Fortis Inc. Reports Robust Q2 Performance and Growth Ahead
Fortis Inc. Achieves Impressive Second Quarter Results
Fortis Inc. (TSX/NYSE: FTS), a prominent player in the North American regulated electric and gas utility sector, reported strong financial results for the second quarter of 2025. The company, based in St. John's, Newfoundland and Labrador, showcased its operational resilience and strategic growth during this period.
Key Financial Highlights
The corporation recorded net earnings of $384 million or $0.76 per common share for the second quarter of 2025. This reflects a significant increase from $331 million, or $0.67 per share in the second quarter of 2024. The growth in earnings was primarily attributed to a robust expansion in the rate base across its utility subsidiaries, particularly from FortisBC Energy’s investments and the operational efficiencies gained at Central Hudson.
Capital Expenditures and Strategic Investments
Fortis also reported capital expenditures of $2.9 billion in the first half of 2025, maintaining its trajectory toward a $5.2 billion annual capital plan. One major development in this space is the commissioning of the Roadrunner Reserve 1 battery storage project at Tucson Electric Power. This 200 MW battery facility is a significant leap towards integrating renewable energy into the grid, capable of supplying energy to about 42,000 homes when fully utilized.
Growth Opportunities and Regulatory Progress
Fortis has positioned itself well by advancing various growth opportunities within its operational territories. Notably, TEP has secured an agreement to provide around 300 MW to a data center, reflecting the rising demand for electricity driven by technological advancements. Furthermore, the company filed a general rate application seeking new rates that are set to take effect in 2026, positioning itself favorably for future revenue adjustments.
Credit Ratings and Financial Stability
In a positive showing of financial health, Fitch Ratings, Inc. assigned Fortis a BBB+ rating, marking the company's first-time issuer and senior unsecured debt rating with a stable outlook. This credit stature reinforces the company's commitment to maintaining financial viability amidst evolving market conditions.
Sustainability Initiatives
Fortis remains committed to energy sustainability. The recently released 2025 Sustainability Update Report highlights the corporation's endeavors to reduce greenhouse gas emissions by achieving a 34% reduction from 2019 levels. The corporation aims for a coal-free generation mix by 2032 and continues to explore avenues for cleaner energy transitioning.
Future Outlook and Capital Investments
Looking ahead, Fortis anticipates substantial growth fueled by its five-year capital plan, projected to expand the midyear rate base from $39 billion in 2024 to $53 billion by 2029. This translates to a compound annual growth rate of 6.5% and lines up with the company's earnings growth forecasts, which support a dividend growth guidance of 4-6% through to 2029.
Teleconference and Further Engagement
To further discuss these results and future initiatives, Fortis will hold a teleconference where executives will delve into the corporation's financial performance and strategic direction. Stakeholders interested in participating can access the live webcast via the company's website.
Contact Information
For more inquiries regarding the second quarter results or to engage with the company, Fortis provides direct contact details to both investor and media relations:
- Investor Enquiries: Ms. Stephanie Amaimo, Vice President, Investor Relations, 248.946.3572, investorrelations@fortisinc.com
- Media Enquiries: Ms. Karen McCarthy, Vice President, Communications & Government Relations, 709.737.5323, media@fortisinc.com
Frequently Asked Questions
What were the key financial results for Fortis in Q2 2025?
Fortis reported net earnings of $384 million or $0.76 per common share in Q2 2025, demonstrating substantial growth from the previous year.
How is Fortis managing its capital expenditures?
The company has invested $2.9 billion in capital expenditures for the first half of 2025, as part of its $5.2 billion annual capital plan.
What sustainability efforts is Fortis undertaking?
Fortis has achieved a 34% reduction in greenhouse gas emissions compared to 2019 and plans to transition to a coal-free generation mix by 2032.
What future growth does Fortis anticipate?
Fortis expects its rate base to grow from $39 billion in 2024 to $53 billion by 2029, supporting an annual dividend growth of 4-6% during this period.
How can stakeholders engage with Fortis?
Fortis hosts a teleconference for stakeholders to discuss financial results, and details for participation are available on the company's website.
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