Hydro One (TSE:H) Posts Earnings Results

Hydro One (TSE:H) announced its quarterly earnings results on Tuesday. The company reported C$0.68 earnings per share for the quarter, FiscalAI reports. Hydro One had a net margin of 14.87% and a return on equity of 11.08%. The company had revenue of C$1.29 billion for the quarter.

Here are the key takeaways from Hydro One’s conference call:

• Third-quarter net income attributable to common shareholders declined 1.9% year over year, with EPS of CAD 0.69 versus CAD 0.70. Higher work-program spending, storm-related asset removal, depreciation and interest costs outweighed higher revenues.
• Hydro One filed a proposed CAD 27 billion, five-year capital plan for 2028–2032 to expand capacity, connect new customers and generation, and renew aging infrastructure. The company estimates modest residential bill impacts, but the plan remains subject to Ontario Energy Board approval.
• The company expects about CAD 11 billion of additional transmission-line investment outside the rate application, with projects intended to be 50/50 partnerships with First Nations. Management said it expects no funding-related need to re-pace spending, but anticipates raising equity during the next rate period.
• Hydro One maintained its expectation of 6%–8% annual EPS growth for the current rate period; year-to-date EPS rose to CAD 1.96 from CAD 1.84. Its FFO-to-net-debt ratio was 13.9%, which management said remains above rating-agency review thresholds.
• Management said inflation had forced Hydro One to defer some work in the current rate period to stay within approved spending limits, though it prioritized projects it viewed as less critical to reliability, resilience, and asset health. The proposed next-period plan aims to address system needs, but its scale and delivery depend on regulatory approval and execution.

Hydro One Stock Performance

Shares of H stock opened at C$57.43 on Wednesday. The company has a market capitalization of C$34.46 billion, a price-to-earnings ratio of 24.33, a P/E/G ratio of 3.17 and a beta of 0.40. Hydro One has a 1-year low of C$50.14 and a 1-year high of C$60.57. The company has a current ratio of 0.88, a quick ratio of 0.30 and a debt-to-equity ratio of 154.61. The stock’s fifty day simple moving average is C$52.85 and its 200-day simple moving average is C$56.24.

Hydro One Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 29th. Stockholders of record on Tuesday, September 29th were issued a dividend of $0.3531 per share. The ex-dividend date was Wednesday, September 9th. This represents a $1.41 dividend on an annualized basis and a dividend yield of 2.5%. Hydro One’s payout ratio is currently 57.31%.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. Barclays reduced their price objective on Hydro One from C$63.00 to C$61.00 in a research note on Thursday, August 13th. Royal Bank Of Canada increased their target price on shares of Hydro One from C$58.00 to C$60.00 and gave the stock a “sector perform” rating in a report on Thursday, August 13th. Canadian Imperial Bank of Commerce reduced their price target on shares of Hydro One from C$59.00 to C$56.00 in a research report on Tuesday, September 22nd. Finally, Desjardins set a C$61.00 target price on shares of Hydro One and gave the stock a “buy” rating in a report on Tuesday, October 27th. Two equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of C$57.58.

About Hydro One

Hydro One Limited, through its wholly-owned subsidiaries, is Ontario’s largest electricity transmission and distribution provider with 1.5 million valued customers, $39.7 billion in assets as at December 31, 2025, and annual revenues in 2025 of $9 billion. Our team of 9,600 skilled and dedicated employees proudly build and maintain a safe and reliable electricity system which is essential to supporting strong and successful communities. In 2025, Hydro One invested $3.4 billion in its transmission and distribution networks, and supported the economy through buying $3 billion of goods and services.