Mr. David Hutchens reports

FORTIS INC. RELEASES SECOND QUARTER 2026 RESULTS

Fortis Inc. has released its second quarter results.

Highlights:

• Second quarter net earnings of $396-million, or 78 cents per common share, up from 76 cents per common share in 2025;
• Capital expenditures of $2.7-billion in the first half of 2026; $5.6-billion annual capital plan on track;
• Tilbury phase 1B expansion approved in British Columbia, advancing incremental capital opportunity beyond the plan;
• Roadrunner Reserve II battery project completed in Arizona.

"We are pleased to report our second quarter results, which reflect solid performance from our utilities as they execute the 2026 capital plan and work to capture additional growth opportunities," said David Hutchens, president and chief executive officer of Fortis. "Our momentum continues to build, and the recently announced approval of the phase 1B expansion at FortisBC Energy's Tilbury LNG facility demonstrates how we can partner with government and first nations to advance economic growth in the communities we serve."

Net earnings

The corporation reported net earnings attributable to common equity shareholders of $396-million for the second quarter of 2026, compared with $384-million for the second quarter of 2025. Rate-base growth across Fortis's utilities and higher retail electricity sales at UNS Energy contributed to earnings growth in the second quarter of 2026. These factors were partially offset by higher costs associated with rate-base growth not yet reflected in customer rates and the timing of operating costs at UNS Energy as well as a shift in quarterly revenue at Central Hudson and higher holding company finance costs. The dispositions of the corporation's businesses in Turks and Caicos and Belize in 2025 and the impact of foreign exchange also moderated earnings growth.

On a year-to-date basis, net earnings were $897-million, an increase of $14-million compared with the first half of 2025. The increase was driven by the same factors described for the quarter as well as the timing of operating costs at Central Hudson, partially offset by lower margin on wholesale sales at UNS Energy.

The corporation reported earnings per common share of 78 cents for the second quarter of 2026, an increase of two cents per common share compared with the second quarter of 2025. For the six-month period, earnings per common share of $1.76 was consistent with the same period in 2025. In addition to the factors impacting net earnings, the change in earnings per share reflected an increase in the weighted average number of common shares outstanding, largely associated with the corporation's dividend reinvestment plan.

On an earnings-per-common-share basis, the 2025 dispositions had a one-cent and three-cent dilutive impact on second quarter and year-to-date results, respectively and are expected to have a five-cent dilutive impact for the annual period.

Capital growth updates

Fortis's $5.6-billion annual capital plan is on track with $2.7-billion invested during the first half of 2026. In June, 2026, the Roadrunner Reserve II battery storage project was placed in service at TEP. The 200-megawatt battery energy storage system facilitates the integration of renewable energy into the electric grid with the capability to store 800 megawatt-hours of energy, enough to serve approximately 42,000 homes for four hours when deployed at full capacity.

On July 24, 2026, the Province of British Columbia issued an order in council (OIC) approving the phase 1B expansion of FortisBC Energy's Tilbury liquefied natural gas (LNG) facility. The OIC includes a cost allowance of up to $2.2-billion for the project and approves the inclusion of the Tilbury Marine Jetty in the regulated utility. It also provides approvals required to implement the equity partnership with the Musqueam Indian Band and includes regulatory mechanisms to protect customers from rate impacts associated with the investment. FortisBC Energy will now proceed to further develop and refine project cost estimates, which will be reflected, as appropriate, in Fortis's next five-year capital plan. The corporation's current five-year plan includes approximately $350-million of investment for Tilbury 1B.

The Tilbury 1B project supports LNG marine fuelling services while strengthening jobs, economic growth and economic reconciliation through an equity partnership opportunity with the Musqueam Indian Band. It will help position the Port of Vancouver as a leading LNG marine fuelling hub and support the transition to lower-emission marine fuels. The project remains subject to certain regulatory approvals and permitting requirements before construction can begin. Construction could start as early as mid-2027 and the project could be in service as early as 2031.

Credit ratings

In May, 2026, S&P confirmed the corporation's A-minus issuer credit rating, BBB-plus unsecured debt credit rating and stable outlook, and Fitch confirmed the corporation's BBB+ issuer and unsecured debt credit ratings and stable outlook.

Sustainability

Fortis released its 2026 sustainability report today, providing updates on enterprise-wide sustainability initiatives and key performance indicators. The report includes information on safety, reliability, emissions reductions and customer affordability initiatives, as well as climate risk mitigation activities. The corporation continues to make meaningful progress to decarbonize its energy mix, achieving a 38-per-cent reduction in Scope 1 greenhouse gas emissions through 2025 compared with 2019 levels and reaching a record-low greenhouse gas intensity of energy delivered in 2025. This latest report marks Fortis's 10th year of sustainability reporting.

The 2026 sustainability report can be accessed on Fortis's website.

Outlook

Fortis continues to enhance shareholder value through the execution of its capital plan, the balance and strength of its diversified portfolio of regulated utility businesses, and growth opportunities within and proximate to its service territories. The corporation's $28.8-billion five-year capital plan is expected to increase midyear rate base from $42.4-billion in 2025 to $57.9-billion by 2030, translating into a five-year compound annual growth rate of 7 per cent. Fortis expects its long-term growth in rate base will drive earnings that support dividend growth guidance of 4 per cent to 6 per cent annually through 2030.

Above and beyond the five-year capital plan, growth opportunities include: further expansion of the electric transmission grid in the United States to support load growth and facilitate the interconnection of new energy resources, including transmission investments associated with the Midcontinent Independent System Operator (MISO) long-range transmission plan and MISO transmission expansion plan; grid resiliency and climate adaptation investments; investments in renewable gas and LNG infrastructure in British Columbia; and energy infrastructure investments to support the acceleration of load growth across Fortis's jurisdictions.

About Fortis Inc.

Fortis is a diversified leader in the North American regulated electric and gas utility industry with 2025 revenue of $12-billion and total assets of $79-billion as at June 30, 2026. The corporation's 9,900 employees serve utility customers in five Canadian provinces, 10 U.S. states and the Cayman Islands.

Teleconference and webcast to discuss second quarter 2026 results

A teleconference and webcast will be held on July 31, 2026, at 8:30 a.m. Eastern Time, during which Mr. Hutchens, president and chief executive officer, and Jocelyn Perry, executive vice-president and chief financial officer, will discuss the corporation's second quarter financial results.

Shareholders, analysts, members of the media and other interested parties are invited to listen to the teleconference through the live webcast on the corporation's website.

Those members of the financial community in Canada and the United States wishing to ask questions during the call are invited to participate toll-free by calling 1-833-821-0229. Individuals in other international locations can participate by calling 1-647-846-2371. Please dial in 10 minutes prior to the start of the call. No access code is required.

An archived audio webcast of the teleconference will be available on the corporation's website two hours after the conclusion of the call until Aug. 31, 2026. Please call 1-855-669-9658 or 1-412-317-0088 and enter access code 3388126 followed by the number sign.

This news release should be read in conjunction with the corporation's June 30, 2026, interim management discussion and analysis and condensed consolidated financial statements. This and additional information can be accessed on Fortis's website, SEDAR+ or the U.S. Securities and Exchange Commission's website.

We seek Safe Harbor.