# FTS earnings call intelligence LOPJLB CallCard / temporal rollup · freemium · [stock page](https://www.lopjlb.com/stock/FTS) · [Earnings tab](https://www.lopjlb.com/stock/FTS?tab=earnings) Updated: 2026-08-01T07:33:31 Quarters analyzed: 8 ## Cross-quarter narrative Across eight earnings calls from Q1 2024 to Q4 2026 Fortis consistently reinforced its 4‑6% dividend growth target while expanding its capital program. The five‑year plan grew from $25 bn to $28.8 bn and annual capex rose from $1.1 bn to $5.6 bn, with management repeatedly confirming execution on schedule. Rate‑base growth guidance nudged upward from a 6.3% to a 6.5% CAGR, reflecting confidence in regulated growth. Arizona data‑center demand evolved from “limited visibility” in Q3 2024 to “strong visibility” and concrete 300 MW supply agreements by Q4 2026, though regulatory lag now tempers that optimism. MISO transmission projects progressed from early advancement to at‑risk tranche 2.1 approvals, yet new ITC tranche 2.1 investments signal continued focus. Regulatory uncertainty emerged as a recurring theme, initially noted as a general risk and later specified around Arizona tariffs, UNS Gas and Tilbury LNG approvals. New concerns in 2026‑Q4 include customer affordability, supply‑chain cost pressure, weather‑related earnings impacts and climate‑resilience initiatives. Overall, capital execution and dividend policy remain stable‑to‑improving, while regulatory and external risks have become more pronounced. ## Latest CallCard · Q4 Fortis reported strong 2025 earnings, $5.6 bn capital spend and reaffirmed 4‑6% dividend growth guidance, while highlighting regulatory uncertainty in Arizona, UNS Gas and Tilbury LNG projects. **Guidance:** maintained — Management reaffirmed its 4%‑6% annual dividend growth guidance through 2030. **Tone:** mgmt 0.7 · Q&A pressure 0.5 · divergence 0.2 Prepared remarks highlighted strong earnings, capital investments and dividend growth, describing 2025 as a strong chapter and emphasizing execution of a $28.8 billion capital plan. ### Demand visibility Strong demand from Arizona data center projects and ongoing IRP workshops. 300 MW supply agreement approved for a Tucson data center with ramp‑up 2027‑2029, plus negotiations for an additional 300 MW and a second 500‑700 MW site; early‑stage IRP stakeholder process underway. ### Margins / costs Operating costs kept at or below inflation despite supply‑chain pressures. Cost‑saving initiatives such as grid‑enhancing technology and AI‑driven vegetation management are reducing controllable costs while improving reliability. ### Capital allocation Focus on regulated transmission and distribution investments under a $28.8 billion 5‑year plan. 2025 capital spend was $5.6 billion; the plan targets a $16 billion rate‑base increase and limits major projects to 21% of total spend, emphasizing low‑risk execution. ### Milestones - **2025 capital investment** [delivered]: Invested $5.6 billion in capital assets, strengthening systems and resilience. - **$28.8 billion 5‑year capital plan** [on_track]: Rolled out in Q4 2025, targeting 7% rate‑base growth and 4‑6% dividend growth. - **ITC Tranche 2.1 investments** [new]: USD 3.3‑3.8 billion for Michigan, Minnesota and Iowa projects, expected post‑2030. - **Arizona 300 MW data center supply agreement** [on_track]: Commission approved full tariff rates; ramp‑up 2027‑2029. - **Additional 300 MW Arizona phase** [at_risk]: Negotiations ongoing; contingent on land lease and financing. - **Second Arizona site 500‑700 MW** [on_track]: More than 600 acres rezoned in Morana, progressing toward development. - **Tilbury LNG storage expansion** [at_risk]: BCUC approval obtained; $300 million incremental capital pending environmental assessment. - **UNS Gas rate case** [at_risk]: Regulatory filing submitted; ACC order expected first quarter, introduces uncertainty. ### Fears / risks - **Regulatory uncertainty**: Pending ACC decisions on UNS Gas and TEP rate cases could affect earnings and rate base growth. - **Affordability pressure**: Analysts highlighted customer affordability concerns, especially in Arizona data center tariffs. - **Supply chain cost pressures**: Management noted cost and supply chain pressures but kept controllable costs at or below inflation. - **Weather impact**: Milder weather lowered earnings in the U.S. utilities segment. - **Climate risk**: Fortis highlighted climate resiliency initiatives and wildfire mitigation to protect physical assets. - **Project execution risk**: Large capital projects such as Tilbury LNG and Arizona expansions depend on environmental and regulatory approvals. - **Debt and liquidity**: Long‑term debt of $2.7 billion issued in 2025 and $4 billion credit facility provide liquidity but increase leverage. - **Rate base growth lag**: Regulatory lag at FortisAlberta and other utilities could delay rate base growth and EPS contributions. ### Key quotes > “2025 marked another strong chapter in the Fortis story, During the year, we continued to deliver safe and reliable service to the millions of people who depend on us each day. Our utilities invested $5.6 billion in capital, which” > “Reported earnings per common share for the quarter were $0.83, $0.04 higher than the fourth quarter last year.” > “Affordability is at the tip of everybody's tongue these days talking about how we're going to grow and make sure that we do that in an affordable and responsible manner from a customer perspective.” — David Hutchens > “So I could pontificate, but I think it's better to just wait a week. So it just got put on next -- a week from today is the 19th open meeting.” > “The increased clarity, good regulatory mechanisms that allow us to forecast a little bit better, taking the peaks and valleys out of the Arizona utilities does provide a little bit better clarity for us from an earnings perspective.” ## Quarter one-liners - **2025 Q4:** Fortis reported strong 2025 earnings, $5.6 bn capital spend and reaffirmed 4‑6% dividend growth guidance, while highlighting regulatory uncertainty in Arizona, UNS Gas and Tilbury LNG projects. - **2025 Q3:** — - **2025 Q2:** Fortis reports strong Q2 EPS growth, advances Arizona data center deals (300MW now, up to 1.3GW potential), progresses Springerville coal-to-gas conversion, maintains 6.5% rate base CAGR and 4-6% dividend growth guidance. Regulatory progress across utilities; Fitch upgrades to BBB+. - **2025 Q1:** Fortis Q1 2025 EPS $1.00 (+$0.07 YoY); $1.4B capex (27% of plan); $26B 5-yr plan on track; rate base ~6.5% CAGR to $53B by 2029; dividend growth 4-6% through 2029; monitoring tariffs; advancing ITC MISO LRTP, AZ data center load, IA ROFR.','tone': {'mgmt': 0.3, 'mgmt_rationale': 'Prepared remarks hi - **2024 Q4:** Fortis delivered 6% adjusted EPS growth in 2024, invested record $5.2B capital, raised dividend 4% for 51st consecutive year, and outlined $26B five-year plan with significant MISO transmission and Arizona data center load growth opportunities.','tone': {'mgmt': 0.8, 'mgmt_rationale': 'Management hi - **2024 Q3:** Fortis reported solid Q3 results, raised its 2024 capex to $5.2 bn, announced a $26 bn 5‑year plan and highlighted growth opportunities in Arizona data centers and MISO transmission, while noting demand and regulatory uncertainties. - **2024 Q2:** Fortis Q2 EPS up 5c YoY to $0.67; $4.8B capex on track, 5-yr $25B plan; Iowa stay allows ITC Tranche 1 progress; Arizona regulatory lag docket advancing; dividend growth 4-6% through 2028.','tone': {'mgmt': 0.7, 'mgmt_rationale': 'Management highlighted operational reliability, regulatory progress ( - **2024 Q1:** Fortis delivered strong Q1 2024 results with $1.1B capex, $4.8B 2024 plan on track, $25B 5-year plan targeting 6.3% rate base CAGR to $49B by 2028, maintained 4-6% dividend growth guidance, while advancing MISO Tranche 2, Arizona IRP, BC regulatory approvals, and data center load growth amid Iowa RO ## Theme arcs - **Capital spending and plan size** (improving): Capex grew from $1.1B to $5.6B and five‑year plan expanded to $28.8B - **Dividend growth guidance** (stable): Consistently 4‑6% annual increase - **Rate‑base growth target** (improving): CAGR guidance rose from 6.3% to 6.5% - **Arizona data‑center demand** (improving): Moved from limited visibility to firm 300 MW agreements - **Regulatory environment** (deteriorating): Increasing uncertainty around Arizona tariffs, UNS Gas and Tilbury LNG - **MISO transmission projects** (stable): Progress continues despite tranche 2.1 at‑risk status ## Guidance path 2024 Q1:vague → 2024 Q2:vague → 2024 Q3:maintained → 2024 Q4:vague → 2025 Q1:vague → 2025 Q2:maintained → 2025 Q3:vague → 2025 Q4:maintained --- Research context only. Not personalized investment advice. API: `GET /bff/api/bigfive/earnings-intel/FTS`