HYNLYOTCElectric ServicesUS GAAP · USD

Hydro One Ltd

Hydro One Ltd is an electric utility company that owns and operates regulated electricity transmission and distribution assets in Ontario, Canada. Its business also includes smaller telecommunications, energy solutions, and electric vehicle charging activities through subsidiaries.

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Revenue9,041m USD
+6.6 %y/y
Operating profit (EBIT)2,238m USD
+13.8 %y/y
EBIT margin24.8%
+1.6 ppy/y
Net income1,349m USD
+15.8 %y/y
Free cash flow-275m USD
−47.8 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

02,0004,0006,0008,00010,000m USD2020: 7,290 m USD2020: EBIT 1,482 m USD20202021: 7,225 m USD2021: EBIT 1,612 m USD20212022: 7,780 m USD2022: EBIT 1,832 m USD20222023: 7,844 m USD2023: EBIT 1,842 m USD20232024: 8,484 m USD2024: EBIT 1,967 m USD20242025: 9,041 m USD2025: EBIT 2,238 m USD20259,0412,238
RevenueOperating profit (EBIT)
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Business

Share of revenue
Transmission55 %

Owning and operating the provincial high-voltage grid that moves electricity across Ontario and interconnects other systems.

Distribution35 %

Delivering electricity from the local grid to residential, municipal, commercial, and industrial end users in Ontario.

Telecommunications and ICT4 %

Providing telecommunications infrastructure support and information communications technology solutions through Acronym Solutions.

Energy solutions4 %

Supplying energy-related services to commercial and industrial customers through Aux Energy.

EV charging2 %

Operating electric vehicle fast-charging stations in Ontario under the Ivy Charging Network brand.

Customers

Hydro One serves Ontario electricity users through regulated transmission and distribution services, with a large share of demand tied to households, municipalities, and businesses connected to the grid. The transmission network also serves large directly connected industrial customers and local distribution companies, while the non-regulated businesses sell specialized services to commercial and institutional users.

Residential end customers

Households receiving electricity through Hydro One's Ontario distribution system.

Municipal distribution companies

Local electricity distributors that interconnect with Hydro One's transmission grid and purchase network access services.

Large industrial customers

Directly connected industrial users that rely on high-voltage transmission for reliable power delivery.

Commercial and industrial clients

Businesses buying energy solutions and EV charging-related services.

Corporate and utility support users

Internal and external users of telecommunications and ICT services provided by Acronym Solutions.

Strategy

Hydro One's strategic position depends on maintaining and expanding its regulated electricity network while meeting reliability and capacity needs across Ontario. It also uses smaller non-regulated businesses to extend its infrastructure expertise into telecommunications, energy services, and EV charging.

Expand and reinforce the Ontario gridMedium term

Transmission and distribution investment supports load growth, reliability, and future rate base.

Maintain regulatory and operational reliabilityShort term

Utility earnings depend on approved rates, regulatory outcomes, and dependable service delivery.

Develop adjacent infrastructure servicesMedium term

Telecommunications, energy solutions, and EV charging broaden the platform beyond core regulated wires businesses.

Geography

Hydro One's business is centered in Ontario, where it owns and operates the core transmission and distribution networks. The company's regulated utility footprint is provincial rather than national, so customer demand, weather, and regulatory decisions in Ontario are the main geographic drivers of operating performance.

Risks

Hydro One is exposed to regulatory, weather, and infrastructure risks because most of its earnings come from regulated utility assets. Storm damage, timing of regulatory decisions, demand volatility, and execution risk on capital projects can all affect results and cash flow.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Regulatory recovery risk1Severe weather and storm damage2Demand and weather variability3Capital project execution4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Regulatory recovery riskImpact: HighLikelihood: High

    Revenue and cost recovery depend on Ontario regulatory approvals and allowed returns.

    Exposure: Storm-related cost recovery and rate decisions

  2. Severe weather and storm damageImpact: HighLikelihood: High

    A weather-driven utility network can incur repair, asset removal, and service disruption costs after major storms.

    Exposure: Transmission and distribution assets in Ontario

  3. Demand and weather variabilityImpact: MediumLikelihood: High

    Electricity volumes and peak demand are influenced by temperature and usage patterns, affecting operating comparability.

    Exposure: Ontario peak demand and distribution volumes

  4. Capital project executionImpact: MediumLikelihood: Medium

    Large transmission and distribution projects can face delays, cost overruns, and permitting or construction issues.

    Exposure: Grid expansion and reinforcement projects

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Accounting

Judgemental items
Regulated utility assets

Transmission and distribution spending is capitalized and recovered over time through regulated rates.

Impact: Affects asset base, depreciation expense, and future revenue

Seasonality

Weather and demand patterns cause interim earnings and volumes to fluctuate.

Impact: Affects quarter-to-quarter comparability

Storm-related recovery

Recovery of storm costs depends on regulatory approval and estimate judgments.

Impact: Affects provisions and earnings recognition

Expected credit losses

Receivables and contract assets require allowance estimates under current credit conditions.

Impact: Affects bad debt expense and net assets

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Last updated: 28/09/2026

Hydro One Ltd (OTC) – Electric Services | Financial Analysis – Clarifo