Hydro One Limited reported third‑quarter 2025 results that surpassed analyst expectations, with total revenue of $2,299 million, up 4.9 % from $2,192 million a year earlier, and net income attributable to common shareholders of $421 million, a 12.7 % increase over the $371 million reported for the same period last year. Basic and diluted earnings per share both rose to $0.70, beating the consensus estimate of $0.6407 by $0.0593, or 9.3 %. The company also declared a quarterly cash dividend of $0.3331 per share, payable on December 31 2025 to shareholders of record on December 10 2025.
The revenue growth was driven by a favorable mix of transmission and distribution revenue. Transmission segment sales rose 9.4 % to $1,210 million, while distribution revenue increased 4.2 % to $1,089 million. The gains were supported by higher Ontario Energy Board‑approved rates and stronger average monthly peak demand, which offset any headwinds from the broader retail market. The company’s operating efficiency also improved, with operating margin expanding to 10.2 % from 9.8 % a year earlier, reflecting disciplined cost management amid rising commodity prices.
Net income and EPS beat were largely a result of the mix shift toward higher‑margin transmission work and the company’s ability to maintain pricing power in a regulated environment. While capital expenditures rose modestly to $779 million, the company placed $577 million of new assets in service, including key upgrades to the St. Clair Transmission Line that will support future demand growth. Hydro One also completed a CAD 1.1 billion medium‑term sustainability financing, reinforcing its balance sheet and enabling continued investment in low‑carbon infrastructure.
CEO David Lebeter returned to the helm on November 12 after a compassionate‑care leave, signaling stability in leadership. In his remarks, Lebeter highlighted the company’s disciplined execution and the importance of continued investment in grid reliability. He reaffirmed Hydro One’s commitment to delivering shareholder value through a steady dividend and a focus on long‑term infrastructure upgrades.
The market responded positively to the results, with trading activity reflecting confidence in Hydro One’s earnings beat and dividend declaration. Analysts noted the company’s ability to translate higher demand into shareholder returns, while the company’s guidance for the remainder of the year remains unchanged, underscoring management’s confidence in maintaining profitability amid a stable regulatory environment.
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