Hydro One Q2 Profit Rises on Higher Rates, Energy Demand

Hydro One Ltd. (TSX:H) posted a 12% year-over-year earnings gain in Q2 2025, driven by Ontario Energy Board-approved rate hikes and stronger electricity consumption, as the utility continues large-scale grid investments to meet the province’s surging power demand.

For the quarter ended June 30, Hydro One reported net income of C$327 million, or C$0.54 per share, up from C$292 million (C$0.49) in Q2 2024. Revenue rose to C$2.07 billion from C$2.03 billion, with revenues net of purchased power up 7% to C$1.17 billion. The gains were fueled by 2025 transmission and distribution rate increases and higher consumption, partially offset by elevated depreciation, asset removal, and financing costs.

Context

The results come as Ontario released its first Integrated Energy Plan in June, projecting robust electricity demand growth through 2050 and outlining new transmission projects. Hydro One—Ontario’s largest electricity transmission and distribution utility—has stepped up capital spending, investing C$913 million in Q2 and bringing C$591 million of assets into service. These upgrades target aging infrastructure, storm restoration, and connecting new generation and load customers.

The quarter also saw the ratification of a new labor agreement with the Power Workers’ Union covering front-line and customer service roles, as well as the launch of the Ice Storm 2025: Recovery Grant, providing up to C$10,000 to 50 municipalities and First Nations impacted by the spring storm.

Sustainability & Recognition

Hydro One released its 2024 sustainability report, marking a decade of ESG disclosures, and earned multiple accolades, including its 10th straight year on Corporate Knights’ “Best 50 Corporate Citizens in Canada” list and spots on Forbes’ “Canada’s Best Employers for Company Culture” and TIME’s “Canada’s Best Companies 2025.”

Dividend & Outlook

The company declared a quarterly dividend of C$0.3331 per share, payable September 29. With a regulated rate base expected to reach C$28.5 billion in 2025, Hydro One is positioned to benefit from Ontario’s grid expansion and electrification efforts. However, higher financing charges and storm-related asset costs underscore the pressures of maintaining and upgrading one of North America’s largest provincial power networks.

Hydro One shares closed Q2 with a market capitalization of C$29.4 billion, and the utility remains a central player in meeting Ontario’s energy reliability and growth goals amid a rapidly shifting demand landscape.

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