Fortis Inc. Achieves Strong Annual Results for 2024

Fortis Inc. Celebrates 2024 Annual Financial Achievements

Fortis Inc. (TSX/NYSE: FTS), a prominent player in North America's regulated electric and gas utility sector, recently disclosed its impressive financial outcomes for the year. The results reflect Fortis' continued commitment to enhancing shareholder value and developing sustainable energy solutions.

Key Financial Highlights from 2024

For the year 2024, Fortis reported net earnings attributable to common shareholders of $1.6 billion, equating to $3.24 per common share. This marks a rise from $1.5 billion, or $3.10 per common share, reported in the preceding year. The increased earnings were largely propelled by growth in rate bases across Fortis' utilities.

Annualized Earnings Progress

The adjusted net earnings for 2024 stood at $1.6 billion, or $3.28 per common share, showing a significant climb from $3.09 reported for 2023. This 6% growth in adjusted earnings underlines Fortis' success in navigating the competitive energy landscape while fulfilling its operational goals.

Capital Investments Fuel Growth

Capital expenditures reached $5.2 billion in 2024, leading to a corresponding 6% growth in annual rate bases. Investments have been substantial in key projects, specifically targeting transmission reliability and renewable energy initiatives, which are critical for accommodating a growing customer base.

Dividend Growth for Shareholders

The fourth quarter of 2024 marked the continuation of Fortis' strong dividend growth strategy, with a notable 4.2% increase in common share dividends. This achievement celebrates over five decades of consecutive dividend increases, reflecting the company’s solid financial foundation and commitment to returning value to shareholders.

Ambitious Future Plans

Looking ahead, Fortis is focused on executing a five-year capital plan valued at $26 billion. This extensive initiative is designed to bolster the company’s infrastructure, supporting both its dividend growth strategy of an annual increase of 4-6% through until 2029 and enhancing its operational capabilities.

Commitment to Reducing Emissions

Fortis is dedicated to sustainability, having lowered its direct greenhouse gas emissions by 34% since 2019. The company has set ambitious targets, aiming for a further reduction of GHG emissions by 50% by 2030 and achieving net-zero emissions by 2050. These efforts reflect its commitment to responsible energy stewardship while serving its communities.

Regulatory Developments

In October 2024, the Federal Energy Regulatory Commission (FERC) implicated changes in the base rate of return for transmission owners operating in MISO, impacting ITC’s earnings by an estimated $22 million due to mandated refunds. Such regulatory frameworks will play a crucial role in shaping Fortis' operational strategies moving forward.

Conclusion

Fortis Inc. is well-positioned for sustainable growth, with a robust financial performance in 2024 and clear strategies for future expansion. As the utility company continues to adapt to the evolving energy landscape, its strong focus on customer service, sustainability, and shareholder returns will remain pivotal in its long-term strategy.

Frequently Asked Questions

What were Fortis's net earnings for 2024?

Fortis reported net earnings of $1.6 billion for 2024, translating to $3.24 per common share.

How much did Fortis invest in capital expenditures in 2024?

Fortis invested $5.2 billion in capital expenditures during 2024, supporting key infrastructure projects.

What is Fortis's strategy for dividend growth?

Fortis aims to increase dividends annually by 4-6% through 2029 as part of its growth strategy.

How has Fortis performed in terms of reducing emissions?

Fortis has reduced its direct greenhouse gas emissions by 34% since 2019 and has set targets for further reductions.

What are Fortis's future growth plans?

The company has outlined a $26 billion capital plan for 2025-2029 to enhance its infrastructure and service delivery.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

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