Fortis (FTS) Q2 2025 earnings summary

Executive summary

• Q2 2025 net earnings were $384 million ($0.76 per share), up $0.09 year-over-year, driven by rate base growth, higher segment earnings, and favorable FX rates.

• Year-to-date net earnings reached $883 million ($1.76 per share), a $93 million increase over the prior year.

• Capital expenditures totaled $2.9 billion in the first half of 2025, supporting growth, grid resilience, and clean energy initiatives, with the $5.2 billion annual capital plan on track.

• Major projects included the commissioning of the 200 MW Roadrunner Reserve 1 battery storage at TEP and plans to convert 793–800 MW of coal-fired generation to natural gas by 2030.

• Fitch assigned a first-time BBB+ credit rating with a stable outlook; dividend growth guidance of 4–6% annually through 2029 reaffirmed.

Financial highlights

• Q2 2025 revenue was $2,815 million, up from $2,670 million year-over-year; year-to-date revenue was $6,153 million, up from $5,788 million.

• Q2 2025 EPS was $0.76, up $0.09 year-over-year; year-to-date EPS was $1.76, up $0.16.

• EPS growth was driven by rate base investments, higher earnings at Central Hudson and FortisBC, and foreign exchange gains.

• Operating cash flow for Q2 was $804 million; year-to-date operating cash flow increased by $435 million to $2,017 million.

• Over $1 billion in debt raised through June to fund capital programs and repay borrowings.

Outlook and guidance

• Five-year capital plan of $26 billion remains on track, with rate base expected to grow from $39 billion in 2024 to $53 billion by 2029 (6.5% CAGR).

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

• Ongoing regulatory filings and resource planning in Arizona and New York to support future growth.

• Committed to a coal-free generation mix by 2032 and a 2050 net-zero direct GHG emissions target.

• Monitoring macroeconomic factors, tariffs, and supply chain risks; no material financial impact expected in 2025.