Fortis Inc. (FTS)

Fortis reported third-quarter 2026 net earnings of $474 million, or $0.92 per common share, on 3 November 2026 1. A year earlier the figure was $0.81 per share 1. Revenue for the quarter was $3,115 million against $2,938 million in 2025 2.

Fortis said the year-earlier quarter carried $32 million of income taxes and closing costs from selling FortisTCI, its Turks and Caicos utility 1. Without that, net earnings rose by $33 million, mainly because the utilities' rate base, the value of the assets on which regulators let them earn a return, grew 1.

The company also released a new 2027-2031 capital plan of $32.2 billion, which it called the largest in its history, $3.4 billion above the prior plan 1. Fortis expects the plan to lift midyear rate base from $45.3 billion in 2026 to $63.9 billion by 2031, a 7.5% yearly rate 1. It raised the fourth-quarter dividend by 4% and extended its 4-6% annual dividend growth guidance through 2031 1.

One open question is Arizona 2. An Arizona Corporation Commission judge recommended in October 2026 a return on common equity of 9.65% for Tucson Electric Power, and the full commission's approval is anticipated in November 2026 2.

Fortis began as a small electric company in St. John's, Newfoundland 4. The St. John's Electric Light Company was formed in 1885 and later became Newfoundland Light and Power 4. In 1987 its shareholders created Fortis Inc. as a holding company that owns the utility 4.

Growth began outside the home province 4. Fortis bought Maritime Electric on Prince Edward Island in 1990, added Ontario in 1996 and invested in the Cayman Islands in 2000 4. In 2004 it bought electric utilities in Alberta and British Columbia from Aquila, which became FortisAlberta and FortisBC 4.

Gas came with Terasen, bought in 2007 and later renamed FortisBC Energy 4. Total assets grew from under $1.0 billion in 1996 to $26.6 billion when Stan Marshall retired as chief executive in December 2014 4.

The United States became the main engine from 2013 4. Fortis bought Central Hudson in New York for US$1.5 billion and agreed to buy UNS Energy in Arizona for US$4.3 billion 4. In 2016 it acquired ITC Holdings, the largest independent U.S. transmission utility, for US$11.8 billion, and listed on the New York Stock Exchange 4.

The filed record shows what that bought 3. Total assets grew from $64.3 billion at the start of 2023 to $74.8 billion at the end of 2025, and 2025 revenue was $12 billion 3.

The last three years were about capital plans 3. Fortis released a $25 billion plan in September 2023, a $26.0 billion plan in September 2024 and a $28.8 billion plan in November 2025 3. The plans' growth came mainly from transmission at ITC and grid investment in Arizona 3.

In 2025 Fortis sold FortisTCI on 2 September and its Belize holdings on 31 October 3. The disposals and related taxes cost $63 million of 2025 earnings, and common equity earnings were $1.7 billion, or $3.40 per share 3.

What Fortis does

Fortis is principally an energy delivery company, with about 95% of its assets in transmission and distribution, meaning the wires and pipes that carry power and gas to customers 3. Its utilities serve 3.5 million customers in five Canadian provinces, ten U.S. states and the Caribbean 3. Regulators set the rates each utility may charge, which is why the company describes its earnings as stable and predictable 3.

Most of its utilities are the sole supplier of power or gas in their territories 3. Revenue was $12,170 million in 2025, and 62% came from foreign operations, mainly the United States 3.

ITC and UNS Energy

ITC owns 26,000 circuit kilometres of high-voltage transmission lines in Michigan and seven other states, and earns cost-based rates set by the U.S. federal energy regulator 3. ITC's revenue was $2,495 million in 2025, and Fortis owns 80.1% of it 3.

UNS Energy supplies electricity and gas in Arizona, with 738,000 customers 3. In the third quarter its earnings were $225 million against $209 million a year earlier, helped by higher retail electricity sales 2.

Central Hudson and the Canadian utilities

Central Hudson delivers power and gas in New York State to 405,000 customers 3. FortisBC Energy delivers natural gas in British Columbia to 1,105,000 customers, and FortisAlberta delivers electricity in Alberta to 615,000 3.

Smaller electric utilities serve Newfoundland, Prince Edward Island, Ontario, British Columbia and Grand Cayman 3. FortisBC Energy's earnings do not move much with gas use, because regulatory deferral mechanisms smooth the effect of consumption and commodity costs 2.

People and structure

Fortis runs a small corporate office in St. John's, and each utility operates on a substantially autonomous basis with its own management team and board 3. David Hutchens is President and Chief Executive Officer, and Jocelyn Perry is chief financial officer 14.

Earnings by seasons differ: the Canadian utilities and Central Hudson earn most in the first and fourth quarters, while UNS Energy earns most in the second and third 3.

Current issues

In Arizona, the Residential Utility Consumer Office has challenged the commission's authority to set formula rates through a policy statement, and the Arizona Court of Appeals let that challenge proceed in November 2025 2. FortisAlberta lost its appeal of the regulator's third performance-based rate term in the third quarter of 2026 2.

Fortis names a U.S. federal proposal to drop an incentive adder as a risk 2. Each 10 basis point change in ITC's return moves Fortis' annual earnings per share by about $0.015 2.

The umbrella, in words

Fortis owns 80.1% of ITC through FortisUS, and an affiliate of GIC holds the other 19.9% as a passive investment 3. It owns UNS Energy, Central Hudson, FortisBC Energy, FortisAlberta and Newfoundland Power in full 3.

It also holds a 39% equity interest in Wataynikaneyap Power, a transmission line in Ontario 3. The listed principal subsidiaries make up about 92% of consolidated assets 3.

Fortis says 2026 capital spending will be about $6.0 billion, up from $5.6 billion first expected, as ITC and FortisBC Energy projects move faster 1. The 2027-2031 plan of $32.2 billion is expected to be paid for mostly by cash from operations and regulated utility debt, with common equity mainly from the dividend reinvestment plan 1.

The company intends to file a new base shelf prospectus and re-establish its at-the-market equity program in early 2027 1. Its Tilbury Phase 1B LNG project could be in service as early as 2031, with construction expected to start in 2027, subject to approvals 2.

Beyond the plan, ITC estimates US$2.9 billion to US$3.4 billion of further spending on MISO tranche 2.1 projects 1. FortisBC Energy sees an investment opportunity of $2 billion to $4 billion in the Tilbury Phase 2 LNG expansion, with most of it expected after 2031 and subject to a final investment decision 1.

The Arizona commission's decision on Tucson Electric Power's rate case is expected in November 2026, with new rates proposed from 1 December 2026 1. A decision on how FortisAlberta returns a true-up of about $130 million to customers is expected in the fourth quarter of 2026 2.

The next common dividend of $0.665 per share is payable on 1 December 2026 to holders of record on 17 November 2026 1.