Fortis (FTS) Q4 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in 2025, with annual net earnings of $1.7 billion ($3.40 per share), up from $1.6 billion ($3.24 per share) in 2024, and a 7% rate base growth supported by $5.6B in capital expenditures.

• Marked 52 consecutive years of dividend increases, including a 4.1% increase in Q4, and recognized for top governance practices among S&P/TSX Composite Index companies.

• Released the 2026 Climate Resiliency Report, highlighting climate risk integration and a 38% reduction in scope 1 GHG emissions since 2019.

• Dispositions of FortisTCI and Belize investments resulted in $63 million in losses, partially offsetting earnings growth.

• Delivered a one-year total shareholder return of nearly 24% and a 20-year cumulative return of 517%.

Financial highlights

• 2025 adjusted EPS was $3.53, up $0.25 year-over-year, with reported EPS of $3.40; Q4 adjusted EPS was $0.90, up from $0.83 in Q4 2024.

• 2025 revenue totaled $12 billion, with total assets of $75 billion at year-end.

• Capital expenditures reached $5.6 billion, supporting a 7% annual rate base growth to $42.4 billion.

• Adjusted payout ratio improved to 70.4% in 2025 from 72.7% in 2024.

• Strong rate base growth across utilities was a key earnings driver.

Outlook and guidance

• Launched a new $28.8 billion five-year capital plan (2026-2030), targeting a 7% consolidated rate base CAGR, reaching $57.9 billion by 2030.

• Committed to 4-6% annual dividend growth guidance through 2030.

• Capital plan funding to come primarily from operations, regulated utility debt, and dividend reinvestment plan.

• Focused on incremental growth opportunities, including data center load in Arizona, major transmission, LNG projects, and a coal-free generation mix by 2032.

• Opportunities identified for further growth beyond the current capital plan.