Canada's Hydro One Q1 profit rises on OEB-approved rates

Overview

• Canada electricity utility's Q1 revenue and net income rose yr/yr

• Q1 basic EPS rose to C$0.65 from C$0.60 a year earlier

• Company names Megan Telford as next CEO, succeeding David Lebeter in June

Outlook

• Company did not provide specific financial guidance for the current or future periods

Result Drivers

• OEB-APPROVED RATES - Co said higher revenues were mainly due to OEB-approved 2026 rates

• HIGHER PEAK DEMAND - Co said increased average monthly peak demand contributed to revenue growth

• LOWER OM&A COSTS - Slightly lower OM&A costs, mainly from reduced work program expenditures, helped support results

Company press release: ID:nCNWjwLyKa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 11 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy."

• Wall Street's median 12-month price target for Hydro One Ltd is C$57.00, about 3.6% below its May 12 closing price of C$59.15

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 24 three months ago

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