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 OEB-approved rates, increased demand, and partially offset by higher depreciation, interest, and tax expenses.

• Net income attributable to common shareholders rose 13.5% year-over-year to $421 million for Q3 2025.

• Revenues for Q3 2025 reached $2,299 million, up 4.9% year-over-year, with revenues net of purchased power at $1,219 million.

• Major transmission projects, including the St. Clair Transmission Line, broke ground, supporting economic growth and offering a 50% equity stake to First Nation partners.

• The company declared a quarterly dividend of $0.3331 per share, payable December 31, 2025.

Financial highlights

• Revenues net of purchased power increased 6.5% year-over-year to $1,219 million in Q3 2025.

• Net income for the nine months ended September 30, 2025, was $1,106 million, up 15.7% from the prior year.

• Capital investments for Q3 2025 totaled $779 million, with $577 million in new assets placed in service.

• Net cash from operating activities for Q3 2025 was $713 million, up 14.4% year-over-year.

• Operating, maintenance, and administration costs were stable, while depreciation and financing charges increased due to asset growth and higher debt.

Outlook and guidance

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

• Capital investments are forecast at $3.5 billion for 2025, focusing on transmission and distribution reliability and growth.

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

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

• The company expects to recover approximately $225 million in storm-related costs, pending regulatory approval.