Ecofin Global Utilities and Infrastructure Trust: strong 2025 results and a bigger dividend
Ecofin Global Utilities and Infrastructure Trust plc has posted a solid set of annual results for the year ended 30 September 2025. Net asset value (NAV) per share total return was 15.0%, while the share price total return came in at 16.6%. The board has also announced a 5.9% rise in the quarterly dividend to 2.25p, starting with the February 2026 payment – equivalent to 9.0p per year.
In short, 2025 delivered good absolute returns, competitive performance versus sector indices, and a clear commitment to inflation-beating income growth. The shares still trade at a double-digit discount to NAV, which the board is tackling with sizeable buybacks.
Headline numbers retail investors should know
| Metric | 2025 | 2024 |
|---|---|---|
| Net assets | £256.6 million | £243.2 million |
| NAV per share | 245.65p | 221.68p |
| Share price (year end) | 218.00p | 195.00p |
| Discount to NAV | 11.3% | 12.1% |
| NAV total return (1 year) | 15.0% | – |
| Share price total return (1 year) | 16.6% | – |
| Revenue return per share | 7.45p | 7.17p |
| Dividends paid per share | 8.425p | 8.10p |
| Dividend yield (year-end price) | 3.9% | 4.2% |
| Gearing on net assets | 10.2% | 14.2% |
| Ongoing charges ratio | 1.29% | 1.39% |
Quick jargon buster: NAV is the value of the portfolio per share. The discount is how far the share price sits below that value. Gearing is borrowing used to enhance returns, which magnifies both gains and losses.
Dividend increase: income that outpaces inflation
The board will lift the quarterly dividend by 5.9% to 2.25p from February 2026, or 9.0p per year. On the 30 September 2025 share price, that is a 4.1% prospective yield. The trust reiterates its aim of growing dividends at least in line with inflation, and notes the dividend has grown above inflation since inception.
On cover, revenue return per share was 7.45p versus 8.425p of dividends paid – a dividend cover ratio of 88.4%. That is broadly unchanged year on year and signals the board is comfortable using the special reserve when appropriate. It is worth watching whether higher portfolio income in 2026 closes that gap as the new, higher dividend rolls through.
Share buybacks and discount control
The shares traded at an average discount of about 10.8% during the year, ending at 11.3%. To tackle this and enhance NAV per share, the board bought back 5,275,198 shares (4.8% of the opening share count) for £10.5 million, adding 0.8% to NAV per share. Since the year end to 9 December 2025, a further 10,561,776 shares have been repurchased, adding another 0.5% to NAV per share. This is meaningful supply-and-demand support and should, in time, help narrow the discount if performance stays strong.
Performance versus the sector: competitive and consistent
For the 12 months to 30 September 2025, NAV total return of 15.0% compared with 15.4% for the S&P Global Infrastructure Index and 11.7% for the MSCI World Utilities Index (all sterling). The share price total return of 16.6% reflected some discount movement and the impact of buybacks.
Since launch in 2016, annualised returns are 10.7% for NAV and 12.3% for the share price, comfortably ahead of both sector comparators at 7.8% per annum. That track record matters: it suggests the manager’s stock selection and use of the closed-ended structure have added value over a full cycle.
What drove returns in 2025
- Regions: Europe ex-UK (+21.0%) and Asia Pacific ex-Japan (+18.2%) led. North America was positive (+9.3%), while the UK lagged (+1.5%).
- Sub-sectors: transportation infrastructure (+19.7%) and integrated utilities (+19.1%) were stand-outs, with notable contributions from Ferrovial (+35.1%), Vinci (+21.3%) and Vistra (+64.2%).
- Gearing: actively managed borrowings contributed about 1.8% to shareholder returns. Gearing peaked above 17% in July and finished the year at 10.2%.
The manager highlights a powerful industry theme: long-term power purchase agreements signed by “hyperscalers” (the largest data centre operators) with nuclear and hydro generators. Examples cited include Constellation’s deal with Meta, Talen’s contract with Amazon, and Brookfield Renewable’s framework with Google for up to 3GW. Vistra announced a 20-year agreement for 1.2GW at Comanche Peak, expected to be 8-10% free cash flow accretive. These deals lock in premium pricing for years, supporting earnings visibility for baseload producers.
Meanwhile, high-profile power outages in Iberia underscored the reality of tight generation capacity in Europe as electricity demand rises. The manager argues listed infrastructure valuations remain attractive versus history and private market marks.
Portfolio activity and positioning
Earlier in the year the trust reduced North American exposure and rotated into undervalued Europe, which helped returns. Profits were taken in E.ON, Vistra, RWE, Vinci, Enel, National Grid, Snam, Iren and Terna; a small EDP stake was sold. Toppings-up included Xcel, Brookfield Renewable Partners, Public Services Enterprise, Drax, Dominion and Exelon, and the trust participated in Iberdrola’s €5 billion raise.
New positions were initiated in Pennon – a regulated UK water operator on a substantial valuation discount with an approximately 6% dividend yield – and Eversource, which targets at least 5% EPS growth with a circa 5% dividend yield and trades on 13x earnings, well below its history and peers.
Costs and operational updates
The ongoing charges ratio improved to 1.29% from 1.39%. Frostrow Capital LLP was appointed as AIFM, company secretary, administrator and investor relations provider on 1 July 2025, with Montfort Communications engaged for PR. The trust has launched a redesigned website for shareholders at eglplc.com and offers email alerts at this link.
The balance sheet and income at a glance
- Income: investment income rose to £12.0 million; revenue return per share increased to 7.45p.
- Dividends: £9.035 million paid in the year; proposed fourth interim of 2.125p relates to 93,949,624 shares on the 31 October 2025 record date.
- Borrowing: prime brokerage borrowings were £25.5 million at year end.
Risks and what could go wrong
- Discount risk: despite buybacks, the discount averaged around 10.8% and ended at 11.3%.
- Dividend cover: revenue covered 88.4% of the 2025 dividend. The special reserve provides flexibility, but sustained cover improvement would be reassuring.
- Market and regulatory: utilities and infrastructure face regulatory reviews, political shifts and FX movements; gearing will amplify moves in both directions.
Outlook: constructive, with tangible catalysts
The board and manager see listed infrastructure as still undervalued, with earnings supported by regulated and contracted revenues. Structural drivers – electrification, grid upgrades, data centre demand and the clean energy transition – remain intact. Since the year end, to 9 December 2026, NAV per share and the share price have risen by 3.7% and 12.0% respectively.
My take: this is an attractive mix of dependable cash flows and visible growth, wrapped in an 11.3% discount. The higher dividend and ongoing buybacks are helpful. If sector re-rating continues and buybacks persist, the discount has room to narrow. Keep an eye on dividend cover, the pace of income growth, and how gearing is deployed if markets wobble.
Diary date and how to engage
The AGM is scheduled for Thursday, 5 March 2026 at 12:30 p.m. at Barber-Surgeons’ Hall, London EC2Y 5BL, with a presentation by the portfolio manager and a recording to be uploaded afterwards. Shareholders can explore documents and updates at eglplc.com and register for email alerts here.
