Hydro One (H) Q2 2025 earnings summary

Executive summary

• Second quarter 2025 basic EPS rose to $0.54 from $0.49 year-over-year, driven by higher rates and energy consumption, with net income up to $327 million and $913 million in capital investments.

• Major progress on transmission projects, including new lines, First Nations equity partnerships, and the East-West Tie Transmission Line acquisition.

• Recognized for sustainability and corporate citizenship by Corporate Knights, Forbes, TIME Magazine, and other national rankings.

• Ratification of key collective agreements and executive leadership changes position the company for future growth.

• Strategic priorities include grid modernization, customer experience, sustainability, and Indigenous partnerships.

Financial highlights

• Q2 2025 consolidated revenue rose 1.7% year-over-year to $2,066 million; net income increased 12% to $327 million.

• Basic EPS for Q2 2025 was $0.54, up 10.2% year-over-year; YTD EPS at $1.14, up 16.3%.

• Revenues net of purchased power increased 7% year-over-year; distribution revenues up 7.9%, transmission revenues up 6.7%.

• Operating, maintenance, and administration expenses rose 0.3%; transmission costs up 14.2%, distribution costs down 10.4%.

• Capital investments in Q2 2025 totaled $913 million, up 11.6% year-over-year.

Outlook and guidance

• EPS expected to grow 6–8% annually through 2027, using 2022 normalized EPS of $1.61 as a base, targeting $2.15–$2.37.

• Rate base expected to grow from $23.6 billion in 2022 to $32.1 billion in 2027, a ~6% CAGR.

• Anticipates acceleration of capital expenditures and asset additions in the next rate period (2028–2032), with incremental funding needs including potential equity issuance.

• Dividend growth expected to average ~6% annually, supported by expanding rate base.

• Guidance will be updated as new transmission projects advance and Section 92 applications are filed.