Hydro One (FRA:8H1) Operating Income: €1,519 Mil (TTM As of Jun. 2026)

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FRA:8H1 Hydro One Ltd FRA:8H1
75 GF Score
Price €35.04
GF Value €32.86
Valuation Fairly Valued
! 8 Warning Signs
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What is Hydro One Operating Income?

Hydro One FRA:8H1 -0.43% 75 Operating Income is €1,519 Mil as of Jun. 2026. GuruFocus rates FRA:8H1 with a GF Score™ of 75/100 and a GF Value™ of €32.86 (Fairly Valued). The stock has 8 warning signs investors should review.

Hydro One's Operating Income for the three months ended in Jun. 2026 was €404 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 was €1,519 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Hydro One's Operating Income for the three months ended in Jun. 2026 was €404 Mil. Hydro One's Revenue for the three months ended in Jun. 2026 was €1,424 Mil. Therefore, Hydro One's Operating Margin % for the quarter that ended in Jun. 2026 was 28.37%.

Good Sign:

Hydro One Ltd operating margin is expanding. Margin expansion is usually a good sign.

Hydro One's 5-Year average Growth Rate for Operating Margin % was 2.80% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Hydro One's annualized ROC % for the quarter that ended in Jun. 2026 was 5.51%. Hydro One's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 7.67%.


Hydro One  (FRA:8H1) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Hydro One's annualized ROC % for the quarter that ended in Jun. 2026 is calculated as:

ROC % (Q: Jun. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2026 ) + Invested Capital (Q: Jun. 2026 ))/ count )
=1615.516 * ( 1 - 15.58% )/( (24934.949 + 24579.726)/ 2 )
=1363.8186072/24757.3375
=5.51 %

where

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=25042.759 - 1037.748 - ( 23.327 - max(0, 2006.144 - 1076.206+23.327))
=24934.949

Invested Capital(Q: Jun. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=25404.184 - 1019.285 - ( 397.694 - max(0, 1652.008 - 1457.181+397.694))
=24579.726

Note: The Operating Income data used here is four times the quarterly (Jun. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Hydro One's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2026  Q: Jun. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1543.772/( ( (20145.295 + max(-893.371, 0)) + (20100.564 + max(-878.267, 0)) )/ 2 )
=1543.772/( ( 20145.295 + 20100.564 )/ 2 )
=1543.772/20122.9295
=7.67 %

where Working Capital is:

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(348.017 + 18.284 + 92.048) - (1037.748 + 203.01 + 110.962)
=-893.371

Working Capital(Q: Jun. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(326.567 + 19.173 + 96.486) - (1019.285 + 231.937 + 69.271)
=-878.267

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Hydro One's Operating Margin % for the quarter that ended in Jun. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2026 )/Revenue (Q: Jun. 2026 )
=403.879/1423.782
=28.37 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Hydro One Operating Income Related Terms


Hydro One Operating Income Historical Data

* Premium members only.

The historical data trend for Hydro One's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Hydro One Operating Income Chart

Hydro One Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,209.27 1,416.87 1,357.46 1,423.75 1,477.09

Hydro One Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 390.11 418.79 289.10 407.28 403.88
FRA:8H1
75GF Score
Hydro One Ltd FRA:8H1
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Hydro One Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €1,519 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of €1,519 Mil mean?
Hydro One (FRA:8H1) has a Operating Income of €1,519 Mil as of Jun. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Hydro One and its competitors.
Is Hydro One's Operating Income too high?
Hydro One's current Operating Income is €1,519 Mil. Overall, Hydro One has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hydro One's Operating Income compare to NEE and SO?
Hydro One's Operating Income of €1,519 Mil can be compared against companies in the Utilities - Regulated industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for an Utilities - Regulated company?
A good Operating Income depends on the Utilities - Regulated industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Hydro One and its competitors. Hydro One's current Operating Income is €1,519 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hydro One stock overvalued right now?
Based on GuruFocus' analysis, Hydro One (FRA:8H1) is currently considered Fairly Valued. The stock's GF Value™ is €32.86, compared to a current price of €35.04 — trading 6.6% above its estimated fair value. The current Operating Income is €1,519 Mil. Hydro One's overall GF Score™ is 75/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Hydro One (FRA:8H1), the current Operating Income is €1,519 Mil as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Hydro One (FRA:8H1) Overvalued in 2026?

Based on GuruFocus' analysis, Hydro One stock appears to be overvalued. The current stock price of €35.04 is trading 6.6% above its estimated GF Value™ of €32.86. GuruFocus considers Hydro One to be Fairly Valued.

Key valuation signals for FRA:8H1:

  • Operating Income: €1,519 Mil
  • GF Value™: €32.86 vs. price of €35.04 (6.6% above fair value)
  • GF Score™: 75/100 with 8 warning signs

No single metric tells the full story. See the FRA:8H1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hydro One Business Description

Other Exchanges HRNNF:USAH:Canada
Address 483 Bay Street, South Tower, 8th Floor, Toronto, ON, CAN, M5G 2P5
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 with annual revenue contributing less than 1% to consolidated results. The province of Ontario holds an approximate 47.5% common equity stake.
75GF Score

Get the complete analysis for FRA:8H1

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€35.04
Price
€32.86
GF Value