National Grid Misses Profit Forecast as U.S. Storm Costs Rise

National Grid reports profits below expectations after rising U.S. storm damage costs, but maintains its long-term growth outlook and investment plans in energy infrastructure.

By Danielle Harper Coleman

National Grid has reported annual profits below market expectations after higher costs linked to storm damage in its United States operations weighed on performance, even as the company reaffirmed its long-term financial outlook.

The British energy infrastructure giant, which operates electricity and gas networks across the UK and U.S., recorded an adjusted operating profit of £5.68 billion ($7.68 billion) for the year ending March 31. This fell slightly short of analyst expectations of £5.75 billion, according to company-compiled consensus estimates.

The shortfall was largely driven by rising storm-related expenses in its U.S. business, where extreme weather events caused significant damage to power infrastructure. Repair and recovery costs increased by 7.4% to £636 million, reflecting the growing financial impact of climate-related disruptions on energy networks.

Despite the weaker-than-expected earnings, National Grid maintained confidence in its broader strategy and future growth plans. The company reaffirmed its commitment to investing heavily in electricity and gas infrastructure, particularly as demand for grid modernization and renewable integration continues to rise across both the UK and U.S. markets.

In recent years, National Grid has been reshaping its portfolio to focus more on regulated energy networks. This strategy has included divesting from certain assets, such as its U.S. onshore renewables business, while increasing investment in core transmission and distribution infrastructure.

Chief Executive Officer Zoe Yujnovich said the company does not expect major disruption from ongoing geopolitical tensions or trade tariff pressures. She noted that around 90% of procurement for the company’s U.S. operations comes from local suppliers, reducing exposure to global supply chain volatility.

The company also said it had not experienced significant impacts from Middle East tensions or broader global trade uncertainty, and confirmed that its expansion and investment plans remain unchanged.

Looking ahead, National Grid reaffirmed its forecast for 13% to 15% adjusted earnings per share growth by 2027, signaling continued confidence in long-term profitability despite short-term cost pressures.

Analysts say the results highlight a growing challenge for global utilities: balancing stable infrastructure investment with the rising costs of climate-related damage, particularly as extreme weather events become more frequent and severe.