HICL Infrastructure PLC

Latest Results (21.05.2026):

HICL Infrastructure PLC — Quarter 4 of fiscal year 2025 (year ended 31 March 2025): the company reported a mixed set of results in its Annual Results Presentation (21 May 2025). NAV per share fell to 153.1p from 158.2p a year earlier, driven largely by higher discount rates; underlying portfolio performance remained resilient with an annualised return of 7.7%. The group delivered material disposals and buybacks, maintained strong liquidity, set a FY27 dividend target and reiterated medium‑term dividend cover expectations, while highlighting self‑funded growth capex and limited refinancing exposure across the portfolio (all figures and commentary per HICL’s report as at 31 March 2025).

NAV and portfolio returns

NAV per share: 153.1p at 31 March 2025 (down from 158.2p at 31 March 2024). HICL attributes most of the decline to increased reference discount rates; annualised underlying portfolio return (before macro changes) was 7.7% (FY24: 9.0%).

Discount rate, valuation sensitivity and inflation offset

Weighted average discount rate rose to 8.4% (from c.8.0%). HICL shows NAV sensitivity: a ±0.5% change in discount rates moves NAV by around -7.5p / +8.2p per share; inflation moves provide an offset (±0.5% inflation ≈ -6.7p / +7.6p).

Divestments and buybacks

HICL completed significant disposals in FY25 (reported in excess of £450m of divestments) and expanded its share buyback programme to £113m, supporting capital rotation and shareholder returns.

Dividends, cover and FY27 guidance

Total distributions for FY25 were reported at £226m. Dividend cash cover was 1.07x excluding profits on disposals (including disposal gains the cash cover would be 1.56x). HICL issued a FY27 dividend target of 8.50 pence per share (stated as a target, not a forecast) and targets medium‑term dividend cash cover of c.1.1x.

Liquidity, debt and refinancing risk

Available liquidity (cash plus RCF capacity) was reported at c.£441.8m. HICL emphasised limited portfolio refinancing exposure — only a minority of assets are exposed to near‑term refinancing risk — and highlighted that much of portfolio debt is fixed until concession end.

Portfolio scale, cash generation and EBITDA

Directors’ valuation of the portfolio was £3,227.1m at 31 March 2025. HICL reported weighted FY25 portfolio EBITDA of c.£253m (HICL share) and set out operational cashflows supporting distributions: yield and growth assets produced combined distributable cash that funded dividends and capex.

Growth capex and material projects

HICL signalled growth capex to 2030 of around £244m and highlighted self‑funded capex programmes in key assets (telecommunications towers, water company AMP8 investment, US transmission networks and fibre roll‑out in France) as drivers of medium‑term earnings growth.

Operational highlight — Affinity Water

Affinity Water (c.10.8% of portfolio) delivered EBITDA above forecast and top‑quartile performance on several ODIs; HICL committed an additional £50m to support Affinity’s plan, the company issued a £350m bond at a favourable margin, and HICL expects dividend resumption from Affinity in FY26 following Ofwat’s Final Determination.