National Grid plc

National Grid plc

National Grid plc (NGG) is a major regulated utility operating high‑voltage electricity transmission and gas distribution networks primarily in the UK and parts of the US. With a market capitalisation of about $75.75 billion, it is capital‑intensive and focused on long‑term infrastructure investment. Investors should note the regulated nature of its revenuesβ€”tariff frameworks and long asset lives tend to produce relatively stable cash flows and an income‑orientated profile, but outcomes depend on regulator decisions. The group is central to the energy transition, investing in grid upgrades, interconnectors and decarbonisation projects, which offer growth opportunities but also raise execution and financing risks. Performance is influenced by interest rates, regulatory reviews, large capital expenditure programmes and currency movements. Dividends have historically been a feature, yet past payouts are not a guarantee of future payments. This is general educational information only and not personalised investment advice; consider suitability and seek professional guidance where appropriate.

Why It's Moving

National Grid plc

Shares jump as board finalizes new audit arrangements amid strong sector tailwinds

National Grid moved after the company confirmed the outcome of a formal competitive audit tender and investors digested continued positive sector momentum for electricity networks and gas amid winter demand. The audit decision reduces near-term governance uncertainty while broader energy-market dynamics and recent policy funding in the UK are supporting sentiment toward regulated network owners.

Sentiment:
βš–οΈNeutral
  • Board announced the conclusion of a formal competitive audit tender led by the Audit & Risk Committee, signaling a completed governance review that removes an overhang of audit-provider uncertainty and could reassure investors about board oversight and reporting continuity.
  • Market momentum for electricity and gas networks β€” driven by higher winter energy demand and recent UK funding initiatives for grid upgrades β€” is lifting sentiment for regulated transmission owners, improving revenue visibility for multi-year investment programs.
  • Analysts and market commentary this week pointed to National Grid’s exposure to long-term grid reinforcement and connections demand (including data-centre and electrification needs), which offsets near-term capital-intensity concerns by implying sustained regulated cash flows and policy-aligned investment opportunities.

Stock Performance Snapshot

Buy

Analyst Rating

Analysts suggest purchasing National Grid's stock, expecting it to rise to $80.5.

Above Average

Financial Health

National Grid is performing well with strong revenue and cash flow, indicating solid financial stability.

Average

Dividend

National Grid's average dividend yield of 4.4% offers a decent return for investors seeking dividends. If you invested $1000 you would be paid $44 a year in dividends (based on the last 12 months).

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

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Why You’ll Want to Watch This Stock

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Reliable cash flows

Regulated tariffs aim to deliver predictable revenues and support an income profile, though returns depend on regulatory decisions and economic conditions.

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Energy transition plays

Investment in grid upgrades and interconnectors supports decarbonisation and future demand, but these projects are capital‑intensive and carry execution risk.

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Geographic exposure mix

Operations across the UK and US offer diversification, while introducing currency and differing regulatory regimes that can affect results.

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6% Interest on Cash

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