Scotiabank Issues Optimistic Forecast for Hydro One Earnings

Key Points

• Scotiabank raised its FY2026 EPS estimate for Hydro One to $2.27 from $2.24, which is above the current consensus of $2.06, signaling an upbeat earnings outlook.
• Hydro One last reported Q results of C$0.39 EPS on C$981 million revenue, with a net margin of 14.81% and return on equity of 10.73%, reflecting steady regulated utility fundamentals.
• The stock trades around C$58.41 (52‑week high C$60.46) with a market cap of C$35.03 billion, a consensus rating of Hold (target C$54.64), and a quarterly dividend that annualizes to C$1.33 for a ~2.3% yield (payout ratio 58.9%).

Hydro One Limited (TSE:H - Free Report) - Research analysts at Scotiabank raised their FY2026 EPS estimates for Hydro One in a report issued on Friday, May 1st. Scotiabank analyst R. Hope now forecasts that the company will post earnings of $2.27 per share for the year, up from their previous estimate of $2.24. The consensus estimate for Hydro One's current full-year earnings is $2.06 per share.

Hydro One (TSE:H - Get Free Report) last announced its earnings results on Friday, February 13th. The company reported C$0.39 earnings per share (EPS) for the quarter. Hydro One had a net margin of 14.81% and a return on equity of 10.73%. The company had revenue of C$981.00 million during the quarter.

H has been the subject of several other reports. Jefferies Financial Group cut their target price on shares of Hydro One from C$52.00 to C$50.00 in a research report on Wednesday, January 28th. Raymond James Financial upped their target price on shares of Hydro One from C$57.00 to C$58.00 and gave the stock a "market perform" rating in a research report on Tuesday, April 28th. Barclays cut their target price on shares of Hydro One from C$66.00 to C$63.00 in a research report on Friday, April 10th. Finally, TD Securities boosted their price target on shares of Hydro One from C$56.00 to C$57.00 and gave the stock a "hold" rating in a research note on Wednesday, February 18th. Two research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, Hydro One presently has a consensus rating of "Hold" and a consensus target price of C$54.64.

Hydro One Stock Up 0.1%

Shares of TSE:H opened at C$58.41 on Monday. Hydro One has a 52-week low of C$47.54 and a 52-week high of C$60.46. The firm has a fifty day moving average of C$58.24 and a 200 day moving average of C$55.24. The firm has a market capitalization of C$35.03 billion, a PE ratio of 26.19, a price-to-earnings-growth ratio of 3.17 and a beta of 0.37. The company has a debt-to-equity ratio of 151.72, a quick ratio of 0.30 and a current ratio of 0.61.

Hydro One Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 31st were paid a $0.3331 dividend. The ex-dividend date of this dividend was Wednesday, March 11th. This represents a $1.33 annualized dividend and a yield of 2.3%. Hydro One's payout ratio is currently 58.90%.

About Hydro One

Hydro One operates regulated transmission and distribution assets in Ontario. The area's largest electricity provider serves nearly 1.5 million customers. Transmission accounts for roughly 60% of the company's rate base, with distribution accounting for the remainder. Hydro One operates a small telecom business, Acronym Solutions, with annual revenue contributing less than 1% to consolidated results. The province of Ontario holds an approximate 47% common equity stake.

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