Hydro One (H) Q3 2025 earnings summary

Executive summary

• Basic EPS for Q3 2025 was $0.70, up from $0.62 in Q3 2024, driven by higher revenues, OEB-approved rates, and increased demand, partially offset by higher depreciation, interest, and tax expenses.

• Net income for Q3 2025 increased to $421 million from $371 million year-over-year, with revenues rising to $2,299 million.

• Transmission and distribution segments saw revenue growth due to higher rates, increased energy consumption, and customer growth.

• Major transmission projects, including St. Clair and Red Lake lines, are underway, with the St. Clair project offering a 50% equity stake to First Nation partners.

• The company emphasizes workplace safety, community engagement, supply chain resilience, and sustainability, including Indigenous partnerships.

Financial highlights

• Q3 2025 consolidated revenue rose 4.9% year-over-year to $2,299 million; net income up 13.5% to $421 million.

• Revenues net of purchased power increased 7% year-over-year to $1,219 million.

• Transmission segment revenues rose 8.3–9.4% year-over-year; distribution revenues increased 3.5–4.2%.

• Q3 capital expenditures were $779 million, with $577 million in assets placed in service.

• Quarterly dividend declared at $0.3331 per share, payable December 31, 2025.

Outlook and guidance

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

• Rate base projected to grow from $23.6 billion in 2022 to $32.1 billion in 2027, about 6% CAGR.

• Dividend growth targeted at about 6% annually, supported by expanding rate base and strong cash flows.

• Effective tax rate projected between 13% and 16% for the current rate period.

• Continued investment in infrastructure and sustainability, with a focus on reliability and new customer connectivity.