Fortis (FTS) Earnings Date & Reports
Fortis owns and operates eight utility transmission and distribution subsidiaries in Canada and the United States, serving 3... Show more
FTS is expected to report earnings to fall 42.49% to 56 cents per share on July 31
Fortis Inc. (FTS) First Quarter 2026 Earnings Recap: Steady Results Amid Robust Capital Deployment
Key Takeaways
- Fortis Inc. reported net earnings attributable to common equity shareholders of $501 million for Q1 2026, comparable to $499 million in Q1 2025.
- Earnings per share (EPS) came in at $0.99, down $0.01 year-over-year due to higher shares outstanding from the dividend reinvestment plan and dilutive impacts from prior dispositions.
- Revenue rose to $3.4 billion from $3.3 billion, driven by rate base (the value of regulated assets on which utilities earn a return) growth and higher recoverable costs.
- Capital expenditures reached $1.4 billion, on track with the $5.6 billion annual plan and $28.8 billion five-year plan.
- Company reaffirmed long-term rate base growth of 7% CAGR to $57.9 billion by 2030, supporting 4-6% annual dividend growth through 2030.
- Results were in line with expectations, with shares showing modest gains post-release.
Earnings Context and Why It Matters
Fortis Inc., a leading North American regulated utility serving over 3.4 million electric and gas customers across Canada and the U.S., released its first quarter 2026 results on May 6, 2026. This report underscores the company's resilient business model amid volatile energy markets and rising demand from electrification and data centers. With total assets nearing $77 billion, Fortis benefits from stable, low-risk regulated operations. Investors watch these earnings closely for progress on capital investments, rate base expansion, and dividend sustainability, as they signal long-term earnings growth in a sector prized for defensive qualities during economic uncertainty.
For the quarter ended March 31, 2026, Fortis reported net earnings of $501 million, flat year-over-year despite headwinds like lower U.S. dollar-to-Canadian dollar exchange rates and dispositions of non-core assets in Turks and Caicos and Belize in 2025. EPS of $0.99 slightly missed some CAD consensus views around $1.00 but aligned with expectations overall, reflecting a $0.02 dilutive impact from those sales (expected $0.05 for full year). Revenue increased 2% to $3,403 million from $3,338 million, boosted by rate base growth across utilities, higher flow-through costs in customer rates, and revenue timing at Central Hudson.
Key drivers included stronger earnings at ITC ($153 million vs. $150 million), FortisBC Energy ($171 million vs. $156 million), and Central Hudson ($79 million vs. $65 million), offset by weaker UNS Energy ($51 million vs. $81 million) due to wholesale market conditions, maintenance timing, and rate lag on new investments. Capital expenditures totaled $1.4 billion (additions to property, plant, and equipment of $1,503 million plus intangibles of $45 million, net of contributions), 25% of the annual plan. No new full-year guidance was issued, but the five-year $28.8 billion capex program remains on track.
AI Screener
Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener identifies trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening, empowering data-driven decisions in dynamic markets. Explore it today to enhance your stock analysis workflow.
Market Reaction and Investor Sentiment
Fortis shares reacted positively to the Q1 results, with NYSE:FTS rising about 1% intraday on May 6 to around $57.44 before a modest pullback, while TSX:FTS.TO gained 1.06% to C$78.33. Volume was in line with averages, reflecting measured optimism. Sentiment focused on execution of the capital plan and reaffirmed dividend growth, though some caution lingered over UNS Energy weakness and FX impacts. Analysts noted results in line with forecasts, maintaining a Hold consensus with targets around $56-$62 USD.
Forward Outlook and Key Factors to Monitor
Fortis remains focused on its $28.8 billion five-year capital plan, projected to grow midyear rate base from $42.4 billion in 2025 to $57.9 billion by 2030 at a 7% compound annual growth rate (CAGR, using constant FX). This supports earnings growth backing 4-6% annual dividend increases through 2030.
Investors should track regulatory developments, including the ongoing TEP rate case (order expected fall 2026) and UNS Gas approval with a 9.61% ROE (return on equity). Major projects like ITC transmission upgrades for 1,600 MW load growth (completion by 2028), Tilbury LNG expansion, and Springerville coal-to-gas conversion advance amid strong demand signals, such as a 300 MW data center commitment in Arizona.
Challenges include FX volatility, interest rate trends affecting financing costs, and weather impacts on earnings timing. Load growth from electrification and industrials remains a tailwind, but wholesale market pressures at UNS Energy warrant monitoring. Credit ratings (A(low) stable from DBRS) provide funding flexibility.
Upcoming catalysts: Q2 results in August 2026 and annual meeting insights on May 7.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full Disclaimers and Limitations.
Advertisement
General Information
a company which generates and distributes electricity
Industry ElectricUtilities