Fortis (FTS) Q1 2025 earnings summary

Executive summary

• Q1 2025 net earnings reached $499 million ($1.00 per share), up $0.07 year-over-year, driven by rate base growth and favorable FX rates.

• Capital expenditures totaled $1.4 billion in Q1, supporting a $5.2 billion annual plan and a $26 billion five-year capital plan.

• Achieved constructive regulatory outcomes, notably in British Columbia, and advanced major capital projects across multiple jurisdictions.

Financial highlights

• Net earnings increased to $499 million, or $1 per share, a $0.07 increase from Q1 2024.

• Q1 capital expenditures were $1.42 billion, up $292 million from Q1 2024, with notable investments in property, plant, and equipment.

• U.S. Electric and Gas utilities contributed a $0.02 EPS increase; Central Hudson added $0.05, while UNS Energy saw a $0.03 decrease.

• ITC and Western Canadian utilities each contributed a $0.01 EPS increase; higher average USD/CAD FX rate added $0.03 to EPS.

• Higher weighted average shares from DRIP lowered EPS by $0.01.

Outlook and guidance

• Five-year capital plan of $26 billion (2025-2029) targets a 6.5% CAGR in rate base, growing from $39 billion in 2024 to $53 billion by 2029.

• Annual dividend growth guidance of 4-6% through 2029, supported by a 51-year track record of increases.

• Monitoring government policy changes, tariffs, and inflation; regulatory mechanisms expected to recover prudently incurred costs.

• GHG emissions reduced 34% since 2019; targets set for 50% reduction by 2030, 75% by 2035, and net-zero by 2050.

• Opportunities for growth beyond the plan include major transmission projects, load expansion, and renewable investments.