Hydro One (TSE:H) Issues Quarterly Earnings Results

Hydro One (TSE:H) posted its earnings results on Tuesday. The company reported C$0.68 earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of C$1.29 billion during the quarter. Hydro One had a return on equity of 10.89% and a net margin of 14.49%.

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 Down 0.7%

Shares of TSE H opened at C$57.04 on Thursday. The firm has a market cap of C$34.23 billion, a price-to-earnings ratio of 24.17, a PEG ratio of 3.17 and a beta of 0.40. The company has a quick ratio of 0.30, a current ratio of 0.69 and a debt-to-equity ratio of 149.86. Hydro One has a 52-week low of C$50.14 and a 52-week high of C$60.57. The business’s 50 day moving average is C$52.93 and its two-hundred day moving average is C$56.26.

Hydro One Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 29th. Investors of record on Tuesday, September 29th were issued a $0.3531 dividend. This represents a $1.41 annualized dividend and a yield of 2.5%. The ex-dividend date was Wednesday, September 9th. Hydro One’s dividend payout ratio (DPR) is 57.31%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. BMO Capital Markets upped their price target on Hydro One from C$55.00 to C$58.00 and gave the company a “market perform” rating in a research note on Wednesday. Desjardins raised their price objective on Hydro One from C$61.00 to C$63.00 and gave the stock a “buy” rating in a research report on Wednesday. TD boosted their price objective on shares of Hydro One from C$58.00 to C$59.00 and gave the company a “hold” rating in a report on Wednesday. Barclays reduced their price objective on shares of Hydro One from C$63.00 to C$61.00 in a report on Thursday, August 13th. Finally, Canadian Imperial Bank of Commerce decreased their target price on shares of Hydro One from C$59.00 to C$56.00 in a research report on Tuesday, September 22nd. Two analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of C$57.83.

Hydro One News Roundup

These are some of the H news items that stood out recently:

• Positive Sentiment: TD lifted its target to C$59 from C$58, while maintaining a hold rating. TD rating update
• Positive Sentiment: BMO Capital Markets increased its target to C$58 from C$55, retaining a market perform rating. BMO Capital Markets rating update
• Neutral Sentiment: Hydro One selected a route for its Windsor-to-Lakeshore power line. The project may support future grid investment, though the report provides no details on its financial impact. Windsor-to-Lakeshore line route

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.