Fortis Inc.

Fortis reported second-quarter net earnings of $396 million, or $0.78 per common share, up $0.02 from Q2 2025. Year-to-date earnings were $897 million, or $1.76 per common share. Segment contributors in the quarter included ITC (+$0.02 EPS), UNS (+$0.02), and Western Canadian utilities (+$0.01), while foreign exchange and higher weighted average shares each reduced EPS by $0.01. Through June, Fortis invested $2.7 billion and said it remains on track for $5.6 billion of capital spending in 2026. For the first half, utilities issued $2.1 billion of long-term debt, and management said the funding plan remains on track. Looking ahead, Fortis expects average annual rate base growth of 7% through 2030 and 4% to 6% annual dividend growth through 2030. Management also said the next 5-year capital plan will be released with third-quarter results, and Tilbury cost estimates will be reflected there.

David Hutchens emphasized execution, regulated growth, and customer affordability. He highlighted a strong first half, with capital spending on track and major projects progressing, while also pointing to the Tilbury LNG expansion as a major opportunity beyond the current plan. His tone was confident and constructive, repeatedly stressing disciplined capital deployment, long-term rate base growth, and continued dividend growth supported by a diversified regulated portfolio.

Jocelyn Perry said quarterly net earnings were $396 million, or $0.78 per share, and explained the main drivers by utility: ITC benefited from capital investment and rate base growth, UNS from higher retail sales and warmer weather, and Western Canada from capital investment. She noted headwinds from higher finance costs, stock-based compensation, unrealized FX losses, regulatory lag, and the disposition of Fortis Belize. She also said Fortis issued $2.1 billion of long-term debt in the first half, that liquidity and funding support investment-grade ratings, and that S&P and Fitch both reaffirmed stable outlooks on the company’s credit ratings.

Analysts focused heavily on Tilbury, Arizona data center growth, and the TEP rate case. On Tilbury 1B, management said the project has three approved components, is still being designed around environmental conditions, and could start construction in 2027 with in-service as early as 2031; for Tilbury 2, the environmental assessment is expected later this year and a cabinet decision could come later in the fall. On Arizona, management said data center customers are aware they must pay their own costs, that negotiations are active, and that the company is still seeing a large pipeline of load opportunities, while on the TEP rate case they said they expect a decision in November with implementation in December.