Hydro One (HN) Q3 2026 Earnings Report

The call was broadly positive, supported by a proposed $27 billion five-year capital plan, revenue growth, higher year-to-date EPS, strong credit metrics, major infrastructure progress and continued expected annual EPS growth of 6% to 8%. These positives were partially offset by a 1.9% decline in quarterly net income, higher operating, depreciation, storm-related and interest costs, deferred work from the prior rate period, and uncertainty surrounding approval and timing of the new JRAP.

Hydro One proposed approximately $27 billion of capital expenditures across transmission and distribution from 2028 through 2032, including a $16.7 billion transmission investment, or approximately $3.3 billion annually, and distribution investments of approximately $2.2 billion annually, or $10.9 billion over the period; the plan includes approximately $8.3 billion for new transmission infrastructure, approximately $4.4 billion to renew and replace critical station assets, approximately $2.7 billion to renew transmission lines, upgrades to more than 1,400 kilometers of transmission infrastructure, more than 6,000 megawatts of new customer loads, approximately 2,500 megawatts of new generation resources, more than 10,000 megawatts of incremental transfer capacity, 5,400 residential energy storage systems, and over 94,000 new homes and businesses connected to the grid. Transmission charges for a typical year-round medium-density residential customer are expected to increase by approximately $0.50 per month in 2028 and by an average of $1.14 per month annually from 2028 to 2032, while distribution monthly base charges are expected to decrease by approximately $0.10 in 2028 and remain unchanged over the remainder of the planned period. Hydro One continues to expect earnings per share to grow between 6% and 8% annually for the current JRAP period using the normalized 2022 EPS of $1.61 as a base, expects to invest approximately $11 billion outside the joint rate application for new transmission lines, intends to have a 50-50 partnership with First Nations in all of its future transmission lines, and said rate base growth and earnings growth will accelerate, although it cannot give any more rate base guidance at this point.