National Grid PLC (LON:NG) announced an upgraded five-year financial framework through fiscal 2031 on Monday, raising its underlying earnings per share growth target to 8-10% annually while accepting the RIIO-T3 regulatory framework for its UK electricity transmission business.

The company outlined plans for cumulative capital investment of at least £70 billion through fiscal 2031, representing a 70% increase compared to the prior five years.

This includes approximately £31 billion in UK electricity transmission, £9 billion in UK electricity distribution, £17 billion in New York regulated operations, £12 billion in New England regulated operations, and £1 billion in National Grid Ventures. The investment plan is expected to drive group asset growth of around 10% annually.

Shares rose 1.6% following the announcement. For fiscal 2026, National Grid said performance remains in line with expectations, with analyst consensus at 78.3p per share.

The company guided to fiscal 2027 underlying EPS growth of 13-15%, which at the midpoint of 89p represents a 3% premium to analyst consensus.

“Building on National Grid’s strong track record of delivery, we are expanding our record levels of investment to at least £70 billion by FY31, driving around 10% asset growth and an upgraded underlying EPS CAGR of between 8 and 10%,” said Chief Executive Zoë Yujnovich.

The upgraded EPS growth target of 8-10% compares to the company’s previous framework targeting 6-8% growth through fiscal 2029. The new guidance implies fiscal 2031 EPS of 120.5p, approximately 10% above current analyst consensus.

National Grid confirmed acceptance of Ofgem’s RIIO-T3 price control arrangements covering its UK electricity transmission business from April 2026 through March 2031.

The company expects to deliver an overall return on equity above 9% across the price control period.