Canadian electricity utility Hydro One Q2 revenue, profit rise on higher OEB-approved rates, peak demand

Hydro One

12/08/2026 12:07

Overview
Canada electricity transmission provider's Q2 revenue grew yr/yr
Q2 EPS rose to C$0.62, driven by higher OEB-approved rates and peak demand
Company completed US$1.0 bln debt offering in U.S. to diversify capital sources

Outlook
Company did not provide specific financial guidance for the current or future periods

Result Drivers
OEB-APPROVED RATES AND DEMAND - Co said higher OEB-approved rates and increased peak demand drove Q2 revenue and EPS gains
HIGHER OM&A COSTS - Co said OM&A costs rose due to increased work program expenditures, including emergency power restoration and lines maintenance
HIGHER FINANCING CHARGES - Co said financing charges increased due to more outstanding long-term debt, partially offset by higher capitalized interest

Company press release: ID:nPn2qxB0pa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
C$2.30 bln
C$2.39 bln (1 Analyst)
Q2 EPS
 
C$0.62
 
Q2 Net Income
 
C$370 mln
 
Q2 Basic EPS
 
C$0.62
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 9 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the electric utilities peer group is "buy."
Wall Street's median 12-month price target for Hydro One Limited is C$58.00, about 3.6% above its August 11 closing price of C$56.00
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 25 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)