Fortis Inc (FTS) Q4 2025 Earnings Call Highlights: Strong Growth and Strategic Investments …

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Fri, February 13, 2026 at 6:07 AM GMT+9 3 min read

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This article first appeared on GuruFocus.

**Capital Investments:** $5.6 billion invested in 2025.

**Rate Base Growth:** Expected increase of $16 billion over the next five years, supporting 7% average annual growth.

**Dividend Growth:** Increased dividends paid per common share by 4% in 2025, marking 52 consecutive years of increases.

**Total Shareholder Return:** Nearly 24% one-year total shareholder return in 2025.

**Reported EPS:** $3.40, $0.16 higher than 2024.

**Adjusted EPS:** $3.53, $0.25 higher than 2024.

**Fourth Quarter EPS:** Reported EPS of $0.83, $0.04 higher than the previous year.

**Liquidity Position:** Nearly $4 billion available on credit facilities at the end of 2025.

**Long-term Debt Issued:** $2.7 billion in 2025.

**Credit Ratings:** S&P confirmed A- issuer and BBB+ senior unsecured debt ratings, outlook revised to stable.

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Release Date: February 12, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Fortis Inc (NYSE:FTS) reported strong earnings growth in 2025, with an EPS increase of $0.16 compared to 2024.

The company invested $5.6 billion in capital, enhancing system resilience and supporting long-term customer needs.

Fortis Inc (NYSE:FTS) achieved a 52-year track record of consecutive dividend increases, with a 4% increase in 2025.

The company released a climate resiliency report, showcasing its commitment to addressing climate risks.

Fortis Inc (NYSE:FTS) maintained a strong liquidity position with nearly $4 billion available on credit facilities at the end of 2025.

Negative Points

The company faced cost and supply chain pressures, although it managed to keep controllable operating costs at or below inflation.

Lower earnings were reported at UNS Energy due to regulatory lag and milder weather conditions.

Higher holding company finance costs impacted quarterly results.

Fortis Inc (NYSE:FTS) experienced losses associated with the disposition of investments in Belize and Turks and Caicos.

The company is facing regulatory challenges in Arizona, with ongoing rate case proceedings and potential objections to formula rate mechanisms.

Q & A Highlights

Q: Can you discuss the energy supply agreement for data centers in Arizona and why it works there compared to other markets? A: David Hutchens, President and CEO, explained that the agreement is beneficial because it uses existing capacity without requiring new investments, thus spreading fixed costs over a larger base. The 75% minimum billing requirement ensures revenue stability, making it a model for affordability and customer benefit.

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Q: What are the next steps for the additional 300 megawatts at the Arizona data center site? A: David Hutchens noted that additional capacity will be needed, and negotiations are ongoing to finalize contractual details that protect both the company and customers.

Q: Are there any updates from FERC, especially with the new chair, regarding ongoing matters? A: David Hutchens and Krista Tanner, a company representative, mentioned that while there is chatter, no specific updates have been received. However, the new chair is focused on resolving longstanding issues and ensuring decisions have staying power.

Q: Can you provide insights into the ALJ decision on the formula mechanisms in Arizona? A: Susan Gray, CEO of UNS Energy Corp, highlighted that while there are some agreeable aspects, they are seeking changes to post-test year plant recovery and ROE adjustments. They are optimistic about discussions with the commission to align with staff recommendations.

Q: What is the status of LNG projects in British Columbia? A: David Hutchens stated that while they received approval for the LNG tank expansion, there are no new announcements. However, there is a focus on large projects that could present investment opportunities.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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