Fortis Posts C$474 Million in Third-Quarter Profit and Sets Record C$32.2 Billion Capital Plan
Key Facts
Fortis reported net earnings attributable to common shareholders of C$474 million, or C$0.92 per share, for the third quarter on November 3, 2026, alongside a C$32.2 billion capital plan for 2027–2031. CEO David Hutchens said the plan is the largest in the company’s history and reflects the investments needed to provide “safe, reliable and resilient energy service.” Net earnings rose C$65 million, and earnings per share increased C$0.11 compared with the third quarter of 2025. Adjusted net earnings were C$474 million, or C$0.92 per share, compared with C$441 million and C$0.87 per share in the year-earlier period. The quarterly results and new plan put growth in the company’s regulated utilities at the forefront of its investment priorities for the coming years.
Fortis said earnings growth was driven primarily by rate base growth across its utilities, with a contribution from higher earnings at UNS Energy due to growth in retail electricity sales and the timing of operating costs. Costs associated with rate base growth that had not yet been reflected in customer rates offset part of the increase. The year-over-year comparison included the impact of FortisTCI’s sale in September 2025; the disposition resulted in C$32 million in taxes and closing costs, or C$0.06 per share, in the 2025 quarter. Excluding this impact, earnings rose C$33 million in the third quarter of 2026. The company also said financial information is presented in Canadian dollars unless otherwise noted, while some investments are presented in U.S. dollars.
Fortis expects capital spending of about C$6.0 billion in 2026, up from a previous estimate of C$5.6 billion, citing the acceleration of MISO transmission projects and the Tilbury Phase 1B project. Under the new plan, the company expects its midyear rate base to rise from C$45.3 billion in 2026 to C$55.8 billion in 2029, then to C$63.9 billion in 2031. These estimates represent compound annual growth of 7.7% over three years and 7.5% over five years. The higher spending is tied to FERC-regulated transmission investments at ITC, within its MISO LRTP tranche 2.1 project portfolio. The portfolio includes a competitive transmission project in Iowa awarded to ITC in October 2026.
In addition to projects included in the plan, ITC estimated C$2.9 billion to C$3.4 billion in additional capital spending for MISO LRTP tranche 2.1 projects in Michigan and Minnesota, as well as system upgrade projects in Iowa. The company counts these estimates among investment opportunities beyond its announced five-year plan. In gas, the Tilbury Phase 2 LNG Expansion in British Columbia received environmental assessment certificates from the province and the Canadian government in September 2026. The project could provide capacity of up to 2.5 million tonnes a year. The expansion was not included in the plan, and the associated potential investment opportunity is C$2 billion to C$4 billion, most of which is expected after 2031.
Fortis said it will fund the plan primarily with cash generated from operations and debt at its regulated utilities, with equity needs largely supported through its dividend reinvestment program. In the third quarter, the company issued US$1.0 billion in subordinated notes and about C$260 million in common shares through its “ATM” program. It plans to file a new short-form base shelf prospectus and renew the program in early 2027 to provide financing flexibility. In a separate regulatory matter, an administrative law judge at the Arizona Corporation Commission recommended an allowed return on equity of 9.65% and an equity ratio of 55.5% for TEP’s rate case. The case is still awaiting commission approval, expected later in November, while the decision proposes that new rates take effect on December 1, 2026.