Fortis (NYSE:FTS) Releases Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Fortis beat earnings expectations, reporting $0.66 per share versus the $0.63 consensus estimate, while revenue also exceeded expectations.
• The company raised its five-year capital plan by CAD 3.4 billion to CAD 32.2 billion, targeting 7.5% annual rate-base growth through 2031, with most spending focused on regulated infrastructure.
• Fortis increased its quarterly dividend by 4% to CAD 0.665 and extended its 4%–6% annual dividend-growth guidance through 2031, but expects to use debt, cash flow and approximately CAD 250 million of ATM equity issuance to fund its larger investment program.

Fortis (NYSE:FTS - Get Free Report) posted its quarterly earnings data on Tuesday. The utilities provider reported $0.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.63 by $0.03, Zacks reports. Fortis had a return on equity of 7.16% and a net margin of 14.17%.

Here are the key takeaways from Fortis' conference call:

• Fortis raised its five-year capital plan to CAD 32.2 billion, CAD 3.4 billion above the prior outlook, supporting projected rate-base growth of 7.5% annually through 2031. The company said roughly 75% of spending targets transmission, distribution, and other lower-risk regulated infrastructure.
• Growth is being driven by major transmission and LNG opportunities, including ITC’s approximately US$1 billion MARS transmission project in Iowa and expanded investments at FortisBC’s Tilbury LNG site. Fortis also cited more than 10,000 megawatts of potential ITC load growth, although much of this remains outside the current plan.
• Fortis increased its quarterly dividend by 4% to CAD 0.665 and extended its 4%–6% annual dividend-growth guidance through 2031, marking 53 consecutive years of dividend increases.
• Third-quarter adjusted EPS increased by CAD 0.05 year over year to CAD 0.92, aided by rate-base growth at ITC, UNS Energy, and the Western Canadian utilities. TEP’s recommended rate-case outcome would modestly improve its allowed ROE and equity ratio, though final regulatory approval remains pending.
• The larger capital program will be funded primarily through operating cash flow, utility debt, the dividend reinvestment plan, hybrids, and selective ATM equity issuance; Fortis expects approximately CAD 250 million of ATM equity over the next 12 months. Management emphasized maintaining investment-grade ratings and a 50–75 basis-point buffer above credit-metric thresholds, while noting that additional growth projects could require further funding.

Fortis Stock Performance

Shares of NYSE FTS traded up $0.50 during trading hours on Tuesday, reaching $59.79. The stock had a trading volume of 486,340 shares, compared to its average volume of 832,514. The firm has a market cap of $30.84 billion, a price-to-earnings ratio of 24.24 and a beta of 0.42. The company has a current ratio of 0.56, a quick ratio of 0.47 and a debt-to-equity ratio of 1.27. Fortis has a fifty-two week low of $49.60 and a fifty-two week high of $60.11. The firm has a 50-day moving average of $54.83 and a 200-day moving average of $55.90.

More Fortis News

Here are the key news stories impacting Fortis this week:

• Positive Sentiment: Quarterly earnings beat estimates: Fortis reported adjusted earnings of $0.66 per share, above the $0.63 consensus estimate and up from $0.59 a year earlier. Revenue also surpassed expectations, providing a positive signal for operating performance. Fortis Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Dividend raised 4%: Fortis announced a 4% increase in its fourth-quarter dividend, reinforcing its appeal to income-focused investors and signaling continued confidence in cash-flow generation. Fortis Third Quarter 2026 Results and Dividend Increase
• Neutral Sentiment: New five-year capital outlook: Fortis released an updated five-year investment plan alongside its results. The outlook may support regulated-rate-base growth over time, although the scale of planned spending and its potential financing needs will be important for investors to assess. Fortis Five-Year Capital Outlook

Analyst Ratings Changes

Several research firms have weighed in on FTS. TD Securities reaffirmed a "buy" rating on shares of Fortis in a research report on Tuesday, August 4th. Royal Bank Of Canada upped their target price on shares of Fortis from $80.00 to $89.00 and gave the stock a "sector perform" rating in a research note on Monday, August 3rd. Weiss Ratings restated a "buy (b)" rating on shares of Fortis in a report on Thursday, October 15th. Canadian Imperial Bank of Commerce reissued a "neutral" rating on shares of Fortis in a research report on Wednesday, October 28th. Finally, Scotiabank restated a "sector perform" rating on shares of Fortis in a report on Tuesday, August 4th. Three analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, Fortis currently has a consensus rating of "Hold" and an average price target of $65.00.

About Fortis

Fortis Inc is a Canadian utility holding company that owns and operates regulated electric and natural gas utilities. Its businesses are primarily focused on the transmission and distribution of electricity, natural gas distribution, and related energy infrastructure.

Through its portfolio of utility subsidiaries, Fortis serves customers across Canada and the United States, with additional operations in the Caribbean. Its businesses include electric utilities, natural gas utilities, and electric transmission assets, providing essential energy services to residential, commercial, and industrial customers.

Fortis has expanded from its Canadian utility origins through acquisitions and investments in regulated infrastructure.

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