Investment Research Report: Fortis Inc. (FTS.TO)

Date: January 9, 2026 Subject: Equity Research & Strategic Analysis Ticker: TSX: FTS | NYSE: FTS Sector: Utilities (Regulated Electric & Gas) Current Price: CAD $71.58 Market Capitalization: CAD ~$36.0 Billion

1. Executive Summary

1.1 Investment Thesis: The Premium Defender in a Stabilizing Rate Environment

As of January 9, 2026, Fortis Inc. presents a compelling investment case defined by a strategic transition toward a lower-risk, pure-play regulated transmission and distribution (T&D) utility model. Following the successful divestiture of its Caribbean assets in Belize and the Turks and Caicos Islands in late 2025, Fortis has streamlined its portfolio to focus heavily on North American regulated energy delivery. This strategic pivot reduces the company’s exposure to geopolitical volatility and severe weather risks associated with small island economies, thereby compressing its beta and enhancing the quality of its earnings stream.

The core of the investment thesis rests on the execution of the newly announced $28.8 billion 2026-2030 Capital Plan, the largest in the corporation's history. This capital deployment is projected to drive a consolidated rate base compound annual growth rate (CAGR) of 7% through 2030, a figure that sits at the upper echelon of the regulated utility sector. Management has extended its dividend growth guidance of 4-6% annually through 2030, supported by this rate base expansion, marking a continuation of a 52-year track record of consecutive dividend increases—a feat unmatched by any other Canadian utility.

Valuation dynamics have shifted favorably as the macroeconomic environment stabilizes. With the Canadian 10-Year Government Bond yield settling around 3.38% and the U.S. 10-Year Treasury yield forecast to hover near 3.75% throughout 2026, the "cost of capital" headwinds that plagued the sector in 2023-2024 have largely abated. Fortis, trading at a Price-to-Earnings (P/E) ratio of approximately 21.3x, commands a premium valuation relative to peers like Emera (18.8x) but offers a discount to the "bond-proxy" scarcity valuation of Hydro One (24.8x). This positioning reflects Fortis's optimal balance of growth—driven by FERC-regulated transmission assets at ITC Holdings—and stability, underpinned by Canadian distribution monopolies.

1.2 Key Drivers and Catalysts

The Transmission Supercycle: A primary driver for Fortis is its ownership of ITC Holdings, the largest independent transmission company in the United States. The Midcontinent Independent System Operator (MISO) Long Range Transmission Planning (LRTP) Tranche 1 projects are moving into heavy construction phases, contributing significantly to the $28.8 billion capital plan. These investments benefit from Federal Energy Regulatory Commission (FERC) formula rates, which minimize regulatory lag and provide transparent returns on equity (ROEs). Furthermore, the emergence of data center load growth in the Midwest and Arizona provides an "above and beyond" growth wedge not fully captured in the baseline capital plan.

Regulatory Clarity: The regulatory overhang that characterized previous years has largely dissipated. Significant achievements in 2025 included the Arizona Corporation Commission (ACC) adopting a formula rate policy statement, modernizing the regulatory framework for UNS Energy, and the New York Public Service Commission approving a three-year rate plan for Central Hudson with a 9.5% ROE. These outcomes provide multi-year earnings visibility and reduce the volatility associated with general rate cases (GRCs).

Financial Resilience: Fortis enters 2026 with a robust balance sheet, maintained by a funding strategy that prioritizes cash from operations (59%) and debt (30%) over dilutive equity issuance (11%). The company maintains investment-grade credit ratings (BBB+/A- range) across its subsidiaries, a critical advantage in ensuring access to capital markets for funding the record infrastructure spend.

1.3 Outlook and Recommendation

The outlook for Fortis Inc. is categorized as "Constructive Accumulation." The company is entering a period of high execution intensity regarding its capital plan but does so with a de-risked portfolio and a supportive interest rate backdrop. While the stock price has appreciated approximately 18.6% over the last year, reflecting the market's recognition of these improved fundamentals , the long-term compounding potential remains intact. The analysis suggests that Fortis is well-positioned to deliver total shareholder returns in the 8-10% range annually, derived from the ~3.6% dividend yield and ~5-6% earnings per share (EPS) growth.

2. Business Drivers & Strategic Overview

2.1 The Evolution to a Regulated Pure-Play

Fortis Inc. has undergone a decades-long transformation from a small electric utility in Newfoundland to a North American energy delivery giant. The defining strategic maneuver of late 2025—the sale of Belize Electricity and FortisTCI—marks the final chapter in this evolution. Historically, these Caribbean assets provided diversification and higher allowed returns to offset the lower growth of Canadian mature markets. However, as the company expanded into the United States via the acquisitions of UNS Energy, ITC Holdings, and Central Hudson, the strategic necessity of the Caribbean portfolio diminished.

The divestiture aligns the company's risk profile with its premier valuation. Small island economies are inherently more volatile, facing outsized impacts from hurricanes and tourism-dependent economic cycles. By exiting these markets, Fortis has removed a "tail risk" from its portfolio. The proceeds from these sales have been recycled into the U.S. and Canadian capital programs, effectively swapping higher-risk tropical cash flows for lower-risk, regulated North American rate base growth. This capital recycling is a hallmark of prudent capital allocation, preventing the need for external equity raises that would dilute current shareholders.

As of 2026, the portfolio is effectively 99% regulated utility assets. This distinction is vital in an era of energy transition volatility. Unlike peers with significant merchant generation arms (unregulated power plants selling into open markets), Fortis’s revenue is almost entirely derived from set rates approved by regulators. This insulates the company from the vagaries of wholesale electricity prices, whether they crash due to oversupply of renewables or spike due to fuel shortages.

2.2 Operating Segments and Geographic Footprint

Fortis operates through a decentralized model, allowing local management teams to navigate their specific regulatory and political landscapes while leveraging the parent company’s financial strength. The portfolio is geographically diverse, mitigating the risk of adverse regulatory decisions in any single jurisdiction.

2.2.1 ITC Holdings (United States)

ITC is the growth engine of Fortis. As an independent transmission operator, it owns the high-voltage wires that transport electricity across seven states in the U.S. Midwest. Unlike distribution utilities that deal with retail customers and billing, ITC’s customers are load-serving entities. This B2B model, combined with FERC regulation, is highly attractive. FERC regulation typically allows for "forward-looking" rate setting (formula rates), meaning ITC projects its costs for the coming year and sets rates to recover them immediately, followed by a "true-up" later. This eliminates the "regulatory lag"—the time gap between spending money and getting it back—that plagues state-regulated utilities.

The strategic driver for ITC is the MISO Long Range Transmission Planning (LRTP) initiative. As the U.S. generation mix shifts from coal to wind and solar, the grid must be physically rewired. Wind farms in Iowa or Minnesota need massive new transmission lines to move power to load centers in Chicago or Detroit. ITC is the incumbent builder for many of these lines. The 2026-2030 capital plan allocates a significant portion of the $28.8 billion total to these transmission projects. This is secular growth, largely independent of economic GDP; the lines must be built to meet federal and state decarbonization mandates regardless of whether the economy is booming or in recession.

2.2.2 UNS Energy (Arizona, United States)

UNS Energy, primarily through Tucson Electric Power (TEP), serves a rapidly growing demographic in Arizona. The state is a beneficiary of domestic migration and industrial onshoring. In 2026, a key driver for UNS is the "Springerville conversion." TEP is in the process of transitioning its generation fleet from coal to cleaner resources, including natural gas and renewables. This transition allows the utility to earn a return on new investment (solar farms, battery storage) while retiring old assets.

Crucially, the regulatory environment in Arizona has improved. The ACC's adoption of a formula rate policy statement in late 2024 was a watershed moment. Historically, Arizona was viewed as a difficult regulatory jurisdiction with high political interference. The move toward formula rates signals a recognition that in high-inflation environments, utilities need faster cost recovery to maintain credit quality. This policy shift reduces the regulatory discount previously applied to the UNS portion of Fortis's valuation.

2.2.3 FortisBC (British Columbia, Canada)

FortisBC is the primary energy delivery company in British Columbia, providing both electricity (in the interior) and natural gas (coastal and interior). The strategic challenge and opportunity here is the "Gas to Clean Energy" transition. British Columbia has some of the strictest climate policies in North America. FortisBC is navigating this by pivoting its gas network toward Renewable Natural Gas (RNG) and hydrogen, as well as focusing on LNG infrastructure for export and marine bunkering.

The "Tilbury LNG Storage Expansion" and "Eagle Mountain Pipeline" are major capital projects included in the 5-year plan. The Tilbury facility is vital for energy security in Vancouver, providing peak shaving capability during cold snaps. Despite the political headwinds against fossil fuels, the necessity of gas for heating reliability ensures that these investments remain part of the regulated rate base. The BC Utilities Commission (BCUC) decision in March 2025 for the 2025-2027 rate framework maintained the "Innovation Fund" and earnings sharing mechanisms, providing a stable operating environment for the medium term.

2.2.4 Other Regulated Utilities

• Central Hudson (New York): After a turbulent period involving billing system issues and regulatory scrutiny in 2023-2024, Central Hudson has stabilized. The August 2025 rate order settled a three-year plan with a 9.5% ROE. While New York remains a politically sensitive environment with aggressive climate goals (CLCPA), the multi-year rate plan provides earnings predictability through 2028.

• FortisAlberta: As a pure-play distribution wire owner (no generation, no retail supply), FortisAlberta is a low-risk, steady cash flow generator. It operates under a performance-based regulation (PBR) model, where beating efficiency targets results in higher earnings.

• Eastern Canada: Newfoundland Power and Maritime Electric continue to provide stable, if slow-growing, cash flows. These utilities are mature and serve as a reliable source of dividends for the parent company.

2.3 Strategic Initiatives and "Above and Beyond" Growth

While the $28.8 billion capital plan is the baseline, management has identified several "upside" opportunities that could drive growth beyond the 7% rate base target.

1. Data Center Load: The proliferation of AI and cloud computing is driving unprecedented demand for power. ITC’s service territory in the Midwest and UNS Energy’s territory in Arizona are prime locations for data center development due to land availability and power access. The "Big Cedar Load Expansion" project at ITC is an early indicator of this trend. Connecting these high-load customers requires significant transmission upgrades, which are billable and rate-base eligible.

2. Tilbury LNG Phase 2: While the current plan includes storage expansion, a broader expansion of the Tilbury facility for LNG marine bunkering (fueling ships) and potentially small-scale exports represents a multi-billion dollar opportunity in the late 2020s.

3. MISO Tranche 2: The current capital plan heavily weights MISO LRTP Tranche 1. Tranche 2, which focuses on the Midwest sub-region, is currently in the planning stages. If these projects are approved and accelerated, they could add billions to the capital plan in the 2028-2030 timeframe.

3. Financial Performance & Valuation (2024-2025)

3.1 Recent Financial Results Analysis

Fortis Inc.'s financial performance in late 2025 demonstrated the resilience of its diversified model. The third quarter of 2025 was particularly notable for a significant earnings beat.

Q3 2025 Earnings Recap: Fortis reported adjusted earnings per share (EPS) of $0.87, surpassing the consensus analyst estimate of roughly $0.61 by a wide margin (approx. 42%). This outperformance was driven by several factors:

• Rate Base Growth: The continuous compounding of the rate base at ITC and U.S. utilities contributed to higher foundational earnings.

• Cost Management: Timing of operating and maintenance (O&M) expenses favored the quarter.

• Asset Sale Adjustments: The quarter included a favorable adjustment of $32 million related to the disposition of FortisTCI.

• Revenue Miss: Despite the earnings beat, top-line revenue of $2.07 billion fell short of the $2.2 billion forecast (-5.91%). This revenue softness was largely attributed to milder weather in service territories, reducing volumetric sales. However, the decoupling mechanisms in place at many of Fortis’s utilities (where revenue is fixed regardless of volume) helped protect the bottom-line EPS, illustrating the defensive nature of the regulatory structures.

Full Year 2025 Estimates: Analyst consensus for the full fiscal year 2025 has coalesced around an EPS of $3.48. This represents a growth rate of approximately 6.1% over the 2024 adjusted EPS of $3.28. This growth is squarely within the management's long-term guidance range, confirming that despite macro volatility, the "machine" of rate base compounding is functioning as designed.

3.2 Valuation Framework

Valuing a regulated utility like Fortis requires a triangulation of multiple methodologies: Price-to-Earnings (P/E) multiples relative to peers and history, and Dividend Discount Models (DDM) given the yield-focused investor base.

3.2.1 Relative Valuation (P/E)

As of January 9, 2026, Fortis trades at CAD $71.58.

• Forward P/E (2026 Estimate): With a consensus 2026 EPS forecast of $3.59 , the forward P/E is 19.9x.

• Trailing P/E: Based on TTM earnings, the ratio is approximately 21.3x.

Historical Context: Historically, Fortis has traded in a P/E range of 17x to 23x. The current valuation of ~21.3x is near the upper end of its 5-year average (approx. 20.0x). This premium reflects the market's "flight to quality" and the renewed scarcity value of defensive assets in a stabilizing interest rate environment. The multiple expansion seen in 2025 (+23% change in P/E ratio) correlates with the drop in bond yields; as yields fell, the P/E of bond proxies like Fortis expanded mathematically.

Peer Benchmarking Table:

Analysis:

• Vs. Emera: Fortis trades at a premium to Emera (21.3x vs 18.8x). This is justified by Fortis’s superior balance sheet and lower payout ratio. Emera has struggled with high floating-rate debt exposure and capital constraints, forcing asset sales and creating dividend growth uncertainty. The market awards Fortis a higher multiple for its "sleep well at night" attribute.

• Vs. Hydro One: Fortis trades at a discount to Hydro One (21.3x vs 24.8x). Hydro One is unique; it is a government-backed monopoly with no foreign currency risk and virtually zero volume risk. Investors pay a "super-premium" for this safety. Fortis, while safe, introduces FX volatility and U.S. regulatory complexity, explaining the discount.

3.2.2 Dividend Discount Model (DDM)

Given Fortis's predictable dividend growth, a DDM offers a check on intrinsic value.

• Assumptions:

  • Next Year Dividend (D1): $2.66 (Assuming ~4% hike on current annualized).

  • Terminal Growth Rate (g): 5.0% (Midpoint of 4-6% guidance).

  • Cost of Equity (Ke): 8.5% (Risk-Free Rate 3.5% + Beta 0.45 * Equity Risk Premium 11%). Note: Using a slightly higher ERP to be conservative.

• Calculation: Price = $2.66 / (0.085 - 0.050) = $2.66 / 0.035 = $76.00 CAD.

The DDM suggests the stock is currently trading slightly below its intrinsic value ($71.58 vs $76.00), implying a roughly 6% undervaluation. This aligns with the "Buy/Hold" consensus and supports a constructive view on the stock.

3.3 Credit Profile and Balance Sheet

Fortis maintains a strong investment-grade credit profile, a non-negotiable requirement for a company with a $28.8 billion spending habit.

• Credit Ratings: S&P (A-), Moody's (Baa3), DBRS (A low). These ratings were confirmed in mid-2025, reflecting the stability of the regulated cash flows.

• Liquidity: As of late 2025, Fortis had significant liquidity available through its credit facilities to fund near-term capex.

• Leverage: The company targets a Debt-to-Capital ratio in the 50-60% range. The sale of the Caribbean assets improved the net debt position. Management has explicitly stated that the funding plan for the 2026-2030 period will rely primarily on debt (30%) and cash from operations (59%), with only modest equity requirements (11%). This limits dilution risk for equity holders.

4. The 2026-2030 Capital Plan: A Deep Dive

The scale of the 2026-2030 capital plan—$28.8 billion—requires granular analysis to understand the quality of earnings it will generate. This represents a $2.8 billion increase over the previous 5-year outlook, signaling management's confidence in the depth of its investment pipeline.

4.1 Capital Allocation by Segment

The allocation of capital reveals the strategic priorities of the company. The plan is heavily weighted toward the United States and specifically toward transmission.

Table derived from capital expenditure distribution percentages and total plan value.

4.2 Major Capital Projects vs. Sustainment

Management highlights that 21% of the plan consists of "Major Capital Projects," while the remaining 79% is smaller, granular sustainment capital.

• Why this matters: Large "mega-projects" (like nuclear plants or massive hydro dams) are notorious for being over budget and behind schedule, leading to write-offs. Fortis’s major projects are largely transmission lines and pipeline upgrades—projects with well-understood engineering risks. The high percentage of granular sustainment capital (replacing poles, wires, meters) is extremely low risk; regulators rarely deny recovery for keeping the lights on.

• Key Project - MISO LRTP (ITC): These are transmission lines mandated by the grid operator (MISO) to ensure system reliability. Because they are regionally cost-allocated, the risk of cost recovery is minimal compared to a merchant project.

• Key Project - Eagle Mountain Pipeline (FortisBC): This pipeline expansion is linked to the Woodfibre LNG export terminal. It is a critical piece of infrastructure for Canada's energy export strategy, ensuring high regulatory support.

4.3 Funding Strategy Analysis

How will Fortis pay for $28.8 billion in new assets?

• Cash from Operations (59%): This is the retained earnings after dividends are paid. The high retention rate highlights the cash-generative nature of the mature utilities in the portfolio.

• Debt (30%): Fortis will issue debt both at the utility level (secured) and the holding company level (unsecured). The stabilizing interest rate environment in 2026 makes this debt cheaper than it would have been in 2024.

• Equity (11%): This is the most sensitive part for shareholders. Fortis plans to raise this primarily through its Dividend Reinvestment Plan (DRIP) and potentially an At-The-Market (ATM) program. This "drip-feed" approach to equity issuance is far superior to large, sudden block trades that depress the stock price. It matches equity inflows with capital outflows.

5. Regulatory Environment & Jurisdictional Analysis

The single biggest risk factor for a utility is "Regulatory Risk." In 2026, the landscape for Fortis is largely benign to positive.

5.1 United States: Improving Frameworks

• Arizona (UNS Energy): The adoption of the "Formula Rate Policy Statement" by the Arizona Corporation Commission (ACC) in late 2024 cannot be overstated. Arizona was historically a "test year" jurisdiction, meaning rates were set based on past costs. In a high-inflation world, this meant the utility was always under-recovering. Formula rates allow for annual adjustments based on projected costs. This brings Arizona closer to the FERC model and significantly de-risks the UNS Energy earnings stream.

• New York (Central Hudson): New York is a challenging environment due to high political focus on customer bills. However, the August 2025 settlement (3-year plan, 9.5% ROE) essentially bought Fortis three years of peace. The retroactive application to July 2025 ensured no earnings gap. While 9.5% is below the national average (~9.7%), the certainty is valuable.

• FERC (ITC): The 50 basis point adder for RTO membership remains in place. While there are periodic rumblings at FERC about reducing allowed ROEs for transmission, the overwhelming need to build grid infrastructure to meet Biden-era and subsequent administration climate/reliability goals creates a "regulatory put." FERC cannot afford to slash returns when it needs trillions of dollars of private capital to enter the sector.

5.2 Canada: Stability and Innovation

• British Columbia (FortisBC): The BCUC is a sophisticated regulator. The 2025-2027 rate framework decision continues the trend of "Performance Based Regulation" (PBR). This allows FortisBC to keep a portion of the savings if it operates more efficiently than the benchmark. The continued support for the "Innovation Fund" allows FortisBC to invest in hydrogen and RNG pilots within the regulated wrapper, essentially R&D funded by ratepayers.

• Alberta (FortisAlberta): Alberta operates strictly under PBR. The generic cost of capital (GCOC) proceedings are predictable. The economic recovery in Alberta, driven by stabilizing oil prices, supports load retention.

6. Risk Assessment

Despite the bullish thesis, several material risks must be monitored.

6.1 Interest Rate & Inflation Risk

While rates have stabilized, they remain elevated compared to the 2010-2020 decade.

• Refinancing Risk: Fortis has debt maturing every year. If 10-Year yields were to spike back to 5% (Low Case Scenario), the interest expense would eat into EPS growth.

• Inflation: High inflation pressures O&M costs. If inflation runs at 4% but regulators only allow a 2% increase in O&M recovery, shareholders eat the difference. The move to formula rates in AZ and PBR in Canada helps mitigate this, but does not eliminate it.

6.2 Physical & Climate Risk

• Wildfires: This is the new existential threat for utilities. Fortis has exposure in Arizona (dry, hot) and British Columbia (dense forests). A major wildfire attributed to Fortis equipment could lead to massive liabilities (though Canadian law is currently less punitive than California's "inverse condemnation"). Mitigation involves aggressive vegetation management and system hardening—costs that increase customer bills.

• Severe Weather: Hurricanes in the U.S. East Coast (Central Hudson impacted by remnants) and ice storms in Canada can cause massive outages. While restoration costs are usually recoverable, the "regulatory lag" in getting that cash back can strain liquidity.

6.3 Execution Risk

The $28.8 billion plan is complex.

• Supply Chain: Sourcing high-voltage transformers and substation equipment is currently a global bottleneck. Delays in receiving equipment can push project in-service dates back, delaying the start of earnings (AFUDC accumulation helps, but cash flow is delayed).

• Permitting: Building new transmission lines (ITC) requires crossing private land. Landowner opposition and "Not In My Backyard" (NIMBY) activism can stall projects for years.

7. 5-Year Scenario Analysis (2026-2030)

To quantify the range of outcomes, we model three scenarios based on macro variables and execution success.

7.1 Scenario Inputs

7.2 Scenario Outcomes

Scenario A: Base Case (The "Steady Compounder")

• Narrative: The $28.8B plan is executed on time. Interest rates remain stable. Fortis delivers its 6% EPS growth.

• 2030 EPS Est: ~$4.50.

• Terminal Multiple: 20x.

• 2030 Stock Price: ~$90.00.

• Total Return: ~8-9% annualized (Capital Apprec. + Dividend).

• Verdict: Solid, low-risk accumulation.

Scenario B: High Case (The "Grid Boom")

• Narrative: A mild recession leads to Fed rate cuts (yields drop to 3%). Simultaneously, the AI infrastructure buildout accelerates, forcing MISO to approve Tranche 2 early. Fortis captures massive transmission spend.

• 2030 EPS Est: ~$4.80.

• Terminal Multiple: 23x (Multiple expansion due to low rates).

• 2030 Stock Price: ~$110.00.

• Total Return: ~12-14% annualized.

• Verdict: Outperformance vs S&P 500.

Scenario C: Low Case (The "Stagflation Trap")

• Narrative: Inflation resurges. Bond yields hit 5.5%. Regulators, facing angry voters, refuse rate hikes. Wildfires in BC cause a liability scare.

• 2030 EPS Est: ~$3.90.

• Terminal Multiple: 16x (Multiple compression).

• 2030 Stock Price: ~$62.00.

• Total Return: ~2% annualized (Dividend offsets capital loss).

• Verdict: Capital preservation only; loss of purchasing power against inflation.

8. Qualitative Scorecard

9. Technical Analysis

Date of Analysis: January 9, 2026

The technical setup for Fortis Inc. confirms the fundamental view of stability with consolidation.

• Price vs Moving Averages: The stock price ($71.58) is currently trading above its 200-Day Moving Average (200-DMA), which sits at approximately $71.12. This is a classic bullish signal, indicating that the long-term trend is upward. The 50-DMA is also in close proximity (~$71.06), suggesting a convergence of short and long-term trends—often a precursor to a breakout or breakdown.

• Relative Strength Index (RSI): The 14-day RSI is reporting in the 34-48 range. This is "Neutral" to "Moderately Oversold." It indicates that the recent price action has been weak (pulling back from highs of $74), but it is not yet at capitulation levels. This is typically a healthy zone for accumulation.

• MACD: The Moving Average Convergence Divergence is slightly negative (-0.16). This reflects the recent short-term momentum loss. Investors should watch for the MACD histogram to tick higher toward zero as a signal that the selling pressure is exhausted.

• Support & Resistance:

  • Resistance: The psychological ceiling is $72.00, followed by the 52-week high of $74.00.

  • Support: Immediate support is at the 200-DMA ($71.12). A break below this would target the psychological $70.00 level.

Conclusion: The chart portrays a stock in a "bull flag" or consolidation pattern within a broader uptrend. The proximity to the 200-DMA offers a technically sound entry point with a tight stop-loss below $70.00.

10. Conclusion

Fortis Inc. stands as a beacon of predictability in an uncertain market. The company’s strategic transformation into a North American regulated pure-play is complete, and the focus now shifts to the execution of the record $28.8 billion capital plan.

For the investor, Fortis offers a proposition that is rare in the equity markets: Reliability. In a world of technological disruption and geopolitical chaos, the demand for electricity transmission and distribution is one of the few constants. Fortis has positioned itself to capture the value of this demand through its ownership of premier assets like ITC and its strategic footprint in growth regions like Arizona.

While the valuation at ~21x P/E requires a long-term horizon to justify, the quality of the underlying franchise supports this premium. The de-risking of the portfolio through Caribbean divestitures and regulatory wins in the U.S. has materially improved the risk-adjusted return profile.

Final Investment Verdict: Fortis Inc. is a Core Portfolio Holding. It is not a stock to trade for quick gains, but an asset to own for wealth preservation and compounding income. As of January 9, 2026, we initiate/reiterate a BUY rating for income-focused and conservative growth portfolios, with a 12-month price target of $77.00 CAD.

End of Report.