Fortis, a diversified North American utility company listed on the TSX, recently announced its capital outlook for the years 2025-2029. This outlook includes a planned expenditure of C$26 billion, marking the highest target in the company’s history.
The company anticipates an average annual rate base growth of 6.5% from C$38.8 billion in 2024 to C$53 billion in 2029, representing an increase from the 6.3% growth projected in the 2023 outlook.
Employing 9,600 individuals, Fortis operates in five Canadian provinces, 10 U.S. states, and three Caribbean countries as a regulated provider of electric and gas utilities.
Fortis’ stock performance has shown a year-over-year increase of 15.51%, but a more modest growth of 8.88% since 2019.
The capital plan outlined by Fortis includes allocations of C$6.7 billion towards energy transition investments, 50% towards infrastructure modernization, and a 4.2% increase in the Q4 common share dividend, continuing the trend of 51 consecutive years of dividend growth.
The company foresees opportunities for growth beyond the set five-year plan, particularly in expanding the U.S. electric transmission grid with a focus on clean energy initiatives.
Fortis has demonstrated revenue growth of over 29% since the onset of the pandemic, reaching C$11.5 billion in 2023, accompanied by a notable 23.6% increase in net income to C$1.57 billion.
David Hutchens, President and CEO of Fortis, underscored the company’s commitment to reliable and affordable service delivery for customers, as well as the maintenance of annual dividend growth between 4-6% through 2029 for shareholders.
Fortis is actively engaged in the regulated electric and gas utility sector across North America, with its stock trading at C$61.07 per share as of the latest update.
For discussions and further insights on Fortis’ future outlook and performance, interested individuals can engage with the Fortis Inc. Bullboard and other relevant forums on the Stockhouse platform.
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