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• Capital Investment: Record $5.2 billion invested in 2024.

• Adjusted EPS Growth: Approximately 6% increase in 2024.

• Dividend Increase: Dividends paid per common share increased to $2.39, marking 51 consecutive years of increases.

• Rate Base Growth: Expected to increase by approximately $14 billion to $53 billion by 2029, supporting average annual rate base growth of 6.5%.

• Fourth Quarter Reported EPS: $0.79, $0.01 higher than the previous year.

• Fourth Quarter Adjusted EPS: $0.83, $0.11 higher than Q4 2023.

• Annual Reported EPS: $3.24, $0.14 higher than the prior year.

• Annual Adjusted EPS: $3.28, $0.19 higher than 2023.

• ITC Capital Investments: $1.5 billion in 2024, the largest annual capital plan to date.

• Debt Issuance: Over $3 billion issued in 2024 to repay borrowings and fund capital program.

• Dividend Reinvestment Plan: Contributed approximately $430 million in equity in 2024.

• Total Shareholder Return: Approximately 14% for 2024.

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Release Date: February 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Fortis Inc (NYSE:FTS) reported a strong financial year with a 6% growth in adjusted EPS and a record $5.2 billion in capital investments.

• The company increased its dividend for the 51st consecutive year, highlighting its commitment to returning value to shareholders.

• Fortis Inc (NYSE:FTS) was ranked number one in corporate governance among 215 companies in the S&P TSX Composite Index by the Globe and Mail.

• The company achieved a 34% reduction in scope 1 emissions compared to 2019 levels, demonstrating progress in its climate impact reduction efforts.

• Fortis Inc (NYSE:FTS) delivered a one-year total shareholder return of approximately 14%, outperforming benchmark indices over a 20-year period with an average annual return of 10%.

Negative Points

• The company faces potential regulatory challenges and uncertainties, particularly in Arizona, where new rate cases and formulaic rates are being explored.

• Higher operating and maintenance costs at Tucson Electric Power (TEP) impacted earnings, reflecting increased labor costs and planned generation maintenance.

• Unrealized losses on foreign exchange derivatives and total return swaps affected financial results, indicating exposure to currency fluctuations.

• The strengthening of the US dollar poses potential risks to Fortis Inc (NYSE:FTS)'s capital plan, with a $0.05 change in the exchange rate impacting annual EPS by about $0.05.

• Fortis Inc (NYSE:FTS) continues to engage with S&P regarding its A- issuer rating, which currently has a negative outlook due to concerns about physical and climate risks.