Fortis (FTS) Q2 2024 earnings summary

Executive summary

• Q2 2024 adjusted EPS rose to $0.67, driven by rate base growth and favorable weather in Arizona, with net earnings reaching $331 million.

• $2.3B capital invested YTD, supporting a $4.8B annual capital plan and major projects like the 1,800-km Wataynikaneyap Power Transmission Project.

• Released 2024 Sustainability Report, highlighting resiliency, biodiversity, and a 33% reduction in direct GHG emissions since 2019.

• Advanced key regulatory proceedings, including a positive Iowa Supreme Court stay for ITC Midwest projects.

Financial highlights

• Q2 2024 reported and adjusted EPS was $0.67, up $0.05 year-over-year; YTD adjusted EPS was $1.60, up $0.07.

• Q2 2024 adjusted net earnings were $331M, up from $302M in Q2 2023; YTD adjusted net earnings were $790M, up from $741M.

• EPS growth driven by rate base investments, new customer rates, and favorable weather in Arizona; offset by Aitken Creek disposition.

• Central Hudson earnings decreased due to a one-time regulatory settlement and higher operating costs.

• Raised $1.4B in debt YTD to fund capital program and maintain strong liquidity.

Outlook and guidance

• Five-year $25B capital plan on track, with $4.8B planned for 2024 and $7B allocated to cleaner energy investments.

• Rate base expected to grow from $37.0B in 2023 to $49.4B by 2028, a 6.3% CAGR.

• Maintains 4%-6% annual dividend growth guidance through 2028, supported by a 50-year track record.

• Additional growth opportunities include electrification, grid resiliency, and LNG infrastructure expansion.

• On track to achieve average cash flow to debt metrics of 12% over five years.