Fortis Reports First Quarter Common Equity Earnings of 501 Million
The diversified North American regulated electric and gas utility holding company reported revenue of 3,403 million Canadian dollars for the quarter ended March 31, 2026.
Fortis Inc. (FTS) reported common equity earnings of 501 million Canadian dollars for the first quarter of 2026, a result comparable to the 499 million Canadian dollars reported in the same period of 2025. Revenue for the quarter rose to 3,403 million Canadian dollars from 3,338 million Canadian dollars.
The company said the revenue increase was driven by rate base growth and higher flow-through and recoverable costs in customer rates, specifically related to higher commodity costs at Central Hudson. A shift in quarterly revenue at Central Hudson also contributed to the increase. These gains were partially offset by the 2025 dispositions of Fortis Belize and FortisTCI, a lower U.S. dollar-to-Canadian dollar exchange rate, and lower wholesale sales revenue at UNS Energy due to market conditions affecting pricing and volumes.
Earnings growth from rate base growth across utilities and the timing of revenue and operating expenses at Central Hudson was offset by several factors. UNS Energy saw lower earnings due to wholesale market conditions, milder weather, the timing of planned generation maintenance costs, and costs associated with rate base growth not yet reflected in customer rates. The dispositions of Fortis Belize and FortisTCI had a 0.02 dilutive impact on first quarter results and are expected to have a 0.05 dilutive impact for the annual period.
Basic earnings per common share decreased by 0.01 to 0.99 a share from 1.00 a share in the first quarter of 2025. The company attributed this change to the factors impacting common equity earnings and an increase in the weighted average number of common shares outstanding, largely associated with the company's dividend reinvestment plan.
Capital expenditures for the quarter were 1.362 billion Canadian dollars, compared to 1.420 billion Canadian dollars in the first quarter of 2025. The company stated its annual 5.6 billion Canadian dollar capital plan remains on track.
Operating cash flow for the quarter was 1,103 million Canadian dollars, down from 1,213 million Canadian dollars in the prior-year period.
Fortis reported that it received approval for the UNS Gas general rate application, including formulaic rates, while the TEP rate case continues to progress.