Slides
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Q4 2025 EARNINGS CONFERENCE CALL February 12, 2026
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FORWARD-LOOKING INFORMATION 2 Fortis includes forward-looking information in this presentation within the meaning of applicable Canadian securities laws and forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (collectively referred to as "forward-looking information"). Forward-looking information reflects expectations of Fortis management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as anticipates, believes, budgets, could, estimates, expects, forecasts, intends, may, might, plans, projects, schedule, should, target, will, would, and the negative of these terms, and other similar terminology or expressions have been used to identify the forward-looking information, which includes, without limitation: forecast Capital Expenditures for 2026-2030; forecast Rate Base for 2026-2030 and forecast five-year Rate Base CAGR on a consolidated basis; expected nature, timing and benefits of additional opportunities to expand and extend growth beyond the Capital Plan, including ITC's investments associated with customer connections and the MISO LRTP , UNS Energy's investments associated with transmission, retail load growth and integrated resource plans, and FortisBC's investments associated with Tilbury LNG storage expansion, regional transmission, and customer and load growth investments; expected nature, timing, benefits and costs associated with TEP's energy supply agreement with a customer to support a planned data center in TEP's service territory, the outcome of negotiations for potential additional capacity at a second site, and estimated new generation and transmission associated therewith; annual dividend growth guidance through 2030; expected sources of funding for the 2026-2030 Capital Plan, including the sources of common equity; the expectation to average 12.4% for the S&P FFO to debt metric and average 5.9x for the Fitch FFO leverage metric through 2030; expected timing, outcome and impact of legal and regulatory proceedings; the expectation that long-term growth in Rate Base will drive earnings that support dividend growth guidance; forecast Capital Expenditures for 2026-2030 by business unit; the nature, timing, benefits and costs of certain Major Capital Projects, including ITC's investments associated with MISO LRTP Tranches 1 and 2.1 and Big Cedar Load Expansion, TEP Transmission Project, Springerville Natural Gas Conversion, Black Mountain Gas Generation, Vail-to-Tortolita Transmission Project, Tilbury LNG Storage Expansion, AMI Project, Tilbury 1B Project and Eagle Mountain Pipeline Project; forecast Rate Base for 2026-2030 and forecast five-year Rate Base CAGR to 2030 by business unit; the expectation of having a coal-free generation mix by 2032; the 2050 GHG emissions net-zero target; and forecast debt maturities for 2026-2035. Forward-looking information involves significant risks, uncertainties, and assumptions. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking information including, without limitation: the successful execution of the Capital Plan; no material capital project or financing cost overrun; sufficient human resources to deliver service and execute the Capital Plan; the realization of additional opportunities beyond the Capital Plan; no significant variability in interest rates; no material changes in the assumed U.S. dollar-to-Canadian dollar exchange rate; the Board exercising its discretion to declare dividends, taking into account the financial performance and condition of the Corporation; reasonable legal and regulatory decisions and the expectation of regulatory stability; no significant operational disruptions or environmental liability or upset; the continued ability to maintain the performance of the electricity and gas systems; no severe and prolonged economic downturn; sufficient liquidity and capital resources; the ability to hedge exposures to fluctuations in foreign exchange rates, natural gas prices and electricity prices; the continued availability of natural gas, fuel, coal and electricity supply; continuation of power supply and capacity purchase contracts; no significant changes in government energy policies, environmental laws and regulations that could have a material negative impact; maintenance of adequate insurance coverage; the ability to obtain and maintain licenses and permits; retention of existing service areas; no significant changes in tax laws and the continued tax deferred treatment of earnings from the Corporation's foreign operations; continued maintenance of information technology infrastructure and no material breach of cybersecurity; continued favourable relations with Indigenous Peoples; and favourable labour relations. Fortis cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors should be considered carefully and undue reliance should not be placed on the forward-looking information. For additional information with respect to certain of these risks or factors, reference should be made to the continuous disclosure materials filed from time to time by the Corporation with Canadian securities regulatory authorities and the Securities and Exchange Commission. All forward-looking information herein is given as of the date of this presentation. Fortis disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Unless otherwise specified, all financial information is in Canadian dollars and rate base refers to midyear rate base. Note: U.S. dollar-denominated five-year Capital Plan and forecast rate base converted at a forecast USD:CAD foreign exchange rate of 1.35 for 2026-2030.
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David Hutchens President and Chief Executive Officer, Fortis Inc. Jocelyn Perry EVP and Chief Financial Officer, Fortis Inc.
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BUSINESS HIGHLIGHTS 4 Executed Regulated Growth Strategy in 2025 Delivered Top Quartile Safety & Reliability Capital Expenditures of $5.6B Supporting 7% Rate Base Growth on a constant foreign exchange basis Another Solid Year of Growth with Adjusted EPS of $3.53 52 Consecutive Years of Increases in Dividends Paid Ranked #1 in Governance By the Globe and Mail Board Games Released 2026 Climate Resiliency Report
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2021 2022 2023 2024 2025 CONTINUED FOCUS ON SAFE, RELIABLE & AFFORDABLE SERVICE 5 (1) All injury frequency rate = (# injuries x 200,000) / hours worked. (2) Based on weighted average of Fortis' customer count in each jurisdiction. 1.83 2.3 2.0 2.0 1.9 1.9 3.8 4.3 4.2 4.3 2021 2022 2023 2024 2025 Average Electricity Customer Outage Duration (Hours) Fortis(2) Electricity Canada and U.S. Energy Information Administration Average All-Injury Frequency Rate(1) Fortis USA Bureau of Labor Statistics (2021-2024 Average) Electricity Canada (2021-2024 Average) 1.30 Affordability Initiatives • Preventative maintenance and innovative practices to reduce costs ▪ Grid-enhancing technologies ▪ Using AI for vegetation management and inspections • Prioritization of capital investment based on operational needs and associated rate impact • Utilization of available tax credits • Energy transition investments generating fuel savings • Implementation of efficiency programs • Relationships with partners to maximize value for customers • Rate design and providing low-income and bill assistance programs to customers where available
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6 Average Annual Total Shareholder Returns 1-Year 23.9% 5-Year 10.7% 10-Year 10.8% 20-Year 9.5% Note: Cumulative and average annual total shareholder returns reflect period ended December 31, 2025. Cumulative 20-Year Total Shareholder Return TOTAL SHAREHOLDER RETURNS 517% 309% 406% S&P/TSX Composite Index S&P/TSX Capped Utilities Index Fortis 2005 2010 2015 2020 2025 6
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2025A 2030F Independent Electric Transmission (ITC) U.S. Electric & Gas Canadian & Caribbean Electric & Gas HIGHLY EXECUTABLE FIVE-YEAR CAPITAL PLAN SUPPORTS LOW-RISK RATE BASE GROWTH OF 7% 7 Transmission 46% Distribution 31% Generation 7% Renewable Gas/LNG 5% Other (1) 11% Capital Plan By Asset Type 5-Year Capital Plan $28.8B 2026-2030 (1) Largely related to information technology and facility investments. Consolidated Rate Base ↑ $16B or 7% CAGR $42.4B $57.9B Note: Reflects a USD:CAD exchange rate of 1.35 for the 2026-2030 Capital Plan. U.S. dollar-denominated rate base converted at a USD:CAD foreign exchange rate of 1.40 for 2025 and 1.35 for 2026-2030. CAGR is calculated on a constant foreign exchange rate basis.
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ABOVE AND BEYOND THE PLAN 8 2026-2030 Opportunities to Expand Growth ITC • Customer Connections UNS Energy • TEP Retail Load Growth (e.g., data centers and other large load) FortisBC • Tilbury LNG Storage Expansion Upside • Tilbury LNG Expansion 2031-2035 Opportunities to Extend Growth ITC • LRTP Tranche 2.1 • LRTP Tranche 2.1 Competitively Bid Projects • Customer Connections • Future MISO LRTP Projects UNS Energy • Additional Retail Load Growth • Integrated Resource Plan Investments • Transmission Investments FortisBC • Tilbury LNG Expansion • Regional Transmission • Customer & Load Growth Investments
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73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 25 4-6% Annual Dividend Growth Guidance through 2030 52 Years of Consecutive Increases in Dividends Paid DIVIDEND GUIDANCE SUPPORTED BY LONG-TERM GROWTH STRATEGY 4% Dividend Increase in 2025 9
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$0.83 $0.90 Q4 2024 Q4 2025 10 FOURTH QUARTER RESULTS Q4 Adjusted EPS Drivers Adjusted EPS • Rate base growth • Impact of foreign exchange • Regulatory lag and milder weather at UNS Energy • Higher holding company finance costs • Lower earnings due to asset dispositions Note: Adjusted EPS is a Non-U.S. GAAP financial measure. Refer to Slide 20 for the Non-U.S. GAAP reconciliation. Reported EPS $0.79 $0.83 Q4 2024 Q4 2025
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11 ANNUAL RESULTS $3.24 $0.04 $3.28 $3.40 $0.13 $3.53 2024 Actual Basic EPS Oct. 2024 MISO Base ROE Decision 2024 Adjusted Basic EPS 2025 Actual Basic EPS Dispositions 2025 Adjusted Basic EPS Note: Adjusted EPS is a Non-U.S. GAAP financial measure. Refer to Slide 20 for the Non-U.S. GAAP reconciliation. (1) 2025 Adjusted EPS ↑ $0.25 (2) (1) Represents the prior period impact of FERC's October 2024 MISO base ROE decision, net of income tax recovery of $7M, included in the ITC segment. (2) Fortis sold its utility in Turks and Caicos in September 2025, and its investments in Belize, including the non-regulated hydroelectric generation facilities, in October 2025. For 2025, the adjustment represents the total loss on each of the dispositions, inclusive of income tax expense of $31M, included in the Corporate and Other Segment.
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$3.28 $0.10 $0.08 $0.04 $0.01 $0.08 ($0.06) $3.53 2024 Adjusted Basic EPS Western Canadian Electric & Gas U.S. Electric & Gas U.S. Transmission (ITC) Corporate & Other Foreign Exchange Weighted Average Shares 2025 Adjusted Basic EPS 2025 ANNUAL ADJUSTED EPS DRIVERS 12 (1) Includes FortisBC Energy, FortisAlberta and FortisBC Electric. (2) Includes UNS Energy and Central Hudson. (3) Reflects average U.S. dollar-to-Canadian dollar exchange rate of 1.40 in 2025 compared to 1.37 in 2024, and the revaluation of U.S. dollar denominated short-term liabilities. (1) (2) (3) 2025 Adjusted EPS $0.25 compared to 2024 Note: Adjusted EPS is a Non-U.S. GAAP financial measure. Refer to Slide 20 for the Non-U.S. GAAP reconciliation.
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$2.78 $3.09 $3.28 $3.53 78.1% 73.9% 72.7% 70.4% 55.0% 60.0% 65.0% 70.0% 75.0% 80.0% 85.0% 90.0% 95.0% 100.0% 0 0.5 1 1.5 2 2.5 3 3.5 4 2022 2023 2024 2025 THREE-YEAR LOOKBACK 13 Note: Adjusted EPS and Adjusted Dividend Payout Ratio are Non-U.S. GAAP financial measures. Adjusted Dividend Payout Ratio calculated using annual dividends paid per common share divided by annual Adjusted EPS. Refer to Slide 20 for the Non-U.S. GAAP reconciliation. (1) 2022-2025 CAGR for rate base and adjusted EPS calculated based on a constant foreign exchange rate. Rate base CAGR adjusted for disposition of FortisTCI. $34.1B $37.0B $39.0B $42.4B 2022 2023 2024 2025 Rate Base Adjusted EPS & Adjusted Dividend Payout Ratio Adjusted Dividend Payout RatioAdjusted EPS
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Balanced Approach To Funding Growth LIQUIDITY & FUNDING 14 (1) In September 2025, the Corporation fully repaid its unsecured US$250M non-revolving term credit facility. (2) Non-U.S. GAAP financial measure. Reflects cash from operating activities net of dividends and including customer contributions. (3) Reflects common shares issued under the Corporation’s dividend reinvestment and employee share purchase plans. $500M ATM available for flexibility as needed. (4) Net debt reflects regulated and non-regulated debt issuances, net of repayments. Raised $2.7B in Long-Term Debt in 2025 Cash from Operations 59% Equity 11% Net Debt 30% 5-Year Capital Plan $28.8B 2026-2030 (2) (4) $3.9B $3.7B $2.4B $2.1B Dec. 31, 2024 Dec. 31, 2025 Unutilized Utilized $6.3B $5.8B(1) Credit Facilities (3)
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6.2x 5.9x 2025 2026-2030F Avg. 11.6% 12.4% 2025 2026-2030F Avg. S&P FFO/Debt Credit Ratings & Outlooks INVESTMENT-GRADE CREDIT RATINGS 15 (1) On a constant foreign exchange basis with year-end U.S. dollar-denominated debt adjusted to reflect the average annual foreign exchange rate, S&P FFO/Debt metric and Fitch FFO Leverage were 11.5% and 6.3x, respectively. (2) S&P rating reflects the issuer credit rating. Fortis’ unsecured debt rating is BBB+. A-(2) BBB+ A (low) StableStable Stable Fitch FFO Leverage >12.0% <6.2x Key Credit Strengths Strong business risk profile Geographic and regulatory diversity 100% regulated – stable and predictable cash flows Constructive regulatory frameworks (1) (1) Rating Agency Threshold
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RECENT REGULATORY ACTIVITY 16 TEP General Rate Application UNS Gas General Rate Application • In June 2025, TEP filed a general rate application with the ACC requesting new rates effective September 1, 2026 • The application includes a proposal to phase-out or eliminate certain adjustor mechanisms and requests an annual formulaic rate adjustment mechanism • In February 2026, ACC Staff filed testimony recommending an allowed ROE at 9.75% and a 55% common equity component of capital structure • ACC Staff rate design testimony including the formula, will be filed in Q1 2026 and hearings are expected to commence in Q2 2026 • In January 2026, an ACC ALJ issued a ROO, recommending an allowed ROE at 9.57% and a 56% common equity component of capital structure • The ALJ also supported an annual formulaic rate adjustment mechanism, however, the ROO included a range of +/- 40 bps around the allowed return and other modifications to the formula • UNS Gas filed exceptions to the ROO and the application remains subject to ACC approval which is anticipated in Q1 2026
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WHY INVEST IN FORTIS? 17 Sustainable Growth Low Risk • Strong Rate Base Growth • Robust Transmission Pipeline • Transparent Funding Plan • Investments to Strengthen Resiliency • 4-6% Annual Dividend Growth • Investment-Grade Credit Ratings • Strong Governance • Regulatory & Geographic Diversity • Constructive Regulatory Relationships • Local Business Model • 100% Regulated Utilities • Primarily Transmission & Distribution Assets Focused on Executing and Providing Safe, Reliable & Affordable Service
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Expected Earnings Release Dates Q1 2026 – May 6, 2026
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APPENDIX
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NON-U.S. GAAP RECONCILIATION 20 (1) Fortis sold its utility in Turks and Caicos in September 2025, and its investments in Belize, including the non-regulated hydroelectric generation facilities, in October 2025. For Q4 2025, the adjustment represents the loss on the disposition of the investments in Belize, inclusive of income tax expense of $5M. For 2025, the adjustment represents the total loss on each of the dispositions, inclusive of income tax expense of $31M, included in the Corporate and Other Segment (2) Represents the prior period impact of FERC's October 2024 MISO base ROE decision, net of income tax recovery of $7M, included in the ITC segment (3) Calculated using Adjusted Common Equity Earnings divided by weighted average common shares of 506.4M for Q4 2025 and 503.5M for Annual 2025 (Q4 2024 – 498.2M and Annual 2024 – 495.0M) (4) Calculated using dividends paid per common share of $2.49 in 2025 (2024 – $2.39) divided by Adjusted Basic EPS (5) Represents CIACs received for the Eagle Mountain Pipeline project, included in the FortisBC Energy segment (6) Represents Fortis' 39% share of capital spending for the Wataynikaneyap Transmission Power project, included in the Other Electric segment. Construction was completed in Q2 2024 ($MILLIONS, EXCEPT AS INDICATED) Q4 2025 Q4 2024 VARIANCE 2025 2024 VARIANCE Adjusted Common Equity Earnings, Adjusted Basis EPS and Adjusted Payout Ratio Common Equity Earnings 422 396 26 1,714 1,606 108 Adjusting items: Dispositions(1) 31 - 31 63 - 63 October 2024 MISO base ROE decision(2) - 20 (20) - 20 (20) Adjusted Common Equity Earnings 453 416 37 1,777 1,626 151 Adjusted Basic EPS(3) ($) $0.90 $0.83 $0.07 $3.53 $3.28 $0.25 Adjusted Payout Ratio(4) (%) - - - 70.4 72.7 (2.3) Capital Expenditures Additions to property, plant and equipment 1,618 1,629 (11) 5,942 5,012 930 Additions to intangible assets 76 64 12 292 206 86 Adjusting items: Eagle Mountain Pipeline Project(5) (251) - (251) (620) - (620) Wataynikaneyap Transmission Power Project(6) - - - - 29 (29) Capital Expenditures 1,443 1,693 (250) 5,614 5,247 367
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FOURTH QUARTER RESULTS BY SEGMENT 21 (1) Non-U.S. GAAP financial measure. Refer to Slide 20 for the Non-U.S. GAAP reconciliation. Fourth Quarter Earnings Variance Analysis by Business Unit ($MILLIONS, EXCEPT WEIGHTED AVERAGE SHARES AND EPS) Q4 2025 ADJUSTMENT ADJUSTED Q4 2025 (1) Q4 2024 ADJUSTMENT ADJUSTED Q4 2024(1) VARIANCE Independent Electric Transmission ITC 150 - 150 127 20 147 3 U.S. Electric & Gas UNS Energy 43 - 43 52 - 52 (9) Central Hudson 70 - 70 66 - 66 4 113 - 113 118 - 118 (5) Canadian & Caribbean Electric & Gas FortisBC Energy 134 - 134 120 - 120 14 FortisAlberta 50 - 50 42 - 42 8 FortisBC Electric 18 - 18 18 - 18 - Other Electric 38 - 38 52 - 52 (14) 240 - 240 232 - 232 8 Corporate and Other (81) 31 (50) (81) - (81) 31 Common Equity Earnings 422 31 453 396 20 416 37 Weighted Average Shares (# millions) 506.4 - 506.4 498.2 - 498.2 8.2 EPS $0.83 $0.07 $0.90 $0.79 $0.04 $0.83 $0.07
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ANNUAL RESULTS BY SEGMENT 22 (1) Non-U.S. GAAP financial measure. Refer to Slide 20 for the Non-U.S. GAAP reconciliation. Annual Earnings Variance Analysis by Business Unit ($MILLIONS, EXCEPT WEIGHTED AVERAGE SHARES AND EPS) 2025 ADJUSTMENT ADJUSTED 2025 (1) 2024 ADJUSTMENT ADJUSTED 2024 (1) VARIANCE Independent Electric Transmission ITC 592 - 592 542 20 562 30 U.S. Electric & Gas UNS Energy 437 - 437 448 - 448 (11) Central Hudson 191 - 191 128 - 128 63 628 - 628 576 - 576 52 Canadian & Caribbean Electric & Gas FortisBC Energy 336 - 336 293 - 293 43 FortisAlberta 182 - 182 181 - 181 1 FortisBC Electric 75 - 75 72 - 72 3 Other Electric 167 - 167 163 - 163 4 760 - 760 709 - 709 51 Corporate and Other (266) 63 (203) (221) - (221) 18 Common Equity Earnings 1,714 63 1,777 1,606 20 1,626 151 Weighted Average Shares (# millions) 503.5 - 503.5 495.0 - 495.0 8.5 EPS $3.40 $0.13 $3.53 $3.24 $0.04 $3.28 $0.25
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2026-2030 CAPITAL PLAN BY BUSINESS UNIT 23 Capital Plan ($MILLIONS) 2026F 2027F 2028F 2029F 2030F 2026-2030 TOTAL Independent Electric Transmission ITC 1,874 1,898 2,008 2,083 1,980 9,843 U.S. Electric & Gas UNS Energy 1,281 1,014 940 1,413 983 5,631 Central Hudson 466 438 509 551 573 2,537 Total U.S. Electric & Gas 1,747 1,452 1,449 1,964 1,556 8,168 Canadian & Caribbean Electric & Gas FortisBC Energy 712 1,134 753 637 580 3,816 FortisAlberta 614 665 716 763 721 3,479 FortisBC Electric 207 244 227 230 220 1,128 Other Electric 462 475 506 528 433 2,404 Total Canadian & Caribbean Electric & Gas 1,995 2,518 2,202 2,158 1,954 10,827 Total Capital Plan 5,616 5,868 5,659 6,205 5,490 28,838 Note: U.S. dollar-denominated capital expenditures converted at a USD:CAD foreign exchange rate of 1.35.
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MAJOR CAPITAL PROJECTS 24 Note: Projects, other than ongoing maintenance projects, individually costing $200M or more in the forecast/planning period. Major Capital Projects 21% Base Utility Capex (Smaller Projects) 79% $28.8B Capital Plan 2026-2030 (1) Includes capital expenditures of US$1.3B for Tranche 1 for the forecast period 2026-2030. (2) Includes capital expenditures of US$400M for Tranche 2.1 for the forecast period 2026-2030. US$3.3B – US$3.8B expected beyond 2030 and excludes projects subject to a competitive bidding process. (3) Net of customer contributions. ($ Millions) 2025A 2026- 2030F Expected Completion Date ITC MISO LRTP Tranche 1(1) 173 1,812 2030 MISO LRTP Tranche 2.1(2) 8 529 Post-2030 Big Cedar Load Expansion 172 394 2028 UNS Energy TEP Transmission Project - 608 2029 Springerville Natural-Gas Conversion - 238 2030 Black Mountain Gas Generation 58 339 2028 Vail-to-Tortolita Transmission Project 144 147 2027 FortisBC Energy Tilbury LNG Storage Expansion 5 627 Post-2030 AMI Project 136 570 2028 Tilbury 1B Project 12 342 2030 Eagle Mountain Pipeline Project(3) 14 274 2027
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2025-2030 RATE BASE BY BUSINESS UNIT 25 Rate Base ($BILLIONS) 2025A 2026F 2027F 2028F 2029F 2030F 5-YEAR CAGR TO 2030 Independent Electric Transmission ITC (1) 13.9 14.6 15.9 17.1 18.4 19.8 8.1% U.S. Electric & Gas UNS Energy 8.4 8.9 9.6 10.2 11.0 11.5 7.2% Central Hudson 3.7 4.0 4.2 4.4 4.7 5.0 6.6% Total U.S. Electric & Gas 12.1 12.9 13.8 14.6 15.7 16.5 7.0% Canadian & Caribbean Electric & Gas FortisBC Energy 6.5 6.8 7.4 8.2 8.4 8.8 6.4% FortisAlberta 4.7 4.8 5.1 5.4 5.7 5.9 4.9% FortisBC Electric 1.8 1.9 2.0 2.1 2.2 2.3 5.3% Other Electric 3.4 3.7 3.9 4.2 4.4 4.6 6.2% Total Canadian & Caribbean Electric & Gas 16.4 17.2 18.4 19.9 20.7 21.6 5.8% Total Rate Base Forecast 42.4 44.7 48.1 51.6 54.8 57.9 7.0% Note: U.S. dollar-denominated rate base converted at a USD:CAD foreign exchange rate of 1.40 for 2025 and 1.35 for 2026-2030. CAGR is calculated on a constant foreign exchange rate basis. (1) Fortis has an 80.1% controlling ownership interest in ITC; rate base represents 100% ownership.
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26 SENSITIVITY EXPOSURE & HEDGING (1) Non-U.S. GAAP financial measure for year ended December 31, 2025. Excludes Net Expenses of Corporate and Other segment. (2) As of December 31, 2025, the contracts had a combined notional value of US$448M. (3) As of December 31, 2025, the contracts had a combined notional value of US$755M. Foreign Exchange ROE & Equity Ratio ROE +/- 25 bps Equity +/- 100 bps ITC $0.040 $0.035 UNS Energy $0.025 $0.020 FortisBC $0.020 $0.020 Central Hudson $0.010 $0.010 FortisAlberta $0.010 $0.010 • Assumed USD:CAD FX rate of 1.35 for 2026-2030 Capital Plan • 65% of regulated earnings(1)/ 65% of capital plan in USD at U.S. & Caribbean Utilities • +/- $0.05 change in USD:CAD ▪ Five-year capital plan: $700M ▪ EPS: $0.05, inclusive of hedging activities Hedging Activities • FX contracts (primarily forwards and collars)(2) • US$1.5B in U.S. dollar-denominated debt outstanding at Fortis Inc. as a natural hedge • US$400M cross-currency interest rate swaps • Interest rate swap contracts at ITC(3)
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OTHER ONGOING REGULATORY PROCEEDINGS 27 Transmission Incentives In 2021, FERC issued a supplemental NOPR proposing to eliminate the 50-bps RTO ROE incentive adder for transmission owners that have been RTO members for longer than three years; the timing and outcome of this proceeding are unknown Third PBR Term Decision In 2023, the AUC issued a decision establishing the parameters for the third PBR term for 2024-2028; FortisAlberta sought permission to appeal the decision to the Court of Appeal on the basis that the AUC erred in its decision to determine capital funding using 2018-2022 historical capital investments without consideration for funding of new capital programs included in the company's 2023 COS revenue requirement as approved by the AUC; in March 2025, the Court of Appeal granted FortisAlberta permission to appeal, which was heard in January 2026 and a decision is expected in Q3 2026
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28 SUSTAINABILITY PRIORITIES OUR SUSTAINABILITY STRATEGY GROUNDED IN BUSINESS FUNDAMENTALS Integrating climate risk with business planning Reducing emissions and delivering cleaner energy Strengthening governance foundations and partnering with local communities NEW – 2026 Climate Resiliency Report • Utilities completed enhanced, location-specific climate risk and vulnerability assessments grounded in climate scenario analysis and external expertise • Climate hazards are now mapped by geography and asset category, identifying areas of higher and lower exposure and risk level across Fortis utilities • The analysis includes more assets, providing deeper insights to support capital planning and resiliency investments • Expanded information on climate resiliency and mitigation actions • Achieved a 38% reduction in scope 1 emissions (2019-2025) • Committed to a coal-free generation mix by 2032 • Advancing towards net-zero emissions by 2050 • The GHG intensity of delivered energy has consistently decreased over the last number of years (2020-2024) • A governance model grounded in local leadership and independence • Executive compensation linked to climate and sustainability initiatives • 50% of Fortis board members are women; 2 of 12 identify as a visible minority • Partnered with First Nations communities in northern Ontario to connect 17 remote communities to the power grid • $14M of community investment in 2025 and $60M over the last five years • $320M on energy efficiency customer programs in 2025 – the highest spending level ever
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29 2025 SALES TRENDS (1) Excludes wholesale sales at UNS Energy. Other Electric CHANGE IN RETAIL ENERGY SALES 2025 vs. 2024 SALES TRENDS N/A • Peak load up 2% primarily due to warmer weather -1% • Residential sales down 3% mainly due to milder weather; C&I sales flat; Absent weather impacts, retail sales up 1% +1% • Residential sales up 4% mainly due to colder weather; C&I sales down 2% due to lower average consumption by industrial customers -1% • Decrease in gas sales due lower average consumption by transportation and residential customers, partially offset by higher average consumption by industrial customers; decrease in residential gas sales mainly due to milder weather in Q4 2025 +3% • Increase in electricity sales due to higher average consumption by C&I customers, partially offset by lower average consumption by residential customers due to milder weather in H2 2025 +1% • Residential sales up 1% mainly due to warmer weather in Q2 2025; C&I sales up 1% due to higher average consumption by industrial customers, reflecting activity in the energy sector, and customer additions - • Eastern Canadian residential and C&I sales each up 1%; Caribbean sales down due to the disposition of FortisTCI (1)
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LONG-TERM DEBT MATURITIES 30 $- $0.5 $1.0 $1.5 $2.0 $2.5 2026F 2027F 2028F 2029F 2030F 2031F 2032F 2033F 2034F 2035F Non-Regulated Regulated billions 10-Year Debt Maturities (1) Includes non-regulated debt maturities at Fortis Inc. and ITC Holdings. (1) Note: U.S. dollar-denominated debt translated at December 31, 2025 USD:CAD closing foreign exchange rate of 1.37.
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STRONG INVESTMENT-GRADE CREDIT RATINGS (1) S&P credit ratings for Fortis Inc. and ITC Holdings Corp. reflect the issuer credit ratings. The unsecured debt rating for Fortis Inc. and ITC Holdings Corp. is BBB+. (2) In January 2026, Moody's withdrew its ratings for Fortis Inc. at the Corporation's request. The withdrawal does not impact the subsidiary credit ratings. Company Fortis Inc. A-(1) A (low) BBB+ -(2) ITC Holdings Corp. A-(1) - - Baa2 ITC Regulated Subsidiaries A+ - - A1 TEP A- - - A3 Central Hudson BBB+ - BBB+ Baa1 FortisBC Energy - A - A3 FortisBC Electric - A (low) - Baa1 FortisAlberta A- A (low) - Baa1 Newfoundland Power - A - A2 31
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GLOSSARY 32 ACC Arizona Corporation Commission ALJ Administrative Law Judge AMI Advanced Metering Infrastructure ATM At-the-market equity program AUC Alberta Utilities Commission Belize Electricity Belize Electricity Limited, in which Fortis indirectly held a 33% equity interest which was sold on October 31, 2025 Board Board of Directors of the Corporation Caribbean Utilities Caribbean Utilities Company, Ltd., an indirect approximately 60%-owned (as at December 31, 2025) subsidiary of Fortis, together with its subsidiary CAGR compound average growth rate of a particular item. CAGR = (EV/BV) ^(1-N) -1, where: (i) EV is the ending value of the item; (ii) BV is the beginning value of the item; and (iii) N is the number of periods. Calculated on a constant U.S. dollar-to-Canadian dollar exchange rate Capital Expenditures cash outlay for additions to property, plant and equipment and intangible assets as shown in the Annual Financial Statements, less CIACs received by FortisBC Energy associated with the Eagle Mountain Pipeline project. Also includes Fortis' 39% share of capital spending for the Wataynikaneyap Transmission Power project in 2024. See "Non-U.S. GAAP Financial Measures" in the 2025 MD&A. Capital Plan forecast Capital Expenditures. Represents a non-U.S. GAAP financial measure calculated in the same manner as Capital Expenditures Central Hudson CH Energy Group, Inc., an indirect wholly owned subsidiary of Fortis, together with its subsidiaries, including Central Hudson Gas & Electric Corporation CFO Cash from operating activities Corporation Fortis Inc. COS Cost of Service Court of Appeal Court of Appeal of Alberta C&I Commercial & Industrial EPS earnings per common share EVP Executive Vice President FERC Federal Energy Regulatory Commission FFO Funds from operations Fitch Ratings Fitch Ratings Inc. Fortis Fortis Inc. FortisAlberta FortisAlberta Inc., an indirect wholly owned subsidiary of Fortis FortisBC FortisBC Energy and FortisBC Electric FortisBC Electric FortisBC Inc., an indirect wholly owned subsidiary of Fortis, together with its subsidiaries FortisBC Energy FortisBC Energy Inc., an indirect wholly owned subsidiary of Fortis, together with its subsidiaries FortisBelize Fortis Belize Limited, an indirect wholly-owned subsidiary of Fortis, sold on October 31, 2025 FortisOntario FortisOntario Inc., a direct wholly owned subsidiary of Fortis, together with its subsidiaries FortisTCI FortisTCI Limited, an indirect wholly owned subsidiary of Fortis, together with its subsidiary, sold on September 2, 2025 FX foreign exchange associated with the translation of U.S. dollar-denominated amounts. Foreign exchange is calculated by applying the change in the U.S.-to-Canadian dollar FX rates to the prior period U.S. dollar balance GHG greenhouse gas H2 second half ITC ITC Investment Holdings Inc., an indirect 80.1%-owned subsidiary of Fortis, together with its subsidiaries, including International Transmission Company, Michigan Electric Transmission Company, LLC, ITC Midwest LLC, and ITC Great Plains, LLC LNG liquefied natural gas LRTP Long-Range Transmission Plan Major Capital Projects projects, other than ongoing maintenance projects, individually costing $200M or more in the forecast/ planning period MD&A the Corporation's management discussion and analysis MISO Midcontinent Independent System Operator, Inc. Moody's Moody's Investor Services, Inc. Morningstar DBRS DBRS Limited Newfoundland Power Newfoundland Power Inc., a direct wholly owned subsidiary of Fortis Non-U.S. GAAP Financial Measure financial measures that do not have a standardized meaning prescribed by U.S. GAAP NOPR notice of proposed rulemaking PBR performance-based rate-setting Rate Base the stated value of property on which a regulated utility is permitted to earn a specified return in accordance with its regulatory construct ROE rate of return on common equity ROO Recommended Opinion and Order RTO regional transmission organization S&P Standard & Poor's Financial Services LLC TEP Tucson Electric Power Company Total Shareholder Return Total shareholder return, or TSR. which is a measure of the return to common equity shareholders in the form of share price appreciation and dividends (assuming reinvestment) over a specified time period in relation to the share price at the beginning of the period U.S. United States of America U.S. GAAP accounting principles generally accepted in the U.S. UNS UNS Energy Corporation, an indirect wholly owned subsidiary of Fortis, together with its subsidiaries, including TEP, UNS Electric, Inc. and UNS Gas, Inc. UNS Electric / UNSE UNS Electric, Inc. UNS Gas UNS Gas, Inc. USD:CAD U.S. Dollar to Canadian Dollar foreign exchange rate Wataynikaneyap Power Wataynikaneyap Power Limited Partnership, in which Fortis indirectly holds a 39% equity interest