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Jun 30
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Fortis Q2 2025 Earnings Report
Fortis reported strong earnings growth in Q2 2025 driven by rate base growth and favorable currency exchange rates.
Key Takeaways
Fortis Inc. delivered robust results in Q2 2025, with significant growth in earnings driven by rate base expansions and strategic capital projects, offset partially by higher operating costs and finance expenses.
Net earnings increased to $384 million, up from $331 million in Q2 2024.
Capital expenditures remained strong at $2.9 billion in the first half of 2025, aligning with the $5.2 billion annual plan.
TEP progressed on significant load growth opportunities, including an agreement for a 300 MW data center.
Fitch Ratings assigned Fortis a first-time BBB+ rating, indicating a stable financial outlook.
Fortis
Fortis
Forward Guidance
Fortis remains optimistic, projecting steady growth through significant capital investments and regulatory developments, with manageable risks from macroeconomic factors.
Positive Outlook
- Annual capital plan of $5.2 billion progressing as planned.
- Projected midyear rate base growth from $39 billion to $53 billion by 2029.
- Dividend growth guidance maintained at 4-6% annually through 2029.
- Significant load growth potential through major projects like the Tucson Electric Power data center.
- Continued investment in renewable and clean energy projects, including battery storage and natural gas conversions.
Challenges Ahead
- Potential challenges in meeting interim GHG reduction targets due to load growth and policy factors.
- Exposure to fluctuations in foreign exchange rates impacting capital expenditures.
- Higher holding company finance costs affecting profitability.
- Regulatory uncertainties and risks around approval timelines for new rates.
- Possible impacts from macroeconomic conditions, including commodity prices and supply chain disruptions.