Fortis Inc. to Discuss 2024 Annual Results: A Look Ahead

Fortis Inc. (TSX/NYSE: FTS), a well-diversified leader in the North American regulated electric and gas utility industry, has announced that it will hold a teleconference and webcast on February 14, 2025, to discuss its 2024 annual results. This event provides an opportunity for investors and stakeholders to gain insights into the company's financial performance, strategic initiatives, and future outlook.



In 2024, Fortis reported strong financial results, with net earnings of $1.2 billion, or $2.45 per common share, up from $1.125 billion, or $2.32 per share, in 2023. This growth was driven by rate base expansion and strong performance in Arizona, particularly at Tucson Electric Power (TEP), where new customer rates and higher retail electricity sales contributed to earnings growth. Additionally, unrealized gains on derivative contracts and an unfavourable deferred income tax adjustment recognized by ITC in 2023 also contributed to Fortis' earnings growth.

Capital expenditures for 2024 are expected to be approximately $5.2 billion, up from the previously anticipated $4.8 billion. This increase is driven by the timing of expenditures associated with the Eagle Mountain Pipeline project at FortisBC Energy and a higher forecast U.S.-to-Canadian dollar exchange rate. As of September, Fortis had already invested $3.6 billion, indicating strong progress in executing its capital program.



The company's capital plan focuses on projects associated with the Midcontinent Independent System Operator's (MISO) long-range transmission plan and other strategic initiatives. These investments are aimed at enhancing Fortis' infrastructure and service offerings, which should lead to increased revenue and earnings over time. Fortis has also unveiled a new 2025-2029 capital plan totaling $26 billion, which is expected to drive earnings that support the company's dividend growth guidance.

Fortis is committed to its regulated growth strategy, with a focus on annual dividend growth of 4-6% through 2029 for shareholders. In September, the company's Board of Directors declared a 4.2% increase in the fourth quarter common share dividend, marking 51 years of consecutive increases in dividends paid. This commitment to regulated growth and capital investment is a key factor in Fortis' ability to deliver value to shareholders while ensuring reliable and affordable energy for its customers.

The MISO long-range transmission plan continues to advance, with ITC expecting at least US$3.0 billion of investments for tranche 2.1. This plan has the potential to significantly impact Fortis' future growth by driving increased capital expenditures, regulatory approvals, and potential revenue growth. However, Fortis must also manage the associated risks to ensure the successful execution of its growth strategy.

In conclusion, Fortis Inc.'s teleconference and webcast on February 14, 2025, will provide valuable insights into the company's 2024 annual results and its future growth prospects. Investors and stakeholders should pay close attention to the company's financial performance, capital expenditure plans, and strategic initiatives to make informed decisions about their investments in Fortis.