Fortis (NYSE:FTS) Posts Earnings Results, Beats Expectations By $0.03 EPS

Fortis (NYSE:FTS) released its quarterly earnings results on Thursday. The utilities provider reported $0.65 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.62 by $0.03, Zacks reports. The business had revenue of $2.13 billion during the quarter, compared to analysts’ expectations of $2.54 billion. Fortis had a return on equity of 7.05% and a net margin of 14.18%.During the same period in the previous year, the business posted $0.83 earnings per share.

Here are the key takeaways from Fortis’ conference call:

• Fortis unveiled a new CAD 28.8 billion five-year capital plan focused on transmission and distribution that management says is highly executable and is expected to drive ~7% average annual rate-base growth.
• 2025 results showed continued momentum — adjusted EPS of CAD 3.53 (up CAD 0.25 YoY), CAD 5.6 billion of utility capital invested, ~24% one‑year TSR, and a 4% dividend increase marking 52 consecutive years of dividend growth with 4%–6% annual dividend guidance through 2030.
• Management highlighted a material new growth opportunity in Arizona — a 10‑year, ~300 MW energy supply agreement at full tariff with a 75% minimum billing requirement and strong credit/security provisions, with potential for another 300 MW on site and additional sites that could require CAD 1.5–2 billion of generation through 2030.
• Regulatory uncertainty remains a near‑term risk — ALJ recommendations in Arizona rate cases include changes to proposed formula rates, ROE and efficiency credits are contested, ACC orders are pending, and FERC developments affecting ITC incentives/ROE remain unresolved.
• Liquidity and ratings are solid — ~CAD 4 billion available on credit facilities, CAD 2.7 billion of long‑term debt issued in 2025, S&P affirmed an A‑ issuer rating with stable outlook, while Moody’s ratings were withdrawn at Fortis Inc.’s request (no change to utility standalone ratings).

Fortis Trading Up 1.4%

Shares of FTS stock traded up $0.81 on Friday, reaching $56.90. The company had a trading volume of 683,881 shares, compared to its average volume of 1,101,305. The stock has a market cap of $28.87 billion, a PE ratio of 23.70, a PEG ratio of 4.26 and a beta of 0.50. The company has a 50-day moving average of $52.30 and a 200-day moving average of $51.14. The company has a current ratio of 0.66, a quick ratio of 0.54 and a debt-to-equity ratio of 1.32. Fortis has a 12 month low of $42.95 and a 12 month high of $57.01.

Fortis Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Stockholders of record on Friday, May 15th will be paid a $0.64 dividend. The ex-dividend date of this dividend is Friday, May 15th. This represents a $2.56 dividend on an annualized basis and a dividend yield of 4.5%. Fortis’s dividend payout ratio is 75.83%.

Key Fortis News

Here are the key news stories impacting Fortis this week:

• Positive Sentiment: Q4 EPS topped estimates — Fortis reported $0.65 EPS, beating the analyst consensus (~$0.62), and management highlighted growth drivers on the earnings call; that upside to expectations supports the stock. Fortis Inc (FTS) Q4 2025 Earnings Call Highlights
• Positive Sentiment: Record $28.8B capital plan — management unveiled a large multi‑year capital program, signaling regulated growth and future rate-base expansion that can underpin long‑term earnings and the dividend. Fortis Posts Higher 2025 Earnings and Unveils Record $28.8 Billion Capital Plan
• Positive Sentiment: Dividend confirmed — the board declared the quarterly dividend (C$0.64/share; ~4.6% yield), reinforcing the income profile that attracts yield-seeking investors. Fortis Inc. Announces Second Quarter Dividends – 2026
• Neutral Sentiment: Full-year / regulatory filings posted — Fortis filed its 2025 year‑end disclosure and audited consolidated financials; these provide detail but are standard disclosures. Fortis Inc. Files 2025 Year-End Disclosure Documents
• Neutral Sentiment: Call materials available — the transcript, slide deck and press release give granular guidance and capital‑plan detail; useful for modeling but not immediate surprises. Listen to Conference Call / View Press Release / Slide Deck
• Negative Sentiment: Revenue below consensus — the quarter’s revenue (~$2.13B) missed the consensus (~$2.54B), which tempers the EPS beat and could reflect timing or weaker volumes/contracting segments. MarketBeat Q4 Results
• Negative Sentiment: EPS down year‑over‑year — Q4 EPS of $0.65 compares with $0.83 in the prior year, indicating near‑term earnings pressure despite the beat; investors will watch margin trends and drivers. Zacks Q4 Coverage

Analyst Ratings Changes

A number of equities analysts have weighed in on the stock. Royal Bank Of Canada reaffirmed a “sector perform” rating on shares of Fortis in a research note on Friday. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Fortis in a report on Thursday, January 22nd. Scotiabank reiterated a “sector perform” rating on shares of Fortis in a research report on Friday. National Bank Financial restated a “sector perform” rating on shares of Fortis in a research report on Wednesday, November 5th. Finally, Canadian Imperial Bank of Commerce reaffirmed an “outperform” rating on shares of Fortis in a research note on Tuesday, October 21st. Five research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, Fortis currently has an average rating of “Moderate Buy” and a consensus price target of $72.00.

Institutional Investors Weigh In On Fortis

Large investors have recently bought and sold shares of the company. Scotia Capital Inc. boosted its position in shares of Fortis by 3.7% during the third quarter. Scotia Capital Inc. now owns 9,163,354 shares of the utilities provider’s stock worth $461,748,000 after purchasing an additional 326,212 shares in the last quarter. Bank of America Corp DE increased its holdings in shares of Fortis by 60.7% in the third quarter. Bank of America Corp DE now owns 2,508,277 shares of the utilities provider’s stock worth $127,270,000 after acquiring an additional 947,079 shares in the last quarter. Charles Schwab Investment Management Inc. raised its position in shares of Fortis by 1.6% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,447,016 shares of the utilities provider’s stock worth $75,330,000 after purchasing an additional 22,769 shares during the period. Federation des caisses Desjardins du Quebec lifted its holdings in shares of Fortis by 0.5% during the 4th quarter. Federation des caisses Desjardins du Quebec now owns 1,315,586 shares of the utilities provider’s stock valued at $68,375,000 after purchasing an additional 7,142 shares in the last quarter. Finally, Aviva PLC lifted its holdings in shares of Fortis by 5.8% during the 4th quarter. Aviva PLC now owns 1,315,444 shares of the utilities provider’s stock valued at $68,444,000 after purchasing an additional 71,949 shares in the last quarter. Institutional investors own 57.77% of the company’s stock.

Fortis Company Profile

Fortis Inc is a Canadian diversified electric and gas utility holding company headquartered in St. John’s, Newfoundland and Labrador. Through a portfolio of regulated utility subsidiaries, the company develops, owns and operates electricity and natural gas transmission, distribution and generation assets. Fortis serves customers across multiple jurisdictions in Canada, the United States and the Caribbean, focusing on the delivery of safe, reliable energy to residential, commercial and industrial users.

The company’s core activities include operation and maintenance of transmission and distribution networks, ownership of generation facilities, and investment in grid modernization and system resilience.