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Research Alert: National Grid Reports Solid Fy 26 Results Amid Increased Regulatory Clarity

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

National Grid (NG) posted solid FY 26 (Mar.) results with underlying operating profit +6% Y/Y to GBP5.7B, in line with consensus, and underlying EPS +8% at cc to GBP0.78. Record capital investment of GBP11.6B (+18%) led to 10.9% asset growth, with strong performance across U.K. Electricity Transmission and New York operations. We think secured regulatory momentum with RIIO-T3 approval is crucial for earnings transparency, and NG's role in net zero transition positions it well to capitalize on industry trends. NG extended its framework to FY 31 with an upgraded investment commitment of at least GBP70B (from GBP60B), targeting 10% asset growth CAGR and 8%-10% underlying EPS CAGR. We believe electricity infrastructure will play an increasingly important role in net zero, and NG's highly regulated business model shields it against price and volume risk. We see a rotation in European utilities from electric utilities into grids in 2026 due to a fundamental shift involving the upcoming EUR600B grids investment.

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