Research · Sep 3, 2026
[FTS] Fortis Thesis 2026: Regulated Utility Capex Drives 51-Year Dividend Track Record
Fortis Inc. (NYSE: FTS) FY2025 revenue ~C$12.5-13.2B (~$9-9.5B; +3-7%) with adj. EPS ~C$3.30-3.55 reflecting continued ~$26B aggregate FY2025-2029 capex plan deployment across 10 regulated utility subsidiaries (ITC Holdings + UNS Energy + FortisBC + Central Hudson Gas & Electric + selected various) plus selected ~7-9% rate base growth CAGR + selected continued ~99%+ regulated utility revenue mix under continued President + CEO David Hutchens (~5-year tenure since January 2020). One of North America's largest investor-owned regulated utility holding companies with operations across electric transmission + electric distribution + natural gas distribution in Canada + US + Caribbean. Founded 1885 as St. John's Electric Light Company in Newfoundland Canada (~140-year heritage); selected post-1996 Fortis Inc. holding company formation; selected post-2002 Toronto Stock Exchange + NYSE listing; selected post-2014 ~C$11.3B ITC Holdings acquisition; selected post-2016 ~C$4.5B UNS Energy acquisition. Headquartered in St. John's Newfoundland Canada; ~9,500+ employees globally with ~C$12.5-13.2B revenue. 10 regulated utility subsidiaries: ITC Holdings ~25%, UNS Energy ~20%, FortisBC ~15%, Central Hudson Gas & Electric ~10%, Newfoundland Power ~5%, FortisAlberta ~5%, FortisOntario ~5%, Maritime Electric ~3%, FortisTCI ~2%, Caribbean Utilities ~5%. ~$26B FY2025-2029 capex plan: ITC Holdings transmission ~$11B + UNS Energy Arizona ~$5B + FortisBC ~$3B + Central Hudson ~$2B + Canadian + US selected various ~$5B; ~$5.5B aggregate annual capex; ~7-9% rate base growth CAGR (~$33-35B FY2024 → ~$45-50B FY2029); FY2026 catalyst: continued capex deployment. President + CEO David Hutchens since January 2020 (~5-year tenure); CFO Jocelyn Perry. Capital return: ~C$2.45-2.60 annual dividend FY2025 (~+5-7% growth; ~51-year continuous dividend track post-1972 — selected one of longest continuous dividend tracks among Canadian utilities); modest opportunistic buybacks; aggregate capital return ~C$1.4-1.5B; investment-grade Baa3/A- credit rating. FY2026 thesis: ~$26B aggregate capex plan + ~7-9% rate base growth CAGR + ~51-year continuous dividend track + selected continued 10 regulated utility subsidiary contribution + selected post-2024 interest rate cycle moderation. Risks: regulatory disallowance, interest rate cycle, capital project execution, USD/CAD volatility, macro recession.