실적분석 2026년 7월 31일

Fortis ($FTS) Q2 2026 Earnings Analysis — EPS of C$0.78, Dividend Growth Guidance Maintained, Flat After-Hours

Earnings Scorecard

Revenue: Quarterly revenue not disclosed in the press release (consensus US$2.851 billion) — verdict pending

EPS: C$0.78 (vs. C$0.76 a year earlier, +2.6%). The US$0.55 consensus uses an adjusted basis; the company's reported figure is US-GAAP net income in Canadian dollars, so a direct comparison is not possible

Guidance: Maintained — 4–6% annual dividend growth through 2030; reaffirmed five-year capital plan of C$28.8 billion and mid-year rate base growth of ~7% CAGR

Stock reaction: After-hours +0.00% ($57.47) — as of 20:00 Korea time, July 31

Positives

Year-over-year EPS growth: C$0.78, up C$0.02 from C$0.76 in the prior-year quarter

Capital plan on track: C$2.7 billion invested in the first half; full-year C$5.6 billion plan tracking on schedule

Progress on growth projects: Tilbury Phase 1B expansion approved; Arizona battery storage facility in commercial operation

Fortis is a North American regulated electric and gas utility holding company, and posted Q2 common share net income of C$396 million (vs. C$384 million a year earlier). Rate base growth across the utilities and higher retail electricity sales at UNS Energy drove earnings higher.

First-half capex of C$2.7 billion keeps the C$5.6 billion full-year plan on track, and in June the Arizona TEP Roadrunner Reserve 2 battery (200 MW / 800 MWh) entered service. On July 24, the British Columbia provincial government approved the Phase 1B expansion of FortisBC Energy's Tilbury LNG facility (cost cap up to C$2.2 billion), opening up additional growth potential beyond the existing five-year plan (~C$350 million for Tilbury).

Negatives

Quarterly revenue not disclosed: No absolute revenue figure was provided in the press release, so a verdict versus consensus (US$2.851 billion) is not possible

Dilution from divestitures: 2025 business sales diluted quarterly EPS by C$0.01, with a full-year drag of roughly C$0.05 expected

Cost and FX offsets: Unrecovered costs, opex timing, holdco financing costs, and FX limited the earnings increase

Costs tied to rate base growth that have not yet been reflected in customer rates, opex recognition timing at UNS Energy, deferred Central Hudson quarterly revenue, and higher holdco financing costs all dampened the earnings increase. The 2025 divestitures of the Turks and Caicos and Belize businesses, along with FX, also slowed growth.

The divestiture impact was C$0.01 per share in Q2 and C$0.03 in the first half, with roughly C$0.05 of full-year dilution expected. First-half EPS of C$1.76 was flat year over year, so despite the quarterly improvement, the year-to-date cumulative figure remains unchanged. Higher weighted-average share count from dividend reinvestment also pressured per-share metrics.

What Management Said

Management characterized the results as solid, achieved as the utilities executed their 2026 capital plans and captured additional growth opportunities. On the Tilbury 1B approval, the tone was that growth drivers continue to build, citing it as an example of partnering with government and Indigenous communities to drive regional economic growth.

In formal guidance, the company reaffirmed that the C$28.8 billion five-year capital plan will grow the mid-year rate base from C$42.4 billion in 2025 to C$57.9 billion in 2030, or roughly 7% CAGR, supporting the 4–6% annual dividend growth guidance through 2030. No numerical EPS or revenue guidance was given for the quarter or full year; the company only additionally enumerated investment opportunities outside the plan to address rising transmission, LNG, and power demand.

Market Reaction and What to Watch Next

In keeping with a regulated utility, the market stood pat on a modest year-over-year improvement and the reaffirmation of existing dividend and capital guidance. Because the consensus estimate uses a different accounting and currency basis, it is difficult to declare a clean beat, and with revenue figures absent, near-term catalysts are limited. Instead, stories like the Tilbury approval reinforce the longer-dated rate base growth thesis that underpins dividend growth.

Watch the Tilbury 1B permitting and final project-cost confirmation timeline, along with the scale of inclusion in the next five-year capital plan.

Track whether unrecovered costs are recouped through subsequent quarterly rate approvals, and whether net income growth momentum continues.

Monitor execution against the C$5.6 billion annual capital plan and how rate base growth ties into the 4–6% dividend guidance.