Hydro One (H) Q4 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in 2025, with net income up 15.8% to $1,339 million and EPS up 15.5% to $2.23, driven by higher revenues, cost efficiencies, and major capital investments.

• Responded effectively to extreme weather events, maintaining high reliability and customer service.

• Advanced major transmission projects and deepened First Nations partnerships, including the Chatham to Lakeshore Transmission Line and new lines designated for development.

• Ratified new collective agreements covering key professional roles and major unions, effective through March 2028.

• Recognized as one of Canada's best employers for 2026 by Forbes and Statista.

Financial highlights

• Full year 2025 consolidated revenue rose 6.6% to $9,041 million; net income increased 15.8% to $1,339 million; basic EPS was $2.23, up 15.5%.

• Q4 net income increased 16.5% year-over-year; Q4 basic EPS was $0.39.

• OM&A costs declined 7.8% year-over-year to $1,206 million, reflecting productivity savings.

• Capital investments reached $3,366 million in 2025, up 9.9% year-over-year; assets placed in service were $2,901 million, up 17.8%.

• Quarterly dividend of $0.3331 per share declared, with $788 million in total dividends paid in 2025.

Outlook and guidance

• EPS expected to grow 6–8% annually for the current rate period, using normalized 2022 EPS of $1.61 as a base.

• Capital investments for 2026 and 2027 are projected at $3,248 million and $2,842 million, respectively.

• Effective tax rate expected to remain between 13%–16% for the remainder of the JRAP 2023 period.

• Dividend growth expected to continue in line with rate base expansion.

• Ongoing regulatory approvals and government directives to drive further transmission development.