Fortis (FTS) Q4 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance in 2024, with top quartile safety, reliability, and a 34% reduction in GHG emissions since 2019.

• Reported annual net earnings of $1.6 billion ($3.24 per share), up from $1.5 billion ($3.10 per share) in 2023, driven by rate base growth and new customer rates.

• 51 consecutive years of dividend increases, with a 4.2% rise in 2024 and guidance for 4%-6% annual growth through 2029.

• Ranked number one in Canada for corporate governance among S&P/TSX Composite Index companies and by The Globe and Mail Board Games.

• Capital expenditures reached $5.2 billion, supporting a 6% annual rate base growth to $39.0 billion.

Financial highlights

• Full-year 2024 adjusted EPS grew to $3.28 from $3.09 in 2023, a 6% increase; reported EPS was $3.24 vs. $3.10.

• Fourth quarter adjusted EPS was $0.83, up from $0.72 in Q4 2023; reported EPS was $0.79.

• 2024 revenue totaled $12 billion, with total assets of $73 billion as of year-end.

• Delivered a one-year total shareholder return of 14.1% and a 20-year average annual return of 10.3%.

• Adjusted dividend payout ratio was 72.7% in 2024, down from 73.9% in 2023.

Outlook and guidance

• Five-year capital plan of $26 billion (2025–2029) targets midyear rate base growth from $39.0 billion in 2024 to $53.0 billion by 2029, a 6.5% CAGR.

• Annual dividend growth guidance of 4%-6% through 2029, supported by expected earnings growth from rate base expansion.

• Ongoing focus on reducing climate impacts, with a 34% reduction in Scope 1 emissions since 2019 and a target to be coal-free by 2032.

• Long-term GHG reduction targets: 50% by 2030, 75% by 2035, and net-zero by 2050.

• Additional growth opportunities identified beyond the plan, including major transmission and renewable projects.