Hydro One Q4 net income up on higher demand, rates

Hydro One

13/02/2026 12:06

Overview

Ontario electricity provider's Q4 revenue rose yr/yr due to higher demand and approved rates

Basic EPS for Q4 increased to C$0.39 from C$0.33 in 2024

Company continues infrastructure investments, partnering with First Nations on projects

Outlook

Hydro One plans to invest in reliability of Ontario's electricity systems

Company to construct new transmission lines in partnership with First Nations

Hydro One aims to complete Welland Thorold Power Line by 2029

Result Drivers

HIGHER DEMAND AND RATES - Increased revenues were driven by higher peak demand and OEB-approved rates, partially offset by regulatory adjustments

COST OPTIMIZATION - Lower OM&A costs contributed to improved earnings, attributed to reduced corporate support costs

CAPITAL INVESTMENTS - Increased capital investments and in-service additions reflect ongoing infrastructure projects and partnerships with First Nations

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
C$2.27 bln
C$2.18 bln (1 Analyst)
Q4 EPS
C$0.39
Q4 Net Income
C$233 mln
Q4 Basic EPS
C$0.39
Q4 Dividend
C$0.33


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 11 "hold" and 2 "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 Ltd is C$53.00, about 5.3% below its February 12 closing price of C$55.98

The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nPnbQ8ZZ6a

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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.)