Hydro One Reports Fourth Quarter Results

Executive Summary

• Hydro One reported Q4 2025 results with basic EPS of $0.39 (up from $0.33 YoY) and net income attributable to shareholders of C$233 million, reflecting a 16.5% increase year‑over‑year.
• The company announced the pricing of C$1.6 billion of Medium‑Term Notes under its Sustainable Financing Framework (C$1.2 bn at 3.90%, due 2033; C$400 m at 4.80%, due 2056). Net proceeds will be used to finance or refinance eligible green projects.
• Multiple priority transmission projects were selected for development and construction, including new lines in the Bowmanville‑GTA corridor, Welland‑Thorold, Greenstone, and Sudbury‑Barrie regions, all featuring 50 % First Nations equity participation.

Key Details

• Financial Highlights (Quarter)
• Revenues: C$2,268 m (+8.3% YoY)
• Net income attributable to common shareholders: C$233 m (+16.5%)
• Basic EPS: $0.39 vs. $0.33 in Q4 2024
• Capital investments: C$939 m (up from C$799 m)

• Assets placed in‑service: C$1,310 m (up from C$1,100 m)

• Annual Highlights (FY 2025)

• Total revenues: C$9,041 m vs. C$8,484 m YoY
• Net income attributable to common shareholders: C$1,339 m (+15.8%)

• EPS for the year: $2.23 vs. $1.93 in 2024

• Medium‑Term Notes Offering

• Aggregate principal amount: C$1.6 bn
  • Series 64: C$1.2 bn, 3.90% interest, due 2033
  • Series 65: C$400 m, 4.80% interest, due 2056
• Issued under Hydro One’s Sustainable Financing Framework.

• Net proceeds earmarked to finance/re‑finance eligible green projects meeting the 2024 framework criteria.

• Transmission Project Selections

• Bowmanville–GTA Priority Line: New double‑circuit 500 kV line; service expected early‑2030s; 50 % First Nations equity model.
• Welland‑Thorold Power Line (Niagara region): Double‑circuit 230 kV, $311 m investment, completion targeted 2029; 50 % First Nations equity option.
• Greenstone Transmission Line: Single‑circuit 230 kV (future second circuit), service expected 2032; 50 % First Nations equity option.

• Sudbury–Barrie Transmission Line: Single‑circuit 500 kV, ~300 km, service expected 2032; includes development of a second parallel line; 50 % First Nations equity option.

• First Nations Equity Partnership

• All five partner First Nations completed their investments in the Chatham to Lakeshore Transmission Line, marking the first project under Hydro One’s 50:50 equity model.

• Dividend Declaration

• Quarterly cash dividend of C$0.3331 per share declared (payable March 31, 2026; record date March 11, 2026).

• Operational Metrics

• Transmission average monthly Ontario 60‑minute peak demand: 20,491 MW (Q4) vs. 19,396 MW YoY.

• Distribution electricity delivered: 8,802 GWh (Q4) vs. 8,249 GWh YoY.

• Cost & Expense Highlights

• OM&A costs reduced by C$254 m year‑over‑year due to productivity initiatives.
• Financing charges increased by C$17 m driven by higher long‑term debt levels.

• Income tax expense rose to C$30 m (effective tax rate ≈11.4%).

• Teleconference

• Q4 2025 results call scheduled for Feb 13, 2026 at 8:00 a.m. ET; webcast link provided.

Notable Quotes

“We are proud to have reached an important milestone in our First Nations Equity Partnership model… This historic achievement marks the first project developed under our 50:50 equity model and represents a meaningful step forward in reconciliation, community partnership, and economic inclusion.” – David Lebeter, President & CEO

All figures are presented in Canadian dollars unless otherwise noted.