2Q Preview: Holding Pattern as We Await the Upcoming JRAP Application

研报英文原文证据摘录

2Q Preview: Holding Pattern as We Await the Upcoming JRAP Application

Equity Research

North America Power & Utilities

14 July 2026

Hydro One Ltd.

2Q Preview: Holding Pattern as We

Await the Upcoming JRAP

H.TO/H CT OVERWEIGHTApplication

Unchanged

We do not expect a major change in strategy on the new North America Power & POSITIVE Utilities

UnchangedCEO's first earnings call. We envision quiet updates until the

upcoming JRAP application. We expect management to Price Target CAD 63.00 Unchanged

highlight new transmission projects. Our 2Q26 EPS estimate Price (10-Jul-26) CAD 58.57

Potential Upside/Downside +7.6%is just above current consensus.

Source: Bloomberg, Barclays Research

What to expect on the 2Q26 call: We anticipate Hydro One will reaffirm its long-term EPS

Market Cap (CAD mn) 35147

growth outlook, its rate base forecast, and its dividend outlook until the next JRAP application

Shares Outstanding (mn) 600.10

concludes. The company does not provide current-year 2026 EPS guidance. The second quarter

Free Float (%) 99.08

2026 call will be new CEO Megan Telford’s first earnings call and we do not expect major

52 Wk Avg Daily Volume (mn) 1.7

changes in the strategy. We primarily expect the upcoming fall 2026 JRAP filing and awarded

Dividend Yield (%) 2.41

transmission lines (and First Nations partnership) to be topical. Our 2Q26 EPS estimate is $0.57

Return on Equity TTM (%) 10.95

versus current consensus of $0.56. In terms of positive year-over-year drivers, we expect the

Current BVPS (CAD) 21.41

benefit of rate base increase and transmission peak demand (modest) partially offset by higher Source: Bloomberg

OM&A, increased depreciation, and higher interest expense.

Price Performance Exchange-TORFocus items & catalyst calendar:

52 Week range CAD 60.46-47.53