Hydro One Reports Second Quarter Results

Executive Summary

• Hydro One Limited reported its financial and operating results for the second quarter ended June 30, 2025, showing an increase in earnings per share and net income compared to the prior year period.
• The company attributed the financial performance to higher revenues driven by Ontario Energy Board-approved 2025 transmission and distribution rates and increased energy consumption, partially offset by higher operating costs and financing charges.
• The Board declared a quarterly cash dividend of $0.3331 per share, payable on September 29, 2025, while highlighting significant capital investments in grid infrastructure and community recovery efforts.

Key Details

• Financial Performance (Q2 2025 vs Q2 2024):
  • Net income attributable to common shareholders: $327 million (up from $292 million).
  • Basic Earnings Per Share (EPS): $0.54 (up from $0.49).
  • Diluted EPS: $0.54 (up from $0.49).
  • Revenues: $2,066 million (up from $2,031 million).
  • Revenues, net of purchased power: $1,167 million (up from $1,091 million).
  • Net cash from operating activities: $605 million (down from $746 million).
• Six-Month Performance (Ended June 30, 2025 vs 2024):
  • Net income attributable to common shareholders: $685 million (up from $585 million).
  • Basic EPS: $1.14 (up from $0.98).
  • Revenues: $4,474 million (up from $4,197 million).
  • Net cash from operating activities: $1,115 million (down from $1,208 million).
• Cost Drivers:
  • Operation, maintenance, and administration (OM&A) costs were slightly higher year-over-year but lower when adjusted for net income-neutral items, primarily due to lower vegetation management expenditures.
  • Depreciation, amortization, and asset removal costs increased due to higher asset removal costs from storm restoration and growth in capital assets.
  • Financing charges increased primarily due to higher long-term debt outstanding.
• Capital Investments and Operations:
  • Capital investments for the quarter: $913 million (up from $818 million).
  • Assets placed in-service: $591 million (up from $526 million).
  • Transmission Average Monthly Peak Demand: 20,836 MW (up from 20,749 MW).
  • Distribution Electricity Distributed: 7,231 GWh (up from 6,970 GWh).
• Dividends:
  • Quarterly dividend declared: $0.3331 per share.
  • Record Date: September 10, 2025.
  • Payment Date: September 29, 2025.
• Operational and Community Updates:
  • Announced 50 recipients of the "Ice Storm 2025: Recovery Grant," providing up to $10,000 each to 12 First Nations and 38 municipalities for recovery efforts.
  • Power Workers' Union (PWU) members ratified a tentative agreement covering front-line and customer-facing roles, effective October 1, 2025, to March 31, 2028.
  • Released 2024 Annual Sustainability Report and recognized on Corporate Knights' 2025 Best 50 Corporate Citizens list for the 10th consecutive year.

Notable Quotes

• "Ontario is growing fast. In every corner of the province, there's an increasing need for energy to power homes, communities and businesses," said David Lebeter, President and Chief Executive Officer, Hydro One. "Hydro One continues to make critical investments in our transmission and distribution networks to support this need and the expected growth in energy demand that will lead to a more prosperous Ontario."