Hydro One (TSE:H) Posts Quarterly Earnings Results

Hydro One (TSE:H) announced its earnings results on Friday. The company reported C$0.39 earnings per share for the quarter, FiscalAI reports. The firm had revenue of C$981.00 million during the quarter. Hydro One had a return on equity of 9.58% and a net margin of 13.59%.

Here are the key takeaways from Hydro One’s conference call:

• Q4 basic EPS rose to CAD 0.39 (from CAD 0.33) and full-year EPS was CAD 2.23 (up from CAD 1.93), with net income up ~16.5% in the quarter and the board declaring a dividend of CAD 0.3331 per share.
• Hydro One deployed approximately CAD 3.4 billion of capital in 2025 and placed ~CAD 2.9 billion of assets in service (Q4 capex ~CAD 939 million; Q4 in‑service ~CAD 1.3 billion), supporting long‑term rate base growth.
• Management delivered about CAD 254 million of productivity savings and is returning ~CAD 166 million to customers via future rate reductions, while customer satisfaction remained strong (residential/small business 88%).
• The company was designated to develop several large transmission projects (e.g., Bowmanville–GTA 500 kV, Niagara 230 kV, Greenstone, Barrie–Sudbury) and is scaling a 50/50 First Nations equity partnership model, with successful financing outcomes on prior projects and multi‑year in‑service timelines into the early 2030s.
• Revenue net of purchased power was pressured by regulatory adjustments and higher earnings‑sharing, interest expense rose ~10.8% after issuing ~CAD 2.7 billion of medium‑term notes in 2025, and the effective tax rate increased to ~14%.

Hydro One Price Performance

Shares of TSE H opened at C$56.47 on Friday. The business’s 50 day moving average price is C$53.78 and its two-hundred day moving average price is C$52.03. The company has a market cap of C$33.87 billion, a PE ratio of 26.02, a price-to-earnings-growth ratio of 3.17 and a beta of 0.22. The company has a quick ratio of 0.30, a current ratio of 0.58 and a debt-to-equity ratio of 140.53. Hydro One has a twelve month low of C$43.30 and a twelve month high of C$57.38.

Hydro One Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Wednesday, December 31st were issued a dividend of $0.3331 per share. The ex-dividend date was Wednesday, December 10th. This represents a $1.33 dividend on an annualized basis and a yield of 2.4%. Hydro One’s dividend payout ratio (DPR) is presently 59.66%.

Analyst Ratings Changes

H has been the topic of a number of research reports. Raymond James Financial boosted their target price on shares of Hydro One from C$49.00 to C$53.50 and gave the stock a “market perform” rating in a research report on Friday, October 24th. Jefferies Financial Group dropped their price objective on shares of Hydro One from C$52.00 to C$50.00 in a report on Wednesday, January 28th. National Bank Financial upped their price objective on shares of Hydro One from C$49.00 to C$53.00 and gave the company a “sector perform” rating in a research report on Wednesday, December 17th. Scotiabank lifted their target price on Hydro One from C$51.00 to C$53.00 in a research report on Tuesday, December 16th. Finally, Canadian Imperial Bank of Commerce boosted their price target on Hydro One from C$52.00 to C$54.00 in a research note on Tuesday, October 21st. One investment analyst has rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of C$53.05.

About Hydro One

Hydro One operates regulated transmission and distribution assets in Ontario. The area’s largest electricity provider serves nearly 1.5 million customers. Transmission accounts for roughly 60% of the company’s rate base, with distribution accounting for the remainder. Hydro One operates a small telecom business, Acronym Solutions, with annual revenue contributing less than 1% to consolidated results. The province of Ontario holds an approximate 47% common equity stake.