Hydro One (H) Q4 2025 earnings summary

Executive summary

• Net income attributable to common shareholders rose 15.8% year-over-year to $1,339 million, with EPS up 15.5% to $2.23, driven by higher revenues from OEB-approved rates, increased demand, and lower OM&A costs, partially offset by higher depreciation, financing charges, and income tax expense.

• Achieved strong operational and financial performance in 2025, with significant progress in safety, customer satisfaction, and infrastructure investment.

• Productivity savings of $254 million achieved in 2025 through cost optimizations, benefiting customers through future rate reductions.

• Advanced major transmission projects and deepened First Nations partnerships, supporting Ontario's electrification and economic growth.

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

Financial highlights

• Full year 2025 consolidated revenue rose 6.6% year-over-year to $9,041 million; net income increased 15.8% to $1,339 million; basic EPS was $2.23, up 15.5% from 2024.

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

• Q4 capital expenditures were $939 million, up 17.5% year-over-year; full-year capex was $3,366 million, up 9.9%.

• Q4 assets placed in service were $1.3 billion, up 19.1% year-over-year; full-year in-service additions were $2.9 billion, 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, with a focus on transmission and distribution system reliability and growth.

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

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

• Pension contributions are estimated at $70 million in 2026, rising to $85 million by 2030.