Fortis (FTS) Q3 2024 earnings summary

Executive summary

• Q3 2024 adjusted EPS was $0.85, up from $0.84 in Q3 2023, driven by regulated rate base growth and strong performance in Arizona, with net earnings rising to $420 million.

• Year-to-date net earnings reached $1.2 billion ($2.45 per share), up $85 million year-over-year.

• Capital expenditures through September totaled $3.6 billion, with full-year 2024 capex expected at $5.2 billion.

• Announced a new $26 billion capital plan for 2025-2029, supporting 6.5% average annual rate base growth and 4-6% annual dividend growth through 2029.

• Declared a 4.2% increase in the fourth quarter dividend, marking 51 consecutive years of increases.

Financial highlights

• Q3 2024 reported and adjusted EPS were $0.85, up $0.01 year-over-year; year-to-date EPS was $2.45, up $0.08.

• Capital expenditures for Q3 were $1.3 billion, up from $1.0 billion in Q3 2023; year-to-date capex reached $3.6 billion.

• $3.6B in capital expenditures year-to-date September 2024; annual capital forecast for 2024 is $5.2B.

• Raised approximately $2.6 billion of debt through September to fund capital programs and repay borrowings.

• 2023 revenue was $12 billion, with total assets of $70 billion as of September 30, 2024.

Outlook and guidance

• Five-year capital plan of $26 billion expected to grow rate base from $38.8 billion in 2024 to $53.0 billion by 2029, a 6.5% CAGR.

• Dividend growth guidance of 4-6% annually through 2029, supported by rate base expansion.

• Additional upside potential from new data center and industrial load growth, especially in Arizona and the Midwest.

• On track to reduce direct GHG emissions by 50% by 2030 and 75% by 2035 from a 2019 base, with a 2050 net-zero target.

• Opportunities beyond the five-year plan include further U.S. transmission expansion, climate adaptation, and clean energy investments.