Fortis (FTS) Q4 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance in 2024, with top quartile safety and reliability, a 34% reduction in GHG emissions since 2019, and 6% adjusted EPS growth year-over-year.

• Reported annual net earnings of $1.6 billion ($3.24 per share), up from $1.5 billion ($3.10 per share) in 2023, driven by rate base growth and new customer rates.

• Capital expenditures reached a record $5.2 billion, supporting a 6% annual rate base growth to $39.0 billion.

• Marked 51 consecutive years of dividend increases, with a 4.2% increase in Q4 2024 and annual dividend growth guidance of 4-6% through 2029.

• Ranked number one in Canada for corporate governance among S&P/TSX Composite Index companies and recognized for sustainability and diversity.

Financial highlights

• Full-year 2024 adjusted EPS grew to $3.28 from $3.09 in 2023, a 6% increase; reported EPS was $3.24 vs. $3.10.

• Fourth quarter adjusted EPS was $0.83, up $0.11 year-over-year, driven by regulated rate base growth and new customer rates.

• Total shareholder return: 14.1% (1-year), 6.1% (5-year), 8.4% (10-year), 10.3% (20-year) as of Dec 31, 2024.

• Moody’s cash flow to debt ratio was 11.4%, and S&P FFO debt ratio was 11.6% on an adjusted FX basis.

• Over $3 billion of debt issued in 2024 to fund capital program and repay borrowings.

Outlook and guidance

• Five-year $26 billion capital plan (2025–2029) targets midyear rate base growth from $39.0 billion in 2024 to $53.0 billion by 2029, a 6.5% CAGR, with virtually all investments regulated.

• Annual dividend growth guidance of 4-6% through 2029, supported by regulated growth strategy and expected earnings growth from rate base expansion.

• Additional growth opportunities identified beyond the plan, including major transmission and renewable projects.

• Long-term GHG emissions reduction targets: 50% by 2030, 75% by 2035, and net-zero by 2050.

• Anticipates continued strong returns and stable cash flows from regulated utilities.