Fortis (NYSE:FTS) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Fortis (NYSE:FTS) posted its quarterly earnings data on Thursday. The utilities provider reported $0.65 EPS for the quarter, beating the consensus estimate of $0.62 by $0.03, Zacks reports. Fortis had a net margin of 14.18% and a return on equity of 7.05%. The business had revenue of $2.13 billion during the quarter, compared to analyst estimates of $2.54 billion. During the same quarter last year, the firm posted $0.83 earnings per share.

Here are the key takeaways from Fortis’ conference call:

• Fortis unveiled a new CAD 28.8 billion five-year capital plan focused on transmission and distribution that management says is highly executable and is expected to drive ~7% average annual rate-base growth.
• 2025 results showed continued momentum — adjusted EPS of CAD 3.53 (up CAD 0.25 YoY), CAD 5.6 billion of utility capital invested, ~24% one‑year TSR, and a 4% dividend increase marking 52 consecutive years of dividend growth with 4%–6% annual dividend guidance through 2030.
• Management highlighted a material new growth opportunity in Arizona — a 10‑year, ~300 MW energy supply agreement at full tariff with a 75% minimum billing requirement and strong credit/security provisions, with potential for another 300 MW on site and additional sites that could require CAD 1.5–2 billion of generation through 2030.
• Regulatory uncertainty remains a near‑term risk — ALJ recommendations in Arizona rate cases include changes to proposed formula rates, ROE and efficiency credits are contested, ACC orders are pending, and FERC developments affecting ITC incentives/ROE remain unresolved.
• Liquidity and ratings are solid — ~CAD 4 billion available on credit facilities, CAD 2.7 billion of long‑term debt issued in 2025, S&P affirmed an A‑ issuer rating with stable outlook, while Moody’s ratings were withdrawn at Fortis Inc.’s request (no change to utility standalone ratings).

Fortis Stock Performance

FTS traded up $0.86 during trading hours on Friday, hitting $56.95. The company’s stock had a trading volume of 622,066 shares, compared to its average volume of 1,099,090. Fortis has a fifty-two week low of $42.95 and a fifty-two week high of $56.96. The company has a 50-day simple moving average of $52.30 and a 200 day simple moving average of $51.14. The company has a current ratio of 0.66, a quick ratio of 0.54 and a debt-to-equity ratio of 1.32. The firm has a market capitalization of $28.89 billion, a PE ratio of 23.71, a PEG ratio of 4.26 and a beta of 0.50.

Fortis Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Friday, May 15th will be paid a $0.64 dividend. The ex-dividend date is Friday, May 15th. This represents a $2.56 annualized dividend and a dividend yield of 4.5%. Fortis’s dividend payout ratio (DPR) is presently 75.83%.

Hedge Funds Weigh In On Fortis

Several large investors have recently bought and sold shares of the stock. Public Sector Pension Investment Board lifted its stake in shares of Fortis by 44.7% in the 4th quarter. Public Sector Pension Investment Board now owns 76,985 shares of the utilities provider’s stock worth $4,003,000 after acquiring an additional 23,783 shares during the period. Charles Schwab Investment Management Inc. lifted its position in Fortis by 1.6% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,447,016 shares of the utilities provider’s stock worth $75,330,000 after purchasing an additional 22,769 shares during the period. Van ECK Associates Corp lifted its position in Fortis by 7.7% in the fourth quarter. Van ECK Associates Corp now owns 197,441 shares of the utilities provider’s stock worth $10,266,000 after purchasing an additional 14,173 shares during the period. Royal London Asset Management Ltd. boosted its stake in Fortis by 7.0% during the 4th quarter. Royal London Asset Management Ltd. now owns 27,063 shares of the utilities provider’s stock valued at $1,406,000 after purchasing an additional 1,776 shares in the last quarter. Finally, Ieq Capital LLC increased its position in shares of Fortis by 8.7% during the 4th quarter. Ieq Capital LLC now owns 8,921 shares of the utilities provider’s stock valued at $463,000 after purchasing an additional 715 shares during the period. Institutional investors and hedge funds own 57.77% of the company’s stock.

Fortis News Summary

Here are the key news stories impacting Fortis this week:

• Positive Sentiment: Management unveiled a record $28.8 billion multi‑year capital plan to 2029, reinforcing growth visibility from regulated utility investments — a constructive driver for future rate base growth and earnings power. Fortis Posts Higher 2025 Earnings and Unveils Record $28.8 Billion Capital Plan
• Positive Sentiment: Board declared a quarterly common dividend of $0.64 per share (annualized yield ~4.6%), supporting income investors and reinforcing Fortis’s dividend credibility. Fortis Inc. Announces Second Quarter Dividends – 2026
• Positive Sentiment: Q4 EPS beat consensus: reported $0.65 vs. ~$0.62 expected — the beat supports near‑term earnings momentum and helped limit downside from the revenue shortfall. Fortis (FTS) Surpasses Q4 Earnings and Revenue Estimates
• Neutral Sentiment: Company filed audited year‑end financial and regulatory disclosure documents and posted the full Q4 press release and slide deck — provides transparency but no surprise. Fortis Inc. Reports Fourth Quarter & Annual 2025 Results
• Neutral Sentiment: Management held an earnings presentation and call (slides/transcript available) that highlighted strategic investments and regulated growth plans — useful for modeling but not an immediate catalyst beyond the capital plan. Fortis Inc. 2025 Q4 – Results – Earnings Call Presentation
• Negative Sentiment: Revenue missed expectations materially: reported $2.13B vs. consensus ~$2.54B, which raises near‑term growth/volume questions and partially offsets the EPS beat. Fortis Earnings Report & Call
• Negative Sentiment: Q4 EPS declined year‑over‑year (from $0.83 in prior comparable quarter to $0.65), signaling some operational/seasonal headwinds despite the beat vs. street estimates. Fortis Inc (FTS) Q4 2025 Earnings Call Highlights

Analyst Upgrades and Downgrades

Several equities analysts have commented on FTS shares. Weiss Ratings restated a “buy (b)” rating on shares of Fortis in a research note on Thursday, January 22nd. BMO Capital Markets reaffirmed a “market perform” rating on shares of Fortis in a research report on Friday. Royal Bank Of Canada reissued a “sector perform” rating on shares of Fortis in a research report on Friday. Scotiabank reiterated a “sector perform” rating on shares of Fortis in a report on Friday. Finally, Canadian Imperial Bank of Commerce restated an “outperform” rating on shares of Fortis in a report on Tuesday, October 21st. Five analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $72.00.

Fortis Company Profile

Fortis Inc is a Canadian diversified electric and gas utility holding company headquartered in St. John’s, Newfoundland and Labrador. Through a portfolio of regulated utility subsidiaries, the company develops, owns and operates electricity and natural gas transmission, distribution and generation assets. Fortis serves customers across multiple jurisdictions in Canada, the United States and the Caribbean, focusing on the delivery of safe, reliable energy to residential, commercial and industrial users.

The company’s core activities include operation and maintenance of transmission and distribution networks, ownership of generation facilities, and investment in grid modernization and system resilience.