GET DAILY SIGNALSFortis (FTS) Delivers Q3 Earnings Beat Alongside Expanded C$32.2 Billion Capital Plan
Key Takeaways
- Fortis reported third-quarter 2026 adjusted net earnings of C$474 million, or C$0.92 per share, up from adjusted EPS of C$0.87 in the prior-year quarter.
- Revenue rose to C$3,115 million from C$2,938 million a year earlier, while year-to-date adjusted EPS reached C$2.69 versus C$2.63.
- Management unveiled a C$32.2 billion five-year capital plan (2027–2031) targeting 7.5% average annual rate-base growth, up 50 basis points from the prior plan.
- The board declared a fourth-quarter dividend of C$0.665 per share, a roughly 4% increase marking the 53rd consecutive year of dividend growth.
- Growth is being driven largely by transmission investments at ITC and liquefied natural gas (LNG) infrastructure at FortisBC in British Columbia.
Why This Quarter Carries Extra Weight
Fortis operates as a diversified North American regulated electric and gas utility with customers in five Canadian provinces, ten U.S. states, and the Caribbean. The third-quarter release stood out because management paired the results with a fresh five-year capital outlook. Regulated utilities like FTS are valued for their stable, dividend-supported cash flows, so earnings provide a useful check on whether rate-base growth is flowing through to higher EPS. With rising electricity demand from data centers and broader electrification trends, the report offered a timely update on Fortis’s ability to turn capital spending into consistent returns for shareholders. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
The Quarter’s Reported Figures
For the three months ended September 30, 2026, Fortis posted adjusted net earnings of C$474 million, or C$0.92 per common share, compared with C$441 million, or C$0.87 per share, in the same quarter of 2025. Reported net earnings matched the adjusted figure at C$474 million. Revenue increased to C$3,115 million from C$2,938 million year over year. Year-to-date adjusted EPS moved ahead to C$2.69 from C$2.63.
EPS growth reflected rate-base expansion at ITC, stronger electricity sales and customer additions at UNS Energy in Arizona, and higher rate-base contributions from the Western Canadian utilities. These positives were tempered by milder weather, regulatory lag on new investments, and elevated finance costs. The results also exceeded the consensus estimate, continuing the company’s streak of beats.
How the Market Responded
Shares of FTS opened modestly higher after the release. The earnings beat was accompanied by a larger-than-expected capital plan and the dividend increase. Attention focused more on the forward outlook than on the headline numbers: the C$32.2 billion program, the 7.5% rate-base CAGR target, and the maintained 4%–6% annual dividend growth guidance through 2031. For income-focused holders, the dividend hike underscored Fortis’s record as a reliable dividend grower. The main risk investors weighed was the funding mix for the stepped-up spending, which management described as a combination of operating cash flow, regulated debt, and limited equity issuance.
Key Elements of the New Capital Plan
The updated five-year plan forms the core narrative going forward. Management projects the rate base will expand from approximately C$45.3 billion in 2026 to roughly C$63.9 billion by 2031, supporting the 7.5% average annual growth rate. About three-quarters of the spending targets transmission and distribution assets, which typically deliver stable regulated returns.
Several specific opportunities stand out for monitoring. At ITC, the MARS Project win in Iowa adds roughly US$500 million to the plan, with additional transmission work expected from regional grid processes and growing data-center demand. At FortisBC, environmental approvals for the Tilbury LNG expansion create a potential C$2 billion to C$4 billion opportunity outside the current plan, pending a final investment decision.
Investors will also track regulatory outcomes, including a pending Arizona rate case that could establish the allowed return on equity for Tucson Electric Power. Funding discipline remains important: management aims to maintain investment-grade credit ratings while using a dividend reinvestment plan and a modest at-the-market equity program. These factors will determine whether Fortis can sustain both its earnings path and its long dividend-growth streak. From what I see, regulatory approvals and execution on the capital program will be the main variables to watch.
Refining Utility Research with Tickeron Tools
When evaluating names like FTS alongside peers, I find Tickeron’s AI Screener helpful for applying consistent filters on fundamentals, technical patterns, and performance metrics. It lets me scan the utility sector efficiently and surface comparable setups without manual effort. The tool has become a regular part of my workflow for identifying relative value and emerging trends in regulated industries.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
FTS in upward trend: 10-day moving average broke above 50-day moving average on October 21, 2026
The 10-day moving average for FTS crossed bullishly above the 50-day moving average on October 21, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 20 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 45%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 08, 2026. You may want to consider a long position or call options on FTS as a result. In 33 of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 38%.
The Moving Average Convergence Divergence (MACD) for FTS just turned positive on October 07, 2026. Looking at past instances where FTS's MACD turned positive, the stock continued to rise in 18 of 51 cases over the following month. The odds of a continued upward trend are 35%.
FTS moved above its 50-day moving average on October 14, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +2.07% 3-day Advance, the price is estimated to grow further. Considering data from situations where FTS advanced for three days, in 127 of 331 cases, the price rose further within the following month. The odds of a continued upward trend are 38%.
The Aroon Indicator entered an Uptrend today. In 95 of 255 cases where FTS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 37%.
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 16 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for FTS moved below the 200-day moving average on October 02, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
FTS broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 44 (best 1 - 100 worst), indicating steady price growth. FTS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 46 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 50, placing this stock slightly better than average.
The Tickeron Valuation Rating of 57 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.280) is normal, around the industry mean (2.063). P/E Ratio (17.438) is within average values for comparable stocks, (14.957). Projected Growth (PEG Ratio) (2.505) is also within normal values, averaging (1.785). Dividend Yield (0.031) settles around the average of (0.053) among similar stocks. P/S Ratio (3.076) is also within normal values, averaging (187.392).
The Tickeron PE Growth Rating for this company is 67 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 77 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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a company which generates and distributes electricity
Industry ElectricUtilities
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