FTS Q2 FY2026 earnings call — BigGo Finance
Fortis Inc. (FTS) reported Q2 2026 net earnings of CAD 396 million, or CAD 0.78 per share, and H1 EPS of CAD 1.76. It invested CAD 2.7 billion toward a CAD 5.6 billion 2026 capital plan and reaffirmed 7% average annual rate base growth through 2030 and 4%-6% dividend growth. British Columbia approved FortisBC Tilbury LNG Phase 1B for about CAD 2 billion rate base investment; construction could start mid-2027.
How this was made
The 30-second read
Why it matters
The most actionable new item is the British Columbia government order-in-council approving FortisBC’s Tilbury LNG Phase 1B expansion, enabling about CAD 2 billion in regulated rate base investment with construction starting as early as mid-2027 and in-service by 2031. The call also reiterates the 7% average annual rate base growth target through 2030 and 4%-6% dividend growth guidance, while pointing to upcoming catalysts including the Nov 17 TEP decision and Q3 release of the updated five-year capital plan.
Market read
Traders can update expectations for Fortis’s regulated growth runway based on the Tilbury LNG Phase 1B approval and the stated capex and timing, while monitoring the next major regulatory decision (Nov 17) and the Q3 capital plan update.
What to watch
The article flags regulatory lag at UNS and unrealized FX losses on corporate contracts, which could dominate quarterly earnings volatility even if the long-term capex plan is intact.
Background
Fortis Inc. held its Q2 FY2026 earnings call, covering earnings, capital investment progress, regulated growth targets, and updates across ITC, UNS Energy, Western Canadian utilities, and TEP.
Ticker impact
Fortis reported Q2 FY2026 results and reaffirmed its 7% rate base growth target, while detailing Tilbury LNG Phase 1B OIC approval and timing.
Near-term sentiment should skew positive on the fresh regulatory approval and clearer capex path, with follow-through tied to the Nov 17 TEP decision and Q3 capital plan.
The article discloses a specific new regulatory milestone (Tilbury LNG Phase 1B order-in-council) plus concrete capex and timing, which can re-rate regulated growth expectations. Offsets mentioned (FX losses, finance costs, regulatory lag) may limit upside, but the guidance reaffirmation supports the base case.
Market effects
Reinforces regulated utility and infrastructure capex narratives in North American energy, especially LNG and transmission growth pipelines.
Supports Canadian regulated utility growth expectations, with British Columbia LNG infrastructure moving toward construction.
Limited direct global impact, but LNG infrastructure and grid investment themes can influence broader energy-infrastructure sentiment.
Counterpoint
Tilbury LNG Phase 1B is still a multi-year execution story, so near-term valuation may be more sensitive to credit metrics and regulatory timing than to the approval itself.
Key entities
- companyFortis Inc.
Subject of the earnings call, providing Q2 FY2026 results, reaffirmed growth/dividend guidance, and project/regulatory updates.
- projectFortisBC Tilbury LNG Phase 1B
Order-in-council approved expansion with marine jetty, liquefaction expansion, and a 230 kV power line; CAD 2 billion regulated rate base investment.
- regulatory eventTEP rate case decision
Final decision expected by Nov 17, with implementation in December.
