Canada's Fortis Q2 net earnings rise

Fortis

01/08/2025 11:11

Overview

Fortis Q2 net earnings rise to C$384 mln, driven by rate base growth

Capital expenditures reach C$2.9 bln in H1, supporting C$5.2 bln annual plan

Co reports 34% reduction in GHG emissions compared to 2019 levels

Outlook

Fortis expects midyear rate base to grow from C$39 bln in 2024 to C$53 bln by 2029

Company anticipates 4-6% annual dividend growth through 2029

Fortis does not foresee material financial impact from tariffs in 2025

Company plans expansion in cleaner energy infrastructure and grid resiliency

Result Drivers

RATE BASE GROWTH - Driven by investments in Eagle Mountain Pipeline and revenue reset at Central Hudson

CURRENCY IMPACT - Favorable U.S. dollar-to-Canadian dollar exchange rate boosted earnings

OPERATING COSTS - Increased costs and lower allowed ROE at FortisAlberta partially offset earnings growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 EPS
C$0.76
Q2 Net Earnings
C$384 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 10 "hold" and 4 "sell" or "strong sell"

The average consensus recommendation for the electric utilities peer group is "buy."

Wall Street's median 12-month price target for Fortis Inc is C$70.00, about 3.1% above its July 31 closing price of C$67.80

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nGNX9s0nMm

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)