Fortis (12F) AI Stock Analysis

Company Guidance

Fortis expects to invest approximately $6 billion in 2026, up $400 million from its plan, and has a new 32.2 billion 5 year capital plan, $3.4 billion higher than its previous plan, with a 5 year rate base CAGR of 7.5%, up 50 basis points compared to the prior plan; approximately 75% is directed toward transmission and distribution investments, the program is 100% regulated and includes 11 major capital projects, and consolidated rate base is expected to increase from $45 billion in 2026 to approximately $56 billion in 2029 and $64 billion in 2031, yielding 3 and 5 year compound average growth rates of 7.7% and 7.5%; annual dividend growth guidance is 4-6% through 2031, ITC’s $11.6 billion capital plan supports 5 year rate base growth of 8.6%, UNS Energy’s $5.6 billion plan supports 7.4%, and FortisBC’s $6 billion plan supports 7.9%; TEP’s base case assumes average annual sales growth of 5.7% through 2031 and includes up to US$1.3 billion of opportunity above the capital plan, while its high growth scenario requires approximately 800 MW of new generation and up to $1.5 billion of incremental investments; FortisBC’s Tilbury Phase 1B project is expected to cost approximately $1.7 billion, Phase 2 provides up to 2.5 million tons per annum of additional liquefaction capacity with an investment opportunity in the range of $2-4 billion, and the company expects to issue approximately $250 million of ATM equity over the next 12 months subject to market conditions, with average S&P FFO to debt metrics above 12% and average Fitch FFO leverage of approximately 5.9x over the 5 year period.