Hydro One (TSE:H) Releases Earnings Results

Hydro One (TSE:H) released its quarterly earnings data on Friday. The company reported C$0.39 EPS for the quarter, FiscalAI reports. Hydro One had a return on equity of 9.58% and a net margin of 13.59%.The business had revenue of C$981.00 million for the quarter.

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

• Q4 basic EPS rose to CAD 0.39 (from CAD 0.33) and full-year EPS was CAD 2.23 (up from CAD 1.93), with net income up ~16.5% in the quarter and the board declaring a dividend of CAD 0.3331 per share.
• Hydro One deployed approximately CAD 3.4 billion of capital in 2025 and placed ~CAD 2.9 billion of assets in service (Q4 capex ~CAD 939 million; Q4 in?service ~CAD 1.3 billion), supporting long?term rate base growth.
• Management delivered about CAD 254 million of productivity savings and is returning ~CAD 166 million to customers via future rate reductions, while customer satisfaction remained strong (residential/small business 88%).
• The company was designated to develop several large transmission projects (e.g., Bowmanville–GTA 500 kV, Niagara 230 kV, Greenstone, Barrie–Sudbury) and is scaling a 50/50 First Nations equity partnership model, with successful financing outcomes on prior projects and multi?year in?service timelines into the early 2030s.
• Revenue net of purchased power was pressured by regulatory adjustments and higher earnings?sharing, interest expense rose ~10.8% after issuing ~CAD 2.7 billion of medium?term notes in 2025, and the effective tax rate increased to ~14%.

Hydro One Trading Up 2.1%

Shares of TSE:H traded up C$1.20 during mid-day trading on Friday, hitting C$57.18. The stock had a trading volume of 406,138 shares, compared to its average volume of 887,232. The company’s 50 day moving average is C$53.71 and its 200-day moving average is C$51.98. Hydro One has a 12-month low of C$43.30 and a 12-month high of C$57.38. The company has a debt-to-equity ratio of 140.53, a quick ratio of 0.30 and a current ratio of 0.58. The company has a market cap of C$34.30 billion, a PE ratio of 26.35, a P/E/G ratio of 3.17 and a beta of 0.22.

Hydro One Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, December 31st. Stockholders of record on Wednesday, December 31st were issued a dividend of $0.3331 per share. The ex-dividend date was Wednesday, December 10th. This represents a $1.33 dividend on an annualized basis and a dividend yield of 2.3%. Hydro One’s payout ratio is currently 59.66%.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the stock. Raymond James Financial upped their price objective on shares of Hydro One from C$49.00 to C$53.50 and gave the company a “market perform” rating in a research note on Friday, October 24th. Jefferies Financial Group decreased their target price on Hydro One from C$52.00 to C$50.00 in a research report on Wednesday, January 28th. Canadian Imperial Bank of Commerce lifted their price target on Hydro One from C$52.00 to C$54.00 in a research report on Tuesday, October 21st. National Bank Financial boosted their price objective on Hydro One from C$49.00 to C$53.00 and gave the company a “sector perform” rating in a research note on Wednesday, December 17th. Finally, Scotiabank raised their target price on shares of Hydro One from C$51.00 to C$53.00 in a research report on Tuesday, December 16th. One analyst has rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of C$53.05.

Hydro One Company Profile

Hydro One operates regulated transmission and distribution assets in Ontario. The area’s largest electricity provider serves nearly 1.5 million customers. Transmission accounts for roughly 60% of the company’s rate base, with distribution accounting for the remainder. Hydro One operates a small telecom business, Acronym Solutions, with annual revenue contributing less than 1% to consolidated results. The province of Ontario holds an approximate 47% common equity stake.