Fortis (NYSE:FTS) Announces Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Fortis (NYSE:FTS) released its quarterly earnings data on Friday. The utilities provider reported $0.56 EPS for the quarter, beating the consensus estimate of $0.55 by $0.01, Zacks reports. Fortis had a return on equity of 7.25% and a net margin of 14.21%.The company had revenue of $1.67 billion for the quarter, compared to analysts’ expectations of $1.83 billion. During the same period last year, the firm posted $0.76 earnings per share.

Here are the key takeaways from Fortis’ conference call:

• Second-quarter EPS rose to CAD 0.78, up CAD 0.02 year over year, supported by rate-base growth at ITC and higher retail electricity sales at UNS. Fortis invested CAD 2.7 billion in the first half and remains on track for CAD 5.6 billion of 2026 capital spending.
• Fortis maintained its outlook for 7% average annual rate-base growth through 2030 and 4%-6% annual dividend growth, backed by its regulated utility portfolio and 52-year record of consecutive dividend increases.
• British Columbia approved a larger Tilbury LNG Phase 1B expansion, potentially adding approximately CAD 2 billion to regulated rate base versus CAD 350 million currently included in the plan. Construction could begin in 2027, although further permitting and regulatory approvals remain necessary.
• Fortis highlighted substantial additional growth opportunities, including up to USD 3.3 billion-$3.8 billion of ITC transmission investment beyond 2030 and potential USD 1.5 billion-$2 billion of new generation investment at TEP to serve expanding data-center demand. Management said customer agreements are structured to prevent cost shifting and could provide rate benefits to other customers.
• The TEP rate case decision was delayed until November 17, with implementation expected in December; management remains optimistic about recovery of its requested return on equity and formula-rate mechanisms. Fortis also noted that funding the expanded capital plan will require a review of all financing options while preserving investment-grade credit metrics.

Fortis Price Performance

FTS traded down $0.54 during midday trading on Friday, reaching $56.93. 941,706 shares of the company’s stock were exchanged, compared to its average volume of 724,343. The stock has a market capitalization of $29.08 billion, a PE ratio of 23.14 and a beta of 0.43. The business’s 50-day moving average price is $57.01 and its 200 day moving average price is $56.19. Fortis has a 1-year low of $48.64 and a 1-year high of $59.40. The company has a debt-to-equity ratio of 1.25, a current ratio of 0.49 and a quick ratio of 0.41.

Fortis Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Wednesday, August 19th will be issued a dividend of $0.64 per share. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $2.56 annualized dividend and a yield of 4.5%. Fortis’s payout ratio is currently 76.83%.

Analyst Ratings Changes

FTS has been the subject of a number of analyst reports. Barclays lowered their price target on Fortis from $62.00 to $61.00 and set an “overweight” rating for the company in a research report on Friday, May 8th. BMO Capital Markets reissued a “market perform” rating on shares of Fortis in a report on Thursday, May 7th. Weiss Ratings reissued a “buy (b)” rating on shares of Fortis in a research report on Friday, July 17th. TD Securities reiterated a “buy” rating on shares of Fortis in a research report on Thursday, May 7th. Finally, Wall Street Zen cut shares of Fortis from a “hold” rating to a “sell” rating in a research note on Saturday, May 23rd. Five investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $61.00.

Key Headlines Impacting Fortis

Here are the key news stories impacting Fortis this week:

• Positive Sentiment: Earnings beat estimates: Fortis reported quarterly EPS of $0.78, up from $0.76 a year earlier and well above the consensus estimate of $0.56 in the company’s earnings release. A separate Zacks report cited adjusted EPS of $0.56 versus a $0.55 consensus, indicating the precise figure varies by accounting measure, but both measures reflected an earnings beat. Fortis earnings conference call
• Positive Sentiment: Tilbury LNG expansion approved: British Columbia approval of FortisBC’s Tilbury LNG expansion improves the outlook for a major infrastructure and growth project, potentially supporting long-term rate-base expansion and utility earnings. Fortis Q2 earnings and Tilbury LNG approval
• Positive Sentiment: Dividend maintained: Fortis declared a quarterly dividend of $0.64 per share, payable September 1 to shareholders of record August 19. The annualized payout implies an approximately 4.5% yield, reinforcing the stock’s appeal to income-focused investors. Fortis third-quarter dividend announcement
• Neutral Sentiment: Profitability remains steady: Fortis reported a 7.25% return on equity and a 14.21% net margin. These metrics support financial stability but do not indicate a material change in operating profitability.
• Negative Sentiment: Leverage and liquidity remain considerations: Fortis has a debt-to-equity ratio of 1.25, a current ratio of 0.49 and a quick ratio of 0.41. Elevated leverage and limited near-term liquidity could weigh on valuation, particularly if interest rates remain high or project costs increase.

Hedge Funds Weigh In On Fortis

A number of hedge funds have recently made changes to their positions in the business. FIL Ltd increased its stake in Fortis by 9.1% during the 4th quarter. FIL Ltd now owns 19,898,613 shares of the utilities provider’s stock worth $1,034,545,000 after buying an additional 1,666,481 shares during the period. Bank of America Corp DE grew its holdings in shares of Fortis by 60.7% during the third quarter. Bank of America Corp DE now owns 2,508,277 shares of the utilities provider’s stock valued at $127,270,000 after purchasing an additional 947,079 shares during the last quarter. The Manufacturers Life Insurance Company lifted its stake in Fortis by 16.0% in the fourth quarter. The Manufacturers Life Insurance Company now owns 3,136,544 shares of the utilities provider’s stock valued at $163,423,000 after buying an additional 432,132 shares during the last quarter. Scotia Capital Inc. grew its position in Fortis by 3.7% in the 3rd quarter. Scotia Capital Inc. now owns 9,163,354 shares of the utilities provider’s stock worth $461,748,000 after purchasing an additional 326,212 shares during the last quarter. Finally, Quadrature Capital Ltd bought a new stake in Fortis during the 4th quarter valued at $16,387,000. Hedge funds and other institutional investors own 57.77% of the company’s stock.

Fortis Company Profile

Fortis Inc is a Canadian diversified electric and gas utility holding company headquartered in St. John’s, Newfoundland and Labrador. Through a portfolio of regulated utility subsidiaries, the company develops, owns and operates electricity and natural gas transmission, distribution and generation assets. Fortis serves customers across multiple jurisdictions in Canada, the United States and the Caribbean, focusing on the delivery of safe, reliable energy to residential, commercial and industrial users.

The company’s core activities include operation and maintenance of transmission and distribution networks, ownership of generation facilities, and investment in grid modernization and system resilience.