Q2 2026 Fortis Inc Earnings Call Transcript
Key Points
- Fortis Inc (FTS) delivered second-quarter EPS of $0.78, up $0.02 year-over-year, driven by growth at ITC, UNS, and Western Canadian utilities.
- The company received an order in council for the Tilbury LNG Phase 1B expansion, enabling approximately $2 billion in regulated rate base investment, with potential rate benefits for customers.
- Fortis Inc (FTS) remains on track to invest $5.6 billion in 2026, supporting an expected average annual rate base growth of 7% through 2030.
- The second Roadrunner Reserve battery storage project (200 MW/800 MWh) was placed in service at TEP, enhancing grid reliability and renewable integration.
- Fortis Inc (FTS) continues to see significant growth opportunities, including ITC's MISO transmission projects (USD3.3-3.8 billion) and TEP's data center negotiations (USD1.5-2 billion potential investment).
- The company's 52-year dividend growth streak remains intact, with 4-6% annual dividend growth guidance through 2030, supported by a disciplined balance sheet approach.
- Fortis Inc (FTS) achieved a 38% reduction in Scope 1 greenhouse gas emissions through 2025 compared to 2019 levels, highlighting progress on sustainability goals.
- Fortis Inc (FTS) faces regulatory lag at UNS, where rate base growth is not yet reflected in customer rates, moderating earnings growth.
- The TEP general rate application decision has been delayed to November 17, 2026, creating near-term regulatory uncertainty.
- Higher finance costs and stock-based compensation expense at ITC partially offset earnings growth in the quarter.
- Foreign exchange had a $0.01 unfavorable impact on EPS for the quarter, and higher weighted average shares from the DRIP also reduced EPS by $0.01.
- The Corporate and Other segment reported unrealized losses on foreign exchange contracts and higher finance costs, partially offset by tax recoveries.
- The Tilbury LNG Phase 1B project remains subject to regulatory approvals and permitting, with construction not expected to start until mid-2027 and in-service as early as 2031, delaying potential benefits.
- UNS Energy's year-to-date EPS was down $0.03 due to lower wholesale sales margins and timing of operating costs, despite higher retail sales.
Thank you for standing by. This is Chuck, the conference operator. Welcome to the Fortis Inc. second-quarter 2026 results conference call. (Operator Instructions)
I would now like to turn the conference over to Ms. Stephanie Amaimo, Vice President, Investor Relations. Please go ahead, Ms. Amaimo.
Thanks, Chuck, and good morning, everyone. Welcome to Fortis' second-quarter 2026 results conference call. I'm joined by David Hutchens, President and CEO; Jocelyn Perry, Executive VP and CFO, other members of the senior management team, as well as CEOs from certain subsidiaries.
Before we begin today's call, I want to remind you that the discussion will include forward-looking information, which is subject to the cautionary statement contained in the supporting slideshow. Actual results can differ materially from the forecast projections included in the forward-looking information presented today.
Non-GAAP financial measures referenced in our prepared remarks are reconciled
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