-term value and returns for our shareholders."

 

Financial summary
Year ended 31 March (continuing operations)	Statutory results				Underlying1				Underlying at constant currency1,2
	2025	2024	% change		2025	2024	% change		2024	% change
Operating profit (£m)	4,934	4,475	10%		5,357	4,773	12%		4,768	12%
Profit before tax (£m)	3,650	3,048	20%		4,071	3,395	20%		3,392	20%
Earnings per share (p)3	60.0	55.5	8%		73.3	72.1	2%		72.1	2%
Dividend per share (p)	46.72	58.52	(20%)
Dividend per share (rebased) (p)					46.72	45.26	3%
Capital investment (£m)	9,847	8,235	20%

 

1.  'Underlying' is a non-GAAP alternative performance measure (APM) used by management to monitor performance across the Group. This measure along with other APMs used in this report are explained in more detail on pages 73 to 89. These measures are not substitutes for IFRS measures, however management believes such additional information is useful in assessing the performance of the business on a comparable basis.

 

2.  Constant currency calculated using current year average exchange rate of $1.266 (2024: actual average exchange rate was $1.262).

 

3.  4,707 million weighted average shares for 2024/25 (2023/24: 3,991 million). Comparative amounts for weighted average shares and earnings per share restated for bonus element of the Rights Issue (in accordance with IAS 33).

 

 

 

■    Underlying EPS of 73.3p up 2% and slightly ahead of guidance. Increase in shares following the Rights Issue more than offset by improved performance in our regulated businesses, particularly in New York. Statutory EPS of 60.0p up 8%.

 

■    Recommended final dividend of 30.88p, resulting in a total dividend of 46.72p up 3.2% compared to rebased dividend per share (see page 89), in line with policy aim to increase with UK CPIH inflation.

 

 

■    All six Wave 1 ASTI* projects under construction.

 

■    Connected 2.2 GW of renewable generation in the UK, including 1.2 GW of offshore wind from the Dogger Bank wind farm.

 

■    Smart Path Connect major transmission project to increase network capacity in upstate New York on track to energise by December 2025.

 

■    Replaced a further 352 miles of leak-prone pipe across our gas networks in the US in 2024.

 

 

■    Secured the supply chain for all 12 onshore and Eastern Green Links 1 & 2 offshore ASTI projects.

 

■    Established a group-wide HVDC* framework to cover remaining offshore ASTI projects and beyond, and the Great Grid Partnership for onshore ASTI project delivery.

 

■    Supply chain and delivery mechanisms secured for more than two thirds of £60 billion investment plan.

 

■    National Gas Transmission and ESO divestments completed; agreed sale of National Grid Renewables.

 

 

■    Agreed new rate cases for KEDNY and KEDLI*, MECO* and joint proposal for NIMO*.

 

■    Around 70% of the US investment in our five-year frame agreed with our regulators.

 

■    ESMP* approved in Massachusetts as a strategic roadmap to support a stronger, smarter and cleaner network.

 

■   Submitted £35 billion RIIO-T3 business plan; to reinforce and expand the grid, enabling a near doubling of the power that can be transferred around the country, and connection of 35 GW of generation and 19 GVA of demand customers.

 

*See glossary on page 43.

 

 

■   Guidance is based on our continuing businesses, as defined by IFRS.

 

■   Financial outlook over the five-year period from 2024/25 to 2028/29:

 

■   total cumulative capital investment of around £60 billion;

 

■   asset growth CAGR1 of around 10% backed by strong balance sheet;

 

■   driving underlying EPS CAGR2 of 6-8% from a 2024/25 EPS baseline of 73.3p;

 

■   credit metrics consistent with current Group rating; and

 

■   regulatory gearing is currently 61%, trending back to the high 60% range by the end of RIIO-T3.

 

■   For 2025/26, we expect strong operational performance across the Group with underlying EPS expected to be in line with the 6-8% CAGR range from the 2024/25 baseline.

 

■   For further detail, please refer to the five-year financial framework and 2025/26 forward guidance on pages 9 to 11.

 

1.  Group asset compound annual growth rate from a FY24 baseline. Forward years based on assumed USD FX rate of 1.25; and long run UK CPIH and US CPI. Assumes sale of ESO, Grain LNG, and National Grid Renewables. 20% stake in National Gas Transmission classified as a discontinued operation and therefore did not contribute to asset growth.

 

2.  Underlying EPS compound annual growth rate from FY25 baseline. Forward years based on assumed USD FX rate of 1.25; long run UK CPIH, US CPI and interest rate assumptions and scrip uptake of 25%. Assumes sale of Grain LNG and National Grid Renewables. 20% stake in National Gas Transmission classified as a discontinued operation and therefore did not contribute to underlying EPS.

 

 

Chief Executive Officer succession Capital investment

On 1 May 2025, we announced that Zoë Yujnovich would become our next Chief Executive Officer with effect from 17 November 2025, succeeding John Pettigrew, who after almost ten years in role, will retire from National Grid on 16 November 2025.

 

Contacts
Investor Relations	Angela Broad	+44 (0) 7825 351 918
	Tom Edwards	+44 (0) 7976 962 791
	Cerys Reece	+44 (0) 7860 382 264
Media	Miranda Cochrane	+44 (0) 7745 122 714
	Ben Trounson	+1 781 426 5737
Brunswick	Dan Roberts	+44 (0) 7980 959 590
Results presentation and webcast
John Pettigrew (CEO) and Andy Agg (CFO) will host the results presentation at 9:00 am (BST) today with a live Q&A. Please use this link to join via a laptop, smartphone or tablet: https://www.nationalgrid.com/investors/events/results-centre. A replay of the webcast will be available soon after the event at the same link.
UK (and International)                                                                                                                                          +44 (0) 330 551 0200
UK (Toll Free)                                                                                                                                                         0808 109 0700
US (Local)                                                                                                                                                             +1 786 697 3501
Password                                                                                                                                                                Quote "National Grid" when prompted by the operator
The Annual Report and Accounts 2024/25 (ARA) is expected to be publicly available on 29 May 2025. When published, the ARA will be available on National Grid's website at nationalgrid.com/investors

 

Use of Alternative Performance Measures Throughout this release we use a number of alternative (or non-IFRS) and regulatory performance measures to provide users with a clearer picture of the regulated performance of the business. This is in line with how management monitor and manage the business day-to-day. Further detail and definitions for all alternative performance measures are provided on pages 73 to 89.

 

 

Year ended 31 March (£ million)	2025	2024	change %
Underlying operating profit (continuing) at constant currency1
UK Electricity Transmission	1,428	1,314	9%
UK Electricity Distribution	1,203	1,152	4%
UK Electricity System Operator	115	80	44%
New England	924	800	16%
New York	1,450	1,013	43%
National Grid Ventures	380	469	(19%)
Other	(143)	(60)	(138%)
Group	5,357	4,768	12%
Capital investment (continuing) at constant currency1
UK Electricity Transmission	2,999	1,912	57%
UK Electricity Distribution	1,426	1,247	14%
UK Electricity System Operator	-	85	(100%)
New England	1,751	1,668	5%
New York	3,289	2,645	24%
National Grid Ventures	378	661	(43%)
Other	4	2	100%
Group	9,847	8,220	20%
RCF/Net debt	9.8	9.2	60bps
As at 31 March
Net debt	(41,371)	(43,607)	(5%)
UK RAV	32,805	30,310	8%
US rate base (£m at constant currency)2	27,345	24,527	11%
Total Group RAV and rate base (£m)	60,150	54,837	10%
NGV and Other businesses (£m)	7,352	7,509	(2%)
Total (£m)	67,502	62,346	8%
Asset growth3	9.0%	9.7%	-70bps
Regulated asset growth3	10.5%	9.1%	140bps
Group return on equity4	9.0%	10.5%	-150bps

 

1.  Constant currency calculated using 2024/25 average exchange rate of $1.266 (2024: actual average rate was $1.262). See pages 77 and 80 for details.

2.  US rate base constant currency calculated using 31 March 2025 closing rate of $1.2916 (2024: actual closing rate was $1.262). See pages 33 to 36 for details.

3.  Calculated excluding the reduction in RAV as a result of the sale of the UK Electricity System Operator business during 2024/25. See page 88 for details.

4.  Our calculation methodology for Group RoE changed in 2024/25. Comparative amounts have been restated accordingly. See page 86 for details.

 

 

	Externally assured1	2025	2024	change
Scope 1 and 2 greenhouse gas emissions (ktonnes CO2e)		7,422	6,852	8%
Scope 3 greenhouse gas emissions (ktonnes CO2e)		28,435	27,384	4%
Renewable energy connected to the UK Transmission and Distribution Grids (MW)		2,244	2,444	(8%)
Renewable energy connected to the US Transmission and Distribution Grids (MW)		772	586	32%
Group Lost Time Injury Frequency Rate (LTIFR)		0.10	0.08	0.02

 

1. We engaged Deloitte LLP in the current year and PricewaterhouseCoopers LLP (PwC) in the prior year to undertake a limited assurance engagement, using the International Standard on Assurance Engagements (ISAE) 3000 (Revised): 'Assurance Engagements Other Than Audits or Reviews of Historical Financial Information' and ISAE 3410: 'Assurance Engagements on Greenhouse Gas Statements' over a range of data points within our Responsible Business data tables. Details of Deloitte's full limited assurance opinion and National Grid's Reporting Methodology are available on our website.

 

 

 

In 2024/25, National Grid delivered strong operational performance with high levels of network reliability across all our electricity networks with reliability above 99.84%, and reliability of 99.99983% in UK Electricity Transmission. Our interconnector fleet availability was 86%. These strong levels of reliability were achieved despite 8 named storms across our networks in the UK, 25 major storm events in New York, and 5 reportable storms across our New England territories, demonstrating the benefits of our continued investment in network reinforcement and the steadfast commitment of our operational teams.

 

During Storm Darragh in the UK, we resolved 9,000 incidents and restored 700,000 customers, with 95% of customers reconnected within 48 hours. In New England, we expanded our Fault Location, Isolation and Service Restoration (FLISR) technology to around 25% of our customers. Through this technology deployment, we have restored power to 77,000 customers within one minute this year, avoiding longer outages.

 

On 8 May 2025 the NESO issued its interim review report investigating the outage following the fire at our North Hyde electrical substation in March 2025. We welcome the report which establishes the timeline and sequence of events, and outlines further steps required ahead of the NESO delivering their final report, expected in June 2025.

 

During the year, we achieved a Lost Time Injury Frequency Rate (LTIFR)[1] of 0.10, compared to 0.08 in 2023/24 and against our Group target of 0.10, primarily driven by an increase in incidents such as trips, falls and manual handling injuries. Our recent implementation of an enhanced safety reporting system is driving continuous improvements and data insights, recognition of positive safety behaviours, and ongoing learning and development.

 

We continue to invest in our people to attract, develop and retain a qualified and competent workforce, delivering robust training programmes built around a culture of safety. Our commitment to achieving safety excellence extends to our contractors where we deploy standards and protocols for them to follow when working for National Grid.

 

For detailed financial performance commentary, please refer to the Financial Review section on page 12. Our statutory operating profit is presented on page 12 which includes the impact of exceptional items, remeasurements, major storms, timing and the impact of deferred tax in our UK regulated businesses. A reconciliation between Statutory performance and our Alternative Performance Measures (APMs) is presented on page 76.

 

The Group's financial performance in 2024/25 continued to demonstrate the resilience of our business model which enables us to effectively manage the impacts of inflation and cost pressures, changes in interest rates and exchange rate fluctuations.

 

Underlying operating profit for continuing operations increased by £589 million at constant currency to £5,357 million, an increase of 12% on the prior year. This improvement was principally driven by strong performance across our regulated businesses including new rates for our downstate gas businesses in New York, new rates for our Massachusetts Electric business, higher revenues supported by increased allowances and indexation in the UK and delivery of strong cost efficiency. This was partly offset by lower revenues from our interconnectors.

 

Underlying EPS of 73.3p increased by 1.2p per share, or 2% compared to the previous year, with the underlying operating profit increase more than offsetting the increased number of shares after the Rights Issue.

 

Capital investment for continuing operations increased by £1,627 million at constant currency to a record £9,847 million, an increase of 20% on the prior year. This increase was principally driven by the ramp up in spend on Wave 1 Accelerated Strategic Transmission Investment (ASTI) projects and customer connections in our UK Electricity Transmission business, increased spend on leak-prone pipe replacement and electricity transmission projects in New York; partially offset by lower investment in National Grid Ventures (NGV) with the commissioning of the Viking interconnector in the prior year, and National Grid Renewables and Grain LNG being classified as held for sale (see note 9).

 

During the year, our Community Offshore Wind joint venture paused development activity in line with the broader slowdown of the US offshore wind industry. Whilst there are longer term trends that give us confidence in the need for offshore wind generation in the north east, significant nearer term policy uncertainty has led us to recognise an accounting impairment of £303 million as an exceptional charge.

 

Capital investment and RAV indexation helped drive regulated asset growth of 10.5%, but lower investment and asset write-downs in our non-regulated businesses resulted in an overall asset growth of 9.0%.

 

Net debt was £41.4 billion at 31 March 2025, more than £2.2 billion lower than the prior year. This reduction reflected the £6.8 billion net proceeds from the Rights Issue, and £1.3 billion from divestments of the UK Electricity System Operator (ESO) and our remaining 20% interest in National Gas Transmission, partially offset by the increased capital investment in the year.

 

 

We achieved a Group RoE of 9.0%[2] in 2024/25, down on the prior year by 150 basis points (bps). This decrease was principally due to an increase in the equity denominator as a result of lower gearing following the Rights Issue proceeds.

 

In 2024/25, UK Electricity Transmission achieved operational returns of 8.3%, delivering 100bps of outperformance under RIIO-T2, mainly from totex performance related to savings on capital delivery (2024: 8.0% achieved return, or 100bps above the allowed base return). UK Electricity Distribution achieved an operational return of 7.9% in 2024/25, including 20bps outperformance, mostly consisting of non-totex performance incentives. Outperformance was impacted by the costs associated with Storm Darragh and the adverse impact of the RIIO-ED2 Real Price Effect (RPE) mechanism, where lower than anticipated allowances due to reductions in commodity indices have not tracked actual costs incurred (2024: 8.5% achieved return, or 110bps above the allowed base return).

 

New England's achieved return of 9.1% was 92% of the allowed return in 2024/25 compared with an achieved return of 9.2% in 2023/24. New York's achieved return of 8.7% was 94% of the allowed return in 2024/25 compared with an achieved return of 8.5% in 2023/24. The quoted returns for New England and New York represent the weighted average return across operating companies within each jurisdiction.

 

For further information on RoEs for each of our business entities, please refer to the Business Review section on pages 23 to 37.

 

 

Our financial performance reflects the first year of delivery against our five year financial framework. Capital investment reached a record £9,847 million in 2024/25, reflecting progress on our ASTI projects in the UK, and progress with a number of major transmission projects to unlock renewable generation and upgrade infrastructure across our jurisdictions in the US, alongside increased investment in our KEDNY and KEDLI gas businesses under new rate agreements.

 

The progress we have made during the course of the year in both the UK and the US with partners, across supply chains, and on policy measures, gives us increased confidence around the scale and profile of our investment programme through the rest of this decade, and the regulatory frameworks that will sit around this investment. For further information, please refer to the five-year financial framework section on page 9.

 

■   In our UK Electricity Transmission business, all six of our wave 1 ASTI projects are now under construction, including our Eastern Green Link (EGL) 1 and EGL2 offshore projects.

 

■   We connected a further 1.6 GW of renewable energy to our UK Electricity Transmission network in 2024/25, and across our UK Electricity Distribution network we connected 0.6 GW of renewable generation, over 100,000 low carbon connections, and 208 large demand projects over 1 MW.

 

■   In UK Electricity Distribution, we have seen a step up in asset health and network reinforcement in line with our RIIO-ED2 plans.

 

■   In the US we have continued to make good progress with our leak-prone pipe replacement programme, with 218 miles of pipeline replaced in New York, and 134 miles replaced in Massachusetts in 2024.

 

■   In New York, we continued to make strong progress on our Upstate Upgrade Electricity Transmission programme across key projects, including Smart Path Connect, which is on track to energise by December 2025.

 

 

Following our decision last year to focus on networks, we have made good progress with portfolio activities.

 

We have:

 

■    completed our £7 billion Rights Issue, a part of our comprehensive financing plan;

 

■    completed the divestment of ESO to the UK Government for proceeds of £673 million;

 

■    completed the divestment of the final 20% equity interest in National Gas Transmission to a consortium of long-term infrastructure investors led by Macquarie Asset Management for proceeds of £686 million;

 

■    agreed the sale of our National Grid Renewables onshore business in the US to Brookfield Asset Management and its institutional partners;

 

■    launched the divestment process on Grain LNG in April 2025 and expect to announce a transaction later this year; and

 

■    in UK Electricity Distribution, we have continued to make progress with £88 million of synergies achieved since the acquisition, with synergies through procurement strategy, reviewing how we run and operate shared sites, operational delivery, and aligning with wider Group functions.

 

We have made significant progress on ensuring supply chain availability for our investment programmes, prioritising those areas with tightest market capacity, longest lead times and highest supply chain risks:

 

■    We have agreed a Great Grid Partnership supply chain framework with seven partners. This £9 billion framework covers the design and construction of the onshore ASTI projects as well as projects that deliver beyond 2030.

 

■    We have agreed a HVDC framework to secure supply for HVDC cables and converter systems. This framework covers up to £21 billion of HVDC cable supply across six suppliers, and up to £26 billion of converter systems supply over four suppliers. This supply is sufficient to cover cable and converter systems requirements for our ASTI wave 2 projects and beyond.

 

■    Since signing the HVDC framework, we have moved to the preferred bidder stage for our Sea Link project selecting Siemens Energy as the supplier of converter stations for this project.

 

■    In New York, we have awarded the first phase of our CLCPA projects and the engineering for the second phase. Procurement for the construction elements of phase 2 is in its final stages with awards expected in the coming months.

 

■    In Massachusetts, our Electric Sector Modernization Plan (ESMP) was approved in August as a 'strategic roadmap' outlining critical investments of up to $2 billion over five years in the local electric distribution system to meet Massachusetts' climate goals.

 

 

During the year we have made good progress with our rate cases for our New York businesses and Massachusetts Electric. These rate plans balance necessary improvements for asset health, resilience, growth and clean energy, with affordability and low-income customer programmes.

 

■   In New England, in October 2024 we received a rate case order for our Massachusetts Electric business (MECO) with rates set for a five-year period, including an allowed RoE of 9.35%, a new mechanism that enables timely recovery of growing capital investment needs up to a cap, and an increase in storm cost recovery of around $60 million per annum.

 

■   In New York, in August 2024, the New York Public Service Commission (PSC) adopted the terms of the Joint Proposal for KEDNY and KEDLI for a three-year rate plan with 9.35% allowed RoE and around $5 billion capital allowances to modernise infrastructure.

 

■   Also in New York in April 2025, we filed a joint proposal with the New York PSC for a three-year rate plan for our upstate New York electric and gas distribution business Niagara Mohawk Power Corporation (NIMO). This includes funding for around $1.8 billion of capital investment in the first year, and a 9.5% allowed RoE.

 

■   From a regulatory perspective, in Massachusetts in November, Governor Healey approved legislation to reform the permitting process for utility infrastructure and clean energy projects. This new approach sets maximum timeframes for approvals, supporting the delivery of capital projects in the State.

 

 

In our UK Electricity Transmission business we have submitted our business plan for the RIIO-T3 price control period, which will run for five years from April 2026. The plan includes up to £35 billion of totex over the five years to March 2031, and, amongst other outcomes, will nearly double the power that can flow across the country, avoid £12 billion of constraint costs, directly connect 35 GW of generation and 19 GVA of demand to our network and create optionality for a further 26 GW, all while delivering 99.9999% reliability.

 

In the UK more broadly, we welcome the policy progress we have seen across a number of critical areas:

 

■     The UK Government published its Clean Power Action Plan in December 2024, following the National Energy System Operator's advice in October to achieve clean power by 2030. The report reaffirmed the need for our 17 ASTI electricity transmission projects in order to address current system constraints and enable the connection of Offshore Wind projects, however planning and connections reform is required to deliver this plan and we have seen some progress in these areas.

 

■     In March 2025, the UK Government published the Planning and Infrastructure Bill with proposals that could both reduce the risk of delays and potentially accelerate energy infrastructure projects, as well as improve the acceptability of projects for the local communities they impact (alongside the separately published guidance on wider community benefits). Whilst we expect the proposals' impact within our five-year frame to be limited, there are some important measures in the bill that have the potential to further de-risk projects.

 

■     In April 2025, we saw Ofgem's decision on connections for a new process that reforms the existing queue to prioritise those projects that are most ready and needed to meet the country's clean power targets. This will deliver a rationalised queue of projects aligned to the clean power plan.

 

■   In April 2025, we welcomed Ofgem's decision on the framework for the RIIO-ED3 price control, which will run for five years from April 2028. Ofgem has been clear on the critical role electricity distribution networks, like our UK Electricity Distribution business, will play in achieving regional growth, resilient networks, and a clean power system. We agree

     with Ofgem that there is need for a longer-term, proactive approach to network planning whilst balancing resilience and capacity with affordability. We will continue to work closely with Ofgem and engage meaningfully with our customers and stakeholders as we develop our ED3 plan.

 

■   There has also been development in policies governing Offshore Hybrid Assets (OHA) with Ofgem approving the establishment of the regulatory regime for OHA Pilot Scheme projects in April 2025.

 

 

In May 2024, we published our updated Climate Transition Plan (CTP). The plan sets out our actions to deliver our Group greenhouse gas reduction targets by 2050, including how we will meet them and where we need support from others. We put the plan to an advisory vote at our AGM in July 2024, where it received 99% support from voting shareholders.

 

In 2024/25, our Scope 1 and 2 emissions increased by 8.3%, or a 4.4% reduction against the 2018/19 baseline, largely due to circumstances outside of National Grid's control as our Long Island generation facilities in the US fulfilled contractual obligations with LIPA, and a temporary surge in demand resulting from an unplanned maintenance outage at a third-party power plant. Our total Scope 3 GHG emissions increased by 3.8% year-on-year. Against our SBTi approved target (which excludes sold electricity) our Scope 3 GHG emissions have increased by 5.8% since 2018/19. This was principally driven by emissions linked to higher annual spend in relation to purchased goods and services (including capital investment) within our supply chain for the construction of new energy infrastructure. We did not expect a linear trajectory, as explained in our CTP, and this performance demonstrates the technical dependencies as well as policy and regulatory frameworks required to support our emission reduction plans and targets.

 

As we delivered another record year of capital investment, we also reached a higher proportion of green capital investment at 81% of Group capital expenditure[3], with £7.7 billion aligned with EU Taxonomy principles for sustainable investment in 2024/25. This is an increase from £6.0 billion or 78% of Group capital expenditure in 2023/24. The increase is due to investments in key infrastructure projects supporting the energy transition, including a 35% increase in electricity network investments and a 16% increase in leak-prone pipe replacements across our gas networks.

 

In the face of affordability challenges, we continue to support our customers through payment assistance programmes, flexible payment plans and energy efficiency solutions. In February 2025, we announced a new Grid for Good Energy Affordability Fund. This £13.8 million programme will support UK and US households that are struggling with energy costs over a three-year period. The continued strong performance of our interconnector portfolio enabled the return of a further £89 million to UK consumers this year, part of a total of £277 million returned to reduce customer bills in the last two years, with a further £149 million to be returned over the next two years resulting in a total benefit to customers of £426 million.

 

 

Our five-year financial framework is based on our continuing businesses, as defined by IFRS, which included the ESO until its disposal in October 2024 and includes Grain LNG and National Grid Renewables until their planned disposals. It excludes the minority stake in National Gas Transmission, which was classified as a discontinued operation until its disposal in September 2024. The five-year financial framework assumes an exchange rate of £1:$1.25.

 

 

We expect to invest around £60 billion across our energy networks and adjacent businesses, in the UK and US, over the five-year period to 2028/29, with Group assets trending towards £100 billion by March 2029. Of the £60 billion investment over the five years to March 2029, around £51 billion is considered to be aligned with the principles of the EU Taxonomy legislation as at the date of reporting.

 

In the UK, we expect around £23 billion of investment in Electricity Transmission for asset health and anticipatory system reinforcement to facilitate offshore generation and other new onshore system connections. This also includes investment across our 17 ASTI projects, as we invest in the critical infrastructure required to enable the energy transition and a decarbonised electricity network in the 2030s. We expect our Electricity Distribution network to invest around £8 billion over the five years to 2028/29 in asset replacement, reinforcement and new connections, facilitating the infrastructure for electric vehicles, heat pumps and directly connected generation.

 

In our US regulated businesses, we expect to invest around £17 billion in New York, and £11 billion in New England, over the five years to 2028/29. We expect to invest nearly 60% in this plan period into our electricity networks, as we see a step up in investment for renewable connections, transmission network upgrades, and digital capabilities to enable the energy transition, and the remainder in our gas business on pipeline replacement, safety and resilience programmes.

 

National Grid Ventures (NGV) has committed capex of around £1 billion over the five years to 2028/29, including maintenance investment across the six operational interconnectors.

 

With the large step up in investment, we expect to see asset growth of around 10% CAGR through to 2028/29.

 

 

We remain committed to a strong, overall investment grade credit rating. We expect to maintain credit metrics above our thresholds for our current group credit ratings through to at least the end of the RIIO-T3 price control period, with current thresholds of 10% for S&P's FFO/adjusted net debt, and 7% for Moody's RCF/adjusted net debt. Following completion of the Rights Issue, regulatory gearing has reduced to 61% at March 2025, but is expected to trend back towards the high 60% range by the end of RIIO-T3.

 

 

We expect our CAGR in underlying EPS to be in the 6-8% range from the 2024/25 baseline of 73.3p. This includes our long-run average scrip uptake assumption of 25% per annum, which will support our sustainable, progressive dividend policy into the future.

 

We will maintain a progressive level of total dividend aiming to grow the DPS in line with UK CPIH in keeping with the current dividend policy (for details of our dividend policy please refer to page 20).

 

This forward guidance is based on our continuing businesses, as defined by IFRS. It includes Grain LNG and the controlling stake of National Grid Renewables which are held for sale within continuing operations before they are assumed to be sold in the 2025/26 financial year.

 

The outlook and forward guidance contained in this statement should be reviewed, together with the forward-looking statements set out in this release, in the context of the cautionary statement. The forward guidance in this section is presented on an underlying basis and excludes remeasurements and exceptional items, deferrable major storm costs in the US (when greater than $100 million), timing and the impact on underlying results of deferred tax in our UK regulated businesses. The 2024/25 forward guidance assumes an exchange rate of £1:$1.30, reflecting nearer term exchange rates.

 

 

Underlying net revenue is expected to increase by over £250 million compared to 2024/25 primarily driven by higher allowances as a result of growing RAV, including returns on increasing ASTI investment and indexation. Depreciation is expected to be around £20 million higher in the year due to the increasing asset base.

 

We expect to deliver around 100bps of outperformance in the final year of RIIO-T2 in Operational Return on Equity. This is in line with our target to deliver 100 basis points of operational outperformance on average through the five-year period of the RIIO-T2 price control.

 

 

Underlying net revenue is expected to be broadly in line with 2024/25 with higher allowances as a result of a growing RAV including indexation, offset by lower tax allowances from increased investment that attracts greater capital allowances. Increased depreciation, reflecting the increasing asset base is expected to be offset by the non-recurrence of Storm Darragh costs.

 

We expect to deliver around 50 basis points of outperformance in the third year of RIIO-ED2 in operational Return on Equity. Increasing from 2024/25, primarily as a result of the one-off impact of Storm Darragh costs in 2024/25, alongside the impact of Real Price Effects. We expect outperformance to improve towards 100bps over the remainder of RIIO-ED2.

 

 

Underlying net revenue is expected to be around $400 million higher, driven primarily by rate increases and higher tracker revenue. This is expected to be offset by just over $50 million higher depreciation as a result of the increasing asset base and around $250 million of other cost increases linked to investments.

 

Return on Equity for New England is expected to be similar to 2024/25.

 

 

Underlying net revenue is expected to be around $950 million higher, including expected increases from the NIMO rate settlement and rate increases from the KEDNY and KEDLI rate cases. Depreciation is expected to be just over $150 million higher, reflecting the increasing asset base and other costs are expected to be around $250 million higher, linked to investments. We also expect no repeat of the $50 million environmental accounting benefit in 2024/25.

 

Return on Equity for New York is expected to slightly improve compared to 2024/25.

 

 

In NGV, we expect operating profit to be nearly £50 million lower than 2024/25 driven by expected lower interconnector revenues.

 

We also expect other activities underlying operating loss to be broadly flat year-on-year.

 

 

Our share of the profit after tax of joint ventures and associates is expected to be around £20 million lower than 2024/25 as a result of lower profits from our Emerald joint venture (part of the National Grid Renewables disposal group) which has not contributed to IFRS continuing profit since its classification as held for sale in September 2024.

 

 

Net finance costs in 2025/26 are expected to be around £40 million higher than 2024/25 as a result of higher debt issuance to fund investment growth.

 

For the full year 2025/26, the underlying effective tax rate, excluding the share of post-tax profits from joint ventures and associates, is expected to be around 15%. This is calculated following our definition of underlying earnings which excludes the impact of deferred tax on underlying results of our UK regulated businesses.

 

 

Overall Group capital investment for continuing operations in 2025/26 is expected to be over £11 billion.

 

Asset Growth is expected to be around 11%, normalised in year for business disposals, reflecting an increase in investment, predominantly ASTI projects and New York investment.

 

Depreciation is expected to increase, reflecting the impact of continued high levels of capital investment.

 

Operating cash flow generated from continuing operations (excluding acquisitions, disposals and transaction costs) is expected to increase by around 20% compared to 2024/25 driven by increased underlying performance and lower timing under-recoveries, including non-recurrence of the 2024/25 significant ESO return of prior year over-recoveries.

 

Net debt is expected to increase by just over £6 billion (from £41.4 billion as at 31 March 2025), driven by our continued levels of significant investment in critical energy infrastructure, partially offset by operating cash inflows, with regulatory gearing expected to be in the low-mid 60% range. The forecast excludes the expected sale proceeds from the National Grid Renewables and Grain LNG disposals.

 

Weighted average number of shares (WAV) is expected to be approximately 4,925 million in 2025/26.

 

In managing the business, we focus on various non-IFRS alternative performance measures (APMs) and regulatory performance measures (RPMs) which provide meaningful comparisons of performance between years, monitor the strength of the Group's balance sheet and ensure profitability reflects the Group's regulatory economic arrangements. Such APMs and RPMs are supplementary to, and should not be regarded as a substitute for, IFRS measures, which we refer to as statutory results. We explain the basis of these measures and, where practicable, reconcile to statutory results on pages 73 to 89. Adjusted results exclude exceptional items and remeasurements whereas underlying results exclude (i) revenue timing differences arising from our regulatory contracts; (ii) major storm costs recoverable in future periods, where above $100 million (in aggregate, net of in-year allowances and deductibles) in the year; and (iii) impact of deferred tax on our UK regulated businesses' underlying results (NGET and NGED); none of which give rise to economic gains/losses.

 

 

 

 

(£ million)	2024/25	2023/24	change %
Accounting profit
Gross revenue	18,378	19,850	(7%)
Other operating income	-	12	(100%)
Operating costs	(13,444)	(15,387)	13%
Statutory operating profit	4,934	4,475	10%
Net finance costs	(1,357)	(1,464)	7%
Share of joint ventures and associates	73	37	97%
Tax	(821)	(831)	1%
Non-controlling interest	(3)	(1)	(200%)
Statutory IFRS earnings (note 7)	2,826	2,216	28%
Exceptional items and remeasurements	(171)	1,036	n/m
Tax on exceptional items and remeasurements	(40)	(152)	74%
Adjusted earnings	2,615	3,100	(16%)
Timing and major storm costs1	592	(689)	n/m
Tax on timing and major storm costs1	(156)	166	n/m
Deferred tax on underlying profits in NGET and NGED1	401	302	33%
Underlying earnings1	3,452	2,879	20%
Statutory EPS - (pence) (note 7)2	60.0p	55.5p	8%
Adjusted EPS - (pence) (note 7)2	55.6p	77.7p	(28%)
Underlying EPS1,2	73.3p	72.1p	2%
Dividend per share 'rebased'1,3	46.72p	45.26p	3%
Dividend cover - underlying1	1.6x	1.2x	27%
Capital investment and asset growth
Capital investment	9,847	8,235	20%
Regulated asset growth1	10.5%	9.1%	140bps
Asset growth1	9.0%	9.7%	-70bps
Balance sheet strength
RCF/adjusted net debt (Moody's)1	9.8%	9.2%	60bps
Net debt (note 29 to the financial statements)	41,371	43,607	(5%)
Add: held for sale net debt	(55)	(23)	n/m
Net debt (including held for sale)1	41,316	43,584	(5%)
Group regulatory gearing1	61%	69%	-800bps

 

1.  Non-GAAP alternative performance measures (APMs) and/or regulatory performance measures (RPMs). For further details see pages 73 to 89.

2.  Comparative amounts have been restated to reflect the impact of the bonus element of the Rights Issue.

3.  Dividend per share (rebased) calculated by dividing the total dividend paid by to the total number of shares in issue following the Rights Issue. The actual dividend per share paid to shareholders in respect of 2023/24 profits was 58.52 pence per share (interim 19.40p and final 39.12p).

 

Statutory IFRS earnings were £2,826 million in 2024/25, £610 million (28%) higher than the prior year. Statutory earnings benefited from pre-tax net exceptional credits of £42 million and pre-tax remeasurement gains of £129 million (2024: pre-tax net exceptional charges of £1,011 million and pre-tax remeasurement losses of £25 million). For details on exceptional items refer to note 4. Timing swings were £1,420 million adverse year-on-year, with a £505 million net under-recovery in 2024/25 (2024: £915 million net over-recovery), partly offset by £139 million lower major storms. These factors, the net impact of tax on these items and an improvement in underlying business performance meant that statutory EPS for continuing operations of 60.0p was 4.5p higher than the prior year.

 

Our 'adjusted' results exclude the impacts from exceptional items and remeasurements as explained on page 75. In 2024/25, adjusted earnings from continuing operations were £2,615 million, down £485 million (16%) from the prior year. Adjusted earnings in 2024/25 included a timing net under-recovery after tax of £372 million (2024: £688 million net over-recovery) and major storm costs (after tax) which are excluded from underlying results, of £64 million (2024: £165 million). As a result, adjusted operating profit of £4,765 million was down £697 million (2024: £5,462 million). Adjusted net finance costs of £1,361 million were £118 million lower, benefiting from the Rights Issue proceeds received in June 2024. Share of profits from joint ventures and associates of £75 million were down £26 million due to higher interconnector profits in the prior year. Adjusted tax of £861 million was £122 million lower, driven by lower profits, including in our UK Electricity System Operator business.

 

As explained above, our 'underlying' results exclude the total impact of exceptional items, remeasurements, timing, major storm costs and deferred tax in UK regulated businesses (NGET and NGED). A reconciliation between these alternative performance measures and our statutory performance is detailed on page 76.

 

Underlying operating profit was up 12% driven by improved performance in: New York (KEDNY and KEDLI and NIMO rate increases and lower environmental costs), New England (higher rates and capital tracker revenues) along with higher allowed revenues in UK Electricity Transmission and UK Electricity Distribution. National Grid Ventures was down from 2023/24, driven by lower revenues on our legacy interconnector fleet, partly offset by a full year of our new Viking interconnector. Other activities were lower principally as a result of fair value movements in NG Partners. Our joint ventures and associates' contribution reduced primarily due to lower auction revenues in BritNed compared with 2023/24. Regulated controllable costs were only 1% higher, with inflation and workload increases being mostly offset by efficiency savings. Depreciation and amortisation were higher than the prior year due to our growing asset base. Net financing costs were lower, benefiting from the Rights Issue proceeds in June 2024. Other interest was favourable year on year driven by higher capitalised interest. Underlying profit after tax increased by 20% and resulted in a 2% increase in underlying EPS to 73.3p.

 

Capital investment of £9,847 million was £1,612 million (20%) higher than 2023/24, driven by increased ASTI and customer connections investment in UK Electricity Transmission, increased capital expenditure in New York, New England and UK Electricity Distribution, partly offset by lower investment in National Grid Ventures. Higher capital investment is partly offset by reduced year-on-year RAV indexation from lower inflation resulting in asset growth of 9.0% (2024: 9.7%).

 

In calculating adjusted profit measures, where we consider it is in the interests of users of the financial statements to do so we exclude certain discrete items of income or expense that we consider to be exceptional in nature. The table below reconciles our statutory profit measures for continuing operations, at actual exchange rates, to adjusted and underlying versions. Further information on exceptional items and remeasurements is provided in notes 2, 4 and 5.

 

 

	Operating profit			Profit after tax			Earnings per share (pence)1
(£ million)	2025	2024		2025	2024		2025	2024
Statutory results	4,934	4,475		2,829	2,217		60.0	55.5
Exceptional items	(42)	1,011		(118)	852		(2.4)	21.4
Remeasurements	(127)	(24)		(93)	32		(2.0)	0.8
Adjusted results	4,765	5,462		2,618	3,101		55.6	77.7
Timing	505	(915)		372	(688)		7.9	(18.2)
Major storm costs	87	226		64	165		1.3	4.4
Deferred tax on underlying results in NGET and NGED	-	-		401	302		8.5	8.2
Underlying results	5,357	4,773		3,455	2,880		73.3	72.1

 

 

 

On 26 September 2024, we completed the sale of our residual 20% interest in National Gas Transmission for proceeds of £686 million, resulting in a gain on disposal after transaction costs of £25 million. The Group has not applied equity accounting in relation to this asset held for sale since 31 January 2023 (the date of sale of our 60% interest) resulting in no profits being recognised from that date onwards.

 

 

In calculating underlying profit, we exclude regulatory revenue timing over- and under-recoveries, major storm costs (defined below) and deferred tax on underlying results of our UK regulated business (NGET and NGED), also defined below. Under the Group's regulatory frameworks, most of the revenues we are allowed to collect each year are governed by regulatory price controls in the UK and rate plans in the US. If more than this allowed level of revenue is collected, an adjustment will be made to future prices to reflect this over-recovery; likewise, if less than this level of revenue is collected, an adjustment will be made to future prices in respect of the under-recovery. These variances between allowed and collected revenues and timing of revenue collections for pass-through costs give rise to 'timing' over- and under-recoveries.

 

The following table summarises management's estimates of such amounts for the two years ended 31 March 2025 and 31 March 2024 for continuing operations. All amounts are shown on a pre-tax basis and, where appropriate, opening balances are restated for exchange adjustments and to correspond with subsequent regulatory filings and calculations, and are translated at the 2024/25 average exchange rate of $1.266:£1.

 

Timing over/(under)-recoveries
(£ million)	2025	20241
Balance at start of year (restated)	1,029	39
UK Electricity Transmission	(151)	363
UK Electricity Distribution	407	(159)
UK Electricity System Operator	(479)	800
New England	61	(69)
New York	(343)	(20)
In-year (under)/over-recovery - continuing operations	(505)	915
Disposal of UK Electricity System Operator	(462)	-
Balance at end of year	62	954

 

1.  March 2024 balances restated to correspond with 2023/24 regulatory filings and calculations.

 

In 2024/25, we experienced timing under-recoveries of £151 million in UK Electricity Transmission, over-recoveries of £407 million in UK Electricity Distribution and the return of prior period over-recoveries of £479 million in UK Electricity System Operator (up to 1 October 2024, the disposal date of that business). During 2023/24, BSUoS collected revenues in UK Electricity System Operator were significantly more than system balancing costs, resulting in a £800 million over-recovery in that year. In our US regulated businesses we experienced over-recoveries of £61 million in New England, and under-recoveries of £343 million in New York. In calculating the post-tax effect of these timing recoveries, we impute a tax rate based on the regional marginal tax rates, consistent with the relative mix of UK and US balances.

 

 

We exclude the impact of major storm costs in the US where the aggregate amount is sufficiently material in any given year. Such costs (net of in-year allowances and deductibles) are recoverable under our rate plans but are expensed as incurred under IFRS. Accordingly, where the aggregate total US major storm costs incurred (net of in-year allowances and deductibles) exceeds $100 million in any given year, we exclude the net costs from underlying earnings. In 2024/25, we incurred deferrable storm costs, which are eligible for future recovery of $110 million (2024: $285 million).

 

 

We exclude deferred tax in our UK regulated businesses (NGET and NGED) in our underlying earnings measure. Tax is generally considered to be a pass-through cost by our UK regulator, with revenue tax allowances linked to the level of cash tax expected to be paid in the year. In 2024/25, we excluded £401 million (2024: £302 million) of deferred tax charges from our underlying results.

 

 

	Statutory results				Underlying results
(£ million)	2025	2024	change %		2025	2024	change %
UK Electricity Transmission	1,277	1,674	(24)		1,428	1,314	9
UK Electricity Distribution	1,598	975	64		1,203	1,152	4
UK Electricity System Operator	(213)	382	(156)		115	80	44
New England	1,008	641	57		924	802	15
New York	1,269	362	250		1,450	1,016	43
National Grid Ventures	5	558	(99)		380	469	(19)
Other activities	(10)	(117)	(92)		(143)	(60)	138
Total operating profit - continuing	4,934	4,475	10		5,357	4,773	12
Net finance costs	(1,357)	(1,464)	(7)		(1,361)	(1,479)	(8)
Share of post-tax results of joint ventures and associates	73	37	97		75	101	(26)
Profit before tax - continuing	3,650	3,048	20		4,071	3,395	20
Tax - continuing	(821)	(831)	(1)		(616)	(515)	20
Profit after tax - continuing	2,829	2,217	28		3,455	2,880	20
EPS (pence) - continuing	60.0	55.5	8		73.3	72.1	2

 

Statutory operating profit increased in the year, primarily as a result of the non-recurrence of exceptional net charges of £1,011 million in 2023/24 compared with exceptional net gains of £42 million in 2024/25. For details on exceptional items refer to note 4. This was partly offset by £1,420 million adverse year-on-year movements in timing net over-recoveries, £154 million favourable year-on-year movements in commodity derivative remeasurements, improved underlying performance in UK Electricity Transmission, New York and New England, partially offset by a shorter period of ownership of UK Electricity System Operator, along with lower profits in National Grid Ventures and 'Other activities' than 2023/24.

 

Underlying operating profit increased by £584 million (12%). Major storm costs (net of in-year allowances) were $110 million (£87 million) in 2024/25 and above our $100 million threshold to be excluded from our underlying results, however these were £139 million lower than the equivalent amount excluded in the prior year. The reasons for the movements in underlying operating profit are described in the Business Review.

 

 

 

Statutory net finance costs of £1,357 million were down from £1,464 million in 2023/24 and included derivative remeasurement gains of £4 million (2024: £15 million gains). Underlying net finance costs for the year were 8% lower than last year at £1,361 million. The Rights Issue raised net proceeds of £6.8 billion in June 2024, resulting in lower average net debt than the prior year. The beneficial impact of this was partly offset by outflows for higher levels of capital investment and higher interest rates on new borrowings resulting in a net £80 million reduction in net debt related finance costs. Other interest was favourable year on year reflecting higher capitalised interest partly offset by higher discount unwind on provisions. The effective interest rate for continuing operations of 4.1% is 10bps lower than the prior year rate.

 

 

The Group's share of net profits from joint ventures and associates on a statutory basis increased to £73 million (2024: £37 million). This was net of derivative remeasurement losses of £2 million (2024: £64 million) in our NG Renewables joint venture. This investment was reclassified to held for sale on 30 September 2024, with no profits being recognised from that date onwards. On an adjusted basis, the share of net profits from joint ventures and associates decreased by £26 million compared with 2023/24, mostly reflecting lower BritNed revenues driven by lower auction prices.

 

 

The statutory tax charge for continuing operations was £821 million (2024: £831 million) including the impact of tax on exceptional items and remeasurements of £40 million credit (2024: £152 million credit). The adjusted tax charge for continuing operations was £861 million (2024: £983 million), resulting in an adjusted effective tax rate for continuing operations (excluding profits from joint ventures and associates) of 25.3% (2024: 24.7%).

 

The underlying tax charge for the year (a non-GAAP measure) was £616 million (2024: £515 million).

 

The underlying effective tax rate (excluding joint ventures and associates) of 15.4% was 20bps lower than last year (2024: 15.6%). This is mainly due to increased investment in NGET leading to a lower underlying tax charge, partly offset by the change in geographic profit mix.

 

 

Net debt is the aggregate of cash and cash equivalents, borrowings, current financial and other investments and derivatives (excluding commodity contract derivatives) as disclosed in note 11 to the financial statements. 'Adjusted net debt' used for the RCF/adjusted net debt calculation is principally adjusted for pension deficits and hybrid debt instruments. For a full reconciliation see page 81. The following table summarises the Group's cash flow for the year, reconciling this to the change in net debt.

 

Summary cash flow statement
(£ million)	2025	2024	change %
Cash generated from continuing operations	6,991	7,281	(4)
Purchase of intangibles, PP&E, investments in JVs and acquisition of financial investments (net of disposals)1	(9,713)	(7,588)	(28)
Dividends from JVs and associates	126	176	(28)
Business net cash outflow from continuing operations	(2,596)	(131)	n/m
Net interest paid	(1,588)	(1,479)	(7)
Net tax paid	(183)	(342)	46
Cash dividends paid	(1,529)	(1,718)	11
Other cash movements	11	16	(31)
Net cash outflow (continuing)	(5,885)	(3,654)	(61)
Disposals of subsidiaries and associates2	1,263	681	85
Discontinued operations	22	102	(78)
Rights Issue (net of costs)	6,839	-	n/m
Other, including net financing raised/(repaid) in year	(1,474)	3,298	n/m
Increase/(decrease) in cash and cash equivalents	765	427	79
Reconciliation to movement in net debt
Increase/(decrease) in cash and cash equivalents	765	427	79
Less: other net cash flows from investing and financing transactions	1,474	(3,298)	n/m
Net debt reclassified to held for sale	(55)	(23)	n/m
Impact of foreign exchange movements on opening net debt	528	466	13
Other non-cash movements	(476)	(206)	n/m
(Increase)/decrease in net debt	2,236	(2,634)	n/m
Net debt at start of year	(43,607)	(40,973)	(6)
Net debt at end of year	(41,371)	(43,607)	5

 

1.  Net of disposals and also net of £143 million exceptional insurance recoveries in 2023/24.

 

2.  Cash proceeds of £577 million for ESO (which is net of the balance of cash and cash equivalents disposed) and £686 million (2024: £681 million) for our 20% remaining interest in National Gas Transmission. The total consideration received for the disposal of ESO was £673 million.

 

Cash flow generated from continuing operations was £7.0 billion, £0.3 billion lower than last year, mainly due to adverse timing movements (primarily in UK Electricity System Operator related to the return of BSUoS revenue over-recoveries which occurred in 2023/24). This impact was substantially offset by higher revenues in our retained regulated businesses compared with 2023/24, along with lower provisions and exceptional outflows. Cash expended on investment activities increased as a result of continued growth in our regulated businesses including a significant step-up of cash capital investment in UK Electricity Transmission which was £1.0 billion higher than the prior year, along with higher investment in New York, New England and UK Electricity Distribution. The £9.7 billion outflow in 2024/25 includes ongoing cash investment in Grain LNG, UK Electricity System Operator and National Grid Renewables, subsequent to these businesses being reclassified as held for sale. The prior year £7.6 billion outflow is net of insurance recoveries related to the rebuild of the IFA1 interconnector in the UK.

 

Net interest paid increased mainly as a result of the timing of cash interest payments (accrued interest movements), partly offset by a lower average level of net debt which benefited from a net £6.8 billion inflow from the Rights Issue proceeds (net of transaction costs). The Group made net tax payments of £183 million (2024: £342 million) for continuing operations during 2024/25. This decrease mainly related to lower taxable profits driven by over-recovered revenues in the prior year in the UK Electricity System Operator business.

 

The lower cash dividend reflected the higher weighted average scrip uptake of 31% in the current year (2024: 18%), partly offset by the annual inflationary increase on a dividend per share basis (after rebasing for the impact of the Rights Issue).

 

In 2024/25, we completed the sale of our UK Electricity System Operator business to the UK Government for proceeds of £673 million (including £45 million from completion adjustments received after 31 March 2025). We also sold our final 20% interest in National Gas Transmission for proceeds of £686 million. In 2023/24 we reduced our interest in National Gas Transmission from 40% to 20% interest for proceeds of £681 million and received a dividend payment of £102 million in discontinued operations.

 

The Board has considered the Group's ability to finance normal operations as well as funding a significant capital programme. This includes stress testing of the Group's finances under a 'reasonable worst-case' scenario, assessing the timing of the sale of businesses held for sale and the further levers at the Board's discretion to ensure our businesses are adequately financed. As a result, the Board has concluded that the Group will have adequate resources to do so.

 

 

 

During the year we raised net £6.8 billion (net of transaction costs) of equity financing by means of a Rights Issue. This helped reduce overall Group regulatory gearing and will help finance capital investment across the Group during future years. In addition, we also raised £3.2 billion of new long-term senior debt to refinance maturing debt and to fund a portion of our significant capital programme.

 

As at 14 May 2025, we have £7.8 billion of undrawn committed facilities available for general corporate purposes, all of which have expiry dates beyond May 2026. National Grid's balance sheet remains robust, with strong overall investment grade ratings from Moody's, Standard & Poor's (S&P) and Fitch.

 

Regulatory gearing, measured as net debt as a proportion of total regulatory asset value and other business invested capital, reduced in the year to 61% as at 31 March 2025. This was lower than the previous year end level of 69%, with the primary benefit coming from the Rights Issue, along with benefits from £0.7 billion proceeds from the sale of our final 20% stake in National Gas Transmission and £0.6 billion proceeds from the disposal of our UK Electricity System Operator business. Taking into account the benefit of our hybrid debt, adjusted gearing as at 31 March 2025 was 60% (2024: 67%). 

 

Retained cash flow as a proportion of adjusted net debt was 9.8%. We remain committed to maintaining the current strong overall investment grade credit rating for the Group. National Grid currently has strong investment grade credit ratings across almost all of its major operating companies, as well as senior unsecured debt ratings at the holding company, National Grid plc, at Baa2/BBB/BBB from Moody's, S&P and Fitch respectively. We consider these ratings optimise our cost of capital and deliver appropriate access to capital markets. We expect to maintain credit metrics above our thresholds for our current group credit ratings through to at least the end of the RIIO-T3 price control period, with thresholds of 10% for S&P's FFO/adjusted net debt, and 7% for Moody's RCF/adjusted net debt.

 

 

The Board has recommended a final dividend to 30.88p per ordinary share ($2.0545 per American Depository Share), which will be paid on 17 July 2025 to shareholders on the register of members as at 30 May 2025. If approved, this will bring the full-year dividend to 46.72p per ordinary share, representing an increase of 3.21% to the 45.26p 'rebased' dividend per share (as explained below) for 2023/24. This is in line with the increase in average UK CPIH inflation for the year ended 31 March 2025 as set out in our dividend policy.

 

As part of the Rights Issue, the Board announced that the overall cash dividend level would be maintained, with the additional shares from the Rights Issue resulting in a reduction to calculated dividend per share. The total dividend to shareholders (cash plus scrip) in respect of the financial year to 31 March 2024 was £2,167 million (58.52p per share). This total dividend of £2,167 million spread across a higher number of shares adjusted for the Rights Issue equated to a 'rebased' dividend per share in respect of 2023/24 of 45.26p (see calculation on page 89).

 

The Board aims to grow annual dividend per share (DPS) in line with UK CPIH, thus maintaining the DPS in real terms. The Board will review this policy regularly, taking into account a range of factors including expected business performance and regulatory developments.

 

At 31 March 2025, National Grid plc had £18.0 billion of distributable reserves, which is sufficient to cover more than five years of forecast Group dividends. If approved, the final dividend will absorb approximately £1,512 million of shareholders' funds. The 2024/25 full dividend is covered approximately 1.6x by underlying earnings.

 

The Directors consider the Group's capital structure at least twice a year when proposing an interim and final dividend and aim to maintain distributable reserves that provide adequate cover for dividend payments.

 

A scrip dividend alternative will again be offered in respect of the 2024/25 final dividend.

 

 

 

National Grid seeks to create value for shareholders through developing a balanced portfolio of businesses that offer an attractive combination of asset growth and cash returns.

 

 

In 2024/25, we achieved asset growth of 9.0% driven by our capital investment programme alongside RAV indexation. This investment continued our focus on building and maintaining world-class networks that are safe, reliable, resilient and ready for the future. It is specifically focused on our regulated businesses, with the objective of upgrading and modernising ageing infrastructure, in both the UK and US, to meet the changing needs of customers and to drive the decarbonisation of energy supply.

 

In 2025/26, we expect Group capital investment to be around £11 billion for continuing operations.

 

We are confident that this high-quality growth will continue to generate attractive returns for shareholders and add to our long-term investment proposition of sustainable asset and income growth.

 

 

We continued to make significant investments in critical energy infrastructure during 2024/25. Total capital investment for continuing operations across the Group was £9,847 million, an increase of £1,612 million, 20% compared to the prior year.

 

Capital investment
Year ended 31 March (£ million)		At actual exchange rates				At constant currency
		2025	2024	% change		2025	2024	% change
UK Electricity Transmission		2,999	1,912	57%		2,999	1,912	57%
UK Electricity Distribution		1,426	1,247	14%		1,426	1,247	14%
UK Electricity System Operator		-	85	(100%)		-	85	(100%)
New England		1,751	1,673	5%		1,751	1,668	5%
New York		3,289	2,654	24%		3,289	2,645	24%
National Grid Ventures		378	662	(43%)		378	661	(43%)
Other¹		4	2	100%		4	2	100%
Total capital investment - continuing		9,847	8,235	20%		9,847	8,220	20%

 

 

UK Electricity Transmission investment increased by £1,087 million compared with 2023/24 due to increased expenditure on ASTI projects (including EGL1, EGL2, Yorkshire GREEN and North London reinforcement projects) and additional spend in customer connections, increased overhead line work, asset operations investment and IT-related capital projects.

 

UK Electricity Distribution increased by £179 million primarily due to additional asset replacement and refurbishment, growth in connections and higher reinforcement works.

 

New England, capital investment increased by £78 million primarily due to higher electric capital investment driven by asset conditioning and Advanced Metering Infrastructure (AMI) spend.

 

New York, capital investment was £635 million higher primarily due to a step up in gas capital investment in KEDNY and KEDLI following increases approved in the rate case (mains replacement and other mandated works) and along with higher electric investment in NIMO driven by the Climate Leadership and Community Protection Act programme spend, in addition to higher AMI investment.

 

Capital investment in National Grid Ventures was £284 million lower after completing the build of Viking Link in 2023/24 and with lower contributions from NG Renewables and Grain LNG (spend post reclassification to 'held for sale' is not included within capital investment).

 

 

During 2024/25, UK RAV increased by 9.8% (2024: 7.3%) including the impact of CPIH inflation on RAV indexation, partly offset by RAV depreciation. The US rate base grew strongly by 11.5% during the year (2024: 11.5%). This resulted in an overall 'regulated asset growth' (i.e. UK RAV and US rate base) of 10.5% (2024: 9.1%). This is partly offset by 2.1% negative asset growth in NGV and Other primarily as a result of recognising an impairment of our Community Offshore Wind investment.

 

 

 

Assets
Year ended 31 March (£ million at constant currency)		2025	Sale of ESO	2024	increase	% change
UK RAV		32,805	(469)	30,310	2,964	9.8%
US rate base		27,345	-	24,527	2,818	11.5%
Total RAV and rate base ('regulated asset growth')		60,150	(469)	54,837	5,782	10.5%
NGV and Other businesses		7,352	-	7,509	(157)	(2.1%)
Total assets ('asset growth')		67,502	(469)	62,346	5,625	9.0%

In addition to IFRS based profit measures, National Grid calculates a number of additional regulatory performance metrics to aid understanding of the performance of the regulated businesses. These metrics aim to reflect the impact of performance in the current year on future regulatory revenue allowances. This includes the creation of future regulatory revenue adjustment balances and the impact of current year performance on the regulated asset base. These metrics also seek to remove the impacts on current year revenues relating to 'catch up' or 'sharing' of elements of prior year performance, for example the sharing of prior year efficiencies with customers.

 

These metrics include Return on Equity, Regulated Financial Performance and Regulated Asset Value or Regulated Rate Base. Further detail on these is provided on pages 82 to 88.

 

Year ended 31 March %	Regulatory Debt: Equity assumption		Achieved Return on Equity			Base or Allowed Return on Equity
			2025	2024		2025	2024
UK Electricity Transmission	55/45		8.3	8.0		7.3	7.0
UK Electricity Distribution	60/40		7.9	8.5		7.7	7.4
New England	Avg. 45/55		9.1	9.2		9.9	9.9
New York	Avg. 52/48		8.7	8.5		9.2	8.9
Group Return on Equity1			9.0	10.5		n/a	n/a

 

 

As at 31 March (£ million, at constant currency)	RAV, Rate Base or other business assets			Total regulated and other balances2
	2025	2024		2025	2024
UK Electricity Transmission	20,570	18,388		20,290	17,886
UK Electricity Distribution	12,235	11,497		11,954	11,633
UK Electricity System Operator	-	425		-	(466)
New England	9,422	8,512		11,329	10,325
New York	17,923	16,015		19,752	17,029
Total regulated	60,150	54,837		63,325	56,407
NGV and Other balances	7,352	7,509		5,942	6,533
Group regulated and other balances	67,502	62,346		69,267	62,940

 

1.  Our calculation methodology for Group RoE changed in 2024/25. Comparative amounts have been restated accordingly. See page 86 for details,

2.  March 2024 balances restated for opening balance adjustments to correspond with 2023/24 regulatory filings and calculations.

 

 

 

The UK Electricity Transmission (UK ET) segment is a critical component of National Grid's operations, responsible for the high voltage electricity transmission network in England and Wales.

 

 

■     Statutory operating profit decreased to £1,277 million, down 24% from the prior year. This was primarily due to an adverse timing impact through the return of prior period balances, including lower recovery of inflation true-up, and a lower recovery on volumes, versus the prior year. Underlying operating profit reached £1,428 million, a 9% increase on the prior year, reflecting higher totex allowances and RAV indexation, partially offset by lower tax allowances than the prior year.

 

■     Achieved RoE for the year was 8.3% (including 100bps of totex outperformance), compared to 8.0% in the prior year. This was driven by improved performance on our capital programmes.

 

■     Capital investment reached £2,999 million across our UK ET network, up 57% from the prior year. This reflects the ramp up in the first wave of ASTI projects, further customer connections during the year, and early spend on future connections.

 

 

■     In 2024/25, we achieved a network reliability of 99.99983%. On 8 May 2025 the NESO issued its interim review report investigating the outage following the fire at our North Hyde electrical substation in March 2025. We welcome the report which establishes the timeline and sequence of events, and outlines further steps required ahead of the NESO delivering their final report, expected in June 2025.

 

■     On safety, our LTIFR in the year was 0.08, compared to 0.16 in the prior year. This is a notable improvement and follows a concerted effort in this area, including embedding minimum contractor training standards in contracts.

 

■     The first six Wave 1 ASTI projects are under construction, including EGL 1 and EGL 2 comprising 700 kilometres of HVDC subsea cables. We have now secured primary delivery partners for the remaining 11 Wave 2 ASTI projects, with construction to commence once public consultations have completed and consents granted. We also successfully energised the Hurst-Littlebrook circuit on the London Power Tunnels, the first of three circuits being delivered on this project.

 

■     During 2024/25 we completed works to facilitate 4.0 GW of transmission connections, 2.7 GW of which related to renewables. In total, 2.5 GW of customer projects connected to the transmission network within the year, of which 1.6 GW were renewables.

 

 

■     In December, we submitted our business plan for the RIIO T3 price control period, which will run for five years from April 2026. The plan includes up to £35 billion of totex over the five years to March 2031, a 2.5 times increase from the previous control. Amongst other outcomes, it will enable us to nearly double the capacity of the current system to flow electricity, connect new demand customers with the capacity of one third of the current Great Britain peak demand and twice the amount of new generation capacity as in the previous price control, and support a 50% reduction in our scope 1 and 2 emissions from a 2018/19 baseline.

 

■     We were also pleased to see Ofgem's decision on the Advanced Procurement Mechanism. This will provide funding for transmission owners to secure supply chain capacity covering items, including switchgear and transformers, building on the approach Ofgem adopted under the ASTI regime. We plan to utilise the framework from the middle of this year.

 

 

■     During the year, we welcomed policy progress across a number of critical areas including publication of the UK Government's Clean Power Action Plan, which reaffirmed the need for our 17 ASTI projects to address current system constraints and enable the connection of Offshore Wind projects.

 

■     The publication of the Planning and Infrastructure Bill includes proposals that could both reduce the risk of delays and potentially accelerate energy infrastructure projects.

 

■     We were also pleased to see Ofgem's decision on connections reform published in April which embeds 'ready' and 'needed' criteria into the connections process. This will deliver a rationalised queue of projects aligned with the clean power plan, providing clarity on the specific locations where our connections spend will be deployed.

 

 

UK Electricity Transmission statutory operating profit was £397 million lower in the year. Timing under-recoveries were £151 million in 2024/25 compared with £363 million over-recoveries in 2023/24. This year-on-year swing is mainly the return of prior period balances (primarily tax allowances), a lower inflation true-up and a lower in-year recovery on volumes and pass-through costs than 2023/24. In the prior year, there were £2 million of exceptional costs related to our cost-efficiency programme and integration costs of £1 million.

 

UK Electricity Transmission underlying operating profit increased by 9%. Underlying net revenues were £168 million (9%) higher principally from higher totex allowances (including fast money on ASTI spend) and inflationary increases and the non-repeat of the beneficial tax allowance true-up in 2023/24.

 

Regulated controllable costs including pensions were £7 million (3%) higher from the impact of inflationary and workload increases mostly offset by efficiency savings. Other costs were higher, mainly relating to increased provision for project delivery risk and increased network innovation allowance costs.

 

The higher depreciation and amortisation principally reflects a higher asset base as a result of continued investment.

 

UK Electricity Transmission
(£ million)	2025	2024	% change
Revenue	2,619	2,735	(4)
Operating costs	(1,342)	(1,061)	26
Statutory operating profit	1,277	1,674	(24)
Exceptional items	-	3	(100)
Adjusted operating profit	1,277	1,677	(24)
Timing	151	(363)	n/m
Underlying operating profit	1,428	1,314	9
Underlying net revenue	2,315	2,147	8
Regulated controllable costs	(238)	(248)	(4)
Pensions	(55)	(38)	45
Other operating costs	(54)	(26)	108
Depreciation and amortisation	(540)	(521)	4
Underlying operating profit	1,428	1,314	9
Timing	(151)	363	n/m
Adjusted operating profit	1,277	1,677	(24)

 

 

 

RoE for the year was 8.3%, up 30bps on the prior year. The RoE includes 100bps of totex outperformance, principally reflecting delivery of capital projects in RIIO-T2. The principal components of RoE are shown in the table below:

 

Year ended 31 March	2025	2024
Base return (including avg. 2% long-run inflation)1	7.3	7.0
Totex incentive mechanism2	1.1	1.1
Other revenue incentives	(0.1)	(0.1)
Return on Equity	8.3	8.0

 

1.  Assuming regulatory gearing at 55%.

2.  Excludes impact of exceptional restructuring costs (post sharing)

 

 

 

In the year, RAV grew by 12% driven by increased investment and RAV indexation of 3.4% (2024: 3.8%).

 

	2025	2024
Opening Regulated Asset Value (RAV)1	18,388	17,150
Asset additions (slow money) - actual	2,586	1,660
Performance RAV or assets created	65	68
Inflation adjustment (actual CPIH)	646	658
Depreciation and amortisation	(1,115)	(1,074)
Closing RAV	20,570	18,462
Opening balance of other regulated assets and (liabilities)1	(536)	(159)
Movement	256	(363)
Closing balance	(280)	(522)
Closing Regulated Financial Position	20,290	17,940

 

 

 

 

The UK Electricity Distribution (UK ED) segment is a key component of National Grid's UK operations, responsible for distribution networks in the South-West, South Wales, and the Midlands.

 

 

■     Statutory operating profit increased to £1,598 million, up 64% from the prior year. This was primarily due to favourable timing impact through a higher inflation true-up. Underlying operating profit was £1,203 million, a 4% increase on the prior year, primarily reflecting higher RAV indexation.

 

■     Achieved RoE for the year was 7.9% (compared to 8.5% in the prior year), outperforming our allowance by 20 basis points, which is lower than our aim to achieve 100-125 basis points of outperformance. This reflects the one-off impact from Storm Darragh and impacts from the ED2 Real Price Effects (RPE) mechanism, where lower than anticipated allowances due to reductions in commodity indices since the start of the RIIO-ED2 period have not tracked actual costs incurred.

 

■     Capital investment reached £1,426 million in our UK Electricity Distribution network, up 14% from the prior year. This increase was driven principally by planned increases in spend on asset health, network reinforcement and our connections workload (enabling a 59% increase in heat pump connections and a 70% increase in EV charging point connections in the year).

 

■     We have delivered £88 million of UK ED integration synergy totex benefits to date, keeping us on track to deliver our £100 million target over three years. These synergies have come through procurement strategy and management, reviewing how we run and operate the 48 sites shared by UK ET and UK ED, operational delivery, and aligning with wider Group functions (including IT, insurance and pensions).

 

 

■     In 2024/25, we achieved an excellent network reliability of 99.98294%, this despite eight named storms across the network compared to an average of five in a normal year. This included Storm Darragh which affected all our service territories in December. Whilst our teams responded quickly to each incident, the higher volume of storms meant we missed our customer minutes lost target this year.

 

■     Our LTIFR increased to 0.18 against the Group target of less than 0.10, but the proportion of severe specified injuries as defined by UK Health and Safety legislation (RIDDOR) has fallen.

 

■     We have also progressed our DSO capability on the development of flexibility markets, now operating the largest market across all DSOs with over 160,000 registered assets. This allows us to optimise network planning and operations avoiding over 200 GWh of renewable generation curtailment and lower costs for consumers.

 

■     During the year, we connected around 100,000 new low carbon technology connections, 208 large scale demand projects, and 595 MW of renewable generation connections.

 

■     We have supported vulnerable customers with over £22 million of benefits delivered in support of 21,000 fuel poverty customers, and maintained a high level of customer satisfaction with a score of 9/10.

 

 

■     Following the publication of our first DSO report and panel assessment as part of the new DSO Incentive for RIIO-ED2, Ofgem announced that UK ED scored 8.24/10, the second highest score of all UK DNOs. This places UK ED in reward for the first year of the DSO Incentive.

 

■     In April 2025, we welcomed Ofgem's decision on the framework for the ED3 price control, which will run for five years from April 2028. Ofgem has been clear on the critical role electricity distribution networks, like UK ED, will play in achieving regional growth, resilient networks, and a clean power system. We agree with Ofgem that there is need for a longer-term, proactive approach to network planning whilst balancing resilience and capacity with affordability. We will continue to work closely with Ofgem and engage meaningfully with our customers and stakeholders as we develop our ED3 plan.

 

 

■     Our Connections team has been a leading voice in connections reform, forming strategic partnerships with customers, including Octopus Energy, GTC and RWE. We held our first ever 'Connections Hackathon' event (in partnership with Octopus Energy), to facilitate collaboration in the development of solutions to enhance the overall connections process. We championed the phrase "first ready, first needed, first connected" which has been adopted by NESO and now used widely in industry materials.

 

 

UK Electricity Distribution statutory operating profit was £623 million higher in the year, reflecting the impact of £566 million favourable year-on-year timing movements. Timing over-recoveries of £407 million in 2024/25 were mainly due to inflation true-ups and the recovery of prior period balances. This compares with a timing under-recovery of £159 million in the prior year.

 

In 2024/25 there were £12 million of exceptional costs related to our major transformation programme compared with £18 million of exceptional integration costs in 2023/24.

 

UK Electricity Distribution underlying operating profit increased by £51 million (4%). Underlying net revenues were £111 million higher than the prior year due to the impact of higher inflation and higher engineering recharges and incentive revenues.

 

Regulated controllable costs including pensions were £12 million (4%) higher than the prior year from the impact of workload increases, combined with investment in capability build and inflationary increases, partly offset by efficiencies achieved. Other costs were £22 million higher as a result of the disruption from Storm Darragh (categorised as a 1 in 20 years storm event) and increased engineering recharges.

 

Depreciation and amortisation increased compared with the prior year due to the increasing asset base.

 

UK Electricity Distribution
(£ million)	2025	2024	% change
Revenue	2,424	1,795	35
Operating costs	(826)	(820)	1
Statutory operating profit	1,598	975	64
Exceptional items	12	18	(33)
Adjusted operating profit	1,610	993	62
Timing	(407)	159	n/m
Underlying operating profit	1,203	1,152	4
Underlying net revenue	1,832	1,721	6
Regulated controllable costs	(281)	(270)	4
Pensions	(21)	(20)	5
Other operating costs	(78)	(56)	39
Depreciation and amortisation	(249)	(223)	12
Underlying operating profit	1,203	1,152	4
Timing	407	(159)	n/m
Adjusted operating profit	1,610	993	62

 

 

In 2024/25, the second year of RIIO-ED2, RoE was 7.9%, including 20bps outperformance, mostly consisting of non-totex performance incentives, partly offset by the adverse impact of Storm Darragh and the impact of the RIIO-ED2 Real Price Effects (RPE) mechanism, where lower than anticipated allowances due to reductions in commodity indices have not tracked actual costs incurred.

 

We are working hard to mitigate this headwind and improve performance. We expect outperformance to improve towards 100bps over the remainder of RIIO-ED2.

 

The principal components of the performance are shown in the table below:

 

For the year ended 31 March	2025	2024
Base return (including avg. 2% long-run inflation)	7.7	7.4
Totex incentive mechanism	-	1.1
Other revenue incentives	0.2	-
Return on Equity	7.9	8.5

 

 

 

In the year, RAV grew by 6% driven by ongoing investment coupled with RAV indexation of 3.4% (2024: 3.8%).

 

	2025	2024
Opening Regulated Asset Value (RAV)1	11,497	10,787
Asset additions (slow money) - actual	1,137	979
Performance RAV or assets created	(1)	51
Inflation adjustment (actual CPIH)	398	430
Depreciation and amortisation	(796)	(778)
Closing RAV	12,235	11,469
Opening balance of other regulated assets and (liabilities)1	136	(32)
Movement	(417)	174
Closing balance	(281)	142
Closing Regulated Financial Position	11,954	11,611

 

 

 

 

The UK Electricity System Operator (ESO) was responsible for system balancing across the electricity transmission network in Great Britain. The ESO was transferred out of National Grid on 1 October 2024 to the UK Government and became part of the newly created National Energy System Operator (NESO). The following results and commentary relate to the period of the financial year up to the date of transfer.

 

 

■     Operating profit: Statutory operating loss for the year was £213 million (2024: £382 million profit) principally as a result of the return of prior period timing over-recoveries related to BSUoS revenues. Underlying operating profit increased to £115 million (2024: £80 million) driven by cessation of depreciation following classification of this business as held for sale, partly offset by a shorter period of ownership in 2024/25.

 

 

■    Capital investment: Capital investment has not been recognised in this business following reclassification to held for sale.

 

■    Regulatory developments: The ESO has continued to work at pace and cross-industry towards long-term reforms to the connections process, to unblock the queue and pave the way for investment, ensuring the grid is ready to help deliver the energy transition.

 

 

UK Electricity System Operator was purchased by the UK Government on 1 October 2024 and had been classified as 'held for sale' since October 2023. Based on the scale and pass-through nature of the UK Electricity System Operator, it was not considered to be a separate major line of business and hence, did not meet the definition of a discontinued operation under IFRS 5. The year-on-year performance is driven by two significant factors: (i) a net £800 million over-collection of revenues during 2023/24 (and the consequential partial return of these over-recovered balances during 2024/25); and (ii) a shorter ownership period, with only six months' contribution in 2024/25.

 

UK Electricity System Operator statutory operating profit decreased by £595 million in the year as a result of adverse year-on-year timing swings (net of provisions for regulatory liabilities recognised under IFRS). In 2023/24 a £498 million exceptional provision was made for the return of the estimated remaining balance of over-collected revenues at the expected date of disposal (at that time, expected to be June 2024). This provision was partially reversed in 2024/25 generating an exceptional credit of £151 million in the current year. Under IFRS a regulatory liability is not usually recognised on balance sheet for the return of such over-recoveries, however due to the intended disposal of this business during 2024/25, a liability was recognised given these amounts were expected to be settled through the planned sale process as opposed to reduced future revenues. The remaining £347 million exceptional provision at the disposal date was reflected in the reported gain on disposal of this business.

 

During 2024/25, UK Electricity System Operator had a timing under-recovery of £479 million arising from the return of prior period balances (2024: £800 million net over-recovery). The 2023/24 over-recovery was the result of higher revenues collected through the BSUoS fixed price charges compared with total system balancing costs incurred during that year. At the disposal date, the impact of the residual net over-recovered position was assessed when calculating the overall net disposal proceeds.

 

UK Electricity System Operator underlying operating profit increased by £35 million. Underlying net revenue was £92 million lower, partly offset by lower costs mainly driven by the shorter ownership period in 2024/25. Depreciation and amortisation was £61 million lower, representing depreciation being charged for only the first seven months of the prior year, prior to classification as 'held for sale'.

 

UK Electricity System Operator
(£ million)	2025	2024	% change
Revenue	1,029	3,788	(73)
Operating costs	(1,242)	(3,406)	(64)
Statutory operating profit	(213)	382	(156)
Exceptional items	(151)	498	n/m
Adjusted operating profit	(364)	880	(141)
Timing	479	(800)	(160)
Underlying operating profit	115	80	44
Underlying net revenue	291	383	(24)
Controllable costs	(159)	(212)	(25)
Post-retirement benefits	(10)	(21)	(52)
Other operating costs	(7)	(9)	(22)
Depreciation and amortisation	-	(61)	(100)
Underlying operating profit	115	80	44
Timing	(479)	800	(160)
Adjusted operating profit	(364)	880	(141)

 

 

 

The New England segment is a key part of National Grid's US operations, responsible for electricity and gas distribution networks in Massachusetts. We also own and operate high voltage electric transmission lines across Massachusetts, New Hampshire and Vermont.

 

 

■     New England's statutory operating profit increased to £1,008 million, up 57% on the prior year, principally through timing from previously under recovered balances, lower major storm costs, and stronger underlying performance. Underlying operating profit increased to £924 million principally driven by refreshed rates from our MECO rate order, and higher capital tracker revenue from our leak-prone pipe replacement programme.

 

■     Achieved RoE for the year was 9.1%, compared to 9.2% in the prior year. Excluding 0.5% of non-recurring benefits reported last year, the increase was driven principally by six months of the new rate agreement in our MECO business.

 

■    Capital investment grew by 5% to £1,751 million at constant currency. This increase was principally driven by increases in asset condition spend in electric distribution, the roll-out of Advanced Metering Infrastructure (AMI), investments in grid modernisation, and installation of EV charging points.

 

 

■     In 2024/25, we achieved electric distribution network reliability of 99.97724% and an electric transmission reliability of 99.98544%. In our Massachusetts Gas business, we achieved a 99.27% response time to leaks within 60 minutes and replaced a further 134 miles of leak-prone pipe (LPP).

 

■     On safety, we recorded a LTIFR of 0.08 for New England in 2024/25, in line with the prior year.

 

■     We saw 25 recognised storms across our networks, with 5 qualifying for recovery through the Storm Fund, during the year. Our New England Emergency Response Organization was activated for 15 of these events, mobilising external resources to complement our internal workforce responding to storms. This included an ice storm in February that impacted more than 67,000 customers and resulted in 594 outages. We also continued to expand our Fault Location, Isolation and Service Restoration (FLISR) capability that allows electricity to be re-routed to disconnected networks and improve reliability. During the year, New England had 61 successful FLISR operations, which restored power to more than 77,000 customers within one minute, avoiding longer outages.

 

■    We connected 197 MW of distributed energy resources in 2024/25. In October, we made our 'Mass Save' energy efficiency filing (with other utilities), a three-year plan outlining energy efficiency, heat electrification and demand response programmes across our gas and electric customer bases between 2025 and 2027.

 

■     In the face of affordability challenges, we have continued to support our customers through assistance funding and bill relief, enrolling more customers in the discount rate and implementing the new multi-level tier low and moderate discount rate over the Spring and Summer. We also helped customers by reducing gas bills by 10% in March and April, which will instead be recovered in the summer period to help smooth bills.

 

 

■     We received a new rate order for MECO in October, with rates set for a 5-year period, an allowed RoE of 9.35% a new mechanism that enables timely recovery of growing capital investment needs up to a cap, and an increase in storm cost recovery of around $60 million per annum.

 

■     The DPU issued a decision on our Electric Sector Modernization Plan (ESMP) in August, approving the plan as a 'strategic roadmap' with minimal modifications. The ESMP outlines the critical investments of around $2 billion needed over five years in the local electric distribution system to meet Massachusetts' climate goals. The proceeding to determine cost recovery and metrics is expected to conclude by July 2025.

 

 

■     In November, Governor Healey approved legislation to reform the permitting process for utility infrastructure and clean energy projects. This new approach sets maximum timeframes for approvals, supporting the delivery of capital projects in the State.

 

 

 

RoE decreased 10bps to 9.1%, principally due to the non-recurrence of 50bps of benefit in the prior year (related to the recovery of historical property tax), mostly offset by improvements from six months of higher revenues from the new rate agreement in our MECO business.

 

		Return on Equity					Rate Base ($m) as at 31 March
Regulated Entity		FY25	FY24	FY23	Allowed most recent (%)		2025	2024	% change
Massachusetts Gas		8.6	9.2	8.6	9.7		5,408	4,759	14
Massachusetts Electric		8.1	7.6	5.9	9.5		3,766	3,541	6
Total Massachusetts		8.4	8.6	7.4	9.6		9,174	8,300	11
New England Power		11.1	11.1	11.1	10.6		2,938	2,646	11
Canadian Interconnector & Other		11.1	11.1	11.1	11.1		58	48	21
Total FERC		11.1	11.1	11.1	10.6		2,996	2,694	11
Total New England		9.1	9.2	8.3	9.9		12,170	10,994	11

 

 

Overall, the New England rate base increased by $1.2 billion (11%) to $12.2 billion driven by continued investment into networks.

 

New England Regulated Assets
($ billion as at 31 March)	2025	2024	% change
Rate Base excluding working capital	11.9	10.7	11
Working capital in Rate Base	0.3	0.3	(3)
Total Rate Base	12.2	11.0	11
Regulated assets outside Rate Base excluding working capital	2.5	2.5	-
Working capital outside Rate Base	(0.1)	(0.2)	(71)
Total regulated assets outside Rate Base	2.4	2.3	6
Total New England Regulated Assets	14.6	13.3	10
£ billion as at 31 March	2025	2024	% change
Total New England Regulated Assets at actual currency	11.3	10.6	7
Total New England Regulated Assets at constant currency	11.3	10.3	10

 

 

 

New England
(£ million)	2025	2024	2024 at constant currency	% change at actual currency
Revenue	4,306	3,948	3,935	9
Operating costs	(3,298)	(3,307)	(3,295)	-
Statutory operating profit	1,008	641	640	57
Exceptional items	3	17	17	n/m
Remeasurements	(29)	(15)	(15)	n/m
Adjusted operating profit	982	643	642	53
Timing	(61)	69	69	n/m
Major storm costs	3	90	89	(97)
Underlying operating profit	924	802	800	15
Underlying net revenue	2,587	2,364	2,357	9
Regulated controllable costs	(706)	(701)	(699)	1
Post-retirement benefits	(21)	(7)	(6)	200
Bad debt expense	(62)	(79)	(79)	(22)
Other operating costs	(405)	(355)	(354)	14
Depreciation and amortisation	(469)	(420)	(419)	12
Underlying operating profit	924	802	800	15
Timing	61	(69)	(69)	n/m
Major storm costs	(3)	(90)	(89)	(97)
Adjusted operating profit	982	643	642	53

 

New England's statutory operating profit increased by £367 million, principally as a result of improved underlying operating profit and lower major storm costs, along with the impact of £130 million favourable year-on-year timing movements. Timing over-recoveries of £61 million in 2024/25 are mainly due to phasing of energy efficiency programme spend and the collection of previous under-recovery of commodity costs. This compares with a timing under-recovery of £69 million in the prior year. Exceptional items included £7 million of charges related to our major transformation programme and a £4 million gain related to environmental provision movements. In 2023/24, there were £11 million of exceptional items related to the disposal of the Narragansett Electric Company and £6 million related to our cost efficiency programme. Commodity remeasurements were £14 million favourable to the prior year.

 

New England's underlying operating profit increased by £122 million (15%) or £124 million (16%) on a constant currency basis. Underlying net revenue was £223 million higher driven by the benefits of rate case increases in Massachusetts Gas and Massachusetts Electric, higher capital tracker revenue and higher wholesale network revenues. New England controllable costs increased by £5 million as a result of additional workload and inflation, which were largely offset by efficiency savings. Bad debt expense decreased by £17 million as a result of higher accounts receivable cash recoveries. Depreciation and amortisation increased as a result of higher investment. Other costs (on an underlying basis) were higher due to higher investment-related expenses and higher property taxes, both driven by the growth in asset base.

 

 

 

New York is a key part of National Grid's US operations, with electricity and gas distribution networks in upstate New York (Niagara Mohawk, NIMO), and gas distribution in Brooklyn and Long Island (KEDNY and KEDLI).

 

 

■   New York's statutory operating profit increased to £1,269 million, principally from year-on-year exceptional provision movements (£496 million charge in 2023/24 compared with a £142 million credit in 2024/25). Underlying operating profit increased to £1,450 million (up 43%) principally through refreshed rates from the first-full year of our updated KEDNY and KEDLI rate agreement.

 

■   Achieved RoE for the year was 8.7%, compared to 8.5% in the prior year, reflecting a strong performance in our downstate gas businesses, KEDNY and KEDLI, in the first year of the updated rate plan.

 

■   Capital investment in our networks continued during the year with capital spend increasing year-on-year by 24% to £3,289 million. This increase was principally through continued investment in leak-prone pipe replacement under our refreshed KEDNY and KEDLI rate plans, and our electric infrastructure where the focus has been on reinforcing our distribution and transmission networks.

 

 

■   In 2024/25, we achieved an excellent operational performance across our New York regulated business with an electric distribution network availability of 99.94077% and an electric transmission network availability of 99.84345%. We have now hit our key reliability targets continuously for 17 years in New York.

 

■   Across our New York business, we continued with gas safety and reliability investments including the replacement of a further 218 miles of leak-prone pipe.

 

■   On safety, we recorded a LTIFR of 0.11 in 2024/25, compared to 0.06 in the prior year.

 

■   Where our service territories were impacted by storm activity in 2024/25, we restored electricity to 95% of affected customers from the peak within 10 hours, an improvement on 2023/24 where the average time to reconnect 95% of customers was 12 hours. Around 1.4 million customers had interruptions from storms or severe weather in 2024/25.

 

■   We have continued to progress our Upstate Upgrade, a collection of more than 70 transmission enhancement projects through 2030, where we have awarded contracts for the whole of the first phase as well as engineering items in the second phase. The upgrade includes: Smart Path Connect - the rebuild and upgrade of approximately 55 miles of our Adirondack-Porter 230 kV transmission circuits to 345 kV in upstate New York; CLCPA Phase 1 - $800 million for distribution and local transmission upgrades; and CLCPA Phase 2 - $2.1 billion to expand transmission capacity and modernise the electric network.

 

 

■   In August, the PSC adopted the terms of the Joint Proposal for KEDNY and KEDLI for a three-year rate plan with 9.35% allowed RoE and around $5 billion capital allowances to modernise infrastructure. The plan also helps customers manage their energy usage by providing approximately $75 million annually for energy efficiency.

 

■   In April, we reached a Joint Proposal on new rates for our NIMO business. This includes an improved return on equity of 9.5% that supports an increase in investment to upgrade our transmission network, storm hardening across the network, expansion of EV charging and leak-prone pipe replacement work, and early connections work for large industrial customers. It also includes provisions to mitigate bill impacts for customers including spreading the bill increases over the three years of the plan, and bill assistance programmes for low-income households.

 

 

■   We await a draft of the updated State Energy Plan, New York's roadmap to building a clean, resilient, and affordable energy system. We expect public hearings on the plan, and an opportunity to engage, over the summer.

 

 

During the year, we achieved an RoE of 8.7%, 20bps above the 8.5% delivered in 2023/24. This was principally driven by higher allowed returns in KEDNY and KEDLI reflected in the new rate case, partly offset by lower achieved returns in NIMO.

		Return on Equity					Rate Base ($m) as at 31 March
Regulated Entity		FY25	FY24	FY23	Allowed most recent (%)		2025	2024	% change
KEDNY		10.5	9.0	9.2	9.4		7,212	6,454	12
KEDLI		10.6	9.7	9.2	9.4		4,439	4,149	7
NMPC Gas		4.6	6.0	7.1	9.0		2,266	1,765	28
NMPC Electric		7.2	8.1	8.1	9.0		9,232	8,317	11
Total New York		8.7	8.5	8.6	9.2		23,149	20,685	12

 

 

Overall, the New York rate base increased by $2.4 billion (12%) to $23.1 billion driven by continued investment into networks.

 

New York Regulated Assets
($ billion as at 31 March)	2025	2024	% change
Rate Base excluding working capital	22.7	20.3	12
Working capital in Rate Base	0.4	0.4	11
Total Rate Base	23.1	20.7	12
Regulated assets outside Rate Base excluding working capital	2.2	1.7	29
Working capital outside Rate Base	0.2	(0.4)	n/m
Total regulated assets outside Rate Base	2.4	1.3	82
Total New York Regulated Assets	25.5	22.0	16
£ billion as at 31 March	2025	2024	% change
Total New York Regulated Assets at actual currency	19.8	17.4	13
Total New York Regulated Assets at constant currency	19.8	17.0	16

 

New York
(£ million)	2025	2024	2024 at constant currency	% change at actual currency
Revenue	6,689	6,094	6,076	10
Operating costs	(5,420)	(5,732)	(5,716)	(5)
Statutory operating profit	1,269	362	360	251
Exceptional items	(133)	506	505	n/m
Remeasurements	(113)	(8)	(8)	n/m
Adjusted operating profit	1,023	860	857	19
Timing	343	20	20	n/m
Major storm costs	84	136	136	(38)
Underlying operating profit	1,450	1,016	1,013	43
Underlying net revenue	4,545	4,057	4,044	12
Regulated controllable costs	(1,049)	(1,057)	(1,054)	(1)
Post-retirement benefits	(33)	(21)	(21)	1
Bad debt expense	(141)	(96)	(96)	47
Other operating costs	(1,141)	(1,209)	(1,204)	(6)
Depreciation and amortisation	(731)	(658)	(656)	11
Underlying operating profit	1,450	1,016	1,013	43
Timing	(343)	(20)	(20)	n/m
Major storm costs	(84)	(136)	(136)	(38)
Adjusted operating profit	1,023	860	857	19

 

New York statutory operating profit increased by £907 million, principally as a result of £434 million higher underlying operating profit, £52 million lower major storms costs, £105 million higher commodity remeasurements gains and £639 million lower exceptional charges. Exceptional items included £9 million of charges related to our major transformation programme and a £142 million credit related to environmental provision movements (2024: £496 million cost). In 2023/24 we incurred £10 million of exceptional charges as part of our cost efficiency programme. These factors were partly offset by timing under-recoveries of £343 million in 2024/25 compared with timing under-recoveries of £20 million in 2023/24. The change in timing was primarily driven by lower auction sale prices on transmission wheeling, the return of prior period transmission wheeling over-collections, greater commodity under-recovery due to weather-driven gas bill volumes and KEDNY and KEDLI rates levelisation relating to new rates in 2024/25. These were partly offset by an over-recovery of energy efficiency programme costs in 2024/25.

 

New York underlying operating profit increased by £434 million (43%), driven by higher net underlying revenues which increased by £488 million (12%) principally driven by increased rates in KEDNY and KEDLI under the new rate plan along with higher NIMO revenues related to a capex tracker for incremental investment. Regulated controllable costs were £8 million lower year-on-year, with increased workload and the impact of inflation being offset by efficiency savings. Bad debt expense increased by £45 million driven by increased receivables, in line with revenue increases. Depreciation and amortisation increased due to the growth in assets. Other costs (on an underlying basis) decreased due to lower environmental costs (net benefit in 2024/25 compared with net charge in 2023/24 related to inflation impacts across multiple sites), partially offset by higher property taxes, driven by increasing asset base.

 

 

NGV is focused on competitive markets and operates a broad mix of energy assets and businesses in the UK and US. Its portfolio includes electricity interconnectors, competitive transmission, wind and solar power generation, LNG storage and regasification, battery storage, and conventional generation. The businesses continued to perform well in 2024/25, with good operational availability.

 

■     NGV statutory operating profit decreased to £5 million versus the prior year, primarily due to exceptional charges in the current year compared with exceptional credits in 2023/24 (see note 4 for details). Underlying operating profit decreased to £380 million at constant currency. This was driven primarily by lower interconnector revenues as market spreads returned to more historically normal conditions. Underlying interconnector performance remained strong, delivering above regulated returns, with three of the interconnectors performing above the cap, generating additional returns for UK consumers.

 

■     Capital investment, which includes investment in joint ventures and associates was £378 million, £284 million lower than the prior year (£283 million lower at constant currency). This decrease followed completion of the Viking Link to Denmark. In addition, the investments made in our National Grid Renewables and Grain LNG businesses have been excluded from reported capital expenditure following the held for sale treatment of these business for accounting purposes from October this year.

 

During the year, we have seen good operational performance across the National Grid Ventures portfolio.

 

■     Interconnectors: We have seen good availability across our interconnector fleet, with Viking Link reaching 92% availability, a strong performance for a new asset. IFA2 experienced unplanned outages during the year which, together with outages at BritNed, contributed to an overall interconnector availability of 86% across the year. The continued strong performance of our interconnector portfolio enabled the return of a further £89 million to UK consumers this year, part of a total of £277 million returned to reduce customer bills in the last two years, with a further £149 million to be returned over the next two years resulting in a total benefit to customers of £426 million.

 

■     Offshore Hybrid Assets (OHAs): We continued to work on our LionLink project development with our partner TenneT, and in November 2024 the project was awarded regulatory approval to the OHA pilot scheme with Ofgem confirming benefits to UK consumers. We also continued the early development of the next generation of interconnectors, including work with Ofgem to establish the regulatory regime for OHAs which was approved by the regulator in April 2025.

 

■     Grain LNG: We have completed the preparation and launched the divestment process of the Grain LNG terminal. We expect to announce a transaction later this year. Operationally, we have continued to make good progress on the CAP 25 expansion project at Grain LNG. The project reached several important milestones, including a successful hydrotest of the new CAP 25 tank, for which commercial operations remain on track to commence in the second half of calendar year 2025.

 

■     National Grid Renewables: In February, we agreed the sale of the National Grid Renewables onshore business to Brookfield Asset Management for an enterprise value of $1.735 billion. Completion of the transaction is subject to certain consents and regulatory approvals. Subject to these clearances, we expect the transaction will complete in the first half of the financial year ending 31 March 2026. Operationally, we reached a Final Investment Decision (FID) on 772 MW of new projects. The total portfolio now stands at 2.7 GW, which includes 1.3 GW operational assets under offtake contract, 0.3 GW uncontracted, and 1.1 GW under construction.

 

■     Community Offshore Wind: Given current market conditions and increased uncertainty on the development timeline of Community Offshore Wind, during the year in coordination with our joint venture partner, we have reduced the scope of our development activities until there is greater certainty. Our focus remains on delivering efficient and required energy infrastructure that will lead to affordable, reliable energy for our customers. Given the subsequent expected development delays, we have recognised a £303 million impairment in the current year.

 

■     New York Transmission: We continue to progress the Propel New York transmission project with partners in NY Transco and the New York Power Authority (NYPA). Propel will carry energy from Long Island to the rest of New York state, and was selected by the New York ISO to add six high voltage transmission lines and associated substation upgrades to the transmission system on Long Island and in New York City. The project is expected to complete in 2030.

 

National Grid Ventures
(£ million)	2025	2024	2024 at constant currency	% change at actual currency
Revenue	1,397	1,389	1,389	1
Operating costs	(1,392)	(831)	(831)	68
Statutory operating profit	5	558	558	(99)
Exceptional items	360	(89)	(89)	n/m
Remeasurements	15	-	-	n/m
Underlying/adjusted operating profit	380	469	469	(19)
Statutory post-tax share of JVs and associates	73	38	38	92
Remeasurements	2	64	64	(97)
Adjusted post-tax share of JVs and associates	75	102	102	(26)
Analysed by business:
Interconnectors	253	306	306	(17)
Grain LNG	150	149	149	1
NG Generation	26	29	29	(10)
Other	(49)	(15)	(15)	227
Adjusted operating profit	380	469	469	(19)
Interconnectors	49	69	69	(29)
NG Renewables	17	22	22	(23)
Other	9	11	11	(18)
Adjusted post-tax share of JVs and associates	75	102	102	(26)
Total NGV contribution (adjusted/underlying)	455	571	571	(20)
Interconnectors	74	192	192	(61)
NG Renewables	174	271	270	(36)
Grain LNG	47	104	104	(55)
NG Generation	36	24	24	50
Other	47	71	71	(34)
Capital investment	378	662	661	(43)

 

National Grid Ventures' statutory operating profit reduced by £553 million, principally as a result of a £303 million impairment of Community Offshore Wind (COSW) investment, along with £57 million of exceptional transaction and separation costs for the planned disposal of National Grid Renewables and £15 million of commodity remeasurement losses all recognised in 2024/25. This compared with £89 million of net exceptional gains in 2023/24, consisting of £92 million of property damage insurance proceeds for the IFA1 fire, net of £3 million of exceptional charges related to our prior cost efficiency programme. Our underlying and adjusted results exclude the impact of these exceptional items and remeasurements.

 

National Grid Ventures' underlying operating profit was £89 million lower than 2023/24. In the UK, interconnector profits decreased versus the prior year primarily as a result of lower interconnector revenues as market spreads returned to more historically normal conditions. On 30 September 2024, our Grain LNG business in the UK and our National Grid Renewables business in the US were reclassified as 'held for sale' with depreciation ceasing from that date onwards. In the US, profit was lower, primarily as a consequence of fewer renewable projects being sold to our Emerald joint venture.

 

 

 

Other activities primarily relate to UK property, insurance and corporate activities, as well as National Grid Partners, the corporate investment and innovation arm of National Grid. In UK Land and Property, we continue to make good progress with the divestment of the surplus property portfolio. In this fiscal year, we completed on the sale of 35 sites, realising approximately £54 million profit.

 

Other
(£ million)	2025	2024	2024 at constant currency	% change at actual currency
Revenue	122	244	240	(50)
Operating costs	(132)	(361)	(357)	(63)
Statutory operating loss	(10)	(117)	(117)	(91)
Exceptional items	133	(57)	(57)	n/m
Underlying/adjusted operating loss	(143)	(60)	(60)	138
Analysed by business:
Property	54	30	30	80
NG Partners	(82)	(13)	(13)	531
Corporate and other activities	(115)	(77)	(77)	49
Adjusted operating loss	(143)	(60)	(60)	138

 

Other activities' statutory operating loss of £10 million (2024: £117 million loss) includes a net exceptional gain of £133 million, consisting of a £187 million exceptional gain on disposal of the UK Electricity System Operator, net of £46 million of exceptional charges related to our major transformation programme and £8 million of exceptional transaction and separation costs incurred by our corporate function related to the planned disposal of our Grain LNG business. The prior year included £11 million of exceptional transaction, separation and integration costs related to the separation and disposal of UK Gas Transmission and the integration of National Grid Electricity Distribution and £46 million of exceptional charges as part of our cost efficiency programme.

 

Other activities' underlying operating loss was £143 million (including corporate costs) in 2024/25 compared with £60 million loss in 2023/24. This increase mainly relates to £69 million higher fair value losses within our NG Partners portfolio, £24 million lower insurance captive profits combined with £12 million higher corporate centre costs, partially offset by higher UK property sales in the year.

 

 

Date	Event
15 May 2025	2024/25 Full Year Results
29 May 2025	Ex-dividend date for 2024/25 final dividend
30 May 2025	Record date for 2024/25 final dividend
5 June 2025	Scrip reference price announced for 2024/25 final dividend
19 June 2025 (5pm London time)	Scrip election date for 2024/25 final dividend
9 July 2025	2025 Annual General Meeting
17 July 2025	2024/25 final dividend paid to qualifying shareholders
6 November 2025	2025/26 Half Year Results
20 November 2025	Ex-dividend date for 2025/26 interim dividend
21 November 2025	Record date for 2025/26 interim dividend
27 November 2025	Scrip reference price announced for 2025/26 interim dividend
11 December 2025 (5pm London time)	Scrip election date for 2025/26 interim dividend
13 January 2026	2025/26 interim dividend paid to qualifying shareholders

 

The Company's Deposit agreement under which the ADRs are issued allows a fee of up to $0.05 per ADR to be charged for any cash distribution made to ADR holders, including cash dividends. ADR holders who receive cash in relation to the 2024/25 final dividend will be charged a fee of $0.02 per ADR by the Depositary prior to distribution of the cash dividend.

 

 

This announcement contains certain statements that are neither reported financial results nor other historical information. These statements are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include information with respect to National Grid's (the Company) financial condition, its results of operations and businesses, strategy, plans and objectives. Words such as 'aims', 'anticipates', 'expects', 'should', 'intends', 'plans', 'believes', 'outlook', 'seeks', 'estimates', 'targets', 'may', 'will', 'continue', 'project' and similar expressions, as well as statements in the future tense, identify forward-looking statements. This document also references climate-related targets and climate-related risks which differ from conventional financial risks in that they are complex, novel and tend to involve projection over long term scenarios which are subject to significant uncertainty and change. These forward-looking statements and targets are not guarantees of National Grid's future performance and are subject to assumptions, risks and uncertainties that could cause actual future results to differ materially from those expressed in or implied by such forward-looking statements and targets. Many of these assumptions, risks and uncertainties relate to factors that are beyond National Grid's ability to control or estimate precisely, such as changes in laws or regulations and decisions by governmental bodies or regulators, including those relating to current and upcoming price controls in the UK and rate cases in the US; the timing of construction and delivery by third parties of new generation projects requiring connection; breaches of, or changes in, environmental, climate change and health and safety laws or regulations, including breaches or other incidents arising from the potentially harmful nature of its activities; network failure or interruption, the inability to carry out critical non-network operations and damage to infrastructure, due to adverse weather conditions including the impact of major storms as well as the results of climate change, due to counterparties being unable to deliver physical commodities; reliability of and access to IT systems, including due to the failure of or unauthorised access to or deliberate breaches of National Grid's systems and supporting technology; failure to adequately forecast and respond to disruptions in energy supply; performance against regulatory targets and standards and against National Grid's peers with the aim of delivering stakeholder expectations regarding costs and efficiency savings, as well as against targets and standards designed to support its role in the energy transition; and customers and counterparties (including financial institutions) failing to perform their obligations to the Company. Other factors that could cause actual results to differ materially from those described in this announcement include fluctuations in exchange rates, interest rates and commodity price indices; restrictions and conditions (including filing requirements) in National Grid's borrowing and debt arrangements, funding costs and access to financing; regulatory requirements for the Company to maintain financial resources in certain parts of its business and restrictions on some subsidiaries' transactions such as paying dividends, lending or levying charges; the delayed timing of recoveries and payments in National Grid's regulated businesses, and whether aspects of its activities are contestable; the funding requirements and performance of National Grid's pension schemes and other post-retirement benefit schemes; the failure to attract, develop and retain employees with the necessary competencies, including leadership and business capabilities, and any significant disputes arising with National Grid's employees or breaches of laws or regulations by its employees; the failure to respond to market developments, including competition for onshore transmission; the threats and opportunities presented by emerging technology; the failure by the Company to respond to, or meet its own commitments as a leader in relation to, climate change development activities relating to energy transition, including the integration of distributed energy resources; and the need to grow the Company's business to deliver its strategy, as well as incorrect or unforeseen assumptions or conclusions (including unanticipated costs and liabilities) relating to business development activity, including the proposed sale of certain of its businesses, its strategic infrastructure projects and joint ventures. For further details regarding these and other assumptions, risks and uncertainties that may affect National Grid, please read the Strategic Report section and the 'Risk factors' on pages 226 to 231 of National Grid's Annual Report and Accounts for the year ended 31 March 2024 as updated by National Grid's unaudited half-year financial information for the six months ended 30 September 2024, published on 7 November 2024. In addition, new factors emerge from time to time and National Grid cannot assess the potential impact of any such factor on its activities or the extent to which any factor, or combination of factors, may cause actual future results to differ materially from those contained in any forward-looking statement. Except as may be required by law or regulation, the Company undertakes no obligation to update any of its forward-looking statements, which speak only as of the date of this announcement. This announcement is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities. The securities mentioned herein have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. No public offering of securities is being made in the United States.

 

 

Term	Meaning
ASTI	Accelerated Strategic Transmission Investment
CAGR	Compound Annual Growth Rate
CPIH	UK Consumer Prices Index including Owner Occupiers' Housing Costs
DSO	Distribution System Operator
EGL1	Eastern Green Link 1: Torness to Hawthorn Pit (ASTI project); JV with SP Energy Networks
EGL2	Eastern Green Link 2: Peterhead to Drax (ASTI Project); JV with SSEN
ESMP	Electric Sector Modernization Plan
FERC	Federal Energy Regulatory Commission
FFO	Funds from Operations
HVDC	High Voltage Direct Current
KEDNY and KEDLI	KeySpan Energy Delivery New York (KEDNY) and KeySpan Energy Delivery Long Island (KEDLI)
LTIFR	Lost Time Injury Frequency Rate
MADPU	Massachusetts Department of Public Utilities (state energy regulator)
MECO	Massachusetts Electric Company
NGED/UK ED	National Grid Electricity Distribution
NGET/UK ET	National Grid Electricity Transmission
NGV	National Grid Ventures
NIMO	Niagara Mohawk (National Grid's electric and gas distribution business in upstate New York)
NYPSC	New York Public Services Commission (state energy regulator)
RAV	Regulated Asset Value
RIIO	"Revenue = Incentives + Innovation + Outputs" a Price control Framework used by the UK regulator OFGEM
RIDDOR	The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013, UK Health and Safety legislation.

 

 

2025	Notes		Before exceptional items and remeasurements £m	Exceptional items and remeasurements (see note 4) £m	Total £m
Continuing operations
Revenue	2(a),3		18,378	-	18,378
Provision for bad and doubtful debts			(200)	-	(200)
Other operating costs	4		(13,413)	169	(13,244)
Operating profit	2(b)		4,765	169	4,934
Finance income	4,5		449	1	450
Finance costs	4,5		(1,810)	3	(1,807)
Share of post-tax results of joint ventures and associates			75	(2)	73
Profit before tax	2(b)		3,479	171	3,650
Tax	4,6		(861)	40	(821)
Profit after tax from continuing operations			2,618	211	2,829
Profit after tax from discontinued operations	9		4	72	76
Total profit for the year (continuing and discontinued)			2,622	283	2,905
Attributable to:
Equity shareholders of the parent			2,619	283	2,902
Non-controlling interests			3	-	3
Earnings per share (pence)
Basic earnings per share (continuing)	7				60.0
Diluted earnings per share (continuing)	7				59.8
Basic earnings per share (continuing and discontinued)	7				61.6
Diluted earnings per share (continuing and discontinued)	7				61.4

 

 

2024	Notes		Before exceptional items and remeasurements £m	Exceptional items and remeasurements (see note 4) £m	Total £m
Continuing operations
Revenue	2(a),3		19,850	-	19,850
Provision for bad and doubtful debts			(179)	-	(179)
Other operating costs	4		(14,221)	(987)	(15,208)
Other operating income			12	-	12
Operating profit	2(b)		5,462	(987)	4,475
Finance income	4,5		244	4	248
Finance costs	4,5		(1,723)	11	(1,712)
Share of post-tax results of joint ventures and associates			101	(64)	37
Profit before tax	2(b)		4,084	(1,036)	3,048
Tax	4,6		(983)	152	(831)
Profit after tax from continuing operations			3,101	(884)	2,217
Profit after tax from discontinued operations	9		13	61	74
Total profit for the year (continuing and discontinued)			3,114	(823)	2,291
Attributable to:
Equity shareholders of the parent			3,113	(823)	2,290
Non-controlling interests			1	-	1
Earnings per share (pence)¹
Basic earnings per share (continuing)	7				55.5
Diluted earnings per share (continuing)	7				55.3
Basic earnings per share (continuing and discontinued)	7				57.4
Diluted earnings per share (continuing and discontinued)	7				57.1

 

1.  Restated to reflect the impact of the bonus element of the Rights Issue.

 

 

			2025	2024
	Notes		£m	£m
Profit after tax from continuing operations			2,829	2,217
Profit after tax from discontinued operations			76	74
Other comprehensive income from continuing operations
Items from continuing operations that will never be reclassified to profit or loss:
Remeasurement losses on pension assets and post-retirement benefit obligations			(106)	(218)
Net losses in respect of cash flow hedging of capital expenditure			(16)	(37)
Tax on items that will never be reclassified to profit or loss			27	59
Total items from continuing operations that will never be reclassified to profit or loss			(95)	(196)
Items from continuing operations that may be reclassified subsequently to profit or loss:
Retranslation of net assets offset by net investment hedge			(352)	(335)
Net gains in respect of cash flow hedges			218	240
Net (losses)/gains in respect of cost of hedging			(52)	26
Net gains on investment in debt instruments measured at fair value through other comprehensive income			1	21
Tax on items that may be reclassified subsequently to profit or loss	6		(40)	(66)
Total items from continuing operations that may be reclassified subsequently to profit or loss			(225)	(114)
Other comprehensive loss			(320)	(310)
Other comprehensive (loss)/income for the year, net of tax from discontinued operations	9		(10)	10
Other comprehensive loss			(330)	(300)
Total comprehensive income for the year from continuing operations			2,509	1,907
Total comprehensive income for the year from discontinued operations	9		66	84
Total comprehensive income for the year			2,575	1,991
Attributable to:
Equity shareholders of the parent
From continuing operations			2,508	1,906
From discontinued operations			66	84
			2,574	1,990
Non-controlling interests
From continuing operations			1	1

 

 

 

	Share capital £m	Share premium account £m	Retained earnings £m	Other equity reserves £m		Total share-holders' equity £m	Non- controlling interests £m		Total equity £m
At 1 April 2023	488	1,302	31,608	(3,860)		29,538	24		29,562
Profit for the year	-	-	2,290	-		2,290	1		2,291
Other comprehensive loss for the year	-	-	(168)	(132)		(300)	-		(300)
Total comprehensive income/(loss) for the year	-	-	2,122	(132)		1,990	1		1,991
Equity dividends	-	-	(1,718)	-		(1,718)	-		(1,718)
Scrip dividend-related share issue1	5	(6)	-	-		(1)	-		(1)
Issue of treasury shares	-	-	21	-		21	-		21
Transactions in own shares	-	2	(6)	-		(4)	-		(4)
Share-based payments	-	-	37	-		37	-		37
Tax on share-based payments	-	-	2	-		2	-		2
Cash flow hedges transferred to the statement of financial position, net of tax	-	-	-	2		2	-		2
1 April 2024	493	1,298	32,066	(3,990)		29,867	25		29,892
Profit for the year	-	-	2,902	-		2,902	3		2,905
Other comprehensive loss for the year	-	-	(80)	(248)		(328)	(2)		(330)
Total comprehensive income/(loss) for the year	-	-	2,822	(248)		2,574	1		2,575
Rights Issue	135	-	-	6,704		6,839	-		6,839
Transfer between reserves	-	-	6,704	(6,704)		-	-		-
Equity dividends	-	-	(1,529)	-		(1,529)	-		(1,529)
Scrip dividend-related share issue1	10	(10)	-	-		-	-		-
Issue of treasury shares	-	-	18	-		18	-		18
Transactions in own shares	-	4	(11)	-		(7)	-		(7)
Other movements in non-controlling interests	-	-	-	-		-	(3)		(3)
Share-based payments	-	-	37	-		37	-		37
Tax on share-based payments	-	-	(1)	-		(1)	-		(1)
Cash flow hedges transferred to the statement of financial position, net of tax	-	-	-	5		5	-		5
At 31 March 2025	638	1,292	40,106	(4,233)		37,803	23		37,826