Hydro One (TSE:H) Releases Earnings Results

Hydro One (TSE:H) posted its quarterly earnings results on Wednesday. The company reported C$0.65 EPS for the quarter, FiscalAI reports. The business had revenue of C$1.22 billion during the quarter. Hydro One had a net margin of 14.81% and a return on equity of 10.73%.

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

• Hydro One reported Q1 2026 basic EPS of CAD 0.65, up from CAD 0.60 a year ago, with net income rising 9.2% as higher transmission and distribution volumes, stronger rates, and lower OM&A helped offset financing and depreciation pressures.
• The company reiterated its 6% to 8% annual EPS growth outlook for the current rate period, saying the outlook is still supported by rate base growth, including broadband and other investments, and that the recent storm-related revenue disallowance was not built into guidance.
• Hydro One continues to see a strong growth pipeline in transmission, adding the Red Lake Transmission Line to bring its total to 15 transmission projects under development or construction, alongside Greenstone and Sudbury-to-Barrie, all of which support long-term grid expansion.
• The Ontario Energy Board denied recovery of CAD 69 million tied to the 2025 ice storm Z-factor application, but management said the decision has a low read-through to the broader rate case and is not expected to affect EPS guidance.
• Hydro One said its Joint Rate Application remains on track to be filed by Q3 2026, with customer engagement showing broad support for investments in reliability, resilience, and economic growth, though management declined to provide detailed forward guidance before regulatory approval.

Hydro One Price Performance

H stock traded up C$0.40 during midday trading on Thursday, hitting C$59.17. 39,729 shares of the stock were exchanged, compared to its average volume of 1,179,866. The stock’s 50-day moving average price is C$58.38 and its 200-day moving average price is C$55.55. The company has a debt-to-equity ratio of 151.72, a quick ratio of 0.30 and a current ratio of 0.61. The stock has a market cap of C$35.51 billion, a price-to-earnings ratio of 26.53, a PEG ratio of 3.17 and a beta of 0.38. Hydro One has a fifty-two week low of C$47.54 and a fifty-two week high of C$60.46.

Hydro One Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Tuesday, March 31st were paid a $0.3331 dividend. This represents a $1.33 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend was Wednesday, March 11th. Hydro One’s dividend payout ratio (DPR) is presently 58.90%.

Wall Street Analyst Weigh In

Several research firms have issued reports on H. Raymond James Financial upped their price objective on shares of Hydro One from C$57.00 to C$58.00 and gave the company a “market perform” rating in a research note on Tuesday, April 28th. TD Securities lifted their price target on Hydro One from C$56.00 to C$57.00 and gave the stock a “hold” rating in a research report on Wednesday, February 18th. Barclays lowered their target price on shares of Hydro One from C$66.00 to C$63.00 in a research report on Friday, April 10th. Finally, Jefferies Financial Group cut their price target on Hydro One from C$52.00 to C$50.00 in a research note on Wednesday, January 28th. Two analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, Hydro One presently has a consensus rating of “Hold” and a consensus target price of C$55.75.

Hydro One Company Profile

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.