Fortis (NYSE:FTS) Announces Earnings Results, Beats Estimates By $0.03 EPS

Fortis (NYSE:FTS) announced its earnings results on Tuesday. The utilities provider reported $0.66 earnings per share for the quarter, topping analysts’ consensus estimates of $0.63 by $0.03, Zacks reports. Fortis had a net margin of 14.17% and a return on equity of 7.16%.

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 Up 1.0%

NYSE:FTS traded up $0.57 during trading hours on Tuesday, reaching $59.86. The company had a trading volume of 507,790 shares, compared to its average volume of 832,954. The company has a quick ratio of 0.47, a current ratio of 0.56 and a debt-to-equity ratio of 1.27. The firm has a market cap of $30.88 billion, a price-to-earnings ratio of 24.24 and a beta of 0.42. The business’s 50-day simple moving average is $54.83 and its two-hundred day simple moving average is $55.90. Fortis has a twelve month low of $49.60 and a twelve month high of $60.11.

Wall Street Analyst Weigh In

FTS has been the subject of several research analyst reports. Barclays lowered their price objective on Fortis from $60.00 to $56.00 and set an “overweight” rating for the company in a research report on Tuesday, September 29th. BMO Capital Markets restated a “market perform” rating on shares of Fortis in a research report on Monday, August 3rd. Wolfe Research set a $50.00 target price on Fortis in a research note on Tuesday, August 4th. TD Securities reaffirmed a “buy” rating on shares of Fortis in a research note on Tuesday, August 4th. Finally, Royal Bank Of Canada lifted their target price on Fortis from $80.00 to $89.00 and gave the stock a “sector perform” rating in a report on Monday, August 3rd. Three investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $65.00.

Key Stories Impacting Fortis

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

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.