Fortis Inc.

Fortis reported second-quarter 2026 net earnings of $396 million, or $0.78 per common share, compared with EPS of $0.76 in the prior-year quarter, an increase of $0.02. Year-to-date earnings were $897 million, or $1.76 per common share. Through June, the company invested $2.7 billion and said it remains on pace to invest $5.6 billion in 2026. Management said the annual capital plan is nearly half invested and that the business remains on track for average annual rate base growth of 7% through 2030. On guidance, Fortis reaffirmed 4% to 6% annual dividend growth through 2030 and said it will release a new 5-year capital plan with third-quarter results.

David Hutchens emphasized execution, regulated growth, and customer affordability, saying the utilities are operating safely and reliably while advancing opportunities both inside and outside the current capital plan. He highlighted the Order in Council for Tilbury 1B as a milestone and framed it as a significant growth opportunity with customer and regional economic benefits. His tone was confident and constructive, repeatedly pointing to capital-plan progress, dividend growth, and the potential for load-driven investment in Arizona and transmission.

Jocelyn Perry walked through the quarter’s financial drivers, citing net earnings of $396 million and EPS of $0.78, with a $0.02 year-over-year increase. She said ITC, UNS, and Western Canadian utilities all contributed to EPS growth, while foreign exchange, higher finance costs, and share dilution from the DRIP pressured results. She also noted year-to-date earnings of $897 million and that Fortis utilities issued $2.1 billion of long-term debt in the first half, with funding expected largely from operations, utility debt, and the dividend reinvestment plan. She added that S&P and Fitch both affirmed investment-grade ratings and stable outlooks, and said the company will revisit funding options with the updated 5-year plan in the fall.

Analysts focused heavily on Tilbury, Arizona data-center growth, and the TEP rate case. On Tilbury 1B, management said the project now has three approved components, that design and permitting work remains underway, and that construction could start around mid-2027 with service as early as 2031; they also said Tilbury 2’s environmental review could conclude later this fall. On Arizona, management acknowledged broader pushback against data centers but said customers and developers are aligned that projects must pay their own costs, and they continued to describe the pipeline as large and active. On the TEP rate case, management said the judge’s recommendation is expected soon and that a final decision is still anticipated around November, with implementation in December.