Abstract

Fortis Inc will report on July 31, 2026 Pre-MKt; consensus points to higher revenue and EPS with stable margins, while investors watch regulated rate base growth and capital investment execution.

Market Forecast

Market models indicate Fortis Inc’s current quarter revenue at 2.93 billion US dollars with an estimated year-over-year growth of 6.54%, forecast EBIT at 0.86 billion US dollars with 6.61% growth, and forecast EPS at 0.76 with 8.33% growth; margin outlook suggests a steady profile given the utility’s regulatory construct, though specific gross and net margin guidance is not provided in forecasts. The company’s main regulated businesses are expected to see stable year-over-year growth driven by capital additions and rate base expansion, and management’s capital plan underpins mid‑single‑digit rate base growth expectations. Transmission and electric utility operations are seen as the most promising segment by revenue contribution, with segments such as FortisBC Power, ITC and UNS Energy collectively accounting for multi‑hundreds of millions in revenue and anticipated mid‑single‑digit growth.

Last Quarter Review

In the last reported quarter, Fortis Inc delivered revenue of 3.40 billion US dollars, a gross profit margin of 43.70%, net profit attributable to shareholders of 0.52 billion US dollars with a net margin of 15.37%, and adjusted EPS of 0.99, with year-over-year dynamics showing revenue growth of 1.95%. A notable highlight was resilient profitability and stable margins despite seasonal demand variability and regulatory timing. By business mix, key revenue contributors were FortisBC Power at 0.70 billion US dollars, ITC at 0.65 billion US dollars, UNS Energy at 0.60 billion US dollars, and Central Hudson Gas & Electric at 0.57 billion US dollars, with other electric utilities and Fortis Alberta adding 0.54 billion US dollars and 0.21 billion US dollars respectively.

Current Quarter Outlook

Main Regulated Utility Operations

Fortis Inc’s principal revenue stream stems from its diversified regulated electric and gas utilities. For the current quarter, consensus points to approximately 2.93 billion US dollars in revenue and EPS of 0.76, implying mid‑single‑digit organic growth on top of a relatively predictable margin framework. Execution on approved capital programs should translate into incremental rate base, which supports earnings growth and frames a stable gross margin outcome this quarter. Weather normalization and regulatory deferrals can introduce quarterly noise, but the underlying driver remains capital deployment into transmission and distribution infrastructure.

Transmission and Electric Utility Portfolio as the Growth Anchor

Within the portfolio, transmission‑heavy assets and large electric utilities are positioned to drive the next leg of earnings. Forecast EBIT of about 0.86 billion US dollars up 6.61% year over year indicates contribution from projects in flight and incremental returns from recent capital placed into service. The business mix, led by operations associated with FortisBC Power, ITC and UNS Energy, benefits from formula‑based returns and multi‑year investment plans that smooth earnings volatility. Management’s long‑term investment plan and regulatory visibility suggest this quarter’s performance will reflect steady expansion rather than sharp cyclical effects.

Stock‑Price Drivers This Quarter

The primary stock‑price sensitivities are interest‑rate expectations, regulatory updates across key jurisdictions, and execution on capital projects. Any movement in benchmark rates can shift the sector’s relative valuation, impacting the discounting of regulated cash flows and dividend yield appeal. On operations, news around rate case outcomes, allowed returns, or capital plan approvals could influence near‑term sentiment and frame the trajectory of margins and EPS. Finally, delivery against construction and in‑service milestones remains central to defending the mid‑single‑digit earnings growth outlook embedded in consensus.

Analyst Opinions

Most analysts maintain a constructive stance into the print, with a majority leaning bullish on steady earnings growth anchored by regulated rate base expansion and defensiveness in a shifting macro backdrop. Commentary emphasizes the predictability of the utility’s earnings profile and its multiyear capital plan as core supports for the 6–8% EPS growth cadence cited in models this quarter. Well‑followed sell‑side voices highlight the resilience of the transmission‑oriented assets and the incremental uplift from projects entering service, reinforcing the view that revenue and EPS should land within the guided ranges and keep the dividend growth narrative intact.