Hydro One (H) investor relations material

Executive summary

• Net income attributable to common shareholders rose 9.2% year-over-year to $391 million for Q1 2026, with EPS up 8.3% to $0.65 per share, driven by higher OEB-approved rates and increased peak demand.

• Revenue for Q1 2026 was $2,648 million, up $240 million from the prior year.

• CEO David Lebeter announced retirement effective June 9, 2026; Megan Telford to succeed as President and CEO.

• Major new transmission projects awarded, including Greenstone, Sudbury to Barrie, and Red Lake lines, with several expected in service by early 2030s.

• Recognized for workplace culture, sustainability, gender diversity, and ratified new collective agreement with Society of United Professionals.

Financial highlights

• Q1 2026 basic EPS was $0.65, up from $0.60 in Q1 2025.

• Net income attributable to common shareholders increased by 9.2% year-over-year to $391 million.

• Revenues for Q1 2026 were $2,648 million, up 10% year-over-year; revenues net of purchased power rose 3% to $1,224 million.

• OM&A expenses decreased by 0.9% year-over-year to $329 million; transmission costs up 3.1%, distribution costs down 5%.

• Capital investments totaled $715 million in Q1 2026, with $484 million of assets placed in service.

Outlook and guidance

• EPS expected to grow 6–8% annually for the current rate period, using normalized 2022 EPS of $1.61 as a base.

• Board declared a quarterly dividend of $0.3531 per share, payable June 30, 2026.

• Projected capital investments: $3,538 million in 2026 and $3,301 million in 2027.

• No equity issuance anticipated for planned capital investments, which are fully self-funded.

• Major transmission projects expected to be in service by 2032 or early 2030s.