FTS

Image source: The Motley Fool. Friday, July 31, 2026 at 8:30 a.m. ET Vice President, Investor Relations - Stephanie Amaimo President and CEO - David Hutchens Executive VP and CFO - Jocelyn Perry CEO of FortisBC - Roger Dall’Antonia Operator: Thank you for standing by. This is Chuck, the conference operator. Welcome to the Fortis Inc. Second Quarter 2026 Results Conference Call. [Operator Instructions] The conference call is being recorded. [Operator Instructions] I would now like to turn the conference over to Ms. Stephanie Amaimo, Vice President, Investor Relations. Please go ahead, Ms. Amaimo. Stephanie 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 slide show. 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 to the related U.S. GAAP financial measures in our second quarter 2026 MD&A. Also, unless otherwise specified, all financial information referenced is in Canadian dollars. With that, I will turn the call over to David. David Hutchens: Thank you, and good morning, everyone. During the first half of the year, our utilities continued to provide safe and reliable service while advancing our regulated growth strategy. Through June, we invested $2.7 billion in our systems and delivered earnings per share in the second quarter of $0.78. More recently, we secured a milestone for a significant opportunity above and beyond our 5-year capital plan with the receipt of an Order in Council that supports the expansion of our Tilbury LNG facility in British Columbia. Today, we also released our 2026 sustainability report, highlighting our progress to decarbonize our energy mix, including a 38% reduction in our Scope 1 greenhouse gas emissions through 2025 compared to 2019 levels. With nearly half of our annual capital plan invested through June and our major capital projects tracking well, we remain on pace to invest $5.6 billion in 2026. In June, the second Roadrunner Reserve battery storage project was placed in service at TEP. This 200-megawatt energy storage system facilitates the integration of renewables into the grid with the capability to store 800-megawatt hours of energy, enough to serve 42,000 homes for 4 hours when deployed at full capacity. With our capital plan on track, we continue to expect average annual rate base growth of 7% through 2030. Last week, FortisBC received an Order in Council from the province of British Columbia, approving a larger Phase 1B expansion of the Tilbury LNG facility, allowing total investment of approximately $2 billion in regulated rate base. We currently have approximately $350 million in our current 5-year plan. The OIC also provides the approvals required to implement an equity partnership with the Musqueam Indian band and includes regulatory mechanisms to smooth the cost of recovery in the early years of the project. The Tilbury 1B expansion supports LNG marine fueling services and promotes jobs and economic growth in the province. The project positions the Port of Vancouver as a leading LNG marine fueling hub and supports the transition to lower emission marine fuels. This is an exciting opportunity, and FortisBC will now proceed to develop and refine project cost estimates, which will be reflected in our next 5-year capital plan expected to be released with our third quarter results. While the project remains subject to certain regulatory approvals and permitting requirements, construction could start as early as mid-2027 and be in service as early as 2031. As for other opportunities above and beyond the plan, our teams continue to make steady progress. At ITC, the MISO long-range transmission projects associated with Tranche 2.1 are advancing. As we have noted in the past, ITC expects USD 3.3 billion to USD 3.8 billion of investment beyond 2030 for projects that have been awarded and are not subject to competitive bidding. For the Iowa Tranche 2.1 project subject to a competitive process, ITC has submitted bids for 2 opportunities with MISO expected to award the projects in the fourth quarter. At TEP, negotiations continue with the data center customer for an incremental 300 megawatts of capacity to support a potential build-out of 600 megawatts at the first site. TEP is also in active negotiations for additional capacity at a second site in the range of 500 to 700 megawatts and is continuing to engage with other large customers for additional growth opportunities. If agreements are finalized for these subsequent phases, we estimate that new generation investment in the range of USD 1.5 billion to USD 2 billion would be required. In Arizona, TEP and UNS Electric expect to file new integrated resource plans with the ACC in the fall. The IRPs will support increasing energy needs while taking into account clean, reliable and affordable energy solutions. The IRP will include a high-growth scenario that evaluates the impacts of potential incremental data center load beyond the 300 megawatts currently approved as well as the clean energy build-out scenario. Our utilities continue to prioritize capital investments focused on operational need and customer bill impacts. As we highlighted last quarter, both ITC and UNS are great examples of how load growth and cost-effective capital projects can benefit customers. Adding to the discussion, continued growth of the LNG markets is also expected to provide rate benefits for customers in British Columbia. First, sales of LNG into the growing marine fueling market associated with our current Tilbury 1A facility have provided a rate benefit for customers of approximately 1.5% since 2024. The further expansion of FortisBC's Tilbury 1B facility is expected to build on this rate benefit. Additionally, increased demand served through the Eagle Mountain Pipeline project will increase the utilization of FortisBC's gas system and once complete and in service, is expected to provide a rate benefit of approximately 1.5%. Overall, through operational efficiency, disciplined capital planning and innovation, Fortis utilities continue to be laser-focused on finding better ways to reduce costs and support customer affordability. Our dividend remains a core component of our investment thesis. We have demonstrated that we can grow our dividend responsibly, having increased it for the past 52 consecutive years while maintaining a disciplined approach to balance sheet strength. Looking ahead, we remain confident in our 4% to 6% annual dividend growth guidance through 2030, supported by our regulated growth strategy. Now I will turn the call over to Jocelyn for an update on our second quarter financial results. Jocelyn Perry: Thank you, David, and good morning, everyone. For the quarter, we reported net earnings of $396 million or $0.78 per common share, an increase of $0.02 compared to the second quarter of last year. At ITC, EPS increased by $0.02, largely due to continued capital investment and related rate base growth, partially offset by higher finance costs and stock-based compensation expense. UNS contributed a $0.02 increase driven by higher retail electricity sales, including the impact of warmer weather. This increase was moderated by the timing of operating costs as well as regulatory lag associated with rate base growth not yet reflected in customer rates. Our Western Canadian utilities increased EPS by $0.01, largely driven by capital investment. The Corporate and Other segment reflects unrealized losses on foreign exchange contracts, higher finance costs and lower earnings due to the disposition of Fortis Belize in the fourth quarter of 2025, partially offset by the timing of income tax recoveries. While not shown on the slide, results at Central Hudson were consistent with the second quarter of 2025 as rate base growth was offset by the timing of quarterly revenue. Earnings for our Other Electric segment were also comparable quarter-over-quarter as earnings growth in the segment was offset by the impact of the FortisTCI disposition completed in the third quarter of last year. Foreign exchange had a $0.01 unfavorable impact for the quarter and higher weighted average shares issued under our dividend reinvestment plan impacted EPS by $0.01. On a year-to-date basis, earnings were $897 million or $1.76 per common share. Results year-to-date were mainly driven by the same factors discussed for the quarter with a few additional items to note for Central Hudson and UNS Energy. For the 6-month period, Central Hudson was up $0.03, primarily due to rate base growth and the timing of operating costs. At UNS, EPS was down $0.03 as higher retail sales were tempered by lower margin on wholesale sales, the timing of operating costs and the regulatory lag for rate base growth not yet in rates. For the first half of 2026, our utilities issued $2.1 billion of long-term debt and our funding plan remains on track. As we have noted in the past, our capital plan is expected to be funded largely from cash from operations, utility debt and our dividend reinvestment plan. In May, S&P confirmed our A- issuer and BBB+ unsecured debt credit ratings and stable outlook, and Fitch also confirmed the corporation's BBB+ issuer and unsecured debt credit ratings and stable outlook. Overall, our liquidity position and our funding plans support our investment-grade credit ratings. As Dave mentioned, we expect to release our new 5-year capital plan on our third quarter earnings call, and we will address our new funding plan at that time. On the regulatory front, the TEP general rate application continues to progress. During the quarter, hearings concluded and the administrative law judge issued an extension of the procedural schedule such that a final decision on the rate case be issued by November 17. That concludes my remarks. I'll now turn the call back to David. David Hutchens: Thank you, Jocelyn. In closing, we have delivered a strong first half while maintaining our focus on what matters most, operating our utilities safely, reliably and affordably. Our two-pronged focus on execution is clear with our annual capital plan on track and our advancement of opportunities above and beyond the plan. Backed by a disciplined strategy and a diversified regulated portfolio, we remain confident in our ability to deliver on our rate base and dividend growth outlook through 2030. That concludes my remarks. I will now turn the call back over to Stephanie. Stephanie Amaimo: Thank you, David. This concludes the presentation. At this time, we'd like to open the call to address questions from the investment community. Operator: [Operator Instructions] And our first question for today will come from Maurice Choy with RBC Capital Markets. Maurice Choy: As you know, I probably would like to see BC take the spotlight here. So maybe my first question, if you could help unpack the next steps for Tilbury 1B and also an update on the bigger Tilbury Phase 2. I appreciate that. And presumably, Phase 2 also has some great benefits for our customers over and above all the other ones. David Hutchens: Yes. Thanks, Maurice. And Roger has been waiting for this question. So I'm going to turn it right over to Roger, our CEO of FortisBC. Roger? Roger Dall’Antonia: Thanks, David. Thanks for the question, Maurice. Maybe I'll try to anticipate some of the other questions as well. Starting with Tilbury 1B. The project itself with the order and council from the government really has 3 components. It's the marine jetty, the liquefaction expansion as well as 230 kV power line to provide power for the electric drive liquefaction. Those 3 components are covered by the OIC. The next steps, we're still assessing and designing plans to address the conditions that came out of the environmental assessment certificate that the provincial and federal government provided to us in 2024. Then designing the liquefaction and power needs for the TLSE. So that's going to start in earnest with the hope that we'll be in construction for TLSE -- or sorry, for Tilbury 1B sometime in 2027. We are also finalizing agreements with the Musqueam on their equity investment. The percentage that they may take is confidential at this point, but we're working on finalizing the limited partnership agreement that will allow them to have a direct equity investment in this project. For Tilbury 2, as a reminder, there's 2 components to Tilbury 2. The first is the Tilbury storage tank that's replacing the existing -- one of the existing tanks at Tilbury that was built and commissioned in 1971. As that facility is basically end-of-life Tilbury Storage Expansion, which we received BCUC approval in 2025 for. Once the EA is approved, we'll start the process for construction on that. That doesn't come with direct rate benefit. It really is primarily resiliency, but the size of the tank up to 3 Bcf from what the current facility is about 0.6 Bcf, there will be some gas supply benefit where we can manage summer, winter gas cost differentials. We will be able to expand our gas supply capabilities on system. The rest, though, is really just resiliency for system disruption and peak weather events. Tilbury 2 also has up to 2.5 million tonnes per annum of liquefaction. That is further out. If that does get built, that would be designed with rate benefit, but it's too early to understand what those rate benefits might be. Hopefully, that answers the questions. Maurice Choy: Maybe just a quick follow-up. Just timing as to when these projects might be sanctioned? Roger Dall’Antonia: For Tilbury for the Tilbury 2 projects, the EA is expected later this year. We are in the mandated, I think, 151-day review period, and that is going to end sometime in Q4, and then it will be referred to cabinet. And at that point, there's a 30-day time frame for cabinet to approve the environmental assessment certificate. So that timing holds and there's no additional process requested by the Environmental Assessment Office, we should see decision for Tilbury 2, both the storage tank and the added liquefaction later this fall. Maurice Choy: Understood. And if I could finish off in Arizona. There continues to be, I guess, selective data center opposition in the U.S. And I know that you highlighted some rate benefits in one of your slides. But at TEP, have you more recently witnessed any change in how your customers approach your negotiations, whether that be the pace, whether it be the terms and so on and so forth? David Hutchens: Yes. Obviously, there has been a bit of pushback in data centers across the U.S. in general for various reasons. I think one of the stories our industry wasn't really pushing as well as it should have been is the rate benefit that these types of projects can have for our customers. That's the message that we're trying to get out in Arizona and anywhere else we can as is everyone else, including data center developers because there is a really good positive story, as you can see in our deck, that customer rate benefit that we see just -- and that's just from the first phase of Project Blue. But the customers, as in the data center customers themselves are very aware of making sure that we get the right design and are obviously willing and able to make sure that they -- and there's been all kinds of conversations and pledges, et cetera, at every level in government and whether it's federal, local and with utilities and the data centers and hyperscalers themselves, we're all on the exact same page to make sure that there is no cost shift or allocation of the costs that are needed to build and serve those customers that get shifted to the other customers. Everybody is on the same page that these data centers have to cover their own costs and then some. That's the benefit -- that's where we get that -- and then some is the part that gives us the benefits that we see to lower the rest of the customers' rates by them sharing an actual large portion of the overall system fixed cost by the usage that those data center customers have. The message is, we all have the same message. We're just making, it's a bit hard to get people to listen to it. Operator: The next question will come from Ben Pham with BMO. Benjamin Pham: I know you mentioned that your expected refresh of the CapEx plan in the fall. Could you talk about maybe if there's any potential to look beyond the 5-year plan to maybe look at a longer horizon, just thinking about this Tilbury expansion going through 2031. You got the ITC transmission opportunity and just also seems like your backlog is also more visible than it has been versus last year. David Hutchens: Yes, Ben, obviously, from a planning perspective, and there's a lot of things that we do that extend beyond the 5-year period. The integrated resource plans are a prime example, the LRTP projects. There's a lot of things, obviously, that we look at longer term. But just given how those types of forecasts tend to diverge and have quite a wide error bars when you get past the 5-year period, it would really be tough to be able to put out a 5-year, say, capital plan -- or more than a 5-year capital plan without having a whole bunch of caveats. We kind of want to stick with that -- and I wouldn't say 5 years is a short time period by any means. But we know that's why we try to provide the color around what's going on within our portfolio and that above and beyond the plan conversation and try to break those into things that we see within the next 5 years, things that we could essentially add to the existing 5-year capital plan, but more importantly, things that extend that growth in beyond the 5-year plan. We try to give color around that. But to lay out numbers that far, I don't know if that would be all that beneficial. Benjamin Pham: Got it. Going back to Tilbury expansion, and if you can maybe quantify or maybe attempt to think about this is, you got enough time to think about the impact on the balance sheet as well, you put the CapEx in there. I know the First Nations piece is still TBD, but in a range of scenarios you look at, does it contemplate potentially ATM? Jocelyn Perry: Ben, this is Jocelyn. Thanks for the question. Yes, Tilbury will be wrapped up with our whole look at the 5-year plan. And so we'll -- no doubt, this is putting good pressure on the amount that we're spending. But we need to firm up the time for Tilbury in particular, and when and how these investments will be coming into play. We'll look at all funding options available to us with the aim is to keep our credit metrics in check. That's something that we're going to be taking a deeper dive on in the fall. Operator: The next question will come from Mark Jarvi with CIBC Capital Markets. Mark Jarvi: I know we're going to get the CapEx refresh. But just on the Tilbury project, anything you can kind of indicate in terms of the profile of the CapEx? Is there material amounts before 2030? Or is most of this coming in the early 2030? David Hutchens: Yes. Yes, we haven't put that together yet. Obviously, there is a shape to the CapEx spend that kind of typically on large projects will start out slowly and ramp up over time. As I mentioned in the remarks, we could see this online as early as 2031. As we spend capital, remember, we also get AFUDC on these projects as well. There's a whole lot of modeling that still has to be done. But when we get that shape in there, we'll let you know. That kind of goes to that prior question, shape of capital matters too, not just the overall size of the capital plan. Mark Jarvi: Understood. And just in the last couple of days, some positive commentary from large load with the Michigan LDCs and Alliant?as well in Iowa. Just your view in terms of any updated views on ITC conversations with the local distribution companies in terms of accelerated investments to facilitate large loads in those regions? David Hutchens: Yes. Krista, you want to address that? She's obviously very close to those conversations with our largest customers, which happen to be CMS, DTE and Alliant. So Krista? Krista Tanner: Yes. Yes, we remain very optimistic, having really positive conversations with the large data centers. We are working hand-in-hand with the customers that you just noted because, of course, transmission can take a long time. So we're at the table with them. At this point, we don't -- everything that we've announced publicly, we have, and we're just sticking to that approximately 8 gigawatts of additional load in our queue. Of course, that doesn't mean it all come to fruition, but that's really what's in our pipeline that's not -- we haven't yet finalized. Mark Jarvi: So most of this would be the loads we're trying to site where they can use existing transmission generation? Or is there a view that there's some upgrades required just given the speed to power demand for some of these customers? Krista Tanner: Yes. There's not really a rule of thumb for transmission. We're seeing when we get a large load, it can be anywhere from $10 million to $100 million, right? But we are -- because of what you just said, speed to power, we are moving them. We are working hard to direct them to places where we need fewer upgrades because they need to be on 2 years or less and a new line would take much more than that, obviously. So from our point of view, we are really directing them to where there are fewer upgrades needed, which still provides a benefit to us in terms of the rate relief for our customers. Operator: The next question will come from Mike Lonegan with Barclays. Michael Lonegan: So on the TEP rate case, there was obviously a change in the procedural schedule for a decision after the November election. Just wondering how you're feeling about this and the rate case more broadly coming out of the hearings that happened in May? David Hutchens: Yes. We're feeling good. I'll turn it over to Susan to give a little color from Arizona. But I think we definitely were not surprised to see that the open meeting or the final decision on the TEP rate case to be slid a little bit given the November elections. Susan, do you want to provide a little color on where we stand? Susan Gray: Yes, sure. Thanks for the question, Mike. Yes. So as Dave mentioned, we are expecting a recommended opinion and order from the judge to come out fairly soon. As we've just filed briefings. I think we're pretty close on a lot of the issues, particularly in alignment with staff, ACC staff. We were apart on ROE and in our recent filing, TEP came down to 9.75%, which is now a 10.2% increase that we're asking for. That's the impact of changing the ROE. I think we are optimistic that the judge will include the ARAM, the formula rate. I think there were some varying opinions on what the dead band should be. But overall, I think the design of the ARAM is likely going to look a lot like what we got for UniSource Gas. I think we'll know more as the briefings have just come out and then the judge's recommended opinion in order. We expect to get a decision probably in November with an implementation date in December. So I think we're wrapping up pretty closely here to be done by the end of the year. Michael Lonegan: And then sticking with Arizona, obviously, you talked about the Project Blue data center and the expansion opportunity there, the $1.5 billion to $2 billion of opportunity. Just wondering if you could talk more about your pipeline beyond this in the state, where you stand with that opportunity? And anything you could share there would be helpful. David Hutchens: Go ahead, Susan. Susan Gray: Yes. So when you talk about pipeline, I assume you're talking about the gas pipelines. David Hutchens: He is talking about the pipeline of projects like we've got the Project Blue, but what's behind them? Susan Gray: Sure. Yes. We still have 8 to 10 gigawatts of data center pipeline in our queue, but we also have the Hermosa Mine that's coming online. Copper World is probably in the latter part of our 5-year plan. Then we've got some other manufacturing and other -- even some existing customers that are growing. It's not all data center growth in Tucson. There's kind of a wide variety of opportunities that we're seeing. Operator: [Operator Instructions] Our next question will come from Eli Jossen with JPMorgan Securities. Elias Jossen: Maybe sticking with Arizona, I just wanted to shift to the political landscape. Obviously, we saw a primary outcome just a few days ago. I just wanted to kind of get your thoughts there, if there was any surprise and whether or not that would impact your overall kind of regulatory strategy within the state? David Hutchens: Yes, I'll take that one, Susan. I mean, I still spend a lot of time in Arizona, so I'm pretty up to speed on the politics there. I mean I don't know, I wouldn't call it a surprise. I mean there's -- when there's 3 folks running for 2 seats, and in a primary, it's hard to call which way that would -- that will split. It doesn't matter to us from a regulatory strategy perspective. We'll see how the general election turns out as well. But in the end, this is 2 of the 5 commissioners that are up. Even a complete change in commissioners, a complete turnover there would still have 3 that we've known and built relationships with over these past couple of years or several years in some of the commissioners' cases. We don't change our regulatory strategy based on election. We work with the regulators that are in those roles and work to push for a good and solid policy that helps us support the things that matter most to our customers. That doesn't change from election to election. Elias Jossen: Got it. And I know there's been a lot of discussion on Arizona, but maybe just last question on the IRP. We know that we have that time line in October for the filing. Can you just remind us sort of the range of outcomes that we can expect coming out of that IRP and how that affects sort of the opportunity set that you have in Arizona? David Hutchens: We don't really have a range of outcome yet other than one from the old IRP that -- so we really are waiting for the results of this. Then, of course, we run a whole bunch of different scenarios in this process, pick one as kind of the recommended portfolio for filing with the commission, obviously, with the rest of the scenarios as well. But at the end of the day, that's when we start looking at what that scenario looks like, whether or not it gets through the process with the Corporation Commission and then we start. We'll be penciling in some of those investment opportunities as we go through this process and start communicating those at that time. Right now, we haven't released all of the scenarios and what those look like, but those will be released, and it's something that folks can see. I mean it will be more on a very high level kind of revenue -- net present value revenue requirement for those portfolios, but it will show the investments that are needed and what years those are needed. It will provide some of the data for folks like you all on the call to do some back of the envelope and see what would be needed in those different time frames. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Ms. Amaimo for any closing remarks. Please go ahead. Stephanie Amaimo: Thank you, Chuck. We have nothing further at this time. Thank you, everyone, for participating in our second quarter conference call. Please contact Investor Relations should you need anything further, and have a great day. Operator: This brings a close to today's conference call. You may disconnect your lines. Thank you for your participation, and have a pleasant day. Before you buy stock in Fortis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Fortis wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* Now, it’s worth noting Stock Advisor’s total average return is 953% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy. Fortis (FTS) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Fortis (TSX:FTS) is back in focus after reporting second quarter 2026 results that showed higher sales and net income, along with fresh approval for a major Tilbury LNG expansion project in British Columbia. See our latest analysis for Fortis. Fortis shares trade at CA$79.80 after a modest pullback over the past week. The year-to-date share price return of 12% and 1-year total shareholder return of 20.04% sit alongside a 5-year total shareholder return of 68.94%. This points to momentum that has been built over a longer period as investors weigh the latest earnings, dividend affirmation and Tilbury LNG approval. If Fortis has you thinking more broadly about essential infrastructure and regulated returns, this could be a good moment to scan the grid for other power-related opportunities through our 35 power grid technology and infrastructure stocks Fortis now sits only slightly below the average analyst price target yet screens at a large intrinsic discount of about 70%. Is the recent pullback a chance to invest in that gap, or is the market’s caution sensible? Fortis is trading at CA$79.80 against a most-followed fair value estimate of CA$79.43, which points to a very tight gap and a finely balanced narrative. Read the complete narrative. Want to see what sits behind that capital plan? The fair value hinges on how revenue, earnings per share and future profit margins are expected to line up. The narrative also incorporates a specific future P/E and discount rate. Curious which assumptions matter most here. Result: Fair Value of CA$79.43 (ABOUT RIGHT) Have a read of the narrative in full and understand what's behind the forecasts. However, Fortis still faces real pressure from ongoing regulatory pushback on allowed returns and the heavy capital spending plan. These factors could affect the timing of earnings and the strength of the balance sheet. Find out about the key risks to this Fortis narrative. The earlier fair value narrative for Fortis leans on analyst targets and earnings forecasts. Our SWS DCF model points in a different direction. At CA$79.80, Fortis trades about 70% below an estimated future cash flow value of CA$269.04, which raises a clear question. Are analysts being too cautious, or is the DCF too optimistic about long term cash generation? For a closer look at how this long range cash flow view is built, and how sensitive it is to the assumptions you care about most, Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Fortis for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 7 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Mixed signals on Fortis valuation and future cash flows can create both concern and excitement. Move quickly, review the data and weigh the 3 key rewards and 2 important warning signs If Fortis has sharpened your focus on dependable returns, do not stop here. Use Simply Wall Street’s screener to quickly spot other stocks that fit your goals. Target reliable income streams by reviewing companies in the 6 dividend fortresses to find options that aim to combine higher yields with consistent dividend histories. Hunt for potential value opportunities using the screener containing 10 high quality undiscovered gems to see companies with strong fundamentals that may be flying under the radar. Prioritise stability and sleep easier at night by checking stocks featured in the 10 resilient stocks with low risk scores, which focuses on resilience and risk controls. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FTS.TO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This news release constitutes a "Designated News Release" incorporated by reference in the prospectus supplement dated December 9, 2024 to Fortis' short form base shelf prospectus dated December 9, 2024. ST. JOHN'S, Newfoundland and Labrador, July 31, 2026 (GLOBE NEWSWIRE) -- Fortis Inc. ("Fortis" or the "Corporation") (TSX/NYSE: FTS), a diversified leader in the North American regulated electric and gas utility industry, released its second quarter results.1 Highlights Second quarter net earnings of $396 million or $0.78 per common share, up from $0.76 per common share in 2025 Capital expenditures2 of $2.7 billion in the first half of 2026; $5.6 billion annual capital plan on track Tilbury Phase 1B expansion approved in British Columbia, advancing incremental capital opportunity beyond the plan Roadrunner Reserve II battery project completed in Arizona "We are pleased to report our second quarter results which reflect solid performance from our utilities as they execute the 2026 capital plan and work to capture additional growth opportunities," said David Hutchens, President and Chief Executive Officer, Fortis. "Our momentum continues to build, and the recently-announced approval of the Phase 1B expansion at FortisBC Energy's Tilbury LNG Facility demonstrates how we can partner with government and First Nations to advance economic growth in the communities we serve." Net Earnings The Corporation reported net earnings attributable to common equity shareholders ("Net Earnings") of $396 million for the second quarter of 2026, compared to $384 million for the second quarter of 2025. Rate Base growth across our utilities and higher retail electricity sales at UNS Energy contributed to earnings growth in the second quarter of 2026. These factors were partially offset by higher costs associated with Rate Base growth not yet reflected in customer rates and the timing of operating costs at UNS Energy, as well as a shift in quarterly revenue at Central Hudson and higher holding company finance costs. The dispositions of the Corporation's businesses in Turks and Caicos and Belize in 2025, and the impact of foreign exchange, also moderated earnings growth. On a year-to-date basis, Net Earnings were $897 million, an increase of $14 million compared to the first half of 2025. The increase was driven by the same factors described for the quarter, as well as the timing of operating costs at Central Hudson, partially offset by lower margin on wholesale sales at UNS Energy. The Corporation reported earnings per common share of $0.78 for the second quarter of 2026, an increase of $0.02 per common share compared to the second quarter of 2025. For the six-month period, earnings per common share of $1.76 was consistent with the same period in 2025. In addition to the factors impacting Net Earnings, the change in earnings per share reflected an increase in the weighted average number of common shares outstanding, largely associated with the Corporation's dividend reinvestment plan. On an earnings per common share basis, the 2025 dispositions had a $0.01 and $0.03 dilutive impact on second quarter and year-to-date results, respectively, and are expected to have a $0.05 dilutive impact for the annual period. Capital Growth UpdatesOur $5.6 billion annual capital plan is on track with $2.7 billion invested during the first half of 2026. In June 2026, the Roadrunner Reserve II battery storage project was placed in service at TEP. The 200 megawatt ("MW") battery energy storage system facilitates the integration of renewable energy into the electric grid with the capability to store 800 MW hours of energy, enough to serve approximately 42,000 homes for four hours when deployed at full capacity. On July 24, 2026, the Province of British Columbia issued an Order In Council ("OIC") approving the Phase 1B expansion of FortisBC Energy's Tilbury Liquefied Natural Gas ("LNG") Facility. The OIC includes a cost allowance of up to $2.2 billion for the project, and approves the inclusion of the Tilbury Marine Jetty in the regulated utility. It also provides approvals required to implement the equity partnership with the Musqueam Indian Band, and includes regulatory mechanisms to protect customers from rate impacts associated with the investment. FortisBC Energy will now proceed to further develop and refine project cost estimates, which will be reflected, as appropriate, in Fortis' next five-year capital plan. The Corporation's current five-year plan includes approximately $350 million of investment for Tilbury 1B. The Tilbury 1B project supports LNG marine fueling services while strengthening jobs, economic growth and economic reconciliation through an equity partnership opportunity with the Musqueam Indian Band. It will help position the Port of Vancouver as a leading LNG marine fueling hub and support the transition to lower-emission marine fuels. The project remains subject to certain regulatory approvals and permitting requirements before construction can begin. Construction could start as early as mid-2027 and the project could be in-service as early as 2031. Credit RatingsIn May 2026, S&P confirmed the Corporation's A- issuer and BBB+ unsecured debt credit ratings and stable outlook, and Fitch confirmed the Corporation's BBB+ issuer and unsecured debt credit ratings and stable outlook. SustainabilityFortis released its 2026 Sustainability Report today, providing updates on enterprise-wide sustainability initiatives and key performance indicators. The report includes information on safety, reliability, emissions reductions and customer affordability initiatives, as well as climate risk mitigation activities. The Corporation continues to make meaningful progress to decarbonize its energy mix, achieving a 38% reduction in scope 1 greenhouse gas emissions through 2025 compared to 2019 levels and reaching a record-low greenhouse gas intensity of energy delivered in 2025. This latest report marks Fortis' tenth year of sustainability reporting. The 2026 Sustainability Report can be accessed at https://www.fortisinc.com/sustainability/sustainability-reporting. OutlookFortis continues to enhance shareholder value through the execution of its capital plan, the balance and strength of its diversified portfolio of regulated utility businesses, and growth opportunities within and proximate to its service territories. The Corporation's $28.8 billion five-year capital plan is expected to increase midyear rate base from $42.4 billion in 2025 to $57.9 billion by 2030, translating into a five-year compound annual growth rate of 7%.3 Fortis expects its long-term growth in rate base will drive earnings that support dividend growth guidance of 4-6% annually through 2030. Above and beyond the five-year capital plan, growth opportunities include: further expansion of the electric transmission grid in the U.S. to support load growth and facilitate the interconnection of new energy resources, including transmission investments associated with the Midcontinent Independent System Operator ("MISO") long-range transmission plan and MISO transmission expansion plan; grid resiliency and climate adaptation investments; investments in renewable gas and LNG infrastructure in British Columbia; and energy infrastructure investments to support the acceleration of load growth across our jurisdictions. About FortisFortis is a diversified leader in the North American regulated electric and gas utility industry with 2025 revenue of $12 billion and total assets of $79 billion as at June 30, 2026. The Corporation's 9,900 employees serve utility customers in five Canadian provinces, ten U.S. states and the Cayman Islands. Forward-Looking InformationFortis includes forward-looking information in this media release within the meaning of applicable Canadian securities laws and forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, (collectively referred to as "forward-looking information"). Forward-looking information reflects expectations of Fortis management regarding future growth, results of operations, performance, business prospects, and opportunities. Wherever possible, words such as anticipates, believes, budgets, could, estimates, expects, forecasts, intends, may, might, plans, projects, schedule, should, target, will, would, and the negative of these terms, and other similar terminology or expressions, have been used to identify the forward-looking information, which includes, without limitation: forecast capital expenditures for 2026; expected benefits of the Roadrunner Reserve II battery storage project; expected nature, timing, benefits, and costs associated with the Tilbury 1B project and the Tilbury Marine Jetty; the 2026-2030 capital plan; forecast midyear rate base for 2030 and forecast five-year compound annual growth rate; the expectation that long-term growth in rate base will drive earnings that support dividend growth guidance; and the expected nature, timing and benefits of growth opportunities above and beyond the five-year capital plan, including further expansion of the electric transmission grid in the U.S. to support load growth and facilitate the interconnection of new energy resources, including transmission investments associated with the MISO long-range transmission plan and MISO transmission expansion plan, grid resiliency and climate adaptation investments, investments in renewable gas and LNG infrastructure in British Columbia, and energy infrastructure investments to support the acceleration of load growth. Forward-looking information involves significant risks, uncertainties, and assumptions. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking information, including, without limitation: the successful execution of the capital plan; no material capital project and financing cost overrun; sufficient human resources to deliver service and execute the capital plan; the realization of additional opportunities beyond the capital plan; no significant variability in interest rates; no material changes in the assumed U.S. dollar-to-Canadian dollar exchange rate; the continuation of current participation levels in the Corporation's dividend reinvestment plan; reasonable outcomes for legal and regulatory proceedings and the expectation of regulatory stability; and the Board of Directors of the Corporation exercising its discretion to declare dividends, taking into account the business performance and financial condition of the Corporation. Fortis cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. For additional information with respect to certain risk factors, reference should be made to the continuous disclosure materials filed from time to time by the Corporation with Canadian securities regulatory authorities and the Securities and Exchange Commission. All forward-looking information herein is given as of the date of this media release. Fortis disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Teleconference and Webcast to Discuss Second Quarter 2026 ResultsA teleconference and webcast will be held on July 31, 2026 at 8:30 a.m. (Eastern) during which David Hutchens, President and Chief Executive Officer and Jocelyn Perry, Executive Vice President and Chief Financial Officer will discuss the Corporation's second quarter financial results. Shareholders, analysts, members of the media and other interested parties are invited to listen to the teleconference via the live webcast on the Corporation's website, www.fortisinc.com/investors/events-and-presentations. Those members of the financial community in Canada and the United States wishing to ask questions during the call are invited to participate toll free by calling 1.833.821.0229. Individuals in other international locations can participate by calling 1.647.846.2371. Please dial in 10 minutes prior to the start of the call. No access code is required. An archived audio webcast of the teleconference will be available on the Corporation's website two hours after the conclusion of the call until August 31, 2026. Please call 1.855.669.9658 or 1.412.317.0088 and enter access code 3388126#. Additional InformationThis news release should be read in conjunction with the Corporation's June 30, 2026 Interim Management Discussion and Analysis and Condensed Consolidated Financial Statements. This and additional information can be accessed at www.fortisinc.com, www.sedarplus.ca, or www.sec.gov. A .pdf version of this press release is available at: http://ml.globenewswire.com/Resource/Download/a7407070-ac9c-42f6-bfb5-01ed292c58f9 For more information, please contact:

Interested in Fortis? Here are five stocks we like better. Second-quarter earnings rose: Fortis reported net earnings of C$396 million, or C$0.78 per share, supported by regulated capital investment and higher electricity sales. The company invested C$2.7 billion in the first half and remains on track for C$5.6 billion in 2026 capital spending, with 7% average annual rate-base growth targeted through 2030. Tilbury LNG expansion advanced: British Columbia approved a larger Phase 1B project, enabling approximately C$2 billion of regulated rate-base investment. Construction could begin as early as mid-2027, with service targeted for 2031, subject to regulatory approvals and permits. Additional growth opportunities are developing: Fortis cited billions of dollars in potential ITC transmission investment and major data-center demand in Arizona, including a possible US$1.5 billion to US$2 billion generation buildout. The company issued C$2.1 billion of long-term debt in the first half and is reviewing funding options while aiming to preserve its credit metrics. Fortis (NYSE:FTS) reported second-quarter net earnings of C$396 million, or C$0.78 per common share, up C$0.02 per share from the same period a year earlier, as regulated capital investment and higher electricity sales supported results. The utility said it invested C$2.7 billion across its systems through the first half of 2026 and remains on track to invest C$5.6 billion for the full year. President and CEO David Hutchens said the company’s utilities continued to provide safe and reliable service while advancing Fortis’ regulated growth strategy. Fortis continues to target average annual rate base growth of 7% through 2030 and annual dividend growth of 4% to 6% through that period. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now The company also highlighted its sustainability progress, reporting a 38% reduction in Scope 1 greenhouse-gas emissions through 2025 compared with 2019 levels. Executive Vice President and CFO Jocelyn Perry said earnings growth at ITC Holdings contributed C$0.02 per share in the quarter, primarily reflecting continued capital investment and related rate base growth. That contribution was partly offset by higher financing costs and stock-based compensation expense. → Microsoft Just Flipped the AI Spending Narrative Overnight UNS Energy also added C$0.02 per share, driven by higher retail electricity sales, including the effects of warmer weather. Perry said that benefit was moderated by the timing of operating costs and regulatory lag, as some rate base growth has not yet been reflected in customer rates. Fortis’ Western Canadian utilities added C$0.01 per share, largely because of capital investments. Central Hudson’s quarterly earnings were unchanged year over year, with rate base growth offset by the timing of quarterly revenue. Other electric operations were also comparable with the prior-year quarter, as segment earnings growth was offset by the impact of the FortisTCI disposition completed in the third quarter of 2025. → Carrier Earnings Could Send the Stock to a New All-Time High The corporate and other segment reflected unrealized foreign-exchange contract losses, higher financing costs and lower earnings following the sale of Fortis Belize in late 2025. Foreign exchange reduced quarterly earnings per share by C$0.01, while a higher weighted-average share count associated with the dividend reinvestment plan also reduced earnings per share by C$0.01. For the first six months of 2026, Fortis reported earnings of C$897 million, or C$1.76 per common share. Central Hudson contributed C$0.03 per share of year-to-date growth, while UNS was down C$0.03 per share for the six-month period, as higher retail sales were offset by lower wholesale-sales margins, operating-cost timing and regulatory lag. A major focus of the call was FortisBC’s Tilbury LNG expansion in British Columbia. The utility received an order-in-council from the provincial government supporting a larger Phase 1B expansion, allowing for approximately C$2 billion of regulated rate base investment. Fortis currently includes about C$350 million for the project in its existing five-year capital plan. Hutchens said the expansion could begin construction as early as mid-2027 and enter service as early as 2031, subject to remaining regulatory approvals and permits. Fortis plans to provide updated project cost estimates in its next five-year capital plan, scheduled for release alongside third-quarter results. Roger Dall’Antonia, president and CEO of FortisBC, said the Phase 1B project includes three principal components: A marine jetty; Expanded liquefaction capability; and A 230-kilovolt power line to supply electric-drive liquefaction equipment. The provincial order also permits FortisBC to implement an equity partnership with the Musqueam Indian Band. Dall’Antonia said the parties are finalizing agreements, though the band’s ownership percentage remains confidential. The order includes regulatory mechanisms intended to smooth cost recovery during the project’s early years. Fortis said the facility would support liquefied natural gas marine fueling and position the Port of Vancouver as an LNG fueling hub. The company said LNG sales associated with the existing Tilbury 1A facility have produced an approximately 1.5% rate benefit for FortisBC customers since 2024, and management expects the 1B expansion to build on that benefit. FortisBC is also progressing Tilbury 2, which includes a replacement storage tank and potential additional liquefaction capacity of up to 2.5 million tonnes per year. Dall’Antonia said the storage component is primarily intended to improve system resiliency, while a future liquefaction project would be designed to provide customer rate benefits. He said it was too early to quantify those potential benefits. The environmental assessment review period for Tilbury 2 is expected to conclude in the fourth quarter, followed by a provincial Cabinet review. Fortis outlined additional growth opportunities outside its current capital plan, including transmission projects at ITC and large-load development in Arizona. ITC expects US$3.3 billion to US$3.8 billion in investment beyond 2030 for awarded Midcontinent Independent System Operator long-range transmission projects that are not subject to competitive bidding. For an Iowa Tranche 2.1 project subject to competition, ITC has submitted bids for two opportunities, with awards expected in the fourth quarter. Krista Tanner, president and CEO of ITC Holdings, said the company has roughly 8 gigawatts of potential additional load in its queue, though not all of that pipeline is expected to materialize. She said ITC is directing prospective large-load customers toward locations requiring fewer grid upgrades because many customers seek service within two years or less. At Tucson Electric Power, Fortis is negotiating with a data-center customer for an additional 300 megawatts of capacity, which could support a potential 600-megawatt buildout at the first site. The utility is also discussing 500 to 700 megawatts of capacity at a second site. If those subsequent phases are finalized, Fortis estimates they could require US$1.5 billion to US$2 billion of new generation investment. Hutchens said Fortis and data-center developers are aligned on avoiding cost shifts to other customers, with large-load customers expected to cover the costs associated with serving them. Management said the scale of data-center demand can also help spread fixed system costs and provide rate benefits for other customers. UNS Energy President and CEO Susan Gray said TEP continues to see 8 to 10 gigawatts of data-center demand in its queue, alongside growth opportunities from mining, manufacturing and existing customers. Fortis’ utilities issued C$2.1 billion of long-term debt during the first half of 2026. Perry said the funding plan remains on track and is expected to rely primarily on cash from operations, utility debt and the company’s dividend reinvestment plan. In May, S&P confirmed Fortis’ A- issuer rating and BBB+ unsecured debt rating, both with stable outlooks. Fitch also affirmed its BBB+ issuer and unsecured debt ratings with stable outlooks. Management said the forthcoming five-year capital plan will also include a new funding plan. Perry said Fortis will assess all available funding options as it considers the timing and scale of Tilbury investments while seeking to maintain its credit metrics. In Arizona, hearings have concluded in TEP’s general rate case. The administrative law judge extended the schedule, with a final decision now expected by Nov. 17. Gray said TEP expects a recommended opinion and order soon, followed by a potential decision in November and implementation in December. Fortis Inc is a Canadian diversified electric and gas utility holding company headquartered in St. John's, Newfoundland and Labrador. Through a portfolio of regulated utility subsidiaries, the company develops, owns and operates electricity and natural gas transmission, distribution and generation assets. Fortis serves customers across multiple jurisdictions in Canada, the United States and the Caribbean, focusing on the delivery of safe, reliable energy to residential, commercial and industrial users. The company's core activities include operation and maintenance of transmission and distribution networks, ownership of generation facilities, and investment in grid modernization and system resilience. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Fortis Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Fortis (FTS) came out with quarterly earnings of $0.56 per share, beating the Zacks Consensus Estimate of $0.55 per share. This compares to earnings of $0.55 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.82%. A quarter ago, it was expected that this electric and gas utility would post earnings of $0.7 per share when it actually produced earnings of $0.72, delivering a surprise of +2.86%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Fortis, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $2.12 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.62%. This compares to year-ago revenues of $2.03 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Fortis shares have added about 10.7% since the beginning of the year versus the S&P 500's gain of 8.7%. While Fortis has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Fortis was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.64 on $2.12 billion in revenues for the coming quarter and $2.58 on $9.39 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. PPL (PPL), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 7. This energy and utility holding company is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of +9.4%. The consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level. PPL's revenues are expected to be $2.18 billion, up 7.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fortis (FTS) : Free Stock Analysis Report PPL Corporation (PPL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Net Earnings (Q2): $396 million, or $0.78 per common share, an increase of $0.02 compared to the second quarter of last year. Year-to-Date Earnings: $897 million, or $1.76 per common share. Capital Investment (H1): $2.7 billion invested in systems through June. 2026 Capital Plan: On pace to invest $5.6 billion for the full year. EPS Drivers (Q2): ITC increased EPS by $0.02; UNS contributed a $0.02 increase; Western Canadian utilities increased EPS by $0.01. EPS Headwinds (Q2): Foreign exchange had a $0.01 unfavorable impact; higher weighted average shares impacted EPS by $0.01. Year-to-Date EPS Drivers: Central Hudson was up $0.03; UNS EPS was down $0.03. Long-Term Debt Issued (H1): $2.1 billion issued by utilities. Rate Base Growth Outlook: Average annual rate base growth of 7% expected through 2030. Dividend Growth Guidance: 4% to 6% annual dividend growth guidance maintained through 2030. Warning! GuruFocus has detected 12 Warning Signs with FTS. Is FTS fairly valued? Test your thesis with our free DCF calculator. Release Date: July 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Fortis Inc (NYSE: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 (NYSE: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 (NYSE: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 (NYSE:FTS) achieved a 38% reduction in Scope 1 greenhouse gas emissions through 2025 compared to 2019 levels, highlighting progress on sustainability goals. Fortis Inc (NYSE: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. Q: Can you unpack the next steps for Tilbury 1B and provide an update on the bigger Tilbury Phase 2, including potential rate benefits?A: Roger Dall'Antonia (CEO, FortisBC) detailed that Tilbury 1B includes a marine jetty, liquefaction expansion, and a 230 kV power line. The next steps involve addressing conditions from the 2024 environmental assessment certificate and finalizing an equity partnership agreement with the Musqueam Indian Band. Construction could start in 2027. For Tilbury 2, the storage tank replacement is primarily for resiliency and gas supply management, while the larger 2.5 million tonnes per annum liquefaction expansion is further out and would be designed with a rate benefit, though it's too early to quantify. Q: Have you witnessed any change in how data center customers approach negotiations at TEP, given the selective opposition in the US?A: David Hutchens (President and CEO) acknowledged pushback but emphasized the positive story of rate benefits for other customers, as seen with Project Blue. He stated that utilities, data center developers, and all levels of government are aligned on ensuring data centers cover their own costs and provide a rate benefit to other customers by sharing system fixed costs. The challenge is getting this message heard. Q: Is there potential to look beyond the five-year capital plan to a longer horizon, given the visible backlog from Tilbury and ITC transmission?A: David Hutchens (President and CEO) explained that while they plan for longer-term items like integrated resource plans, providing a capital plan beyond five years would be difficult due to wide forecast error bars. He noted they prefer to provide color on opportunities above and beyond the plan, breaking them into those that could be added to the existing plan and those that extend growth beyond it. Q: Can you quantify the impact of the Tilbury expansion on the balance sheet, and will it affect the funding plan?A: Jocelyn Perry (CFO) stated that Tilbury will be included in the full review of the five-year plan. The company will need to firm up the timing of investments and will look at all funding options available to keep credit metrics in check, with a deeper dive planned for the fall. Q: Can you indicate the profile of CapEx for the Tilbury projectwill material amounts be spent before 2030 or mostly in the early 2030s?A: David Hutchens (President and CEO) said the shape of CapEx hasn't been finalized yet, but large projects typically start slowly and ramp up. With the project potentially in service as early as 2031, they will also receive AFUDC on the capital spent. The shape of capital matters, not just the overall size, and more details will be provided later. Q: What is your updated view on ITC's conversations with local distribution companies regarding accelerating investments for large loads?A: Krista Tanner (CEO, FortisAlberta) stated they remain optimistic and are working hand-in-hand with customers like CMS, DTE, and Alliant. They are sticking to the approximately 8 gigawatts of additional load in their queue. Due to speed-to-power demands, they are directing customers to locations requiring fewer upgrades, which still provides rate relief benefits. Q: How are you feeling about the TEP rate case coming out of the hearings, and what is the expected timeline?A: Susan Gray (CEO, UNS Energy) said they are optimistic and close to alignment with ACC staff on many issues. TEP has adjusted its requested ROE to 9.75%, resulting in a 10.2% increase request. They expect the judge's recommended opinion and order soon, with a final decision in November and an implementation date in December, wrapping up by year-end. Q: Can you talk about the data center pipeline in Arizona beyond Project Blue and the $1.5-2 billion opportunity?A: Susan Gray (CEO, UNS Energy) noted they still have 8 to 10 gigawatts of data center pipeline in their queue. Beyond data centers, they also see growth from the Hermosa mine, Copper World (likely in the latter part of the five-year plan), and other manufacturing and existing customer growth, indicating a wide variety of opportunities in Tucson. Q: Did the recent primary election outcome in Arizona surprise you, and will it impact your regulatory strategy?A: David Hutchens (President and CEO) said the primary result wasn't a surprise given three candidates for two seats. He emphasized that the company does not change its regulatory strategy based on elections. They will work with the regulators in place and continue to push for solid policy that supports customers, regardless of election outcomes. Q: What range of outcomes can we expect from the upcoming IRP filing in Arizona, and how does it affect the opportunity set?A: David Hutchens (President and CEO) explained that the IRP will run various scenarios and pick a recommended portfolio for filing. The filing will show the investments needed and in which years, providing data for analysts to estimate requirements. The scenarios will be released, offering a high-level view of net present value revenue requirements for the portfolios. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

American Electric Power (AEP) came out with quarterly earnings of $1.36 per share, missing the Zacks Consensus Estimate of $1.49 per share. This compares to earnings of $1.43 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -8.73%. A quarter ago, it was expected that this utility would post earnings of $1.55 per share when it actually produced earnings of $1.64, delivering a surprise of +5.81%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. AEP, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $5.45 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.48%. This compares to year-ago revenues of $5.09 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. AEP shares have added about 12.2% since the beginning of the year versus the S&P 500's gain of 6.9%. While AEP has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for AEP was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.98 on $6.33 billion in revenues for the coming quarter and $6.35 on $23.35 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Fortis (FTS), is yet to report results for the quarter ended June 2026. The results are expected to be released on July 31. This electric and gas utility is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level. Fortis' revenues are expected to be $2.02 billion, down 0.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report Fortis (FTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ST. JOHN'S, Newfoundland and Labrador, July 23, 2026 (GLOBE NEWSWIRE) -- Fortis Inc. ("Fortis" or the "Corporation") (TSX/NYSE: FTS) will release its second quarter 2026 financial results on Friday, July 31, 2026. A teleconference and webcast will be held the same day at 8:30 a.m. (Eastern). David Hutchens, President and Chief Executive Officer and Jocelyn Perry, Executive Vice President and Chief Financial Officer will discuss the Corporation's second quarter financial results. Shareholders, analysts, members of the media and other interested parties are invited to listen to the teleconference via the live webcast on the Corporation's website, www.fortisinc.com/investors/events-and-presentations. Those members of the financial community in Canada and the United States wishing to ask questions during the call are invited to participate toll free by calling 1.833.821.0229. Individuals in other international locations can participate by calling 1.647.846.2371. Please dial in 10 minutes prior to the start of the call. No access code is required. Alternatively, individuals may pre-register for the call via the Corporation’s website, www.fortisinc.com/investors/events-and-presentations. Upon registering, individuals will receive a calendar invite by email with dial in details and a unique access code enabling them to bypass the teleconference operator queue. Registration will remain open until the end of the teleconference. A live and archived audio webcast of the teleconference will be available on the Corporation's website, www.fortisinc.com. A replay of the teleconference will be available two hours after the conclusion of the call until August 31, 2026. Please call 1.855.669.9658 or 1.412.317.0088 and enter access code 3388126#. About FortisFortis is a diversified leader in the North American regulated electric and gas utility industry with 2025 revenue of $12 billion and total assets of $77 billion as at March 31, 2026. The Corporation's 9,900 employees serve utility customers in five Canadian provinces, ten U.S. states and the Cayman Islands. Fortis shares are listed on the TSX and NYSE and trade under the symbol FTS. Additional information can be accessed at www.fortisinc.com, www.sedarplus.ca, or www.sec.gov. A .pdf version of this press release is available at: http://ml.globenewswire.com/Resource/Download/6d6e54d2-0567-4de8-a142-bb3bf6f58cba For further information contact

ST. JOHN'S, Newfoundland and Labrador, July 02, 2026 (GLOBE NEWSWIRE) -- Fortis Inc. ("Fortis" or the "Corporation") (TSX/NYSE: FTS) will release its second quarter 2026 financial results on Friday, July 31, 2026. A teleconference and webcast will be held the same day at 8:30 a.m. (Eastern). David Hutchens, President and Chief Executive Officer and Jocelyn Perry, Executive Vice President and Chief Financial Officer will discuss the Corporation's second quarter financial results. Shareholders, analysts, members of the media and other interested parties are invited to listen to the teleconference via the live webcast on the Corporation's website, www.fortisinc.com/investors/events-and-presentations. Those members of the financial community in Canada and the United States wishing to ask questions during the call are invited to participate toll free by calling 1.833.821.0229. Individuals in other international locations can participate by calling 1.647.846.2371. Please dial in 10 minutes prior to the start of the call. No access code is required. Alternatively, individuals may pre-register for the call via the Corporation's website, www.fortisinc.com/investors/events-and-presentations. Upon registering, individuals will receive a calendar invite by email with dial in details and a unique access code enabling them to bypass the teleconference operator queue. Registration will remain open until the end of the teleconference. A live and archived audio webcast of the teleconference will be available on the Corporation's website, www.fortisinc.com. A replay of the teleconference will be available two hours after the conclusion of the call until August 31, 2026. Please call 1.855.669.9658 or 1.412.317.0088 and enter access code 3388126#. About FortisFortis is a diversified leader in the North American regulated electric and gas utility industry with 2025 revenue of $12 billion and total assets of $77 billion as at March 31, 2026. The Corporation's 9,900 employees serve utility customers in five Canadian provinces, ten U.S. states and the Cayman Islands. Fortis shares are listed on the TSX and NYSE and trade under the symbol FTS. Additional information can be accessed at www.fortisinc.com, www.sedarplus.ca, or www.sec.gov. A .pdf version of this press release is available at: http://ml.globenewswire.com/Resource/Download/21d6dde6-6707-41c7-b2a4-6a0221da7681 For further information contact