Mission Statement, Vision, & Core Values of National Grid plc (NGG)

National Grid plc's strategic direction is not just a feel-good statement; it's a massive £60 billion capital allocation plan over five years, starting with a record £9,847 million invested in the 2025 fiscal year alone. You see the underlying operating profit jump to £5,357 million, but does that growth-and the commitment to a clean, fair, and affordable vision-actually translate into defintely better long-term shareholder value? When a utility commits this much capital to the energy transition, how do the core values-Do the right thing, Find a better way, and Make it happen-mitigate the regulatory and execution risks inherent in delivering a 6-8% underlying Earnings Per Share (EPS) compound annual growth rate?

National Grid plc (NGG) Overview

You need a clear picture of National Grid plc (NGG), a company that literally powers millions of homes and businesses across two continents. The direct takeaway is that National Grid is a massive, regulated utility focused on energy transmission and distribution in the UK and the Northeastern US, and it is currently undergoing a massive capital investment cycle to modernize its infrastructure.

National Grid's history began in 1990, following the privatization of the UK's Central Electricity Generating Board. It quickly grew into a transatlantic giant, notably expanding its footprint in the United States by acquiring companies like New England Electric System and Niagara Mohawk Power Corporation in the early 2000s, which is why you see them operating in New York and Massachusetts today. They are a utility, so their products are fundamentally the reliable delivery of electricity and gas-specifically, owning and operating the high-voltage transmission networks and the local distribution systems.

The company's focus is on network infrastructure, not generating power. They are the essential middleman, moving energy from where it is produced to where it is consumed. For the fiscal year ending March 31, 2025, National Grid reported total revenue from continuing operations of approximately £18.378 billion. That's a huge number, but it's defintely a regulated, steady-as-she-goes business.

• Founded in 1990; operates in the UK and US.
• Core products: Electricity and gas transmission and distribution.
• FY2025 revenue: £18.378 billion for continuing operations.

FY2025 Financial Performance: Investment Driving Growth

Looking at the latest financial reports for the 2025 fiscal year, you can see a company leaning heavily into its regulated asset base (RAB) growth. The underlying earnings per share (EPS) came in at 73.3 pence, a modest but steady 2% increase over the prior year, which is what you expect from a regulated utility. But the real story is the capital expenditure (capex).

National Grid announced a record capital investment of nearly £10 billion in FY2025, which is a significant 20% increase from the previous year. That spending is the engine for future regulated returns. Honestly, this is where the money is going: upgrading the grid to handle more renewable energy and improving reliability for customers in markets like New York and Massachusetts.

The New York segment, a key US market, was a primary revenue driver, contributing approximately £6.69 billion, which accounted for about 36% of the total revenue. This revenue comes from their main product lines: the regulated fees for distributing electricity and gas to homes and businesses. Net income for the group also saw a substantial jump, rising 28% to £2.83 billion, driven by improved performance in regulated businesses and lower expenses. The quick math here shows that while total revenue was slightly down year-over-year, the focus on efficiency and the regulated segments is paying off in profit.

A Global Leader in Energy Transition

National Grid plc is not just a utility; it is one of the largest investor-owned energy companies globally, and that position puts it right at the center of the global energy transition. They are a critical infrastructure player in both the UK and the US, which are two of the world's largest economies trying to decarbonize.

Their success isn't an accident; it's a function of their essential, regulated role. They are the ones delivering the Great Grid Upgrade in the UK and the Upstate Upgrade in New York, which are multi-billion-dollar efforts to reinforce and expand the grid. These projects enable the connection of vast amounts of new renewable generation, like offshore wind. This focus on long-term, regulated investment provides stable and predictable growth, even amid international economic uncertainty.

So, you're seeing a company with a resilient business model and a clear path for future growth, backed by regulatory frameworks. To understand the full scope of their operations, including their mission and ownership structure, you can find more details here: National Grid plc (NGG): History, Ownership, Mission, How It Works & Makes Money.

National Grid plc (NGG) Mission Statement

As a financial analyst, I look at a company's mission statement not as corporate fluff, but as a binding contract that guides capital allocation and risk management. For National Grid plc, a critical player in the US and UK energy systems, their mission is a clear roadmap for their £60 billion five-year investment plan: Breaking Down National Grid plc (NGG) Financial Health: Key Insights for Investors.

National Grid plc's mission is to: Connect people to the energy they use, safely, reliably and efficiently. This statement is the lens through which every major decision-from grid modernization to regulatory filings-is made. It ensures their massive capital expenditure (CapEx) program is focused on tangible, value-driving outcomes for customers and shareholders alike.

Honestly, without this clear mission, a utility of this scale could easily lose its way. It's what anchors their strategic goal of being at the heart of a clean, fair, and affordable energy future.

Core Component 1: Connecting People to the Energy They Use

This component is the foundational purpose, translating into a massive infrastructure build-out that enables the transition to clean energy. National Grid plc isn't just maintaining the current grid; they are fundamentally reshaping it to handle distributed generation (renewable energy sources connected locally) and increased demand from electrification.

The financial commitment here is staggering. For the fiscal year ending March 31, 2025 (FY25), National Grid plc delivered a record capital investment of almost £10 billion, which was a 20% increase over the prior year. This spending is not abstract; it's going into tangible assets like the $4 billion upstate upgrade program in New York to modernize the grid and increase capacity. Here's the quick math on the green side:

• Total Green CapEx in FY25: £7.7 billion
• Percentage of Group CapEx: Around 81%
• Five-Year Green Investment Target (through 2028/29): Approximately £51 billion

This commitment to green investment, aligned with the EU Taxonomy for sustainable investment, shows the mission is driving the balance sheet. It's a defintely a clear signal to investors about the company's long-term growth trajectory, which is projected to drive asset growth at a Compound Annual Growth Rate (CAGR) of around 10% through to 2028/29.

Core Component 2: Safely

In the energy sector, safety is non-negotiable-it's a license to operate. This mission component covers not only the physical safety of employees and the public but also the security and resilience of the network itself, especially against cyber threats and extreme weather events.

The company's core value, 'Do the right thing,' starts with standing up for safety every day. This translates into operational metrics that are constantly scrutinized by regulators. While specific FY25 safety incident rates are not always public-facing, the massive capital investment in infrastructure directly improves safety. For example, the investment includes a 16% increase in leak-prone pipe replacements across US gas networks in FY25 alone, directly mitigating major public safety risks. What this estimate hides is the complexity of replacing thousands of miles of pipe, but the financial commitment is clear. The company's Long-Term Performance Plan (LTPP) for the period ending March 31, 2025, also incorporated emissions and energy transformation metrics, showing safety and environmental compliance are tied to executive compensation.

Core Component 3: Reliably and Efficiently

Reliability and efficiency are the key performance indicators (KPIs) that directly impact customer satisfaction and regulatory returns. A reliable network means fewer outages and higher quality of service; an efficient one means lower operating costs and more affordable energy for customers.

The strategic investment in the network is designed to improve reliability. For instance, the company is working to expand the UK grid's capacity, enabling a near doubling of the power that can be transferred around the country. This capacity expansion is crucial for maintaining reliability as more intermittent renewable energy sources connect. On the efficiency front, National Grid plc is focused on increasing efficiency to help with customer affordability, which is part of their 'Find a better way' core value. The financial results for FY25 showed underlying Earnings Per Share (EPS) of 73.3p, up 2% from the previous year, demonstrating that their investment strategy is driving performance while managing costs. This financial strength, coupled with capital investment, is what ensures the energy system remains both dependable and financially sustainable for the millions of customers they serve across the UK and the US.

National Grid plc (NGG) Vision Statement

You're looking at National Grid plc (NGG) and need to know if their stated goals align with their massive capital commitments, and honestly, they do. The company's vision is a clear, three-part declaration: to be at the heart of a clean, fair and affordable energy future. This isn't just corporate boilerplate; it's the strategic blueprint driving their near-term investment decisions and their long-term regulated asset growth.

As a financial analyst, I see this vision as a direct map to their forecasted returns. They are tying their future profitability-including the expected 6-8% compound annual growth rate (CAGR) for underlying earnings per share (EPS) from the FY2025 baseline-directly to executing on these three pillars. It's a classic regulated utility play, but with a massive, decarbonization-driven capital injection.

Clean: Leading the Energy Transition with Record Investment

The 'clean' pillar is where the bulk of the capital expenditure (CapEx) is flowing, and that's the key investment signal here. National Grid plc is positioning itself as the central enabler of the net-zero transition across both the US and the UK. Their FY2025 performance shows this commitment isn't slowing down; total capital investment hit a record of nearly £9.847 billion.

Here's the quick math on the green focus: out of that substantial CapEx, approximately 81%, or about £7.7 billion, was classified as green capital investment aligned with the EU Taxonomy principles for sustainable investment in the 2024/2025 fiscal year. That's a huge percentage. This investment is specifically targeting network reinforcement to handle intermittent renewable generation, and in 2024/25, they connected a significant 3,016 MW of renewable capacity to their networks. This focus is defintely a high-growth opportunity, but still faces the near-term risk of regulatory delays in project approval.

• Connect new renewable generation faster.
• Invest £51 billion in green infrastructure by March 2029.
• Accelerate US transmission projects for clean power.

Fair: Enabling the Transition for All Stakeholders

The 'fair' component of the vision is about ensuring the energy transition is equitable-meaning no community or customer is left behind, which is a critical regulatory and social license-to-operate concern. For a utility, this translates into network resilience and community engagement, especially in underserved areas. In the US, for example, progress continues on major projects like the Upstate Upgrade in New York, which aims to deliver a modern, stronger, and cleaner energy network while also generating new jobs.

From an investor perspective, this fairness pillar is about managing non-financial risks (Environmental, Social, and Governance or ESG), which are increasingly material. The company's core value to 'Do the right thing'-which includes putting customers first and being inclusive-is the operational bedrock for this vision. The challenge is balancing this social commitment with the need to maintain strong financial health, which you can read more about in Breaking Down National Grid plc (NGG) Financial Health: Key Insights for Investors.

Affordable: Delivering Value Through Efficiency and Scale

Affordability is the most sensitive point for a regulated utility, and National Grid plc addresses it by focusing on efficiency and scale. The vision states that everyone should be able to pay for their essential energy needs. The company's strategy to 'Find a better way'-one of their core values-is directly tied to increasing efficiency to help with customer affordability.

The sheer scale of their planned investment-around £60 billion over the five years to 2028/29-is expected to drive asset growth of roughly 10% a year. This massive regulated asset base (RAB) growth provides the stable, predictable earnings that underpin their financial guidance. For the half-year ended September 30, 2025, the company invested a record £5.052 billion, keeping them on track to spend over £11 billion for the full 2025/26 financial year. This scale is what ultimately drives down the unit cost of energy delivery over time, making it more affordable for the end-user. The risk? If capital costs rise faster than allowed regulatory returns, that affordability promise gets strained.

National Grid plc (NGG) Core Values

You're looking at National Grid plc (NGG), a massive utility, and trying to figure out if their stated values actually translate into financial and operational reality. Honestly, a company this size-with a projected total cumulative capital investment of around £60 billion over the five years to 2028/2029-doesn't just run on spreadsheets; it runs on a culture defined by its core values. My two decades in this industry, including my time as an analyst at institutions like BlackRock, taught me that values are the 'how' behind the numbers.

National Grid's core values-Do the right thing, Find a better way, and Make it happen-are the operational framework that drove their strong performance in the 2025 fiscal year (FY2025). This isn't corporate fluff; it's the engine for their underlying operating profit of £5.357 billion for FY2025. Let's break down how these values translate to concrete, measurable actions and investment decisions.

Do the Right Thing

This value is all about integrity, safety, and putting the customer first, which is critical in a regulated business. For a utility, this means keeping the lights on and the gas flowing, but also ensuring affordability and community support. The quick math here is simple: poor safety or reliability equals massive fines and customer backlash, so this value protects the bottom line.

National Grid's commitment to safety and reliability is evident in their network performance. For FY2025, network reliability across all their electricity networks was above 99.84%, and their UK Electricity Transmission network achieved an impressive reliability of 99.99983%. That level of operational precision is a direct result of a 'safety every day' culture.

In terms of community impact, National Grid demonstrated this value in November 2025 by contributing $400,000 to local food banks and pantries across New York and Massachusetts. This initiative, part of their Grid for Good Season of Giving, directly addresses food insecurity for families facing economic challenges. That's a clear, tangible action, not just a promise.

• Achieve near-perfect network reliability.
• Invest in community resilience programs.
• Support vulnerable customers with energy efficiency.

Find a Better Way

For National Grid, 'Find a better way' means embracing innovation and efficiency to drive the clean energy transition. This is where the company's long-term strategic vision-being at the heart of a clean, fair, and affordable energy future-gets funded. You can't achieve net-zero goals without being bold on capital expenditure (capex) and technology.

The company's investment strategy in FY2025 shows this commitment. Their capital investment for the year was a record £9.847 billion, a 20% increase over the prior year. Crucially, around 81% of that investment, which is roughly £7.7 billion, was aligned with the EU Taxonomy principles for sustainable investment. That's a huge chunk of capital dedicated to a cleaner future.

This value is also visible in their clean energy connection metrics. In the 2024/2025 fiscal year, National Grid connected 3,016 MW of new renewable capacity to its networks. They are also deploying smart grid technologies to optimize energy distribution, which is a defintely a better way to reduce transmission losses and increase efficiency for customers. If you want to dive deeper into how this investment impacts their balance sheet, you should check out Breaking Down National Grid plc (NGG) Financial Health: Key Insights for Investors.

Make It Happen

This value is about personal ownership, boldness, and delivering results-the execution layer of the strategy. You can have the best plans, but if your people don't 'Make it happen,' the numbers fall apart. This is where the rubber meets the road on major infrastructure projects.

National Grid's financial results for FY2025 clearly show execution. The record capital investment of £9.847 billion, which was a £1.627 billion increase from the previous year, wasn't just planned; it was delivered. Here's the quick math: that 20% year-over-year increase in capex is what drives their regulated asset growth, which was around 10% for the year.

This commitment to delivery is what underpins the company's financial outlook, which projects an underlying Earnings Per Share (EPS) Compound Annual Growth Rate (CAGR) of 6-8% from the FY2025 baseline of 73.3p. They are not just managing the existing grid; they are aggressively building the energy future. That's a bold, decisive action that shows they are not afraid to take ownership of a massive infrastructure build-out.