Fortis (FTS) Q1 2025 earnings summary

Executive summary

• Q1 2025 net earnings reached $499 million ($1.00 per share), up $0.07 year-over-year, driven by rate base growth and favorable FX rates.

• Capital expenditures totaled $1.4 billion in Q1, supporting a $5.2 billion annual plan and a $26 billion five-year capital plan.

• Constructive regulatory outcomes achieved, including approval of FortisBC's 2025-2027 rate framework and wildfire mitigation legislation in Arizona.

• Focus remains on executing the five-year, $26 billion capital plan and pursuing incremental regulated growth opportunities.

• GHG emissions reduced 34% since 2019, with targets for 50% reduction by 2030, 75% by 2035, and net-zero by 2050.

Financial highlights

• Q1 2025 basic EPS increased by $0.07 year-over-year to $1.00, with net earnings of $499 million and weighted average shares at 500.3 million.

• Capital expenditures for Q1 2025 were $1.42 billion, up $292 million from Q1 2024, with notable investments in property, plant, and equipment.

• U.S. Electric and Gas utilities contributed a $0.02 EPS increase; Central Hudson added $0.05, while UNS Energy saw a $0.03 decrease.

• Higher average USD/CAD exchange rate contributed a $0.03 EPS increase.

• Higher weighted average shares lowered EPS by $0.01.

Outlook and guidance

• Five-year capital plan of $26 billion (2025-2029) targets a 6.5% CAGR in rate base, growing from $39 billion in 2024 to $53 billion by 2029.

• Annual dividend growth guidance of 4-6% through 2029, supported by 51 consecutive years of increases.

• No significant near-term impacts from tariffs or foreign trade policy expected for 2025 capital plan; regulatory mechanisms in place to recover potential cost increases.

• GHG targets may be impacted by policy changes, customer growth, and clean energy technology development.

• Opportunities for growth beyond the plan include major transmission projects, load expansion, and renewable investments.