Fortis Q2 Earnings Call Highlights

Fortis reported net earnings of C$396 million, or C$0.78 per share, supported by regulated capital investment and higher electricity sales. The company invested C$2.7 billion in the first half and remains on track for C$5.6 billion in 2026 capital spending, with 7% average annual rate-base growth targeted through 2030. British Columbia approved a larger Phase 1B project for the Tilbury LNG expansion, enabling approximately C$2 billion of regulated rate-base investment. Construction could begin as early as mid-2027, with service targeted for 2031, subject to regulatory approvals and permits. Fortis cited billions of dollars in potential ITC transmission investment and major data-center demand in Arizona, including a possible US$1.5 billion to US$2 billion generation buildout. The company issued C$2.1 billion of long-term debt in the first half and is reviewing funding options while aiming to preserve its credit metrics.

Fortis NYSE: FTS reported second-quarter net earnings of C$396 million, or C$0.78 per common share, up C$0.02 per share from the same period a year earlier, as regulated capital investment and higher electricity sales supported results. The utility said it invested C$2.7 billion across its systems through the first half of 2026 and remains on track to invest C$5.6 billion for the full year. President and CEO David Hutchens said the company’s utilities continued to provide safe and reliable service while advancing Fortis’ regulated growth strategy. Fortis continues to target average annual rate base growth of 7% through 2030 and annual dividend growth of 4% to 6% through that period.

The company also highlighted its sustainability progress, reporting a 38% reduction in Scope 1 greenhouse-gas emissions through 2025 compared with 2019 levels.

Executive Vice President and CFO Jocelyn Perry said earnings growth at ITC Holdings contributed C$0.02 per share in the quarter, primarily reflecting continued capital investment and related rate base growth. That contribution was partly offset by higher financing costs and stock-based compensation expense. UNS Energy also added C$0.02 per share, driven by higher retail electricity sales, including the effects of warmer weather. Perry said that benefit was moderated by the timing of operating costs and regulatory lag, as some rate base growth has not yet been reflected in customer rates. Fortis’ Western Canadian utilities added C$0.01 per share, largely because of capital investments. Central Hudson’s quarterly earnings were unchanged year over year, with rate base growth offset by the timing of quarterly revenue. Other electric operations were also comparable with the prior-year quarter, as segment earnings growth was offset by the impact of the FortisTCI disposition completed in the third quarter of 2025. The corporate and other segment reflected unrealized foreign-exchange contract losses, higher financing costs and lower earnings following the sale of Fortis Belize in late 2025. Foreign exchange reduced quarterly earnings per share by C$0.01, while a higher weighted-average share count associated with the dividend reinvestment plan also reduced earnings per share by C$0.01.

For the first six months of 2026, Fortis reported earnings of C$897 million, or C$1.76 per common share. Central Hudson contributed C$0.03 per share of year-to-date growth, while UNS was down C$0.03 per share for the six-month period, as higher retail sales were offset by lower wholesale-sales margins, operating-cost timing and regulatory lag.

A major focus of the call was FortisBC’s Tilbury LNG expansion in British Columbia. The util...