Q2 FY2026
Filed Jul 31, 2026Fortis reports second-quarter net earnings of $396 million and $0.78 per common share, while maintaining its $5.6 billion annual capital plan.
Second-quarter Net Earnings increased to $396 million from $384 million and earnings per common share increased to $0.78 from $0.76, supported by Rate Base growth and higher retail electricity sales at UNS Energy. Growth was partially offset by regulatory timing, operating-cost timing, higher holding-company finance costs, dispositions and foreign exchange.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net Earnings attributable to common equity shareholdersother | $396 million | – | – |
| Net Earnings attributable to common equity shareholders, year-to-dateother | $897 million | – | an increase of $14 million |
| Earnings per common shareother | $0.78 per common share | – | $0.02 per common share |
| Earnings per common share, six-month periodother | $1.76 | – | consistent with the same period in 2025 |
| Capital Expendituresnon-GAAP | $1,364 million | – | ($71 million) |
| Capital Expenditures, year-to-datenon-GAAP | $2,726 million | – | ($129 million) |
| Additions to property, plant and equipmentother | $1,601 million | – | $122 million |
| Additions to property, plant and equipment, year-to-dateother | $3,104 million | – | $142 million |
| Additions to intangible assetsother | $63 million | – | ($2 million) |
| Additions to intangible assets, year-to-dateother | $108 million | – | ($17 million) |
| Adjusting item: Eagle Mountain Pipeline Projectnon-GAAP | ($300 million) | – | ($191 million) |
| Adjusting item: Eagle Mountain Pipeline Project, year-to-datenon-GAAP | ($486 million) | – | ($254 million) |
| Total assetsother | $79 billion | – | – |
| 2025 revenueother | $12 billion | – | – |
2026-2030 outlook
- Note$5.6 billion annual capital plan
- Note$28.8 billion five-year capital plan
- Notemidyear rate base from $42.4 billion in 2025 to $57.9 billion by 2030
- Notefive-year compound annual growth rate of 7%
- Notedividend growth guidance of 4-6% annually through 2030
- NoteThe Corporation's current five-year plan includes approximately $350 million of investment for Tilbury 1B.
What drove it
- Rate Base growth across utilities contributed to second-quarter earnings growth.
- Higher retail electricity sales at UNS Energy contributed to second-quarter earnings growth.
- The Roadrunner Reserve II battery storage project was placed in service at TEP in June 2026.
- The 200 megawatt battery energy storage system has the capability to store 800 MW hours of energy.
- The Province of British Columbia approved the Phase 1B expansion of FortisBC Energy's Tilbury LNG Facility through an Order In Council issued on July 24, 2026.
- The Tilbury Phase 1B Order In Council includes a cost allowance of up to $2.2 billion and approves inclusion of the Tilbury Marine Jetty in the regulated utility.
Concerns
- Higher costs associated with Rate Base growth were not yet reflected in customer rates.
- The timing of operating costs at UNS Energy partially offset second-quarter earnings growth.
- A shift in quarterly revenue at Central Hudson and higher holding company finance costs partially offset earnings growth.
- The dispositions of the Corporation's businesses in Turks and Caicos and Belize in 2025, and the impact of foreign exchange, moderated earnings growth.
- Year-to-date earnings were partially offset by lower margin on wholesale sales at UNS Energy.
- The Tilbury 1B project remains subject to certain regulatory approvals and permitting requirements before construction can begin.
What to watch
- FortisBC Energy's refinement of Tilbury 1B project cost estimates and potential inclusion in Fortis' next five-year capital plan.
- The project could begin construction as early as mid-2027 and could be in-service as early as 2031.
- Execution of the $5.6 billion annual capital plan, which Fortis stated is on track.
- Rate Base progression under the $28.8 billion five-year capital plan.
- The expected $0.05 dilutive impact from the 2025 dispositions for the annual period.
- Operating-cost timing at UNS Energy and Central Hudson, wholesale sales margin at UNS Energy, and holding-company finance costs.
Balance sheet and cash flow
- Total assets of $79 billion as at June 30, 2026.
- Capital expenditures of $2.7 billion in the first half of 2026.
- The Corporation stated that the increase in weighted average number of common shares outstanding was largely associated with its dividend reinvestment plan.
Analysis
Fortis reported second-quarter Net Earnings of $396 million, compared with $384 million for the second quarter of 2025. Earnings per common share increased to $0.78 from $0.76. The company attributed growth to Rate Base expansion across its utilities and higher retail electricity sales at UNS Energy. For the six-month period, Net Earnings were $897 million, an increase of $14 million compared to the first half of 2025, while earnings per common share of $1.76 was consistent with the same period in 2025.
The earnings profile reflects regulated utility investment and customer-sales growth, but the release identifies several offsets. Costs associated with Rate Base growth had not yet been reflected in customer rates, and UNS Energy experienced timing of operating costs. Central Hudson had a shift in quarterly revenue, while higher holding-company finance costs also weighed on the result. Year-to-date earnings additionally faced lower margin on wholesale sales at UNS Energy. The 2025 dispositions in Turks and Caicos and Belize and foreign exchange moderated growth, with the dispositions expected to have a $0.05 dilutive impact for the annual period.
Capital execution remains central to the release. Fortis reported $2.7 billion of capital expenditures during the first half of 2026 and said its $5.6 billion annual capital plan is on track. The Roadrunner Reserve II battery project entered service at TEP in June 2026. The Tilbury Phase 1B expansion received provincial approval, with the Order In Council carrying a cost allowance of up to $2.2 billion. Fortis' current five-year plan includes approximately $350 million for Tilbury 1B, while further cost development is expected to inform the next five-year plan.
The outlook continues to center on a $28.8 billion five-year capital plan. Fortis expects midyear rate base to rise from $42.4 billion in 2025 to $57.9 billion by 2030, representing a five-year compound annual growth rate of 7%. The company expects long-term rate-base growth to support dividend growth of 4-6% annually through 2030. Key execution items are regulatory and permitting progress for Tilbury 1B, the treatment of investment-related costs in customer rates, and the operating-cost and revenue timing factors identified at UNS Energy and Central Hudson.
Management, verbatim
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.
David Hutchens, President and Chief Executive Officer
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.
David Hutchens, President and Chief Executive Officer
Not in the filing
stated, not guessed- Q2 2026 total revenue
- Q2 2026 gross profit and gross margin
- Q2 2026 operating income and operating margin
- Q2 2026 income tax expense and tax rate
- Q2 2026 cash flow from operating activities
- Q2 2026 free cash flow
- Cash balance as at June 30, 2026
- Debt balance as at June 30, 2026
- Q2 2026 dividend amount
- Q2 2026 share repurchases
- Q2 2026 segment revenue
- GAAP and non-GAAP reconciliations for Net Earnings and earnings per common share
- Prior-quarter comparisons for reported financial metrics
- Prior outlook section for guidance comparison
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.