Hydro One (TSE:H – Get Free Report) released its quarterly earnings results on Tuesday. The company reported C$0.68 EPS for the quarter, FiscalAI reports. Hydro One had a return on equity of 11.08% and a net margin of 14.87%. The business had revenue of C$1.29 billion during the quarter.
Here are the key takeaways from Hydro One’s conference call:
- Third-quarter net income attributable to common shareholders declined 1.9% year over year, with EPS of CAD 0.69 versus CAD 0.70. Higher work-program spending, storm-related asset removal, depreciation and interest costs outweighed higher revenues.
- Hydro One filed a proposed CAD 27 billion, five-year capital plan for 2028–2032 to expand capacity, connect new customers and generation, and renew aging infrastructure. The company estimates modest residential bill impacts, but the plan remains subject to Ontario Energy Board approval.
- The company expects about CAD 11 billion of additional transmission-line investment outside the rate application, with projects intended to be 50/50 partnerships with First Nations. Management said it expects no funding-related need to re-pace spending, but anticipates raising equity during the next rate period.
- Hydro One maintained its expectation of 6%–8% annual EPS growth for the current rate period; year-to-date EPS rose to CAD 1.96 from CAD 1.84. Its FFO-to-net-debt ratio was 13.9%, which management said remains above rating-agency review thresholds.
- Management said inflation had forced Hydro One to defer some work in the current rate period to stay within approved spending limits, though it prioritized projects it viewed as less critical to reliability, resilience, and asset health. The proposed next-period plan aims to address system needs, but its scale and delivery depend on regulatory approval and execution.
Hydro One Stock Performance
H traded up C$0.47 on Tuesday, reaching C$57.56. The company had a trading volume of 226,945 shares, compared to its average volume of 1,354,932. The company has a quick ratio of 0.30, a current ratio of 0.88 and a debt-to-equity ratio of 154.61. Hydro One has a 1 year low of C$50.14 and a 1 year high of C$60.57. The stock has a 50-day moving average price of C$52.77 and a 200-day moving average price of C$56.22. The stock has a market capitalization of C$34.54 billion, a PE ratio of 24.39, a P/E/G ratio of 3.17 and a beta of 0.40.
Hydro One Announces Dividend
The business also recently declared a quarterly dividend, which was paid on Tuesday, September 29th. Investors of record on Tuesday, September 29th were paid a dividend of $0.3531 per share. This represents a $1.41 annualized dividend and a yield of 2.5%. The ex-dividend date was Wednesday, September 9th. Hydro One’s dividend payout ratio (DPR) is currently 57.31%.
Wall Street Analysts Forecast Growth
A number of research firms have issued reports on H. Royal Bank Of Canada increased their target price on shares of Hydro One from C$58.00 to C$60.00 and gave the stock a “sector perform” rating in a report on Thursday, August 13th. Desjardins set a C$61.00 price objective on Hydro One and gave the stock a “buy” rating in a research report on Tuesday, October 27th. Barclays cut their target price on shares of Hydro One from C$63.00 to C$61.00 in a research note on Thursday, August 13th. Finally, Canadian Imperial Bank of Commerce lowered their price target on shares of Hydro One from C$59.00 to C$56.00 in a report on Tuesday, September 22nd. Two equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Hydro One currently has an average rating of “Hold” and a consensus target price of C$57.58.
Read Our Latest Research Report on Hydro One
Hydro One Company Profile
Hydro One Limited, through its wholly-owned subsidiaries, is Ontario’s largest electricity transmission and distribution provider with 1.5 million valued customers, $39.7 billion in assets as at December 31, 2025, and annual revenues in 2025 of $9 billion. Our team of 9,600 skilled and dedicated employees proudly build and maintain a safe and reliable electricity system which is essential to supporting strong and successful communities. In 2025, Hydro One invested $3.4 billion in its transmission and distribution networks, and supported the economy through buying $3 billion of goods and services.
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