Hydro One (H) Q4 2024 earnings summary

Executive summary

• Reported 2024 net income attributable to common shareholders of $1,156 million, up 6.5% year-over-year, with basic EPS of $1.93, a 6.6% increase from 2023.

• Revenues rose 8.2% to $8,484 million, driven by higher OEB-approved rates and increased energy consumption.

• Achieved strong safety results, with a recordable injury rate at 0.55 per 200,000 hours and received industry safety awards for the third consecutive year.

• Major infrastructure projects advanced, including early energization of the Chatham to Lakeshore Transmission Line and selection for the Wawa to Porcupine Transmission Line Project.

• Announced acquisition of a 48% interest in the East-West Tie Transmission Line for $257 million, expected to close in H1 2025 and be accretive to earnings.

Financial highlights

• Q4 2024 consolidated revenue rose 5.9% year-over-year to $2,095 million; full-year revenue up 8.2% to $8,484 million.

• Q4 net income increased by 10.5% year-over-year to $200 million; full-year net income up 6.5% to $1,156 million.

• Basic EPS for Q4 2024 was $0.33 (up 10.5%); full-year EPS $1.93 (up 6.6%).

• OM&A costs decreased 6% in Q4 and 3.4% for the year, reflecting productivity initiatives.

• Capital investments reached $3,063 million in 2024, a 21% increase year-over-year.

Outlook and guidance

• EPS guidance for 2023–2027 raised to 6–8% annualized growth, with 2027 EPS expected between $2.15 and $2.37.

• Dividend of $0.3142 per share declared, payable March 12 or March 31, 2025.

• Rate base expected to grow from $23.6 billion in 2022 to $31.8 billion in 2027, with ~6% CAGR.

• Dividend growth expected to average ~6% annually, with a 70–80% payout ratio.

• No external equity issuance anticipated to fund planned capital investments.