National Grid (NGG)
NYSE:NGG
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National Grid Transco
(NYSE:NGG)
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Rating:74Outperform
Price Target:
$94.00
▲(24.49% Upside)
Action:ReiteratedDate:11/06/25
National Grid Transco's overall score reflects strong earnings call insights and technical momentum, balanced by financial performance challenges and moderate valuation. The company's strategic investments and regulatory support are key strengths, while high capital expenditures and revenue pressures pose risks.
Positive Factors
Regulatory approvals and price control clarity
Material regulatory approvals and acceptance of RIIO‑T3 increase visibility of allowed revenue and returns, de-risking a large portion of future cash flows. This supports multi-year investment recovery, improves financing predictability and underpins long-term earnings durability.
Negative Factors
Inconsistent and declining revenue trends
Declining and uneven revenue growth reduces top-line visibility for a company whose earnings depend on asset growth and tariff frameworks. Prolonged revenue softness can constrain earnings progression, pressure margins, and complicate regulatory negotiations for future allowed returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulatory approvals and price control clarity
Material regulatory approvals and acceptance of RIIO‑T3 increase visibility of allowed revenue and returns, de-risking a large portion of future cash flows. This supports multi-year investment recovery, improves financing predictability and underpins long-term earnings durability.
Read all positive factors
National Grid Transco (NGG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$81.42B
Dividend Yield4.03%
Average Volume (3M)1.31M
Price to Earnings (P/E)21.6
Beta (1Y)0.20
Revenue Growth-7.06%
EPS Growth38.21%
CountryUS
Employees31,425
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)1.95
Shares Outstanding994,261,840
10 Day Avg. Volume1,442,799
30 Day Avg. Volume1,314,607
Financial Highlights & Ratios
PEG Ratio2.52
Price to Book (P/B)1.26
Price to Sales (P/S)2.60
P/FCF Ratio-14.12
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue6.16
Enterprise Value/Gross Profit20.87
Enterprise Value/Ebitda14.70
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.24
Revenue Forecast (FY)$26.26B
National Grid Transco Business Overview & Revenue Model
Company Description
National Grid plc transmits and distributes electricity and gas. The company operates through UK Electricity Transmission, UK Electricity Distribution, UK Electricity System Operator, New England, and New York segments. The UK Electricity Transmis...
How the Company Makes Money
National Grid Transco primarily makes money through regulated network revenues earned for providing electricity transmission and gas transportation services. Its core revenue model is based on earning allowed revenue under regulatory frameworks, w...
National Grid Transco Key Performance Indicators (KPIs)
Any
Third Party Revenue by Segment
Tracks revenue generated from external customers in each segment, indicating the company's reliance on third-party sales and potential market demand.
Tracks revenue generated from external customers in each segment, indicating the company's reliance on third-party sales and potential market demand.
Data provided by:
The Fly
The FlyNational Grid Transco Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Positive
National Grid's earnings call highlights significant achievements in capital investment, regulatory approvals, and operational performance, despite facing some challenges in revenue pressures and cost management. The company's strong financial and strategic position points towards continued growth and resilience.Positive Updates
Record Capital Investment
National Grid reported a record GBP 5.1 billion of investment in the first half, up 12% year-on-year, and remains on track to deploy over GBP 11 billion of investment this year.
Negative Updates
Pressure on U.K. Electricity Distribution Revenues
Lower revenues in U.K. Electricity Distribution due to headwinds from Ofgem's real price effects mechanism.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Capital Investment
National Grid reported a record GBP 5.1 billion of investment in the first half, up 12% year-on-year, and remains on track to deploy over GBP 11 billion of investment this year.
Read all positive updates
Company Guidance
In the recent National Grid call, guidance was provided showcasing a strong financial outlook and continued investment in infrastructure. The company expects investment growth of around 10% per annum, with underlying earnings per share growth projected between 6% to 8%. Significant progress has been made in securing the supply chain for major projects, with over 75% of their £60 billion investment plan now underpinned by delivery mechanisms. During the first half, National Grid achieved a record capital investment of over £5 billion, aiming to deploy more than £11 billion by year-end. Additionally, an interim dividend of 16.35p per share was declared, reflecting a policy of delivering an inflation-protected dividend. The company also highlighted strong regulatory and policy support, with approximately 75% of their five-year investment plan approved within U.S. rate cases and key policy developments in both the U.K. and U.S. aimed at accelerating infrastructure delivery.National Grid Transco Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.28B | 18.38B | 19.85B | 21.66B | 18.45B | 18.45B |
| Gross Profit | 5.10B | 14.23B | 14.58B | 13.04B | 12.35B | 12.35B |
| EBITDA | 7.25B | 7.63B | 6.83B | 7.25B | 6.43B | 6.43B |
| Net Income | 2.83B | 2.90B | 2.29B | 7.80B | 2.35B | 2.35B |
Balance Sheet | ||||||
| Total Assets | 103.76B | 106.74B | 98.33B | 92.70B | 94.86B | 67.22B |
| Cash, Cash Equivalents and Short-Term Investments | 4.06B | 6.93B | 4.25B | 2.73B | 3.33B | 2.49B |
| Total Debt | 45.91B | 47.54B | 47.07B | 42.98B | 45.47B | 31.22B |
| Total Liabilities | 66.54B | 68.92B | 68.43B | 63.13B | 71.00B | 47.36B |
| Stockholders Equity | 37.19B | 37.80B | 29.87B | 29.54B | 23.83B | 19.84B |
Cash Flow | ||||||
| Free Cash Flow | -2.87B | -3.39B | -1.27B | -585.92M | 340.31M | -382.67M |
| Operating Cash Flow | 6.24B | 5.27B | 5.64B | 5.57B | 5.65B | 3.59B |
| Investing Cash Flow | -4.99B | -10.87B | -7.83B | -14.60M | -14.79B | -4.92B |
| Financing Cash Flow | -1.60B | 6.36B | 2.62B | -5.59B | 9.18B | 1.42B |
National Grid Transco Technical Analysis
Negative
75.51
Price Trends
87.48
Negative
81.97
Negative
76.60
Positive
Market Momentum
-1.75
Positive
31.80
Neutral
13.49
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NGG, the sentiment is Negative. The current price of 75.51 is below the 20-day moving average (MA) of 87.78, below the 50-day MA of 87.48, and below the 200-day MA of 76.60, indicating a neutral trend. The MACD of -1.75 indicates Positive momentum. The RSI at 31.80 is Neutral, neither overbought nor oversold. The STOCH value of 13.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NGG.
National Grid Transco Risk Analysis
National Grid Transco disclosed 9 risk factors in its most recent earnings report. National Grid Transco reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
National Grid Transco Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $70.37B | 16.71 | 12.06% | 3.25% | 7.66% | 37.42% | |
74 Outperform | $81.42B | 21.62 | 7.66% | 4.03% | -7.06% | 38.21% | |
71 Outperform | $101.09B | 18.33 | 9.69% | 3.61% | 4.80% | 14.44% | |
66 Neutral | $106.96B | 22.16 | 12.50% | 3.40% | 9.40% | -6.05% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $49.43B | 15.92 | 9.87% | 3.68% | 6.07% | 15.20% | |
63 Neutral | $53.50B | 16.69 | 10.77% | 4.59% | 12.72% | 4.90% |
* Utilities Sector Average
NGG
National Grid Transco
81.92
19.04
30.28%
AEP
American Electric Power
130.10
24.36
23.04%
D
Dominion Energy
60.88
7.29
13.61%
DUK
Duke Energy
129.99
12.19
10.35%
EXC
Exelon
48.32
3.82
8.59%
SO
Southern Co
95.55
6.52
7.33%
National Grid Transco Corporate Events
National Grid Boosts £70bn Investment Plan and Accepts RIIO-T3 Price Control
Mar 2, 2026
On 2 March 2026, National Grid extended and upgraded its financial framework to fiscal 2031, outlining at least £70 billion of cumulative capital investment and targeting around 10% compound annual asset growth and 8–10% underlying EPS ...
National Grid Updates Voting Rights and Discloses February Executive Share Deals
Feb 27, 2026
On 2 February 2026, National Grid reported that as of 31 January 2026 it had 5,198,968,690 ordinary shares in issue, of which 227,677,364 were held in treasury, leaving 4,971,291,326 shares carrying voting rights, a key reference figure for shareh...
National Grid Updates Voting Rights and Reports January Executive Share Dealings
Jan 30, 2026
On 2 January 2026, National Grid plc reported that as of 31 December 2025 its issued share capital comprised 5,191,884,002 ordinary shares, of which 230,310,720 were held in treasury, leaving 4,961,573,282 shares carrying voting rights; this figur...
National Grid Publishes FCA-Approved Supplementary Prospectus for €20bn EMTN Programme
Jan 23, 2026
On 23 January 2026, National Grid plc and its subsidiary National Grid Electricity Transmission plc announced the publication of a supplementary prospectus approved by the UK Financial Conduct Authority for their €20 billion Euro Medium Term...
National Grid Updates Voting Share Capital After Scrip Dividend Share Issue
Jan 14, 2026
On 13 January 2026, National Grid plc reported a change in its share capital following the issue of 7,084,688 ordinary shares under its Scrip Dividend Scheme for the 2025/26 interim dividend. As a result, the company’s registered capital now...
National Grid Issues New Shares Under 2025/26 Scrip Dividend Scheme
Jan 12, 2026
On 12 January 2026, National Grid plc announced that it has applied to the UK Financial Conduct Authority and the London Stock Exchange for the admission to listing and trading of 7,084,688 new ordinary shares in connection with the operation of i...
National Grid Issues New Shares Under 2025/26 Interim Scrip Dividend Scheme
Jan 12, 2026
On 12 January 2026, National Grid plc announced that it has applied to the UK Financial Conduct Authority and the London Stock Exchange for the admission to listing and trading of 7,084,688 new ordinary shares in connection with its Scrip Dividend...
National Grid Updates Voting Rights and Reports December Executive Share Transactions
Dec 31, 2025
On 1 December 2025, National Grid reported that its registered capital as of 30 November 2025 comprised 5,191,884,002 ordinary shares, of which 230,339,116 were held in treasury, leaving 4,961,544,886 shares carrying voting rights to be used by in...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.