HICL Infrastructure PLC

Latest Results (10.04.2026):

HICL Infrastructure PLC — Annual results for the year ended 31 March 2025 (FY25). The company reports NAV per share of 153.1p (down from 158.2p a year earlier) and an annualised underlying portfolio return of 7.7% as at 31 March 2025. The report highlights higher discount rates and a modest NAV reduction, active capital recycling (material divestments and an expanded buyback), continued portfolio cash generation to support distributions, and specific operational progress at material holdings such as Affinity Water.

NAV and portfolio returns

NAV per share: 153.1p at 31 March 2025 (31 March 2024: 158.2p). Annualised underlying portfolio return reported at 7.7% (FY24: 9.0%). The NAV decline is largely attributed to increased discount rates and other economic assumption changes.

Discount rates and valuation drivers

Weighted average discount rate rose to 8.4% (from 8.0% a year earlier), which was a principal factor reducing NAV. The board emphasises that unwinding of discount rates (value preservation) and manager value-enhancement initiatives contributed to performance.

Portfolio value and liquidity

Directors’ valuation of the portfolio: £3,227.1m as at 31 March 2025. RCF drawings were modest at £10.0m (versus £187.2m a year earlier). Available liquidity and borrowing position were highlighted as part of balance-sheet management.

Capital allocation — disposals and buyback

Significant divestments were completed in FY25 (report references £450m+ of disposals), and the share buyback programme was expanded (report cites £113m). The company continues to target further selective divestments and active asset rotation.

Distributions, dividend cover and guidance

Total distributions for FY25 were reported (sum shown as c.£226m across yield and growth segments). Dividend cash cover excluding disposal profits was 1.07x (including profit on disposals it was 1.56x). The company reiterates medium-term dividend ambitions and provides a FY27 dividend target (stated in the report as a target only, not a forecast).

Debt, refinancing and sensitivity

HICL reports limited portfolio-level refinancing exposure, with most portfolio debt fixed or long-dated. Sensitivities show the portfolio is most affected by discount rate and inflation changes; other macro sensitivities (tax, GDP, FX) are smaller in impact.

Operational cash generation and EBITDA

The report sets out portfolio cashflows and distributable cash generation to support dividends: operational cashflows and distributable cash net of costs were presented to demonstrate coverage metrics. Weighted/reported portfolio EBITDA figures were provided to show cash-generative capacity (see slides for detailed breakdowns).

Notable asset update — Affinity Water

Affinity Water (10.8% of the portfolio) delivered EBITDA above forecast, strong ODI performance including leakage reduction, and issued a £350m bond to support its business plan; HICL expects dividends from Affinity to resume in FY26 following Ofwat’s Final Determination.

Outlook and manager priorities

Manager emphasis is on disciplined capital allocation, self-funded growth capex across key assets, delivering contracted cash flows, and pursuing selective divestments to recycle capital. The report reiterates that long‑term targets are aspirations, not guarantees.