Fortis (FTS) AI Stock Analysis

Company Guidance

Fortis reiterated a disciplined growth and funding outlook: it remains on pace to invest about $5.6 billion in 2026 (≈$2.7 billion invested through June, nearly half the annual plan), expects average annual rate base growth of ~7% through 2030, and maintains 4%–6% annual dividend growth guidance through 2030 (52 consecutive years of increases). Key project metrics include Tilbury 1B (provincial Order in Council enabling roughly $2.0 billion of regulated rate base with ~$350 million currently in the 5‑year plan; potential construction mid‑2027 and in service as early as 2031), ITC’s MISO Tranche 2.1 awarded spend of USD 3.3B–3.8B beyond 2030, and potential TEP generation investment of USD 1.5B–2.0B for incremental data‑center phases; the June Roadrunner Reserve battery (200 MW / 800 MWh) can serve ~42,000 homes for 4 hours. Fortis noted customer rate benefits (Tilbury 1A marine LNG ~1.5% rate benefit since 2024; Eagle Mountain pipeline expected ~1.5% when in service), H1 issuance of $2.1 billion long‑term debt, planned funding from cash from operations/utility debt/DRIP, confirmed issuer unsecured ratings (S&P A‑ / BBB+ unsecured; Fitch BBB+), and that a refreshed 5‑year capital plan will be released with Q3 results (TEP rate case decision expected by mid‑November with implementation in December); Q2 EPS was $0.78 and YTD EPS $1.76.