Fortis beats Q4 earnings expectations on strong regulated utility growth

Investing.com -- Fortis Inc. (NYSE: FTS), a diversified North American regulated utility company, reported fourth quarter adjusted earnings per share of $0.90, significantly exceeding analyst expectations of $0.61, driven by rate base growth across its utilities.

The company posted annual net earnings of $1.7 billion, or $3.40 per common share for 2025, with adjusted net earnings per share of $3.53, up from $3.28 in 2024. Fourth quarter net earnings reached $422 million, or $0.83 per share, compared to $396 million, or $0.79 per share, in the same period last year.

"2025 was another year of strong financial and operational performance for Fortis, reflecting the dedication of our people, the growth of our regulated utilities, and our commitment to long-term value creation," said David Hutchens, President and Chief Executive Officer of Fortis Inc.

Capital expenditures for 2025 totaled $5.6 billion, yielding 7% annual rate base growth. The company recently announced its largest five-year capital plan of $28.8 billion, which is expected to drive long-term rate base growth of 7% through 2030 and support annual dividend growth of 4-6% during the same period.

The increase in earnings was primarily attributed to rate base growth across utilities, including growth from major capital projects. Additional positive factors included the rebasing of costs at Central Hudson effective July 2024, unrealized gains on derivative contracts, and favorable foreign exchange impacts.

These gains were partially offset by higher costs at UNS Energy associated with rate base growth not yet reflected in customer rates, lower retail electricity sales due to milder weather, and lower margins on wholesale electricity sales.

Fortis also announced a 4.1% increase in its fourth quarter common share dividend.

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