Overview

* Fortis ( FTS ) Q2 net earnings rise to C$384 mln, driven by rate base growth

* Capital expenditures reach C$2.9 bln in H1, supporting C$5.2 bln annual plan

* Co reports 34% reduction in GHG emissions compared to 2019 levels

Outlook

* Fortis ( FTS ) expects midyear rate base to grow from C$39 bln in 2024 to C$53 bln by 2029

* Company anticipates 4-6% annual dividend growth through 2029

* Fortis ( FTS ) does not foresee material financial impact from tariffs in 2025

* Company plans expansion in cleaner energy infrastructure and grid resiliency

Result Drivers

* RATE BASE GROWTH - Driven by investments in Eagle Mountain Pipeline and revenue reset at Central Hudson

* CURRENCY IMPACT - Favorable U.S. dollar-to-Canadian dollar exchange rate boosted earnings

* OPERATING COSTS - Increased costs and lower allowed ROE at FortisAlberta partially offset earnings growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS C$0.76

Q2 Net C$384

Earnings mln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 10 "hold" and 4 "sell" or "strong sell"

* The average consensus recommendation for the electric utilities peer group is "buy."

* Wall Street's median 12-month price target for Fortis Inc ( FTS ) is C$70.00, about 3.1% above its July 31 closing price of C$67.80

* The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)