Core Points - Fortis Inc. will release its first quarter 2025 financial results on May 7, 2025, with a teleconference scheduled for 8:30 a.m. Eastern Time [1] - The teleconference will feature discussions led by David Hutchens, President and CEO, and Jocelyn Perry, Executive Vice President and CFO [1] - Shareholders and analysts can participate in the teleconference via a live webcast on the company's website [2] - Participants in Canada and the U.S. can join the call toll-free, while international participants have a separate number to dial [3] - A replay of the teleconference will be available two hours after the call until June 7, 2025 [4] Company Information - Fortis is a leader in the North American regulated electric and gas utility industry, reporting $12 billion in revenue for 2024 and total assets of $73 billion as of December 31, 2024 [6] - The company employs 9,800 individuals and serves utility customers across five Canadian provinces, ten U.S. states, and three Caribbean countries [6] - Fortis shares are publicly traded on both the TSX and NYSE under the symbol FTS [6] Upcoming Events - The 2025 Annual Meeting of Shareholders is scheduled for May 8, 2025, at 9:00 a.m. Eastern Time, with both in-person and online attendance options [5] - Shareholders will have the opportunity to submit questions during the Q&A portion of the webcast [5]

Core Insights - The analysis focuses on Fortis Inc. (NYSE: FTS), highlighting a previous buy rating and the release of its Full-Year 2024 report [1] Group 1: Company Overview - Fortis Inc. is a significant player in the utility sector, with a focus on delivering reliable energy services [1] - The company has been recognized for its strong performance and growth potential in the market [1] Group 2: Financial Performance - The Full-Year 2024 report is anticipated to provide insights into the company's financial health and operational efficiency [1] - Analysts expect the report to reflect positive trends in revenue and profitability, contributing to investor confidence [1]

Financial Data and Key Metrics Changes - Fortis reported a record capital investment of CAD 5.2 billion in 2024, with adjusted EPS growth of approximately 6% [7][26] - The reported EPS for Q4 2024 was CAD 0.79, a CAD 0.01 increase from Q4 2023, while adjusted EPS was CAD 0.83, up CAD 0.11 from the previous year [23][24] - For the full year, reported EPS was CAD 3.24, an increase of CAD 0.14, and adjusted EPS was CAD 3.28, up CAD 0.19 from 2023 [26] Business Line Data and Key Metrics Changes - ITC, the largest utility, achieved a 7% adjusted earnings growth, driven by CAD 1.5 billion in capital investments [27] - U.S. electric and gas utilities increased EPS by CAD 0.12, with UNS Energy contributing CAD 0.08 due to new customer rates and favorable margins [28] - Western Canadian Utilities saw a CAD 0.09 increase in EPS, primarily from rate-based growth [29] Market Data and Key Metrics Changes - The five-year capital plan of CAD 26 billion is on track, with a projected rate base increase of approximately CAD 14 billion to CAD 53 billion by 2029 [12][13] - The company expects average annual rate base growth of 6.5% over the next five years [13] Company Strategy and Development Direction - Fortis remains focused on a regulated growth strategy, with annual dividend growth guidance of 4% to 6% through 2029 [22][42] - The company is committed to reducing climate impacts, having reduced Scope 1 emissions by 34% compared to 2019 levels [8] - Investments are being made to enhance infrastructure and support customer growth across all utilities, particularly in transmission [12][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering stable and compelling returns, with a one-year total shareholder return of approximately 14% [11] - The company is optimistic about future growth opportunities, particularly in Arizona, where significant demand increases are anticipated [15][21] - Management acknowledged the potential impacts of tariffs on the economy and customers but does not foresee immediate material impacts [40] Other Important Information - Fortis was ranked number one in corporate governance among 215 companies in the S&P/TSX Composite Index [8] - The company issued over CAD 3 billion in debt to fund its capital program in 2024 [33] Q&A Session Summary Question: What is the game plan for new rates in Arizona? - Management confirmed plans to file for a formula rate to ensure timely recovery of investments [49] Question: Can projects in BC be accelerated due to favorable permitting? - Management indicated that while existing projects are driven by demand, a streamlined permitting process could improve timelines [54] Question: What are the priorities of the new FERC Chair? - Management noted it is early to determine specific priorities but sees potential for positive growth in the sector [61] Question: What prompted the joint proposal for new nuclear in Arizona? - Management stated it is a preliminary exploration driven by load growth and the need for additional generation [66] Question: How will the formula rates impact TEP? - Management aims to develop a formula that reduces lag and allows for consistent returns [122] Question: What is the outlook for the UNS Gas rate case? - Management is in early stages and expects to learn from the UNS Gas case for TEP's future filings [78] Question: How will the MISO investments impact financing? - Management is optimistic about the MISO opportunities but maintains a cautious approach to dividend growth [110]

Core Viewpoint - Fortis reported quarterly earnings of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, and showing an increase from $0.53 per share a year ago, indicating a positive earnings surprise of 3.51% [1] Financial Performance - Fortis generated revenues of $2.11 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.56%, although this represents a slight decrease from $2.12 billion in the same quarter last year [2] - The company has outperformed consensus EPS estimates in all four of the last quarters [2] Stock Performance - Fortis shares have increased approximately 6.6% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.67 on revenues of $2.3 billion, and for the current fiscal year, it is $2.34 on revenues of $8.94 billion [7] - The estimate revisions trend for Fortis is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Utility - Electric Power industry, to which Fortis belongs, is currently ranked in the bottom 47% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Q4 2024 EARNINGS CONFERENCE CALL February 14, 2025 FORWARD LOOKING INFORMATION Fortis includes forward-looking information in this presentation within the meaning of applicable Canadian securities laws and forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (collectively referred to as "forward-looking information"). Forward-looking information reflects expectations of Fortis management regarding future growth, results of operations, performance and business ...

Core Points - Fortis Inc. filed its audited Consolidated Financial Statements and related documents for the year ended December 31, 2024, with Canadian and U.S. regulatory authorities [2] - The Corporation reported a revenue of $12 billion and total assets of $73 billion as of December 31, 2024 [4] - Fortis serves utility customers across five Canadian provinces, ten U.S. states, and three Caribbean countries [4] Company Information - Fortis is a leader in the North American regulated electric and gas utility industry [4] - The Corporation employs approximately 9,800 individuals [4] - Fortis shares are traded on the TSX and NYSE under the symbol FTS [4] Upcoming Events - The Management Information Circular for the upcoming Annual Meeting of Shareholders is expected to be available in late March [3]

Financial Performance - Fortis reported net earnings of $1.6 billion, or $3.24 per common share for 2024, representing a 6.7% increase in earnings per share compared to $3.10 in 2023[3] - Adjusted net earnings for 2024 were $1.6 billion, or $3.28 per common share, reflecting a 6% growth from $3.09 per common share in 2023[5][7] - The fourth quarter of 2024 saw net earnings of $396 million, or $0.79 per common share, a slight increase from $381 million, or $0.78 per common share in Q4 2023[4][18] - The company’s total assets reached $73 billion as of December 31, 2024, with revenue of $12 billion for the year[21] Capital Expenditure and Growth - The company executed a capital program of $5.2 billion in 2024, resulting in a 6% annual rate base growth, increasing the midyear rate base to $39.0 billion[2][8] - Fortis' five-year capital plan of $26 billion is expected to increase the midyear rate base to $53.0 billion by 2029, translating into a compound annual growth rate of 6.5%[9][15] - Fortis anticipates capital expenditures of $X billion for the period from 2025 to 2029, with expected funding sources including common equity proceeds[22] - The company projects a rate base growth through 2029, which is expected to drive earnings supporting a dividend growth guidance of 4-6% annually[22] Dividend Guidance - The company anticipates annual dividend growth guidance of 4-6% through 2029, supported by long-term growth in rate base[2][16] Environmental Initiatives - Fortis has reduced its corporate-wide direct greenhouse gas emissions by 34% from a 2019 base year, with targets to further reduce emissions by 50% by 2030[17] - Fortis has set a target for net-zero direct GHG emissions by 2050, with interim reduction targets for 2030 and 2035[22] Regulatory and Operational Developments - The Arizona Corporation Commission approved a formula rate plan expected to improve rate stability and reduce regulatory lag for utilities[13] - Fortis emphasizes the importance of regulatory stability and successful execution of the capital plan for achieving its forward-looking goals[23] - The corporation plans to expand the electric transmission grid in the U.S. to support load growth and facilitate cleaner energy interconnections[22] Upcoming Events - A teleconference to discuss the 2024 annual results is scheduled for February 14, 2025, at 8:30 a.m. (Eastern)[24] - Shareholders and analysts can participate in the teleconference via a live webcast on the corporation's website[25] - An archived audio webcast of the teleconference will be available for two hours after the call until March 14, 2025[27] - Additional information can be accessed through the corporation's Management Discussion and Analysis and Consolidated Financial Statements[28]

Core Insights - Fortis Inc. reported strong financial performance for 2024, with net earnings of $1.6 billion, or $3.24 per common share, reflecting a growth from $1.5 billion, or $3.10 per common share in 2023 [4][6][8] - The company executed a $5.2 billion capital program and is focused on a $26 billion five-year capital plan aimed at supporting annual dividend growth guidance of 4-6% through 2029 [3][10][16] Financial Performance - Net earnings for the fourth quarter of 2024 were $396 million, or $0.79 per common share, compared to $381 million, or $0.78 per common share in the same period of 2023, driven by rate base growth and new customer rates [5][8] - Adjusted net earnings for 2024 were $1.6 billion, or $3.28 per common share, representing a 6% increase from $3.09 in 2023 [6][8] - Capital expenditures for 2024 totaled $5.2 billion, contributing to a 6% annual rate base growth, increasing the midyear rate base to $39 billion [9][10] Capital Expenditures and Projects - The five-year capital plan of $26 billion is $1 billion higher than the previous plan, driven by MISO long-range transmission plan projects and customer growth investments [10][11] - Significant projects include the Eagle Mountain Pipeline, transmission reliability projects at ITC, and the completion of the Wataynikaneyap Transmission Power project, which connects 17 First Nations communities to the Ontario power grid [9][10] Regulatory Updates - In October 2024, FERC revised the base ROE for MISO transmission owners, impacting Fortis with an after-tax earnings effect of approximately $22 million [13] - The Arizona Corporation Commission approved a formula rate plan expected to improve rate stability for customers, with UNS Gas proposing an annual rate adjustment mechanism [14] Environmental Commitment - Fortis has reduced its corporate-wide direct greenhouse gas emissions by 34% from a 2019 base year, with targets to further reduce emissions by 50% by 2030 and 75% by 2035 [18]

Core Insights - Fortis Inc. reported strong financial performance for 2024, with net earnings of $1.6 billion, or $3.24 per common share, reflecting a growth from $1.5 billion, or $3.10 per common share in 2023 [4][6][22] - The company executed a $5.2 billion capital program, contributing to a 6% annual rate base growth, and is focused on a $26 billion five-year capital plan to support annual dividend growth guidance of 4-6% through 2029 [3][10][20] Financial Performance - Net earnings for the fourth quarter of 2024 were $396 million, or $0.79 per common share, compared to $381 million, or $0.78 per common share in the same period of 2023, driven by rate base growth and new customer rates [5][22] - Adjusted net earnings for 2024 were $1.6 billion, or $3.28 per common share, representing a 6% increase from $3.09 per common share in 2023 [8][22] Capital Expenditures - Capital expenditures for 2024 totaled $5.2 billion, leading to a midyear rate base of $39.0 billion, which is a 6% increase over 2023 [10][22] - The 2025-2029 capital plan is set at $26.0 billion, which is $1.0 billion higher than the previous plan, driven by MISO long-range transmission projects and customer growth investments [12][13] Regulatory Updates - In October 2024, FERC revised the base ROE for ITC's MISO utilities from 10.02% to 9.98%, impacting Fortis' after-tax earnings by approximately $22 million [15] - The Arizona Corporation Commission approved a formula rate plan policy statement in December 2024, which is expected to improve rate stability for customers [16] Environmental Commitment - Fortis has reduced its corporate-wide direct greenhouse gas emissions by 34% from a 2019 base year, with targets to further reduce emissions by 50% by 2030 and 75% by 2035 [21]

Core Points - Fortis Inc. has declared dividends payable on June 1, 2025, to shareholders of record as of May 16, 2025 [2] - The common share dividend and preference share dividends are designated as eligible dividends for federal and provincial dividend tax credit purposes [2] - Fortis reported 2023 revenue of $12 billion and total assets of $70 billion as of September 30, 2024 [3] Dividend Details - The declared dividends include $0.3063 per share on First Preference Shares, Series "F" [5] - Other preference share dividends include $0.3826875 on Series "G", $0.11469 on Series "H", $0.278016 on Series "I", $0.2969 on Series "J", $0.3418125 on Series "K", $0.3433125 on Series "M", and $0.615 on Common Shares [5] Company Overview - Fortis is a leader in the North American regulated electric and gas utility industry, serving utility customers in five Canadian provinces, ten U.S. states, and three Caribbean countries [3] - The company employs approximately 9,600 individuals [3] - Fortis shares are traded on the TSX and NYSE under the symbol FTS [3]