Description

Fortis’ CAD 2 Billion Tilbury Expansion — Can LNG Unlock The Next Growth Phase? – Major Drivers, Financial Forecasts, DCF & Comparable Valuation, ESG & Other Risks (9/26)

Fortis Inc. reported second-quarter 2026 EPS of CAD 0.78, up CAD 0.02 from the prior year. Its utilities maintained reliable operations while advancing regulated growth, investing CAD 2.7 billion through mid-year and remaining on track for CAD 5.6 billion for the year. Rate base growth remains central, with average annual growth targeted at 7% through 2030. Results benefited from investments at ITC, UNS Energy, and FortisBC, partly offset by higher finance costs, foreign exchange losses, and regulatory timing. A major development was approval of the Tilbury 1B LNG expansion in British Columbia through an Order in Council. The project requires approximately CAD 2 billion of investment, well above the CAD 350 million currently included in the five-year capital plan, and includes a marine jetty, additional liquefaction capacity, and a power line. Construction could start in 2027, with service targeted for 2031, subject to remaining regulatory and permitting approvals.