Fortis Inc's Q2 profit rises on rate base growth

Fortis

31/07/2026 11:11

Overview
Canada regulated utility's Q2 net earnings and EPS rose yr/yr
Earnings growth driven by rate base expansion and higher retail electricity sales at UNS Energy
Company completed major battery storage project in Arizona and Tilbury LNG expansion approved in BC

Outlook
Fortis expects its C$28.8 bln five-year capital plan to raise rate base to C$57.9 bln by 2030
Company maintains annual dividend growth guidance of 4-6% through 2030
Fortis sees additional growth from U.S. grid expansion and renewable gas investments

Result Drivers
RATE BASE GROWTH - Co said expansion of rate base across its utilities contributed to Q2 earnings growth
HIGHER RETAIL ELECTRICITY SALES - Increased retail electricity sales at UNS Energy supported earnings growth
COST PRESSURES - Higher costs from rate base growth not yet reflected in customer rates and timing of operating costs at UNS Energy partially offset earnings growth

Company press release: ID:nGNX8CGXSP

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 EPS
 
C$0.78
 
Q2 Net Earnings
 
C$396 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 9 "hold" and 3 "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$82.00, about 1.8% above its July 30 closing price of C$80.55
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads
July 29 - Canadian Utilities Q2 adjusted EPS beats estimates
July 29 - Canada's ATCO Q2 adjusted earnings rise year over year
July 30 - Canada's AltaGas Q2 adjusted EPS beats estimates, lifts 2026 outlook

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(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.)