HICL Infrastructure PLC

Latest Results (25.02.2026):

HICL Infrastructure PLC — Annual results for the year ended 31 March 2025 (quarter ending 31 March 2025). The company reports a modest fall in NAV per share to 153.1p (from 158.2p at 31 March 2024) driven largely by higher discount rates and economic assumption changes, while underlying portfolio performance remained solid with an annualised underlying portfolio return of 7.7%. Directors’ valuation was £3,227.1m; HICL reported strong cash generation and maintained dividend cover targets while expanding buybacks and completing material divestments in FY25.

NAV and portfolio returns

NAV per share 153.1p at 31 March 2025 (down from 158.2p a year earlier). The decline was mainly attributable to higher reference discount rates and economic assumption changes; annualised underlying portfolio return was 7.7% (FY24: 9.0%).

Valuation and balance-sheet metrics

Directors’ valuation £3,227.1m as at 31 March 2025. Available liquidity (cash plus RCF capacity) c.£441.8m. Weighted average discount rate increased to 8.4% (31 March 2024: 8.0%).

Operating performance and cash generation

HICL share of portfolio EBITDA £253m for FY25 (around +11% y‑o‑y on the disclosed basis). Portfolio produced strong operational cashflows with total 2025 distributions shown as £226m (split presented between yield and growth components).

Dividends, cover and guidance

Dividend cash cover reported as 1.07x on a cash basis (excluding profits on disposals); including disposal profits the cover was 1.56x. HICL reiterated medium‑term dividend cover guidance around 1.1x and provided a FY27 dividend guidance target of 8.50 pence per share (stated as a target, not a forecast).

Capital activity — disposals, buybacks and commitments

Completed over £450m of divestments in FY25 and expanded the share buyback programme. Equity commitments and growth capex remain in place (management signalling >£200m of equity commitments and multi‑year capex plans to 2030 focused on growth assets).

Risk profile and refinancing exposure

Manager highlights the portfolio’s defensive characteristics: inflation correlation provides partial offset to adverse discount rate moves, limited refinancing exposure (management states c.15% of assets have gearing exposed to refinancing risk), and stress sensitivities presented for inflation, interest rates, tax and FX.

Notable asset-level updates

Key operational highlights include Affinity Water (positive Ofwat impact, bond issuance and resumption of dividends expected FY26), Fortysouth tower roll‑out in New Zealand, and growth capex programmes in US transmission and French fibre (Altitude Infra) — these are cited as drivers of medium‑term earnings and resilience.

Overall takeaway

HICL’s FY25 results show resilient underlying portfolio performance and cash generation despite NAV pressure from higher discount rates. Management is recycling capital (divestments and buybacks), maintaining liquidity, and targeting mid‑term dividend growth while highlighting the defensive cashflow profile of the portfolio.