Fortis Inc. (NYSE:FTS) delivered fourth-quarter adjusted earnings that comfortably exceeded analyst expectations, supported by continued growth in its regulated utility operations.
Adjusted earnings per share for the quarter came in at $0.90, well above the $0.61 consensus estimate. Net earnings for the fourth quarter totaled $422 million, or $0.83 per share, up from $396 million, or $0.79 per share, a year earlier.
For full-year 2025, Fortis reported net income of $1.7 billion, or $3.40 per common share. Adjusted net earnings per share reached $3.53, compared with $3.28 in 2024.
“2025 was another year of strong financial and operational performance for Fortis, reflecting the dedication of our people, the growth of our regulated utilities, and our commitment to long-term value creation,” said President and CEO David Hutchens.
The company invested $5.6 billion in capital expenditures during 2025, contributing to 7% annual rate base growth. Fortis recently unveiled a record five-year capital plan totaling $28.8 billion, which is expected to support average annual rate base growth of 7% through 2030 and underpin projected annual dividend increases of 4% to 6% over the same period.
Earnings growth was primarily driven by expansion of the regulated rate base, including contributions from major infrastructure projects. Additional tailwinds included cost rebasing at Central Hudson effective July 2024, unrealized gains on derivatives and favorable currency movements.
These positives were partly offset by higher costs at UNS Energy tied to rate base growth not yet reflected in customer rates, weaker retail electricity demand due to milder weather and reduced wholesale electricity margins.
Fortis also declared a 4.1% increase in its fourth-quarter common share dividend.