What were the key takeaways from Fortis's earnings call?

What guidance did Fortis's management provide for the next earnings period?

What is the revenue and EPS growth rate for Fortis year over year?

Did Fortis beat or miss consensus estimates last quarter?

What is the market's earnings forecast for Fortis next quarter?

What does Fortis do and what are its main business segments?

What is Fortis's gross profit margin?

What factors drove the changes in Fortis's revenue and profit?

- **$28.8B Capital Plan Expansion**: 77% allocated to transmission, targeting 7% annual rate-based growth.
- **Dividend Growth Continuity**: 4%-6% annual increases through 2030, backed by 52-year dividend streak.
- **Regulated Portfolio Transition**: 100% regulated assets post-Belize sale, enhancing risk profile.
- **Arizona Data Center Opportunities**: $1.5-$2B potential investments in renewable and natural gas generation.
- **LNG Expansion Upside**: $300M contingent on BC environmental approvals.

**【CEO Summary Section】**
- Announced a new $28.8 billion five-year capital plan, up $2.8 billion from the prior plan, with 77% allocated to low-risk transmission and distribution investments.
- Projected 7% annual rate-based growth through 2030, supported by $5.6 billion in annual capital investments.
- Sold non-regulated assets in Turks and Caicos and Belize, transitioning to 100% regulated portfolio.
- Dividend growth guidance maintained at 4%-6% annually, with a 4.1% increase in Q3 dividend.

**【CFO Financial Commentary】**
- Q3 2025 adjusted EPS of $0.87, up $0.02 year-over-year, driven by regulated utility performance.
- Strong cash flow-to-debt ratio of 12.4%, with $2 billion raised through debt issuances and asset sales.
- Funding plan balanced with utility debt, DRIP, and ATM program, ensuring financial flexibility.

**【Q&A Highlights】**
- Arizona data center projects could require $1.5-$2 billion in new generation by 2030, contingent on customer agreements.
- ITC transmission queue expanded by 3,000 MW since Q2, with potential for $3.3-$3.8 billion in tranche 2.1 projects.
- LNG storage expansion in BC approved, with $300 million upside pending environmental assessments.
- Customer affordability prioritized through cost-sharing agreements and regulatory approvals.

Fortis Inc (FTS) Q3 2025 Earnings Call Transcript

- **EPS Growth**: Q2 EPS of $0.76 (+14% YoY), driven by rate base expansion and regulatory wins.
- **Sustainability & Capital**: $3B+ invested in H1, 34% GHG reduction, 200 MW battery storage project online.
- **Data Center Expansion**: 300 MW agreement in 2027, potential 600+ MW by 2031 with new generation.
- **Credit & Dividends**: BBB+ rating upgrade; 4-6% dividend growth through 2029.
- **Coal Transition**: 800 MW coal-to-gas by 2030, targeting coal-free by 2032.

**【CEO Opening Remarks】**
- Reported Q2 EPS of $0.76, up $0.09 year-over-year, driven by rate-based investments and regulatory progress.
- Capital expenditures reached $3 billion in H1, with $2.9 billion allocated to strategic projects like the Roadrunner Reserve Battery Storage Project (200 MW in Arizona).
- Sustainability milestone: 34% reduction in Scope 1 GHG emissions since 2019.
- Rate base expected to grow to $53 billion by 2029, supporting 6.5% annual growth.
- Announced coal-to-natural gas conversion of 800 MW at Springerville by 2030, targeting coal-free operations by 2032.

**【CFO Financial Commentary】**
- Q2 net earnings: $384 million ($0.76 EPS), up $0.09 YoY; year-to-date EPS: $1.76 (+$0.16 YoY).
- Key drivers: rate base growth (+$0.07 EPS), Central Hudson (+$0.04), FortisBC (+$0.03), and foreign exchange gains (+$0.02).
- Dividend growth guidance maintained at 4-6% annually through 2029.
- Credit rating upgrade to BBB+ from Fitch, supporting cost-effective capital market access.

**【CEO Further Remarks】**
- Secured 300 MW data center agreement in Arizona, with potential expansion to 600 MW at initial site and 500-700 MW at a second site.
- Regulatory updates: TEP filed rate application for 2026 rate increase, Central Hudson reached 3-year rate plan with 9.5% ROE.
- Implemented public safety power shut-off (PSPS) plans in Arizona, Alberta, and BC to mitigate wildfire risks.

**【Q&A Highlights】**
- **Data Center Development**: First 300 MW to be served by existing capacity (2027), next 300 MW via RFP (2030-2031). Additional 500-700 MW site contingent on generation and transmission investments.
- **Gas Infrastructure**: BC LNG bunkering expansion and Arizona pipeline projects to support coal-to-gas conversions.
- **Regulatory Impact**: Arizona GHG targets under review due to Springerville conversion; FERC LRTP tranche 2.1 projects (ITC-led) unaffected by federal legislation.
- **Legislative Risks**: Reduced renewable tax credits may slow storage and renewable development, but transmission needs remain for load growth.


Fortis Inc. (FTS) Q2 2025 Earnings Call Transcript

- **EPS Growth**: Q1 2025 EPS of $1, up $0.07 year-over-year, driven by utility investments and regulatory wins.
- **Capital Execution**: $1.4 billion invested, 27% of 2025 plan, with rate base targeting $53 billion by 2029.
- **Regulatory Strength**: Affirmed credit ratings, wildfire liability legislation, and formula rate mechanisms to mitigate tariff costs.
- **Growth Opportunities**: 300 MW data center customer ramping in 2027, 5,000+ MW pipeline, and transmission investments at ITC.
- **Dividend Discipline**: 4-6% annual growth through 2029, supported by stable cash flows and balance sheet strength.

**【CEO Summary Section】**
- Fortis reported EPS of $1 for Q1 2025, a $0.07 increase from Q1 2024, with $1.4 billion invested in utility infrastructure.
- Regulatory progress includes a constructive outcome for FortisBC's multi-year rate framework and wildfire liability legislation in Arizona.
- The 2025 capital plan remains on track, with 27% of the $26 billion five-year plan executed. Rate base is expected to grow to $53 billion by 2029, supporting 6.5% annual rate-based growth.
- Monitoring tariffs and supply chain impacts, with costs recoverable through regulatory mechanisms. Gross margin improvements expected from transmission investments at ITC and resource transition in Arizona.
- Dividend growth guidance of 4-6% through 2029, supported by a low-risk regulated utility model.

**【CFO Financial Commentary】**
- Q1 net earnings: $499 million, driven by U.S. utilities (Central Hudson +$0.05, UNS Energy -$0.03), ITC (+$0.01), and Western Canadian Utilities (+$0.01).
- Higher U.S. to CAD exchange rate (+1.43 vs. 1.35) contributed $0.03 to EPS. Corporate expenses offset by derivative gains.
- Credit ratings affirmed (Moody's Baa3, DBRS A low), with S&P engaged on climate risk. PSPS plans implemented in Arizona, New Mexico, and planned for British Columbia.
- Regulatory updates include TEP's formula rate mechanism filing and Central Hudson rate case negotiations.

**【Q&A Highlights】**
- **Tariffs & Supply Chain**: Near-term capital plan execution unaffected; costs recoverable through regulation. Long-term focus on customer affordability and alternative supply chains.
- **Arizona Growth**: 300 MW data center customer expected to ramp in 2027, with 5,000+ MW pipeline. Negotiations progressing, though industry-wide macro challenges persist.
- **Funding Flexibility**: $500 million ATM program unused; balance sheet strength supports 38% dividend reinvestment participation. Long-term funding strategy to be updated post-2025 plan.
- **Canadian Policy**: Prime Minister Carney's focus on energy infrastructure may drive transmission investment. BC Hydro exploring natural gas capacity, potential FortisBC opportunities.
- **Iowa ROFR**: Legislative session extended; advocacy for ROFR legislation continues. Alternate strategies if not passed, including 2026 re-engagement.


Fortis Inc. (FTS) Q1 2025 Earnings Call Transcript

- **Record Capital Investment**: $5.2 billion in 2024, fueling 6% EPS growth and 34% emissions reduction.
- **Major Projects**: $3.7-4.2 billion MISO LRTP spend and up to 900 MW Arizona load growth by 2030.
- **Dividend Growth**: 4-6% annually through 2029, backed by 6.5% rate base expansion.
- **Risk Management**: 100% FX hedged for next 2 years, mitigating $0.05/USD swing impact on EPS.
- **Innovation**: Exploring nuclear in Arizona to meet 2032 coal phase-out and data center demand.

**【CEO Opening Remarks】**
- Fortis achieved record $5.2 billion in capital investments in 2024, driving 6% adjusted EPS growth.
- Ranked #1 in Canada for corporate governance, with 34% reduction in Scope 1 emissions since 2019.
- Five-year capital plan of $26 billion includes MISO LRTP projects ($3.7-4.2 billion) and Arizona data center/load growth opportunities (up to 900 MW by 2030).
- Dividend growth guidance maintained at 4-6% annually through 2029, supported by regulated utility cash flows.

**【CFO Financial Update】**
- 2024 adjusted EPS of $3.28, +6% YoY, driven by ITC ($0.07), UNS Energy ($0.08), and Western Canadian Utilities ($0.09).
- MISO LRTP investments revised upward to $3.7-4.2 billion, including $300 million for Iowa system upgrades.
- Foreign exchange sensitivity: $0.05 CAD/USD swing impacts EPS by $0.05 and capital plan by $600 million.
- 2024 cash flow metrics: Moody's 11%, S&P 11.6%, with $3 billion debt issuance to support capital program.

**【Q&A Key Highlights】**
- **Arizona Load Growth**: 300 MW (2027 phase) and 600 MW (2030) data center/load projects could require $2.5-5 billion in TEP investments.
- **MISO Iowa Projects**: $300 million non-bid investments, with competitive bidding for remaining $3 billion subject to ROFR resolution.
- **Nuclear Exploration**: Early-stage site evaluation for SMR in Arizona, driven by coal phase-out and load growth needs.
- **FX Hedging**: 100% hedged for next 2 years, 50% for year 3, to mitigate CAD/USD volatility impact on EPS and capital plan.
- **FERC Priorities**: Focus on co-located load interconnection rules to streamline data center/grid connection approvals.

**【Dividend & Capital Allocation】**
- 51st consecutive dividend increase, 2024 payout of $2.39/share (+4%).
- 2024 DReP contributed $430 million to equity, with $500 million ATM program unused.
- 2024-2029 dividend payout ratio target: <73%, supported by 6.5% annual rate base growth to $53 billion by 2029.

FTS

FTS fundamentals

Earnings Call

You can ask Aime