Fortis Inc: 2Q Preview: Tucson in Focus

Research evidence excerpt

Fortis Inc: 2Q Preview: Tucson in Focus

Equity Research

1 July 2026

Fortis Inc

2Q Preview: Tucson in Focus

We expect TEP to be the primary focus of the earnings call,

with discussions about a possible delay in the rate case

decision, potential extension in the deadline for the IRP filing, North America Power & Utilities POSITIVE

Unchangedand the Project Blue data center opportunity. Our 2Q26 EPS

estimate is modestly below current consensus. North America Power & Utilities

Michael Lonegan

+1 212 526 8462

What to expect on the 2Q26 call: We expect TEP to be the primary focus on the earnings call, michael.lonegan1@barclays.com

given the pending rate case, Project Blue data center opportunity, and upcoming IRP filing. In BCI, US

our conversations with Fortis, the company indicated that it thinks it is possible the rate case Nicholas Campanella

decision does not come until after the November 2026 election. Recall, TEP requested new rates +1 212 526 6123

September 1st. Also, Fortis mentioned to us that it is possible the August IRP filing deadline is nicholas.campanella@barclays.com

extended the fall 2026 like Pinnacle West's was. Aside from opportunities in Arizona, we also BCI, US

expect incremental capital opportunities in at ITC and Tilbury LNG to be topical. ITC's April 2026 Michael Brown

complaint to FERC via the Grid Acceleration Coalition could be discussed, as the company +1 212 526 4885

requested a ruling by July 16th. As a reminder, FTS does not provide EPS guidance. For 2Q26 michael.brown3@barclays.com

EPS, we are modeling $0.75, modestly below Bloomberg consensus of $0.78. In terms of BCI, US

negative year-over-year drivers, we expect higher regulatory lag at TEP, the impact of asset

sales, and higher corporate & other costs.