Key Highlights

● Common equity earnings were C$396 million, or C$0.78 per share.

● Operating cash flow rose to C$1,129 million from C$804 million.

● The 2026 to 2030 capital plan totals C$28.8 billion.

● Fortis has raised its dividend for 52 consecutive years.

Fortis Inc. (NYSE:FTS), based in St. John's, Newfoundland and Labrador, owns regulated electricity and gas utilities in Canada and the United States, and its common shares trade on both the Toronto Stock Exchange and the New York Stock Exchange under the symbol FTS. Fortis reports in Canadian dollars under US GAAP. Its second-quarter 2026 management discussion and analysis, dated July 29, 2026, showed common equity earnings of C$396 million, up from C$384 million, and basic earnings per share of C$0.78 compared with C$0.76. Revenue was C$2,931 million against C$2,815 million, and operating cash flow rose to C$1,129 million from C$804 million. For the first half, earnings were C$897 million, up from C$883 million, while earnings per share of C$1.76 were flat. The 2025 sales of FortisTCI and Fortis Belize reduced second-quarter earnings per share by C$0.01 and first-half earnings per share by C$0.03.

Utility performance

ITC, the transmission business, contributed C$152 million in the quarter, against C$143 million. UNS Energy earned C$114 million versus C$104 million, helped by higher retail sales from warmer weather, although its first-half earnings of C$165 million trailed C$185 million because of lower wholesale margins and the timing of planned generation maintenance. FortisBC Energy earned C$49 million, FortisAlberta C$43 million and FortisBC Electric C$24 million, each modestly higher, while Central Hudson was flat at C$25 million. Corporate and Other recorded a loss of C$57 million, compared with C$42 million, which the company attributed to unrealized foreign-exchange contract losses and higher finance costs.

Capital plan and regulatory calendar

The five-year 2026 to 2030 capital plan totals C$28.8 billion and is forecast to lift midyear rate base from C$42.4 billion in 2025 to C$57.9 billion in 2030, a compound annual growth rate of 7.0%. That is management guidance. Capital expenditure of C$2.7 billion in the first half represented 48% of the C$5.6 billion planned for 2026. Some 46% of the plan is transmission and 31% distribution. In July 2026, British Columbia approved a cost allowance of up to C$2.2 billion for Tilbury Phase 1B, with construction possible from mid-2027. Tucson Electric Power requested new rates from September 1, 2026, with a final decision expected by November 17, 2026, and a FortisAlberta appeal decision is expected in the third quarter. A roughly 300 megawatt data center supply agreement at Tucson Electric Power is in place, with negotiations continuing for up to 600 megawatts.

Dividend and balance sheet

Fortis declared a common dividend of C$0.64 per share on July 29, 2026, payable on September 1, 2026 to holders of record on August 19, 2026. The company says it has raised its dividend for 52 consecutive years and targets annual growth of 4% to 6% through 2030. Year-to-date dividends of C$1.28 per share equal about 73% of first-half earnings per share of C$1.76. Credit ratings were confirmed in May 2026 at A- from S&P, BBB+ from Fitch and A (low) from Morningstar DBRS, all with stable outlooks. Of C$5.9 billion in credit facilities, C$4.1 billion was unutilized at June 30, 2026. Common equity is expected to come mainly from the dividend reinvestment plan, and a C$500 million at-the-market program is unused.

Currency Assumptions and the November 3 Outlook

The S&P/TSX Composite is the natural domestic comparison for a Canadian utility group. Relevant risks include foreign-exchange movements, since the plan assumes 1.35 Canadian dollars per US dollar and a five-cent change moves it by about C$0.7 billion, as well as regulatory outcomes and financing costs. Fortis will release third-quarter 2026 results and a new 2027 to 2031 capital outlook on Tuesday, November 3, 2026, with a call at 8:30 a.m. Eastern.