Fortis (NYSE:FTS) Posts Earnings Results, Beats Expectations By $0.01 EPS

Fortis (NYSE:FTS) announced its quarterly earnings results on Friday. The utilities provider reported $0.56 EPS for the quarter, beating analysts’ consensus estimates of $0.55 by $0.01, Zacks reports. The firm had revenue of $1.67 billion for the quarter, compared to analyst estimates of $1.83 billion. Fortis had a return on equity of 7.25% and a net margin of 14.21%.During the same period last year, the firm posted $0.76 earnings per share.

Here are the key takeaways from Fortis’ conference call:

• Second-quarter EPS rose to CAD 0.78, up CAD 0.02 year over year, supported by rate-base growth at ITC and higher retail electricity sales at UNS. Fortis invested CAD 2.7 billion in the first half and remains on track for CAD 5.6 billion of 2026 capital spending.
• Fortis maintained its outlook for 7% average annual rate-base growth through 2030 and 4%-6% annual dividend growth, backed by its regulated utility portfolio and 52-year record of consecutive dividend increases.
• British Columbia approved a larger Tilbury LNG Phase 1B expansion, potentially adding approximately CAD 2 billion to regulated rate base versus CAD 350 million currently included in the plan. Construction could begin in 2027, although further permitting and regulatory approvals remain necessary.
• Fortis highlighted substantial additional growth opportunities, including up to USD 3.3 billion-$3.8 billion of ITC transmission investment beyond 2030 and potential USD 1.5 billion-$2 billion of new generation investment at TEP to serve expanding data-center demand. Management said customer agreements are structured to prevent cost shifting and could provide rate benefits to other customers.
• The TEP rate case decision was delayed until November 17, with implementation expected in December; management remains optimistic about recovery of its requested return on equity and formula-rate mechanisms. Fortis also noted that funding the expanded capital plan will require a review of all financing options while preserving investment-grade credit metrics.

Fortis Stock Down 0.9%

Shares of NYSE FTS opened at $56.93 on Friday. The company’s 50 day moving average price is $57.01 and its 200-day moving average price is $56.19. The company has a debt-to-equity ratio of 1.25, a quick ratio of 0.41 and a current ratio of 0.49. Fortis has a 52-week low of $48.64 and a 52-week high of $59.40. The company has a market capitalization of $29.08 billion, a P/E ratio of 23.05 and a beta of 0.43.

Fortis Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Wednesday, August 19th will be given a $0.64 dividend. The ex-dividend date is Wednesday, August 19th. This represents a $2.56 dividend on an annualized basis and a dividend yield of 4.5%. Fortis’s payout ratio is 76.83%.

Key Headlines Impacting Fortis

Here are the key news stories impacting Fortis this week:

• Positive Sentiment: Earnings beat estimates: Fortis reported quarterly EPS of $0.78, up from $0.76 a year earlier and well above the consensus estimate of $0.56 in the company’s earnings release. A separate Zacks report cited adjusted EPS of $0.56 versus a $0.55 consensus, indicating the precise figure varies by accounting measure, but both measures reflected an earnings beat. Fortis earnings conference call
• Positive Sentiment: Tilbury LNG expansion approved: British Columbia approval of FortisBC’s Tilbury LNG expansion improves the outlook for a major infrastructure and growth project, potentially supporting long-term rate-base expansion and utility earnings. Fortis Q2 earnings and Tilbury LNG approval
• Positive Sentiment: Dividend maintained: Fortis declared a quarterly dividend of $0.64 per share, payable September 1 to shareholders of record August 19. The annualized payout implies an approximately 4.5% yield, reinforcing the stock’s appeal to income-focused investors. Fortis third-quarter dividend announcement
• Neutral Sentiment: Profitability remains steady: Fortis reported a 7.25% return on equity and a 14.21% net margin. These metrics support financial stability but do not indicate a material change in operating profitability.
• Negative Sentiment: Leverage and liquidity remain considerations: Fortis has a debt-to-equity ratio of 1.25, a current ratio of 0.49 and a quick ratio of 0.41. Elevated leverage and limited near-term liquidity could weigh on valuation, particularly if interest rates remain high or project costs increase.

Hedge Funds Weigh In On Fortis

Hedge funds and other institutional investors have recently bought and sold shares of the company. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new stake in Fortis during the 4th quarter worth about $34,000. Towarzystwo Funduszy Inwestycyjnych PZU SA lifted its stake in shares of Fortis by 157.4% in the 3rd quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 700 shares of the utilities provider’s stock valued at $36,000 after purchasing an additional 428 shares during the period. Larson Financial Group LLC lifted its stake in shares of Fortis by 123.9% in the 3rd quarter. Larson Financial Group LLC now owns 739 shares of the utilities provider’s stock valued at $37,000 after purchasing an additional 409 shares during the period. Smartleaf Asset Management LLC boosted its position in shares of Fortis by 2,119.1% during the 2nd quarter. Smartleaf Asset Management LLC now owns 1,043 shares of the utilities provider’s stock valued at $49,000 after purchasing an additional 996 shares in the last quarter. Finally, State of Wyoming bought a new stake in shares of Fortis during the 2nd quarter valued at about $56,000. Institutional investors and hedge funds own 57.77% of the company’s stock.

Analyst Ratings Changes

A number of research analysts recently issued reports on FTS shares. Wall Street Zen lowered shares of Fortis from a “hold” rating to a “sell” rating in a report on Saturday, May 23rd. BMO Capital Markets reissued a “market perform” rating on shares of Fortis in a report on Thursday, May 7th. Canadian Imperial Bank of Commerce cut shares of Fortis from an “outperform” rating to a “hold” rating in a research report on Friday, July 17th. Weiss Ratings restated a “buy (b)” rating on shares of Fortis in a research report on Friday, July 17th. Finally, TD Securities reaffirmed a “buy” rating on shares of Fortis in a research note on Thursday, May 7th. Five research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $61.00.

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.