Fortis Inc. Reports Fourth Quarter & Annual 2025 Results
Executive Summary
- Fortis reported 2025 net earnings of $1.7 billion ($3.40 per share) and adjusted net earnings of $3.53 per share, reflecting a 7% annual rate‑base growth driven by a $5.6 billion capital program.
- The corporation announced a $28.8 billion five‑year capital plan (2026‑2030)—$2.8 billion larger than the prior plan—funded primarily by cash flow and regulated debt, with a $500 million ATM equity program remaining unused.
- A 2026 Climate Resiliency Report was released, highlighting a 38% reduction in Scope 1 GHG emissions versus 2019 and reaffirming targets for a coal‑free mix by 2032 and net‑zero by 2050.
Key Details
- Financial Highlights
- Net earnings 2025: $1.7 bn ($3.40/share) vs. $1.6 bn ($3.24/share) in 2024.
- Adjusted net earnings 2025: $3.53/share vs. $3.28/share in 2024.
- Q4‑2025 net earnings: $422 m ($0.83/share) vs. $396 m ($0.79/share) in Q4‑2024.
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Capital expenditures 2025: $5.6 bn, supporting major projects (MISO LRTP, Big Cedar Load Expansion, Vail‑to‑Tortolita, Black Mountain Gas Generation).
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Key Adjustments
- $63 m loss from dispositions of FortisTCI, Fortis Belize and Belize Electricity (incl. tax impact).
- $31 m favorable adjustment in Q4‑2025 from Belize disposition loss reversal.
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$20 m retroactive impact from reduced MISO ROE (2024) adjusted out of earnings.
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Capital Plan (2026‑2030)
- Total: $28.8 bn (21% major projects).
- Primary funding: cash from operations, regulated utility debt; equity via dividend reinvestment plan.
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$500 m ATM common equity program remains untouched.
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Regulatory Updates
- Dec 2025: Arizona Corp. Comm’n approved a ~300 MW Energy Supply Agreement for a Tucson data center (operational as early as 2027).
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Jan 2026: ACC ALJ issued Recommended Opinion on UNS Gas rate application – ROE 9.57%, 56% common equity component; response filed Feb 9 2026, pending final approval.
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Climate Resiliency Report (2026)
- Consolidated climate‑risk assessment across utilities.
- Achieved ~38% reduction in Scope 1 GHG emissions vs. 2019.
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Commitment to coal‑free generation by 2032; net‑zero target for 2050.
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Outlook & Guidance
- Mid‑year rate base projected to rise from $42.4 bn (2025) to $57.9 bn (2030), a 7% CAGR.
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Expected earnings growth to sustain dividend increases of 4‑6% annually through 2030.
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Teleconference
- Date: Feb 12 2026, 8:30 a.m. ET; speakers – David Hutchens (President & CEO) and Jocelyn Perry (EVP & CFO).
Notable Quotes
“2025 was another year of strong financial and operational performance… Our focus on reliability and affordability, and the disciplined execution of our capital plan delivered solid results again this year.” – David Hutchens, President & CEO
“We recently announced our largest five‑year capital plan of $28.8 bn… will drive long‑term rate base growth of 7% and support annual dividend growth of 4‑6% through 2030.” – David Hutchens