Hydro One (H) Q2 2026 earnings summary

Executive summary

• Megan Telford became President and CEO in June 2026, leading her first earnings call and emphasizing continuity in strategy, customer focus, and growth.

• Ontario's largest pure-play electricity transmission and distribution utility, serving 1.5 million customers with a fully rate-regulated business model and no generation assets.

• Strategic focus on grid modernization, sustainability, and supporting Ontario's growing electricity demand.

• The company received recognitions for sustainability, workplace culture, and responsible business practices.

• Strong leadership and independent board structure support execution of long-term strategy.

Financial highlights

• Q2 2026 consolidated revenues rose 11.4% year-over-year to $2,302M; net income increased 13.1% to $370M; basic EPS was $0.62, up from $0.54 in Q2 2025.

• Revenue net of purchased power rose 5.5% year-over-year; transmission revenue up 7.2%, distribution revenue up 2.4%.

• OM&A expenses increased 3.4% year-over-year, with higher costs in both transmission and distribution segments.

• Depreciation, amortization, and asset removal expenses decreased by 2.8% due to lower storm restoration costs.

• Capital expenditures were $812 million in Q2 2026, down 11.1% from the prior year.

• Dividend of $0.3531 per share declared, payable September 29, 2026.

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.

• Major capital plan of $11.8B for 2023–2027 to renew and modernize the grid.

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

• Management committed to maintaining investment grade credit ratings, targeting FFO to net debt well above downgrade thresholds.

• Upcoming Joint Rate Application (JRAP) for 2028–2032 to be filed in October, with proposals to enhance reliability, resilience, and support electrification.