Fortis Inc. Releases Third Quarter 2025 Results, New Five-Year Capital Outlook and 4% Increase in Fourth Quarter Dividend

Executive Summary

• Fortis Inc. reported third‑quarter 2025 net earnings of $409 million ($0.81 per share), a modest decline versus the prior year, primarily due to taxes and closing costs from the FortisTCI disposition.
• Adjusted net earnings rose to $0.87 per share, and capital expenditures to date total $4.2 billion; full‑year 2025 capex is now projected at $5.6 billion.
• The company unveiled a revised 2026‑2030 five‑year capital plan of $28.8 billion (up $2.8 billion), supporting an expected 7.0% annual rate‑base growth and continued dividend increases of 4‑6% per year through 2030.

Key Details

• Quarterly Financials
• Net earnings: $409 M ($0.81/sh) vs. $420 M ($0.85/sh) YoY.
• Adjusted net earnings: $0.87/sh vs. $0.85/sh YoY (+$0.02).
• Year‑to‑date adjusted net earnings: $1.324 B, up $114 M (+$0.18/sh) versus 2024.
• Dividend Information
• Fourth‑quarter common share dividend increased 4.1% to $0.64 per share.
• Preference‑share dividends declared for series F–M (rates listed in release).
• Capital Expenditures & Plan
• FY 2025 capex to date: $4.2 B; full‑year estimate now $5.6 B (up from $5.2 B).
• New five‑year plan (2026‑2030): $28.8 B, 21% allocated to major projects, 79% to regulated investments.
• Funding: primarily cash flow and regulated debt; dividend reinvestment plan provides equity; $500 M at‑the‑market program remains unused.
• Asset Dispositions
• FortisTCI sold September 2025; Belize assets sold October 2025. Proceeds earmarked for balance‑sheet strengthening and funding flexibility.
• Regulatory Update
• NYPSC approved a three‑year rate plan for Central Hudson (effective July 1 2025) with a 9.5% allowed ROE and 48% common equity component.
• Growth Opportunities & Outlook
• Anticipated mid‑year 2030 rate base: $57.9 B (up from $41.9 B in 2025).
• Expected earnings growth to sustain dividend hikes of 4‑6% annually through 2030.
• Additional potential investments: MISO LRTP tranche 2.1 projects ($3.7‑$4.2 B range), new large retail customers for TEP, and further transmission upgrades in the U.S.
• GHG Targets
• Interim emissions reduction targets (50% by 2030, 75% by 2035) may be delayed; company remains committed to a coal‑free mix by 2032 and net‑zero by 2050.

Notable Quotes

“Today we are pleased to unveil our largest five‑year capital plan of $28.8 billion… The increase is driven by higher transmission investments at ITC, as well as customer growth and reliability investments across our utilities.” – David Hutchens, President & CEO

All forward‑looking statements reflect management’s expectations as of the release date and are subject to risks and uncertainties.