Hydro-Québec reported net income of CAD2.83bn ($2.06bn) for the first nine months of 2025, up by CAD641mn ($466mn) compared to the same period in 2024. This increase was driven by colder winter temperatures, a targeted optimisation of electricity exports, and a CAD256mn ($186mn) gain from the divestment of its stake in Innergex énergie renouvelable inc.
Revenue growth from export operations
The Québec state-owned utility capitalised on a colder winter that boosted domestic electricity consumption. Revenues from external markets also rose, with around 8 TWh sold at an average rate of CAD0.15/kWh, compared to 11 TWh at CAD0.10/kWh in 2024. Meanwhile, declining wholesale prices from the second quarter led to purchases of approximately 10 TWh at CAD0.05/kWh, versus 6 TWh at CAD0.03/kWh last year.
Asset performance and arbitrage strategy
Hydro-Québec stated that the reliability of its generation and transmission infrastructure supported the deployment of its marketing strategy. Despite ongoing low runoff conditions, the company utilised its 28 large reservoirs for arbitrage, exporting when prices were high and importing when they were low. This approach generated more than CAD600mn ($437mn) in net income on external markets since the beginning of the year.
Increased capital expenditure in 2025
Investments reached CAD5.6bn ($4.08bn) during the first three quarters of 2025, up 22% compared to 2024 and 65% since 2023. These funds were mainly allocated to asset maintenance, service quality improvements, and professional service procurement. Additionally, the company raised CAD5.5bn ($4.01bn) in financial markets to support its development programme.
Development projects and portfolio outlook
As part of its 2035 action plan, Hydro-Québec signed three major wind agreements totalling up to 8,500 MW, in partnership with Indigenous communities and regional county municipalities. It also launched its first solar power tender for 300 MW, part of a broader goal to develop 3,000 MW. These projects add to an expanding portfolio aimed at diversifying supply and meeting rising demand.
Strengthening regional economic ties
The company continues to invest in local infrastructure, including the opening of the Nemaska aerodrome in partnership with the Cree Nation and a collaboration agreement with the Makivik Corporation to support economic activity in Nunavik. These initiatives form part of an integrated approach to enhance regional economic benefits while sustaining overall financial performance.
