Hydro One (TSE:H) Issues Earnings Results

Hydro One (TSE:H) posted its quarterly earnings data on Wednesday. The company reported C$0.65 EPS for the quarter, FiscalAI reports. The company 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

TSE:H traded down C$0.40 during midday trading on Wednesday, hitting C$58.75. 307,065 shares of the stock were exchanged, compared to its average volume of 1,185,834. The business has a 50-day moving average price of C$58.37 and a two-hundred day moving average price of C$55.51. The company has a market capitalization of C$35.26 billion, a price-to-earnings ratio of 26.35, a P/E/G ratio of 3.17 and a beta of 0.38. The company has a current ratio of 0.61, a quick ratio of 0.30 and a debt-to-equity ratio of 151.72. Hydro One has a one year low of C$47.54 and a one year high of C$60.46.

Hydro One Announces Dividend

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

Analyst Ratings Changes

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

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.