HYNLY Hydro One Ltd
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Executive Summary
Hydro One reported Q1 2026 results with net income attributable to common shareholders of $391M, up 9.2% YoY from $358M, driven by OEB-approved rate increases and higher peak demand. EPS rose to $0.65 from $0.60. The results reflect steady regulated utility performance with revenue growth of 10% to $2,648M, though net cash from operations declined 22.7% to $394M due to working capital timing. The filing also notes the CEO transition from David Lebeter to Megan Telford effective June 9, 2026, and the OEB's denial of $69M in storm cost recovery.
Actionable Insight
Solid regulated utility quarter with 9.2% net income growth and 8.3% EPS growth, but operating cash flow declined sharply due to working capital swings. The CEO transition is orderly and pre-announced. The OEB's denial of $69M in storm cost recovery is a minor negative but not material relative to the $12.8B equity base. Monitor the Next Generation Rate Framework consultation for potential regulatory changes. Dividend increased 6% sequentially to $0.3531.
Key Facts
- Net income attributable to common shareholders: $391M for Q1 2026 vs $358M for Q1 2025, up 9.2%
- Basic EPS: $0.65 for Q1 2026 vs $0.60 for Q1 2025, up 8.3%
- Total revenues: $2,648M for Q1 2026 vs $2,408M for Q1 2025, up 10.0%
- Revenues net of purchased power: $1,224M for Q1 2026 vs $1,188M for Q1 2025, up 3.0%
- Net cash from operating activities: $394M for Q1 2026 vs $510M for Q1 2025, down 22.7%
- Funds from operations (FFO): $705M for Q1 2026 vs $683M for Q1 2025, up 3.2%
- Capital investments: $715M for Q1 2026 vs $735M for Q1 2025, down 2.7%
- Dividend declared: $0.3531 per share for Q2 2026, up from $0.3331 in Q1 2026
- CEO transition: David Lebeter retiring effective June 9, 2026; Megan Telford appointed as President and CEO
- OEB denied $69M in incremental revenue requirement for storm-related costs from March 2025 storm
- Province of Ontario held approximately 47.1% of common shares as of March 31, 2026
Financial Impact
Net income up $33M YoY; EPS up $0.05; FFO up $22M; operating cash flow down $116M due to working capital timing
Risk Factors
- OEB denied $69M in storm cost recovery, signaling potential regulatory tightening
- Net debt to capitalization ratio increased to 59.8% from 59.5%, indicating slightly higher leverage
- Operating cash flow declined 22.7% YoY due to working capital timing, though FFO grew 3.2%
- CEO transition creates near-term leadership uncertainty, though succession is planned
Market Snapshot
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001712356-26-000012 |
| Document: a2026q1holmda.htm | 0001712356-26-000012 |
| Document: a2026q1hol6k-fsmda.htm | 0001712356-26-000012 |
| Document: a2026q1hol-cfocert.htm | 0001712356-26-000012 |
| Document: a2026q1hol-ceocert.htm | 0001712356-26-000012 |
| Document: 0001712356-26-000012-index-headers.html | 0001712356-26-000012 |
| Document: 0001712356-26-000012-index.html | 0001712356-26-000012 |
| Document: 0001712356-26-000012.txt | 0001712356-26-000012 |
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May 21, 2026
23d ago
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6-K
| — | awaiting T+20 | — | — |
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May 13, 2026
4w ago
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May 7, 2026
5w ago
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May 7, 2026
5w ago
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Apr 30, 2026
6w ago
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Apr 24, 2026
7w ago
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6-K
| — | awaiting T+20 | — | — |
US Market Status
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