Fortis Q1 EPS Beats Forecast at $0.99, $1.4B Capex Boosts Grid
Fortis reported Q1 EPS of $0.99, topping the $0.67 consensus, driving net earnings of $501 million through rate base growth and Central Hudson timing. The company invested $1.4 billion in capital expenditures, completed a 300 MW substation at Big Cedar and secured a 9.61% ROE in its Arizona rate case.
1. Q1 Results Exceed Expectations
Fortis delivered first-quarter EPS of $0.99 versus a $0.67 forecast, lifting net earnings to $501 million. Growth was fueled by expanding rate bases across utility operations and favorable timing of contributions at Central Hudson, partially offset by lower returns at UNS Energy due to market conditions and maintenance costs.
2. Capital Expenditure Program Advances
The company invested $1.4 billion in Q1 toward its $5.6 billion full-year plan, including a completed substation supporting 300 MW of data center load at Big Cedar Industrial Center. Ongoing transmission upgrades aim to back an additional 1,600 MW by 2028.
3. Regulatory Approval in Arizona
The Arizona Corporation Commission approved UNS Gas’s rate application, granting a 9.61% return on equity and a 56% common equity ratio. A formula-based rate adjustment mechanism will take effect on March 1, 2026, enhancing revenue predictability.
4. Long-Term Investment and Dividend Plans
Fortis reaffirmed its five-year $28.8 billion capital investment plan, projecting midyear rate base growth from $42.4 billion in 2025 to $57.9 billion by 2030 (7% CAGR). The company also maintained annual dividend growth guidance of 4–6% through 2030.