11:58 AM EST, 02/14/2025 (MT Newswires) -- (Adds comment and updates shares.)

Fortis ( FTS ) on Friday reported a rise in its fourth-quarter adjusted earnings.

The utility holding company reported its adjusted profit, excluding most one-time items, rose to $416 million, or $0.83 per share, up from $350 million, or $0.72, in the year-prior quarter. The FactSet consensus estimate for the measure was $0.58 per share.

The company posted capital expenditures of $5.2 billion for 2024. Growth in capital was due to investments associated with the Eagle Mountain pipeline project at FortisBC Energy, transmission reliability projects and construction of the Roadrunner Reserve battery storage projects.

Capital expenditures increased the midyear rate base to $39.0 billion, representing 6% growth year over year.

Fortis ( FTS ) also boosted its fourth-quarter dividend by 4.2%.

Fortis' ( FTS ) 2025-2029 capital plan of $26 billion is $1 billion higher than the previous five-year plan. The increase is driven by projects associated with the Midcontinent ISO long-range transmission plan and distribution investments due to customer growth at FortisAlberta, among others.

The five-year capital plan is expected to increase midyear rate base from $39 billion in 2024 to $53 billion by 2029, translating into a five-year compound annual growth rate of 6.5%.

National Bank of Canada reiterated its sector-perform rating and $64.00 price target on Fortis ( FTS ) shares after the earnings update.

National Bank expects its estimates for the company to remain intact due to the in-line results and unchanged capital budget for 2025-2029.

Fortis ( FTS ) shares were last seen up $1.36 to $62.25 on the Toronto Stock Exchange.

Price: 64.21, Change: +1.32, Percent Change: +2.10