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

Fortis (NYSE:FTS) announced its quarterly earnings data on Friday. The utilities provider reported $0.56 EPS for the quarter, beating analysts’ consensus estimates of $0.55 by $0.01, Zacks reports. Fortis had a net margin of 14.21% and a return on equity of 7.25%. The business had revenue of $1.67 billion during the quarter, compared to analyst estimates of $1.83 billion. During the same quarter in the prior year, the business earned $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 Stock Down 0.9%

Shares of FTS traded down $0.54 during trading hours on Friday, reaching $56.93. 941,706 shares of the stock traded hands, compared to its average volume of 724,343. The stock has a fifty day simple moving average of $57.01 and a 200 day simple moving average of $56.19. The company has a current ratio of 0.49, a quick ratio of 0.41 and a debt-to-equity ratio of 1.25. The company has a market cap of $29.08 billion, a price-to-earnings ratio of 23.14 and a beta of 0.43. Fortis has a 52 week low of $48.64 and a 52 week high of $59.40.

Fortis Dividend Announcement

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

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new stake in Fortis in the fourth quarter worth $34,000. Towarzystwo Funduszy Inwestycyjnych PZU SA grew its position in Fortis by 157.4% in the 3rd quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 700 shares of the utilities provider’s stock worth $36,000 after purchasing an additional 428 shares during the period. Larson Financial Group LLC grew its stake in shares of Fortis by 123.9% during the 3rd quarter. Larson Financial Group LLC now owns 739 shares of the utilities provider’s stock valued at $37,000 after purchasing an additional 409 shares during the period. Smartleaf Asset Management LLC boosted its stake in shares of Fortis by 2,119.1% during the 2nd quarter. Smartleaf Asset Management LLC now owns 1,043 shares of the utilities provider’s stock worth $49,000 after acquiring an additional 996 shares during the last quarter. Finally, State of Wyoming purchased a new stake in Fortis in the second quarter worth about $56,000. 57.77% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the stock. Canadian Imperial Bank of Commerce lowered shares of Fortis from an “outperform” rating to a “hold” rating in a report on Friday, July 17th. Weiss Ratings reissued a “buy (b)” rating on shares of Fortis in a report on Friday, July 17th. TD Securities reiterated a “buy” rating on shares of Fortis in a report on Thursday, May 7th. Barclays reduced their target price on shares of Fortis from $62.00 to $61.00 and set an “overweight” rating for the company in a report on Friday, May 8th. Finally, Wall Street Zen lowered shares of Fortis from a “hold” rating to a “sell” rating in a research report on Saturday, May 23rd. Five investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $61.00.

Fortis News Roundup

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.

About Fortis

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.