Abstract

Fortis Inc will report its quarterly results on February 12, 2026 Pre-Market; this preview summarizes consensus expectations for revenue, profit margins, and adjusted EPS, compares last quarter’s performance with forecasts, and highlights key drivers and risks shaping the upcoming print.

Market Forecast

Consensus indicates Fortis Inc’s current quarter revenue estimate is USD 2.87 billion, implying a year-over-year decline of 8.15%, with EBIT expected at USD 0.91 billion and adjusted EPS at USD 0.85, implying year-over-year growth of 4.75%. Forecast margin color points to a stable gross profit margin backdrop and mid-teens net profit margin, though specific updates from the company are not disclosed in forward guidance.

Fortis Inc’s main business is regulated utilities spanning electric and gas transmission and distribution; management’s outlook emphasizes rate-base growth and ongoing capital investment to support regulated returns and organic expansion. The segment with the most promising contribution is UNS Energy, projected to remain a revenue anchor given its scale and regulated earnings base.

Last Quarter Review

In the last reported quarter, Fortis Inc delivered revenue of USD 2.94 billion, a gross profit margin of 47.28%, GAAP net profit attributable to the parent company of USD 0.43 billion with a net profit margin of 14.67%, and adjusted EPS of USD 0.81, with year-over-year adjusted EPS down by 4.71%.

Quarter-on-quarter net profit increased by 6.68%, reflecting resilient regulated earnings and disciplined cost control. By business, UNS Energy led with USD 0.89 billion in revenue, followed by ITC at USD 0.63 billion and other electric operations at USD 0.39 billion; these operations collectively underpinned top-line stability in the period.

Current Quarter Outlook (with major analytical insights)

Regulated Utility Operations

Fortis Inc’s core revenue driver remains its diversified portfolio of regulated utilities, where the company benefits from predictable allowed returns and multi-year capital plans. This quarter’s revenue estimate of USD 2.87 billion reflects seasonal normalizations and lapping of stronger comparables, but the forecasted adjusted EPS of USD 0.85 suggests modest year-over-year improvement. We expect stable regulatory frameworks across key jurisdictions to underpin EBIT of USD 0.91 billion, with relatively steady cost recovery mechanisms buffering fuel and operating cost variability. Given last quarter’s gross margin of 47.28% and net margin of 14.67%, the margin structure appears consistent with typical winter-quarter seasonality in North American utilities. Investors will watch for commentary on capital deployment cadence and cost inflation pass-throughs, which can influence near-term earnings translation and the glidepath to annual targets.

UNS Energy as the Growth Anchor

UNS Energy remains the most promising segment based on its scale and contribution—last quarter revenue was USD 0.89 billion. Its regulated nature and investment pipeline point to steady rate-base expansion that supports earnings visibility. We expect management to highlight ongoing grid modernization and reliability investments, which usually come with predictable recovery through rate mechanisms. Any updates on service territory load trends and renewable integration could influence sentiment, as they affect rate-base growth and the timing of returns. While year-over-year revenue is forecast to decline at the consolidated level, we anticipate UNS Energy to demonstrate relative resilience within the portfolio, helping to support consolidated EPS expectations of USD 0.85.

Stock Price Sensitivities This Quarter

The stock’s near-term performance will likely hinge on the balance of revenue seasonality versus margin durability. Key watchpoints include the realized gross profit margin trajectory relative to last quarter’s 47.28% level and how fuel and purchased power pass-throughs affect net profitability. Commentary on capital allocation and any refinement to the multiyear capex plan can drive valuation assumptions, as investors discount future rate-base growth into present value. Additionally, updates on regulatory filings or rate case milestones across major jurisdictions could shift earnings risk profiles and influence investor expectations for the fiscal year.

Analyst Opinions

Across the institutional commentary landscape, the prevailing view is cautiously positive, emphasizing the stability of regulated earnings and the visibility afforded by the company’s long-term capital plan. The majority of recent opinions point to supportive EBIT and adjusted EPS forecasts—USD 0.91 billion and USD 0.85, respectively—paired with prudent leverage and resilient cash flow coverage. Analysts highlight the consolidated estimate of USD 2.87 billion in revenue as reasonable given seasonal patterns, while focusing on margin stability and regulatory consistency as primary pillars for the stock’s defensive profile. The bullish camp underscores the company’s diversified footprint and UNS Energy’s dependable contribution, anticipating modest year-over-year EPS growth even as revenue normalizes. In this context, investors are prepared for a tempered top line but will look for steady execution on cost management and capex deployment to validate the cautiously positive stance.