National Grid surprises with a jump in profits: 12% more in one year!

National Grid surprises with a jump in profits: 12% more in one year!

The British network operator National Grid achieved an operating profit of 5.36 billion pounds (around 6.36 billion euros) in the past financial year 2024/25, which corresponds to an increase of 12% compared to the previous year. This reports finance.net. The company thus significantly exceeded analysts' expectations. The main drivers of growth were the regulated businesses, particularly in the area of ​​electricity transmission in New York and on the British home market.

Overall, National Grid saw revenue fall 7% to £18.4bn. Despite the decline in sales, net profit rose to 2.9 billion pounds, after 2.3 billion in the previous year. Jefferies analyst Ahmed Farman was positive about the results and highlighted the earnings outlook for the 2025/26 financial year.

Investments and market development

For the coming years, National Grid is planning strategic investments of around £60 billion by the end of March 2029. Record investments of almost £10 billion were already made in the past financial year, an increase of 20% compared to the previous year. These investments are critical to supporting the company's infrastructural needs and growth objectives.

However, National Grid also faces challenges. There was a value adjustment of around £300 million on an offshore wind power joint venture due to uncertainties in the market. However, the impact of these challenges has been mitigated by the company's overall growth. National Grid shares rose 1.9% after the earnings release to trade at 1,040 pence in early trading, up 2.4%, according to the Investment Week reported.

Positive quarterly results from Engie, another energy company, also helped support the European sector index, which rose 0.8%. Nevertheless, losses at RWE are dampening the general euphoria in the industry.