ITC Holdings Posts Strong Revenue Growth, Net Income Up 3.8%

TL;DR

ITC Holdings is growing its asset base and revenue, but watch that $601M debt coming due – it's a big chunk of their current liabilities.

AI Summary

ITC Holdings Corp. reported a robust financial performance for the nine months ended September 30, 2025, with total operating revenues increasing to $1,338 million, up from $1,221 million in the prior year, representing a 9.6% increase. Net income also saw a positive trend, rising to $387 million for the nine-month period in 2025, compared to $373 million in 2024, a 3.8% improvement. For the three months ended September 30, 2025, net income was $133 million, up from $124 million in 2024. The company's total assets grew to $14,535 million as of September 30, 2025, from $13,721 million at December 31, 2024, driven primarily by a significant increase in property, plant and equipment (net) to $12,912 million from $12,129 million. Current liabilities surged to $1,049 million from $484 million, largely due to $601 million in debt maturing within one year. Cash and cash equivalents decreased from $19 million to $4 million, while net cash provided by operating activities increased to $667 million from $617 million. The company is evaluating new FASB guidance on disaggregation of income statement expenses and internal-use software, which could impact future disclosures and accounting practices.

Why It Matters

This filing reveals ITC Holdings' continued growth in the critical electric transmission sector, a key component of the nation's infrastructure. The 9.6% increase in operating revenues and 3.8% rise in net income signal healthy operational performance, which is positive for its parent company, Fortis Inc., and its indirect investor, GIC. For investors, the substantial increase in property, plant and equipment to $12,912 million indicates significant capital investment, suggesting long-term growth and stability in its regulated asset base. However, the sharp rise in current liabilities, particularly $601 million in debt maturing within one year, warrants attention as it could impact short-term liquidity and financing strategies, especially in a competitive utility landscape where capital access is crucial.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant increase in current liabilities, specifically $601 million in debt maturing within one year, which represents a substantial portion of the total current liabilities of $1,049 million. This could pose refinancing risks or impact short-term liquidity. Additionally, the decrease in cash and cash equivalents from $19 million to $4 million, despite increased operating cash flow, suggests reliance on financing activities for capital expenditures.

Analyst Insight

Investors should monitor ITC Holdings' upcoming debt refinancing strategies and evaluate its ability to manage short-term liquidity given the $601 million in debt maturing within one year. While the company shows strong operational growth, a deeper dive into its capital structure and financing plans is warranted to assess potential impacts on future profitability and dividend stability for its parent, Fortis Inc.

Financial Highlights

debt To Equity

3.48

revenue

$1,338M

operating Margin

55.2%

total Assets

$14,535M

total Debt

$8,340M

net Income

$387M

eps

N/A

gross Margin

N/A

cash Position

$4M

revenue Growth

+9.6%

Revenue Breakdown

Key Numbers

• $1,338M — Total Operating Revenues (Increased from $1,221M in 2024 for the nine months ended September 30, 2025, a 9.6% increase.)
• $387M — Net Income (Increased from $373M in 2024 for the nine months ended September 30, 2025, a 3.8% increase.)
• $14,535M — Total Assets (Increased from $13,721M at December 31, 2024, indicating significant asset growth.)
• $12,912M — Property, Plant and Equipment (net) (Increased from $12,129M at December 31, 2024, reflecting substantial capital investment.)
• $1,049M — Total Current Liabilities (Increased significantly from $484M at December 31, 2024, primarily due to maturing debt.)
• $601M — Debt Maturing Within One Year (A new liability in 2025, representing a significant short-term obligation.)
• $667M — Net Cash Provided by Operating Activities (Increased from $617M in 2024 for the nine months ended September 30, 2025, showing strong operational cash generation.)
• $973M — Expenditures for Property, Plant and Equipment (Increased from $751M in 2024, highlighting continued investment in infrastructure.)
• $4M — Cash and Cash Equivalents (Decreased from $19M at December 31, 2024, indicating lower liquidity despite operational cash flow.)
• 224,203,112 — Shares of Common Stock Outstanding (As of November 3, 2025, held by parent company.)

Key Players & Entities

• ITC Holdings Corp. (company) — Registrant and primary entity discussed
• Fortis Inc. (company) — Indirect majority owner of ITC Investment Holdings Inc.
• GIC Private Limited (company) — Indirect, passive, non-voting minority owner of ITC Investment Holdings Inc. (19.9%)
• Federal Energy Regulatory Commission (regulator) — Approves tariffs and formula rates for transmission services
• Financial Accounting Standards Board (regulator) — Issues authoritative guidance on accounting standards
• $1,338 million (dollar_amount) — Total operating revenues for the nine months ended September 30, 2025
• $387 million (dollar_amount) — Net income for the nine months ended September 30, 2025
• $14,535 million (dollar_amount) — Total assets as of September 30, 2025
• $601 million (dollar_amount) — Debt maturing within one year as of September 30, 2025
• $4 million (dollar_amount) — Cash and cash equivalents as of September 30, 2025

FAQ

Risk Factors

• Increased Short-Term Debt Obligation [high — financial]: The company has a significant new liability of $601 million in 'Debt maturing within one year' as of September 30, 2025, which was not present at December 31, 2024. This represents a substantial increase in short-term financial obligations.
• Decreased Cash and Cash Equivalents [medium — financial]: Cash and cash equivalents have fallen from $19 million at December 31, 2024, to $4 million as of September 30, 2025. This reduction in liquidity, despite strong operating cash flow, warrants attention.
• Impact of New FASB Guidance [medium — regulatory]: ITC Holdings is evaluating new FASB guidance on disaggregation of income statement expenses and internal-use software. This could lead to changes in future disclosures and accounting practices, requiring adaptation.
• Significant Capital Expenditures [medium — operational]: Expenditures for property, plant, and equipment increased to $973 million for the nine months ended September 30, 2025, from $751 million in the prior year. While indicating investment, this also represents a substantial outflow.

Industry Context

ITC Holdings operates in the regulated electric transmission industry, which is characterized by high capital intensity and significant infrastructure investment. The industry is subject to extensive regulatory oversight from federal and state agencies, influencing rates, service standards, and expansion plans. Trends include the ongoing need to upgrade aging infrastructure, integrate renewable energy sources, and enhance grid reliability and resilience.

Regulatory Implications

As a regulated utility, ITC Holdings is heavily influenced by decisions from bodies like the Federal Energy Regulatory Commission (FERC). Changes in rate-setting methodologies, cost recovery mechanisms, or environmental regulations can materially impact financial performance and investment strategies. The company's proactive evaluation of new FASB guidance also highlights the dynamic nature of accounting and disclosure requirements.

What Investors Should Do

1. Monitor the maturity of $601 million in debt due within one year.
2. Analyze the drivers behind the decrease in cash and cash equivalents from $19M to $4M.
3. Evaluate the impact of new FASB guidance on future financial reporting.
4. Assess the sustainability of capital expenditures ($973M for nine months).

Glossary

Formula Rate true-up

A mechanism that adjusts transmission rates to reflect actual costs incurred, ensuring that the utility company recovers its expenses while adhering to regulatory approved rates. (This line item impacts total operating revenues, showing a negative contribution for the nine months ended September 30, 2025, indicating that actual costs were lower than initially projected or billed.)

Allowance for equity funds used during construction

A non-cash charge representing the cost of capital used to finance construction projects during the construction period, which is capitalized into the cost of the asset. (This is a contra-expense item that reduces total other expenses, reflecting the capitalization of financing costs for ongoing construction projects.)

Regulatory assets

Costs that have been incurred but are not yet recognized as expenses in the income statement, with the expectation that they will be recovered from customers in the future through approved rates. (These are significant assets on the balance sheet, totaling $219 million ($26M current + $193M other) as of September 30, 2025, representing future revenue potential.)

Regulatory liabilities

Obligations to customers or other parties that are expected to be settled in the future, often related to rate adjustments or refunds, and are recognized on the balance sheet. (These liabilities, totaling $813 million ($37M current + $776M long-term) as of September 30, 2025, represent future outflows or adjustments related to regulatory decisions.)

Year-Over-Year Comparison

ITC Holdings has demonstrated strong top-line growth, with total operating revenues increasing by 9.6% to $1,338 million for the nine months ended September 30, 2025, compared to the prior year. Net income also saw a modest increase of 3.8% to $387 million. However, the company's balance sheet shows a significant increase in current liabilities, primarily driven by $601 million in debt maturing within one year, a new obligation not present in the prior period. This, coupled with a decrease in cash and cash equivalents from $19 million to $4 million, presents a mixed picture regarding financial health despite robust operational performance.

Filing Documents

• itc-20250930.htm (10-Q) — 976KB
• itc9302025ex_311.htm (EX-31.1) — 12KB
• itc9302025ex_312.htm (EX-31.2) — 12KB
• itc9302025ex_32.htm (EX-32) — 5KB
• 0001317630-25-000018.txt ( ) — 5454KB
• itc-20250930.xsd (EX-101.SCH) — 38KB
• itc-20250930_cal.xml (EX-101.CAL) — 57KB
• itc-20250930_def.xml (EX-101.DEF) — 223KB
• itc-20250930_lab.xml (EX-101.LAB) — 381KB
• itc-20250930_pre.xml (EX-101.PRE) — 286KB
• itc-20250930_htm.xml (XML) — 828KB

Financial Information

Part I. Financial Information 5

Financial Statements

Item 1. Financial Statements 5 Condensed Consolidated Statements of Financial Position (Unaudited) 5 Condensed Consolidated Statements of Comprehensive Income (Unaudited) 6 Condensed Consolidated Statements of Changes in Stockholder's Equity (Unaudited) 7 Condensed Consolidated Statements of Cash Flows (Unaudited) 8 Notes to Condensed Consolidated Interim Financial Statements (Unaudited) 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 23

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 33

Controls and Procedures

Item 4. Controls and Procedures 33

Other Information

Part II. Other Information 34

Legal Proceedings

Item 1. Legal Proceedings 34

Risk Factors

Item 1A. Risk Factors 34

Exhibits

Item 6. Exhibits 34

Signatures

Signatures 35 2 Table of Contents DEFINITIONS Unless otherwise noted or the context requires, all references in this report to: ITC Holdings Corp. and its subsidiaries "ITC Great Plains" are references to ITC Great Plains, LLC, a wholly-owned subsidiary of ITC Holdings; "ITC Holdings" are references to ITC Holdings Corp., a wholly-owned subsidiary of ITC Investment Holdings, and not any of ITC Holdings' subsidiaries; "ITC Midwest" are references to ITC Midwest LLC, a wholly-owned subsidiary of ITC Holdings; "ITCTransmission" are references to International Transmission Company, a wholly-owned subsidiary of ITC Holdings; "METC" are references to Michigan Electric Transmission Company, LLC, a wholly-owned subsidiary of MTH; "MISO Regulated Operating Subsidiaries" are references to ITCTransmission, METC and ITC Midwest together; "MTH" are references to Michigan Transco Holdings, LLC, the sole member of METC and a wholly-owned subsidiary of ITC Holdings; "Regulated Operating Subsidiaries" are references primarily to ITCTransmission, METC, ITC Midwest, and ITC Great Plains together; and "Company," "we," "our" and "us" are references to ITC Holdings together with all of its subsidiaries. Other definitions "AFUDC" are references to an allowance for funds used during construction; "AOCI" are references to accumulated other comprehensive income or loss; "Consumers Energy" are references to Consumers Energy Company, a wholly-owned subsidiary of CMS Energy Corporation; "D.C. Circuit Court" are references to the U.S. Court of Appeals for the District of Columbia Circuit; "DTE Electric" are references to DTE Electric Company, a wholly-owned subsidiary of DTE Energy Company; "Exchange Act" are references to the Securities Exchange Act of 1934, as amended; "FASB" are references to the Financial Accounting Standards Board; "FERC" are references to the Federal Energy Regulatory Commission; "Formula Rate" are references to a FERC-approved formula template

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS ITC HOLDINGS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) September 30, December 31, (In millions of USD, except share data) 2025 2024 ASSETS Current assets Cash and cash equivalents $ 4 $ 19 Accounts receivable 164 160 Inventory 82 78 Regulatory assets 26 21 Prepaid and other current assets 31 23 Total current assets 307 301 Property, plant and equipment (net of accumulated depreciation and amortization of $ 2,860 and $ 2,715 , respectively) 12,912 12,129 Other assets Goodwill 950 950 Regulatory assets 193 187 Other assets 173 154 Total other assets 1,316 1,291 TOTAL ASSETS $ 14,535 $ 13,721 LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilities Accounts payable $ 137 $ 142 Accrued compensation 63 57 Accrued interest 87 77 Accrued taxes 47 77 Regulatory liabilities 37 67 Refundable deposits and advances for construction 49 44 Debt maturing within one year 601 — Other current liabilities 28 20 Total current liabilities 1,049 484 Accrued pension and postretirement liabilities 38 39 Deferred income taxes 1,620 1,521 Regulatory liabilities 776 729 Long-term debt 7,739 7,892 Other liabilities 69 62 Commitments and contingent liabilities (Notes 5 and 12) TOTAL LIABILITIES 11,291 10,727 STOCKHOLDER'S EQUITY Common stock, without par value, 235,000,000 shares authorized, 224,203,112 shares issued and outstanding 892 892 Retained earnings 2,332 2,074 Accumulated other comprehensive income 20 28 Total stockholder's equity 3,244 2,994 TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 14,535 $ 13,721 See notes to condensed consolidated interim financial statements (unaudited). 5 Table of Contents ITC HOLDINGS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended Nine Months Ended September 30, September 30, (In millions of USD) 2025 2024 2025 2024 OPERATING REVENUES Transmission and

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