Financial Data and Key Metrics Changes - Reported earnings per common share for Q4 2025 were CAD 0.83, CAD 0.04 higher than Q4 2024, with adjusted EPS at CAD 3.53, a 25-cent increase from 2024 [11][12][13] - Reported EPS for 2025 was CAD 3.40, reflecting a 16-cent increase from 2024, despite losses from the disposition of investments in Belize and Turks and Caicos [13][16] - The company achieved a one-year total shareholder return of nearly 24% and average annual total shareholder returns of approximately 10% over the past 20 years [6][16] Business Line Data and Key Metrics Changes - Western Canadian utilities contributed a 10-cent increase in EPS, driven by rate-based growth, particularly from FortisBC's investment in the Eagle Mountain Pipeline Project [14] - U.S. electric and gas utilities delivered an eight-cent increase in EPS, with Central Hudson benefiting from rate-based growth and cost rebasing [14] - ITC's capital investments and related rate-based growth increased EPS by CAD 0.04, moderated by higher stock-based compensation and finance costs [15] Market Data and Key Metrics Changes - In Arizona, the Arizona Corporation Commission approved an energy supply agreement for approximately 300 MW to support a planned data center, with a 10-year contract including a 75% minimum billing requirement [8][9] - The company is negotiating for an additional 300 MW capacity at the same site and a second site in the range of 500-700 MW, with potential new generation investments estimated at CAD 1.5 billion to CAD 2 billion through 2030 [9][10] Company Strategy and Development Direction - The company rolled out a CAD 28.8 billion five-year capital plan, focusing on regulated investments primarily in transmission and distribution assets, expecting a 7% average annual rate base growth [6][7][20] - The strategy includes maintaining a commitment to 4%-6% annual dividend growth through 2030, supported by strong capital investments and operational efficiency [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the regulatory environment and ongoing projects, particularly in Arizona and ITC, highlighting the importance of affordability and customer service [23][30][65] - The company is focused on executing its capital plan while addressing cost pressures and maintaining reliability and safety in operations [5][20] Other Important Information - The company has maintained a strong liquidity position with CAD 2.7 billion of long-term debt issued in 2025 and nearly CAD 4 billion available on credit facilities [16][17] - S&P confirmed the company's A- issuer rating and revised the outlook from negative to stable, reflecting improving financial measures [17] Q&A Session Summary Question: Data center opportunity in Arizona - Management explained that the energy supply agreement is structured to ensure affordability and cost recovery, with the customer covering interconnection costs [22][23] Question: Updates from FERC - Management noted optimism regarding potential movement on ongoing FERC matters, emphasizing the new chair's focus on regulatory clarity [28][30] Question: UNS Gas rate case - Management indicated that the upcoming ACC open meeting could provide clarity on the formulaic rate structure, but advised waiting for the meeting for specific insights [69][70] Question: LNG projects in British Columbia - Management confirmed that while there are no new announcements, they are looking for additional investment opportunities in LNG projects [43] Question: Customer affordability feedback - Management acknowledged that affordability is a significant concern across jurisdictions, with ongoing efforts to address it consistently [62][65]

Financial Data and Key Metrics Changes - Reported earnings per common share for Q4 2025 were CAD 0.83, an increase of CAD 0.04 compared to Q4 2024 [11] - Reported EPS for 2025 was CAD 3.40, up CAD 0.16 from 2024, while adjusted EPS was CAD 3.53, an increase of CAD 0.25 [13][16] - The company achieved a one-year total shareholder return of nearly 24% and average annual total shareholder returns of approximately 10% over the past 20 years [6] Business Line Data and Key Metrics Changes - Western Canadian utilities contributed a CAD 0.10 increase in EPS, driven by rate base growth, including FortisBC's investment in the Eagle Mountain Pipeline Project [13] - U.S. electric and gas utilities delivered an eight-cent increase in EPS, with Central Hudson's growth attributed to rate base growth and cost rebasing [14] - ITC's continued capital investments and related rate base growth increased EPS by CAD 0.04, moderated by higher stock-based compensation and finance costs [15] Market Data and Key Metrics Changes - In Arizona, the energy supply agreement for a planned data center was approved, supporting a 300 MW capacity with a 75% minimum billing requirement [8] - The company is negotiating for an additional 300 MW capacity at the same site and a second site in the range of 500-700 MW [9] - The BCUC's approval of the Tilbury LNG storage expansion project provides up to CAD 300 million of potential incremental capital [9] Company Strategy and Development Direction - The company rolled out a CAD 28.8 billion five-year capital plan, focusing on regulated investments primarily in transmission and distribution assets [6][7] - The plan is expected to drive a 7% average annual rate base growth and support a 4%-6% annual dividend growth guidance through 2030 [20] - The company is focused on incremental growth opportunities, including customer connections and MISO LRTP projects [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the regulatory environment and the potential for improved earnings guidance as clarity increases [75] - The company is committed to addressing affordability concerns while ensuring reliable service and maintaining strong shareholder returns [6][65] - Management highlighted the importance of executing the capital plan to support long-term growth and shareholder value [20] Other Important Information - The company maintained a strong liquidity position with CAD 2.7 billion of long-term debt issued in 2025 and nearly CAD 4 billion available on credit facilities [16] - S&P confirmed the company's A- issuer and BBB+ senior unsecured debt ratings, revising the outlook from negative to stable [17] Q&A Session Summary Question: Data center opportunity in Arizona - Management explained that the energy supply agreement is structured to ensure affordability and cost recovery without requiring additional investments [22][23] Question: Updates from FERC - Management noted that while there has been chatter about FERC developments, no specific updates have been received [28][30] Question: UNS Gas rate case - Management indicated that the upcoming ACC open meeting could provide clarity on the formulaic rate structure [69][70] Question: Customer affordability feedback - Management acknowledged that affordability is a significant concern across jurisdictions and emphasized the company's commitment to addressing it [62][65]

Financial Data and Key Metrics Changes - In 2025, reported earnings per common share were CAD 3.40, an increase of CAD 0.16 compared to 2024, while adjusted EPS was CAD 3.53, up CAD 0.25 from the previous year [13][17] - The company achieved a one-year total shareholder return of nearly 24%, with average annual total shareholder returns of approximately 10% over the past 20 years [6][11] - The company maintained a strong liquidity position with CAD 2.7 billion of long-term debt issued in 2025 and nearly CAD 4 billion available on credit facilities at year-end [17][18] Business Line Data and Key Metrics Changes - Western Canadian utilities contributed a CAD 0.10 increase in EPS, driven by rate-based growth, including earnings from FortisBC's investment in the Eagle Mountain Pipeline Project [13][14] - U.S. electric and gas utilities delivered an eight-cent increase in EPS, with Central Hudson's growth attributed to rate-based growth and cost rebasing [14][15] - ITC's continued capital investments and related rate-based growth increased EPS by CAD 0.04, moderated by higher stock-based compensation and finance costs [16] Market Data and Key Metrics Changes - The Arizona Corporation Commission approved an energy supply agreement for approximately 300 MW to support a planned data center, with a 10-year contract including a 75% minimum billing requirement [9][24] - The company is negotiating for an additional 300 MW of capacity for the data center and exploring further capacity at a second site in the range of 500-700 MW [10][24] - The company is also focused on energy efficiency programs to help customers lower their bills and provide assistance to low-income customers [6][11] Company Strategy and Development Direction - The company rolled out a CAD 28.8 billion five-year capital plan, primarily focused on transmission and distribution assets, expecting a rate base increase of CAD 16 billion and average annual rate base growth of 7% [7][8] - The company aims to support 4%-6% annual dividend growth through 2030, continuing its commitment to increasing dividends for 52 consecutive years [11][21] - The company is actively pursuing incremental growth opportunities, including customer connections and MISO LRTP projects, while evaluating competitive bidding opportunities [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the regulatory environment, noting that the new chair of FERC is focused on improving the commission's operations and providing regulatory certainty [30][31] - The company is committed to addressing affordability concerns and ensuring that growth is achieved in a responsible manner for customers [25][62] - Management highlighted the importance of maintaining a strong focus on safety and reliability, with 2025 being one of the best years on record for these metrics [5][21] Other Important Information - The company was recognized for its governance practices, ranking number one in governance out of 206 companies in the S&P/TSX Composite Index [4] - The company has not utilized its CAD 500 million ATM program to date, which remains available for funding flexibility [17][18] Q&A Session Summary Question: Data center opportunity in Arizona - Management explained that the energy supply agreement is structured to ensure affordability and stability for customers, with the data center covering costs without requiring additional investments [24][25] Question: Updates from FERC - Management noted that while there has been chatter about potential updates, no specific information has been received, but there is optimism for movement on ongoing matters [29][30] Question: UNS Gas rate case - Management indicated that the upcoming ACC open meeting could provide clarity on the formulaic rate structure, but it is advisable to wait for the meeting for more information [69][70]

Core Viewpoint - Fortis Inc. demonstrated strong financial and operational performance in 2025, with a focus on reliability, affordability, and disciplined capital execution, leading to solid results and a commitment to long-term value creation [3] Financial Performance - Net earnings for 2025 were reported at $1.7 billion, or $3.40 per common share, an increase from $1.6 billion, or $3.24 per common share in 2024 [4] - Adjusted net earnings per common share rose to $3.53 in 2025 from $3.28 in 2024, reflecting a growth of $151 million or $0.25 per share [5][9] - For Q4 2025, net earnings were $422 million, or $0.83 per common share, compared to $396 million, or $0.79 per common share in Q4 2024 [10] Capital Expenditures and Growth Plans - Fortis announced a five-year capital plan of $28.8 billion, aimed at driving a long-term rate base growth of 7% and supporting annual dividend growth of 4-6% through 2030 [3][20] - Capital expenditures totaled $5.6 billion in 2025, contributing to a midyear rate base of $42.4 billion, representing a 7% growth over 2024 [12][20] Regulatory Updates - The Arizona Corporation Commission approved an Energy Supply Agreement for a planned data center in Tucson Electric Power's service territory, expected to be operational by 2027 [15] - A Recommended Opinion and Order on the UNS Gas General Rate Application suggested an allowed ROE of 9.57% and a 56% common equity component, pending ACC approval [16] Climate Resiliency and Decarbonization Efforts - Fortis released its 2026 Climate Resiliency Report, detailing climate risks and adaptation measures, with a commitment to a coal-free generation mix by 2032 and net-zero emissions by 2050 [17][19] - The company achieved a 38% reduction in scope 1 greenhouse gas emissions through 2025 compared to 2019 levels [19] Outlook and Future Opportunities - The capital plan is expected to increase the midyear rate base to $57.9 billion by 2030, with a compound annual growth rate of 7% [20] - Future growth opportunities include expanding the electric transmission grid, investments in renewable gas and liquefied natural gas infrastructure, and enhancing grid resiliency [21]

Core Insights - The recent floods in South and Southeast Asia have resulted in over 1,300 fatalities and at least $20 billion in economic losses, highlighting the increasing risks posed by climate change and extreme weather events in the region [1][8] Economic Impact - A series of three tropical cyclones combined with the northeast monsoon have caused unprecedented rainfall and destruction across multiple countries, affecting homes, infrastructure, and agricultural output [2] - The estimated economic losses from last month's floods are based on government and analyst assessments, which may be revised as further damage assessments are conducted [8] - Thailand's economy could face additional losses of up to $400 million per month if flooding conditions persist, particularly affecting high-value exports like electronics and auto parts [15] - Indonesia has experienced losses exceeding $4 billion, accounting for approximately 0.29% of its GDP, due to damage to infrastructure and agricultural output [16] Climate Change and Resilience - Climate change is identified as a significant factor exacerbating flooding risks in Southeast Asia, with predictions of more frequent "compound disasters" in the future [4][19] - The region has a high percentage of its population living in flood-prone areas, with 21% in Malaysia and around 20% in Indonesia, indicating a growing vulnerability as global warming accelerates [5] - Despite the risks, many Southeast Asian countries are lagging in building climate resilience, often prioritizing economic growth over necessary adaptation efforts [6] Political and Social Factors - In the Philippines, a corruption scandal related to flood mitigation funding has led to a pause in infrastructure projects, negatively impacting investor confidence and economic growth [7] - The intersection of political issues and inadequate climate adaptation efforts is particularly acute in the Philippines, affecting overall disaster response and recovery [7][12] Industry Response - While the immediate impact on industrial output from the recent storms has been limited, the long-term effects on supply chains and manufacturing remain uncertain [10][11] - Vietnam's economy has incurred approximately $3.2 billion in losses due to storm damage this year, nearing the record losses from previous severe weather events [18]