- Hydro One’s total revenue for the third quarter was C$2.30 billion, which is a 4.9% increase from the previous year but fell short of the C$2.37 billion estimate.
- Transmission revenue rose by 8.3% year-over-year to C$680 million, slightly surpassing the estimated C$676 million.
- Distribution revenue increased by 3.5% year-over-year to C$1.61 billion, but did not meet the C$1.68 billion forecast.
- Other revenue amounted to C$14 million, marking a 7.7% rise, and exceeded expectations set at C$11.7 million.
- Distribution operation, maintenance, and administration costs were C$164 million, up 5.8% year-over-year, and lower than the estimated C$185 million.
- Transmission operation, maintenance, and administration costs decreased by 3.5% to C$109 million, significantly below the C$143 million estimate.
- Other operation, maintenance, and administration costs were C$23 million, down 12% year-over-year, and slightly below the C$23.6 million projection.
- The capital expenditure was reported at C$779 million, showing a minor increase of 0.8% year-over-year.
- Analyst recommendations include 1 buy, 10 holds, and 3 sells for Hydro One.
Hydro One on Smartkarma
Analysts on Smartkarma, such as Ξ±SK, provide valuable insights into companies like Hydro One. In a recent report titled “Primer: Hydro One (H CN) – Sep 2025,” the analyst highlights Hydro One as a regulated monopoly with stable cash flows. Operating as Ontario’s largest electricity transmission and distribution utility, Hydro One serves around 1.5 million customers under the oversight of the Ontario Energy Board (OEB). With a significant multi-year capital investment plan of $11.8 billion from 2023 to 2027, aimed at modernization and grid improvement, the company expects a 6% to 8% annual growth in its rate base.
The report also underscores the high capital intensity and regulatory dependency of Hydro One’s business. Analysts caution against negative free cash flow due to substantial capital expenditures and emphasize the crucial role of OEB decisions in the company’s financial performance. Furthermore, risks from regulatory approvals and interest rate fluctuations pose challenges to Hydro One’s growth trajectory. Investors are advised to consider the nuanced insights provided by independent analysts before making investment decisions on Hydro One.
A look at Hydro One Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Hydro One Limited, an electrical transmission and distribution utility in Ontario, is positioned for a stable long-term outlook based on Smartkarma Smart Scores. With scores of 3 across the board for Value, Dividend, Growth, Resilience, and Momentum, the company demonstrates a balanced performance across key factors. This indicates a company that is likely to maintain its current trajectory with steady performance in the foreseeable future.
As an integral player in delivering electricity safely and reliably to customers in Ontario, including industrial clients and municipal utilities, Hydro One’s position as the owner and operator of the province’s transmission and low-voltage distribution network underpins its stability. The consistent ratings across the Smart Scores suggest a company that is well-rounded and capable of weathering various market conditions, reflecting a positive outlook for investors seeking a reliable utility investment.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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