Fortis Inc. Releases First Quarter 2026 Results

• Fortis Inc. reported First Quarter 2026 net earnings of $501 million ($0.99 per common share), consistent with Q1 2025 results but down $0.01 year-over-year.
• Regulatory milestone achieved: Arizona Corporation Commission approved UNS Gas general rate application featuring a 9.61% return on common equity, effective March 1, 2026.
• Capital expenditures for Q1 totaled $1.4 billion; the annual capital plan remains on track at $5.6 billion.
• Major projects advancing include completion of ITC substation supporting 300 MW data center load growth and conversion of Springerville Generating Station from coal to natural gas.
• Executive Vice President, Operations and Technology, Gary Smith, will retire effective May 31, 2026.
• Dividend guidance maintained: Expected long-term growth in rate base to support dividend growth of 4-6% annually through 2030.

• The earnings release confirms the execution of the previously announced $28.8 billion five-year capital plan (announced Nov 2025 and Feb 2026), validating management's guidance rather than introducing new surprises.
• The slight EPS decrease ($0.99 vs implied $1.00) is offset by regulatory wins, resulting in a net neutral impact on valuation expectations; the market has already priced in the rate base growth trajectory from prior quarters.
• Regulatory approval of UNS Gas (9.61% ROE) was anticipated following the Feb 2026 ALJ recommendation (9.57%), so this is incremental confirmation rather than a material positive surprise.
• Management changes are operational and do not impact strategic direction or capital allocation plans, minimizing risk to long-term execution.

• Fortis Inc. is a regulated utility company operating electric and gas utilities across Canada, the U.S., and the Caribbean.
• Flagship Project: The $28.8 billion five-year capital plan (2026-2030) focuses on transmission investments at ITC, customer growth in Arizona (TEP/UNS Gas), and reliability upgrades across all jurisdictions.
• Key Growth Driver: Data center load growth in Arizona (Big Cedar Industrial Center) with 300 MW already supported and 1,600 MW expansion underway.
• Climate Strategy: Commitment to coal-free generation by 2032 and net-zero by 2050; achieved 38% reduction in Scope 1 GHG emissions versus 2019.