UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the Quarterly Period Ended	September 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-32576

ITC HOLDINGS CORP.

(Exact Name of Registrant as Specified in Its Charter)


Michigan						32-0058047
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)

27175 Energy Way

Novi, MI 48377

(Address of Principal Executive Offices, Including Zip Code)

(248) 946-3000

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	None	None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☑

* The registrant is a voluntary filer and has not been subject to the filing requirements under Section 13 or 15(d) of the Securities Exchange Act of 1934 for the preceding 12 months.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

☐

☑

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

All shares of outstanding common stock of ITC Holdings Corp. are held by its parent company, ITC Investment Holdings Inc., which is an indirect majority owned subsidiary of Fortis Inc. There were 224,203,112 shares of common stock, no par value, outstanding as of November 3, 2025.

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ITC Holdings Corp.

Form 10-Q for the Quarterly Period Ended September 30, 2025

INDEX


			Page
Part I. Financial Information			5
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
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			23
Item 3. Quantitative and Qualitative Disclosures About Market Risk			33
Item 4. Controls and Procedures			33
Part II. Other Information			34
Item 1. Legal Proceedings			34
Item 1A. Risk Factors			34
Item 6. Exhibits			34
Signatures			35

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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 used to calculate an annual revenue requirement;

•“Fortis” are references to Fortis Inc.;

•“GAAP” are references to accounting principles generally accepted in the United States of America;

•“GIC” are references to GIC Private Limited;

•“Initial Complaint” are references to a November 2013 complaint to the FERC under Section 206 of the Federal Power Act regarding the base ROE;

•“IP&L” are references to Interstate Power and Light Company, an Alliant Energy Corporation subsidiary;

•“ITC Investment Holdings” are references to ITC Investment Holdings Inc., a majority owned indirect subsidiary of Fortis in which GIC has an indirect, passive, non-voting minority ownership interest;

•“IUC” are references to the Iowa Utilities Commission;

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•“LRTP” are references to long-range transmission plan, an initiative to build transmission projects across the MISO region;

•“May 2020 Order” are references to an order issued by the FERC on May 21, 2020 regarding MISO ROE Complaints;

•“MISO” are references to the Midcontinent Independent System Operator, Inc., a FERC-approved RTO which oversees the operation of the bulk power transmission system for a substantial portion of the Midwestern United States and Manitoba, Canada, and of which ITCTransmission, METC and ITC Midwest are members;

•“MISO ROE Complaints” are references to the Initial Complaint and the Second Complaint;

•“NERC” are references to the North American Electric Reliability Corporation;

•“NOPR” are references to a Notice of Proposed Rulemaking issued by the FERC;

•“October 2024 Order” are references to an order issued by the FERC on October 17, 2024 regarding MISO ROE Complaints;

•“PBU” are references to a performance-based unit;

•“ROE” are references to return on equity;

•“ROFR” are references to right of first refusal;

•“RTO” are references to Regional Transmission Organizations;

•“SBU” are references to a service-based unit;

•“SEC” are references to the Securities and Exchange Commission;

•“Second Complaint” are references to an additional complaint filed on February 12, 2015 with the FERC under Section 206 of the Federal Power Act regarding the base ROE;

•“SPP” are references to Southwest Power Pool, Inc., a FERC-approved RTO which oversees the operation of the bulk power transmission system for a substantial portion of the South Central United States, and of which ITC Great Plains is a member;

•“TO” are references to transmission owner; and

•“USD” are references to the United States dollar.

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PART I. FINANCIAL INFORMATION

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).

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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 other services	$	515	$	488	$	1,363	$	1,278
Formula Rate true-up	(61)		(80)		(25)		(57)
Total operating revenues	454		408		1,338		1,221
OPERATING EXPENSES
Operation and maintenance	36		30		95		84
General and administrative	37		30		111		89
Depreciation and amortization	88		80		258		242
Taxes other than income taxes	44		35		136		116
Other operating expenses (income), net	—		—		—		(1)
Total operating expenses	205		175		600		530
OPERATING INCOME	249		233		738		691
OTHER EXPENSES (INCOME)
Interest expense, net	92		88		272		257
Allowance for equity funds used during construction	(12)		(12)		(32)		(34)
Other expenses (income), net	(4)		(6)		(9)		(19)
Total other expenses (income)	76		70		231		204
INCOME BEFORE INCOME TAXES	173		163		507		487
INCOME TAX PROVISION	40		39		120		114
NET INCOME	133		124		387		373
OTHER COMPREHENSIVE LOSS
Derivative instruments, net of tax	(1)		—		(8)		(3)
TOTAL OTHER COMPREHENSIVE LOSS, NET OF TAX	(1)		—		(8)		(3)
TOTAL COMPREHENSIVE INCOME	$	132	$	124	$	379	$	370

See notes to condensed consolidated interim financial statements (unaudited).

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ITC HOLDINGS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER’S EQUITY (UNAUDITED)


					Accumulated
					Other		Total
			Retained		Comprehensive		Stockholder’s
(In millions of USD)	Common Stock		Earnings		Income		Equity
BALANCE, DECEMBER 31, 2023	$	892	$	1,933	$	29	$	2,854
Net income	—		123		—		123
Dividends to ITC Investment Holdings	—		(86)		—		(86)
Other comprehensive loss, net of tax	—		—		(1)		(1)
BALANCE, MARCH 31, 2024	892		1,970		28		2,890
Net income	—		126		—		126
Dividends to ITC Investment Holdings	—		(76)		—		(76)
Other comprehensive loss, net of tax	—		—		(2)		(2)
BALANCE, JUNE 30, 2024	892		2,020		26		2,938
Net income	—		124		—		124
Dividends to ITC Investment Holdings	—		(88)		—		(88)

BALANCE, SEPTEMBER 30, 2024	$	892	$	2,056	$	26	$	2,974

BALANCE, DECEMBER 31, 2024	$	892	$	2,074	$	28	$	2,994

Net income	—		127		—		127
Dividends to ITC Investment Holdings	—		(73)		—		(73)

Other comprehensive loss, net of tax	—		—		(3)		(3)
BALANCE, MARCH 31, 2025	892		2,128		25		3,045
Net income	—		127		—		127
Dividends to ITC Investment Holdings	—		(56)		—		(56)
Other comprehensive loss, net of tax	—		—		(4)		(4)
BALANCE, JUNE 30, 2025	892		2,199		21		3,112
Net income	—		133		—		133
Other comprehensive loss, net of tax	—		—		(1)		(1)
BALANCE, SEPTEMBER 30, 2025	$	892	$	2,332	$	20	$	3,244

See notes to condensed consolidated interim financial statements (unaudited).

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ITC HOLDINGS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


	Nine Months Ended
	September 30,
(In millions of USD)	2025		2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	387	$	373
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	258		242
Recognition, refund and collection of revenue accruals and deferrals — including accrued interest	11		51
Deferred income tax expense	85		72
Allowance for equity funds used during construction	(32)		(34)
Share-based compensation	25		12
Other	(3)		(14)
Changes in assets and liabilities, exclusive of changes shown separately:
Accounts receivable	(13)		(30)




Accounts payable	8		5
Accrued compensation	(3)		(13)
Accrued interest	10		4
Accrued taxes	(30)		(37)

Other current and non-current assets and liabilities, net	(36)		(14)
Net cash provided by operating activities	667		617
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment	(973)		(751)

Other	(1)		(9)
Net cash used in investing activities	(974)		(760)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of long-term debt, net	—		634
Borrowings under revolving credit agreement	1,167		841

Net issuances of commercial paper	202		—
Repayments of long-term debt	—		(450)
Repayments of revolving credit agreement	(925)		(814)

Dividends to ITC Investment Holdings	(129)		(250)
Refundable deposits from generators for transmission network upgrades	19		6
Repayments of refundable deposits from generators for transmission network upgrades	(22)		(17)

Other	—		(4)
Net cash provided by (used in) financing activities	312		(54)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	5		(197)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period	27		333
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period	$	32	$	136

See notes to condensed consolidated interim financial statements (unaudited).

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ITC HOLDINGS CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

1. GENERAL

ITC Holdings and its subsidiaries are engaged in the transmission of electricity in the United States. ITC Holdings is a wholly-owned subsidiary of ITC Investment Holdings. Fortis owns a majority indirect equity interest in ITC Investment Holdings, with GIC holding an indirect, passive, non-voting equity interest of 19.9%. Through our Regulated Operating Subsidiaries, we own, operate, maintain and invest in high-voltage transmission systems in Michigan’s Lower Peninsula and portions of Iowa, Minnesota, Illinois, Missouri, Kansas, Oklahoma and Wisconsin that transmit electricity from generating stations to local distribution facilities connected to our transmission systems.

Basis of Presentation

These condensed consolidated interim financial statements should be read in conjunction with the notes to the consolidated financial statements as of and for the year ended December 31, 2024 included in ITC Holdings’ annual report on Form 10-K for such period.

The accompanying condensed consolidated interim financial statements have been prepared using GAAP and with the instructions to Form 10-Q and Rule 10-01 of SEC Regulation S-X as they apply to interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. These accounting principles require us to use estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results may differ from our estimates.

The condensed consolidated interim financial statements are unaudited but, in our opinion, include all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the results for the interim period. The interim financial results are not necessarily indicative of results that may be expected for any other interim period or the fiscal year.

2. RECENT ACCOUNTING PRONOUNCEMENTS

Recently Adopted Pronouncements

Enhancements to Income Tax Disclosures

In December 2023, the FASB issued authoritative guidance modifying the disclosure requirements for income tax. This update is intended to provide investors information to better assess how an entity’s operations and related tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows. Notable changes in the new guidance include disaggregation of income tax information by jurisdiction and changes to the presentation of information for the reconciliation of effective tax rates. We have adopted this new authoritative guidance effective January 1, 2025 and it will be reflected in our 2025 annual consolidated financial statements. We do not expect a material impact to our annual disclosures.

Recently Issued Pronouncements

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued authoritative guidance requiring public entities to, on an annual and interim basis, disaggregate certain income statement expense captions into specified categories within the footnotes to the financial statements. This update is intended to provide investors with more detailed information about the types of expenses in commonly presented expense captions such as cost of sales, selling, general and administrative expenses and research and development. The guidance requires disclosure which disaggregates, in a tabular presentation, each relevant expense caption on the face of the income statement that includes any of the following expenses: purchases of inventory; employee compensation; depreciation; intangible asset amortization; and depreciation, depletion and amortization recognized as part of oil- and gas-producing activities or other types of depletion expenses. The tabular disclosure would also include amounts that are already required to be disclosed under current GAAP, as applicable. The guidance also requires the disclosure of a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and the total amount of an entity’s selling expenses. The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning

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after December 15, 2027, on a prospective basis, with retrospective application and early adoption permitted. We are evaluating the impact of the new guidance on our disclosures.

Targeted Improvements to the Accounting for Internal-Use Software

In September 2025, the FASB issued authoritative guidance which amends certain aspects of the accounting for and disclosure of software costs. This update is intended to modernize the guidance to reflect the software development approaches currently used. The guidance revises criteria for capitalizing internal software development costs by removing development stage guidance, introducing a probable-to-complete recognition threshold and requiring the resolution of significant development uncertainty before capitalization. The guidance is effective for fiscal years beginning after December 15, 2027 and interim periods within those annual reporting periods. Adoption is permitted on a prospective basis, a modified transition approach based on the status of in-process projects, or with retrospective application. Early adoption is permitted. We are evaluating the impact of the new guidance on our accounting and disclosures.

3. REVENUE

Transmission Services

Through our Regulated Operating Subsidiaries, we generate nearly all our revenue from providing electric transmission services over our transmission systems. As independent transmission companies, our transmission services are provided and revenues are received based on our tariffs, as approved by the FERC. We recognize revenue for transmission services over time as transmission services are provided to customers (generally using an output measure of progress based on transmission load delivered). Customers simultaneously receive and consume the benefits provided by our Regulated Operating Subsidiaries’ services. We recognize revenue in the amount to which we have the right to invoice because we have a right to consideration in an amount that corresponds directly with the value to the customer of performance completed to date. As billing agents, MISO and SPP independently bill our customers on a monthly basis and collect fees for the use of our transmission systems. No component of the transaction price is allocated to unsatisfied performance obligations.

Transmission service revenue includes an estimate for unbilled revenues from service that has been provided but not billed by the end of an accounting period. Unbilled revenues are dependent upon a number of factors that require management’s judgment including estimates of transmission network load (for the MISO Regulated Operating Subsidiaries) and preliminary information provided by billing agents. Due to the seasonal fluctuations of actual load, the unbilled revenue amount generally increases during the spring and summer and decreases during the fall and winter. See Note 4 for balances of unbilled accounts receivable.

Formula Rate True-Up

The true-up mechanism under our Formula Rates is considered an alternative revenue program of a rate-regulated utility given it permits our Regulated Operating Subsidiaries to adjust future rates in response to past activities or completed events in order to collect our actual revenue requirements under our Formula Rates. In accordance with our accounting policy, only the current year origination of the true-up is reported as a Formula Rate true-up. See Note 5 for more information on our Formula Rates.

Other Services

Other services revenue consists of rental revenues, easement revenues, amounts from providing ancillary services relating to customer-owned plant assets and generator interconnection annual maintenance fees. A portion of other services revenue is treated as a revenue credit and taken as a reduction to gross revenue requirement when calculating net revenue requirement under our Formula Rates. Total other services revenue included in transmission and other services in the condensed consolidated statements of comprehensive income for the three months ended September 30, 2025 and 2024 was $2 million and $1 million, respectively. Total other services revenue for the nine months ended September 30, 2025 and 2024 was $4 million and $3 million, respectively.

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4. ACCOUNTS RECEIVABLE

The following table presents the components of accounts receivable on the condensed consolidated statements of financial position:


	September 30,		December 31,
(In millions of USD)	2025		2024
Trade accounts receivable	$	10	$	2
Unbilled accounts receivable	139		135

Other	15		23
Total accounts receivable	$	164	$	160

5. REGULATORY MATTERS

Cost-Based Formula Rates with True-Up Mechanism

Our Regulated Operating Subsidiaries recover expenses and earn an authorized return on and recover investments in property, plant and equipment using cost-based Formula Rates. Each of our Regulated Operating Subsidiaries separately calculates a transmission revenue requirement under their cost-based formula based on financial information specific to each company. The calculation of projected revenue requirement for a future period, generally a calendar year, is used to establish the transmission rate used for billing purposes. The transmission revenue requirements at our Regulated Operating Subsidiaries are set annually and remain in effect for a one-year period. By updating the inputs to the formula and resulting rates on an annual basis, the revenues at our Regulated Operating Subsidiaries reflect changing operational data and financial performance, including the amount of network load on their transmission systems (for our MISO Regulated Operating Subsidiaries), operating expenses and additions to property, plant and equipment when placed in service, among other items.

The formula used to derive the rates does not require further action or FERC filings each year, although the formula inputs remain subject to legal challenge at the FERC. Our Regulated Operating Subsidiaries will continue to use the formula to calculate their respective annual revenue requirements unless the FERC determines the resulting rates to be unjust and unreasonable and another mechanism is determined by the FERC to be just and reasonable. See Note 12 for details on the MISO ROE Complaints.

The cost-based Formula Rates at our Regulated Operating Subsidiaries include a true-up mechanism that compares the actual revenue requirements of our Regulated Operating Subsidiaries to their billed revenues for each year to determine any over- or under-collection of revenue requirements. Revenue is recognized for services provided during each reporting period based on actual revenue requirements calculated using the formula. Our Regulated Operating Subsidiaries accrue or defer revenues to the extent that the actual revenue requirement for the reporting period is higher or lower, respectively, than the amounts billed relating to that reporting period. The amount of accrued or deferred revenues is reflected in future revenue requirements and thus flows through to customer bills within two years under the provisions of our Formula Rates. This annual true-up ensures that our Regulated Operating Subsidiaries recover their allowed costs and earn their authorized returns while also ensuring that our customers pay the actual revenue requirement. We do not earn a return on the balance of regulatory assets for revenue accruals. Interest is accrued on the principal amounts of the revenue accruals and deferrals. The accrued interest is subject to rate recovery along with the principal amount of the revenue accrual or subject to refund through rates along with the principal amount of revenue deferrals in future periods.

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The net changes in regulatory assets and liabilities associated with our Regulated Operating Subsidiaries’ Formula Rate revenue accruals and deferrals, including accrued interest, were as follows during the nine months ended September 30, 2025:


(In millions of USD)	Total
Net regulatory liabilities as of December 31, 2024	$	(8)
Net refund of 2023 revenue deferrals and accruals, including accrued interest	15
Net revenue deferrals, including accrued interest	(25)
Net accrued interest payable	(1)
Net regulatory liabilities as of September 30, 2025	$	(19)

Regulatory assets and liabilities associated with our Regulated Operating Subsidiaries’ Formula Rate revenue accruals and deferrals, including accrued interest, are recorded on the condensed consolidated statements of financial position as follows:


	September 30,		December 31,
(In millions of USD)	2025		2024
Current regulatory assets	$	26	$	21
Non-current regulatory assets	26		26
Current regulatory liabilities	(22)		(40)
Non-current regulatory liabilities	(49)		(15)
Net regulatory liabilities	$	(19)	$	(8)

ROE and Incentive Adders for Transmission Rates

The FERC has authorized the use of ROE incentives, or adders, that can be applied to the rates of TOs when certain conditions are met. Our MISO Regulated Operating Subsidiaries and ITC Great Plains utilize ROE adders related to independent transmission ownership and RTO participation. The FERC issued a NOPR on March 20, 2020, and a supplemental NOPR on April 15, 2021, proposing to update its transmission incentives policy to remove incentives for independent transmission ownership and RTO participation and to grant incentives for certain transmission projects. As of September 30, 2025, no final determination had been made on these NOPRs and we cannot predict whether this will have a material impact on us.

MISO Regulated Operating Subsidiaries

Prior to the issuance of the October 2024 Order, the authorized ROE used by the MISO Regulated Operating Subsidiaries was 10.77% and was composed of a base ROE of 10.02% with a 25 basis point adder for independent transmission ownership and a 50 basis point adder for RTO participation. Based on the October 2024 Order, the authorized ROE used by the MISO Regulated Operating Subsidiaries was revised to 10.73% and is composed of a base ROE of 9.98% with a 25 basis point adder for independent transmission ownership and a 50 basis point adder for RTO participation. See Note 12 for a discussion regarding the October 2024 Order and the related aggregate refund liability.

ITC Great Plains

The authorized ROE used by ITC Great Plains was 11.41% and is composed of a base ROE of 10.66% with a 25 basis point adder for independent transmission ownership and a 50 basis point adder for RTO participation.

6. DEBT

ITC Holdings

Commercial Paper Program

ITC Holdings has an ongoing commercial paper program for the issuance and sale of unsecured commercial paper in an aggregate amount not to exceed $400 million outstanding at any one time. As of September 30, 2025, ITC Holdings had $201 million of commercial paper, net of discount, issued and outstanding under the program, with a weighted average interest rate of 4.42% and weighted average remaining days to maturity of 35

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days. The amount outstanding as of September 30, 2025 was classified as debt maturing within one year in the condensed consolidated statements of financial position. As of December 31, 2024, ITC Holdings did not have any commercial paper issued and outstanding under the program. The Company’s revolving credit agreement may be used to repay commercial paper issued pursuant to the commercial paper program.

Revolving Credit Agreement

At September 30, 2025, we had the following unguaranteed, unsecured revolving credit facility available and outstanding:


(In millions of USD)	Total Available Capacity (a)		Outstanding Balance (b)		Unused Capacity		Weighted Average Interest Rate on Outstanding Balance (c)		Commitment Fee Rate (d)
ITC Holdings	$	350	$	—	$	350	—	%	0.175	%
ITCTransmission	175		155		20		5.20	%	0.100	%
METC	215		148		67		5.20	%	0.100	%
ITC Midwest	185		123		62		5.20	%	0.100	%
ITC Great Plains	75		63		12		5.20	%	0.100	%
Total	$	1,000	$	489	$	511

____________________________

(a)Represents the current borrowing sublimit. Individual sublimits may be adjusted, subject to certain individual sublimits and the aggregate limit under the revolving credit agreement not to exceed $1 billion. In June 2025, we adjusted our current borrowing sublimits, which resulted in an increase to METC of $40 million and a decrease to ITC Midwest of $40 million.

(b)Included within long-term debt on the condensed consolidated statements of financial position.

(c)Interest charged on borrowings depends on the variable rate structure we elect at the time of each borrowing.

(d)Calculation based on the average daily unused commitments, subject to adjustment based on the borrower’s credit rating.

Derivative Instruments and Hedging Activities

We use derivative financial instruments to manage our exposure to fluctuations in interest rates. The following derivative instruments qualified for cash flow hedge accounting treatment. The contracts are used to manage interest rate risk associated with forecasted debt issuances at ITC Holdings.


(In millions of USD)	Notional Amount		Weighted Average Fixed Rate		Term (In years)	Effective Date
Outstanding derivative instruments
Interest rate swaps	$	560	3.54	%	5	Q2 2026
Interest rate swaps	145		3.47	%	5	Q3 2027
Total	$	705

7. RETIREMENT BENEFITS AND ASSETS HELD IN TRUST

Pension Plan Benefits

We have a qualified defined benefit pension plan (the “retirement plan”) for eligible employees, comprised of a traditional final average pay plan and a cash balance plan. The traditional final average pay plan is noncontributory, covers select employees, and provides retirement benefits based on years of benefit service, average final compensation, and age at retirement. The cash balance plan is also noncontributory, covers substantially all employees, and provides retirement benefits based on eligible compensation and interest credits. Our funding practice for the retirement plan is generally to fund the annual net pension cost, though we may adjust our funding as necessary based on consideration of federal funding requirements, the funded status of the plan, and other considerations as we deem appropriate.

We also have two supplemental nonqualified, noncontributory, defined benefit pension plans for selected management employees (the “supplemental benefit plans” and, collectively with the retirement plan, the

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“pension plans”). The supplemental benefit plans provide for benefits that supplement those provided by the retirement plan.

Net periodic benefit cost for the pension plans, by component, was as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions of USD)	2025		2024		2025		2024
Service cost	$	2	$	2	$	6	$	6
Interest cost	1		1		5		5
Expected return on plan assets	(2)		(2)		(6)		(6)


Net periodic benefit cost	$	1	$	1	$	5	$	5

The components of net pension cost, other than the service cost component, are included in other expenses (income), net in the condensed consolidated statements of comprehensive income.

Other Postretirement Benefits

We provide certain postretirement health care, dental, and life insurance benefits for eligible employees (the “postretirement benefit plan”).

Net postretirement benefit plan cost/(credit), by component, was as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions of USD)	2025		2024		2025		2024
Service cost	$	1	$	1	$	5	$	5
Interest cost	2		1		5		4
Expected return on plan assets	(2)		(2)		(6)		(6)
Amortization of unrecognized gain	(1)		(1)		(4)		(4)
Net postretirement cost/(credit)	$	—	$	(1)	$	—	$	(1)

The components of net postretirement cost/(credit), other than the service cost component, are included in other expenses (income), net in the condensed consolidated statements of comprehensive income.

Defined Contribution Plan

We also sponsor a defined contribution retirement savings plan. Participation in this plan is available to substantially all employees. We match employee contributions up to certain predefined limits based upon eligible compensation and the employee’s contribution rate. The cost of this plan was $1 million for each of the three months ended September 30, 2025 and 2024 and $6 million for each of the nine months ended September 30, 2025 and 2024.

8. FAIR VALUE MEASUREMENTS

The measurement of fair value is based on a three-tier hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. For the nine months ended September 30, 2025 and the year ended December 31, 2024, there were no transfers between levels.

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Our assets and liabilities measured at fair value subject to the three-tier hierarchy at September 30, 2025, were as follows:


	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In millions of USD)	(Level 1)		(Level 2)		(Level 3)
Financial assets measured on a recurring basis:
Cash and cash equivalents	$	3	$	—	$	—
Mutual funds — fixed income securities	42		—		—
Mutual funds — equity securities	14		—		—
Interest rate swap derivatives	—		2		—
Financial liabilities measured on a recurring basis:
Interest rate swap derivatives	—		6		—
Total	$	59	$	(4)	$	—

Our assets measured at fair value subject to the three-tier hierarchy at December 31, 2024, were as follows:


	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In millions of USD)	(Level 1)		(Level 2)		(Level 3)
Financial assets measured on a recurring basis:
Cash and cash equivalents	$	1	$	—	$	—
Mutual funds — fixed income securities	42		—		—
Mutual funds — equity securities	15		—		—
Interest rate swap derivatives	—		4		—


Total	$	58	$	4	$	—

The investments recorded within cash and cash equivalents and other long-term assets include investments held in a trust associated with our supplemental benefit plans described in Note 7 and certain deferred compensation plan investments. The mutual funds we own are publicly traded and are recorded at fair value based on observable trades for identical securities in an active market. Changes in the observed trading prices and liquidity of money market funds are monitored as additional support for determining fair value. Gains and losses for all mutual fund investments are recorded in other expenses (income), net in the condensed consolidated statements of comprehensive income.

The assets and liabilities related to derivatives consist of interest rate swaps as discussed in Note 6. The fair value of these derivatives is determined based on a discounted cash flow method using the Secured Overnight Financing Rate, which is observable at commonly quoted intervals.

We also held non-financial assets that are required to be measured at fair value on a non-recurring basis. These consist of goodwill and intangible assets. We did not record any impairment charges on long-lived assets and no other significant events occurred requiring non-financial assets and liabilities to be measured at fair value (subsequent to initial recognition) during the three and nine months ended September 30, 2025 and 2024.

Fair Value of Financial Assets and Liabilities

Fixed Rate Debt

Based on the borrowing rates obtained from third party lending institutions currently available for bank loans with similar terms and average maturities from active markets, the fair value of our consolidated long-term debt and debt maturing within one year, excluding borrowings on the revolving credit agreement and commercial paper, was $7,091 million and $6,918 million at September 30, 2025 and December 31, 2024, respectively. These fair values represent Level 2 under the three-tier hierarchy described above. The total book value of our consolidated long-term debt and debt maturing within one year, net of discount and deferred financing fees and

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excluding borrowings on the revolving credit agreement and commercial paper, was $7,650 million and $7,645 million at September 30, 2025 and December 31, 2024, respectively.

Revolving Credit Agreement

At September 30, 2025 and December 31, 2024, we had a consolidated total of $489 million and $247 million, respectively, outstanding under our revolving credit agreement, which is a variable rate loan. The fair value of the loan approximates book value based on the borrowing rates currently available for a variable rate loan obtained from third party lending institutions. These fair values represent Level 2 under the three-tier hierarchy described above.

Other Financial Instruments

The carrying value of other financial instruments including cash and cash equivalents and commercial paper, approximates their fair value due to the short-term nature of these instruments.

9. STOCKHOLDER'S EQUITY

Accumulated Other Comprehensive Income

The following table provides the components of changes in AOCI:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions of USD)	2025		2024		2025		2024
Balance at the beginning of period	$	21	$	26	$	28	$	29
Derivative instruments
Reclassification of net gain relating to interest rate cash flow hedges from AOCI to earnings (net of tax of $—, $—, $(1) and $(1), respectively) (a)	(1)		—		(2)		(1)

Loss on interest rate swaps relating to interest rate cash flow hedges (net of tax of $—, $—, $(2) and $(1), respectively)	—		—		(6)		(2)
Total other comprehensive loss, net of tax	(1)		—		(8)		(3)
Balance at the end of period	$	20	$	26	$	20	$	26

____________________________

(a)The reclassification of the net gain relating to interest rate cash flow hedges is reported in interest expense, net in the condensed consolidated statements of comprehensive income on a pre-tax basis.

The amount of net gain relating to interest rate cash flow hedges to be reclassified from AOCI to earnings for the 12-month period ending September 30, 2026 is expected to be approximately $6 million (net of tax of $2 million).

10. SHARE-BASED COMPENSATION

In 2025, 347,387 PBUs and 275,643 SBUs were granted pursuant to our long-term incentive plans. The aggregate fair value of all outstanding PBUs and SBUs as of September 30, 2025 was $59 million and $40 million, respectively. At September 30, 2025, the unrecognized compensation cost related to the PBUs and SBUs was $20 million and $14 million, respectively.

11. RELATED PARTY TRANSACTIONS

We may incur charges from Fortis and other affiliates of Fortis that are not subsidiaries of ITC Holdings (“Fortis and Fortis affiliates”) for general corporate expenses incurred. In addition, we may perform additional services for, or receive additional services from, Fortis and such subsidiaries. These transactions are in the normal course of business and payments for these services are settled through accounts receivable and accounts payable, as necessary.

Periodically, we pay dividends to ITC Investment Holdings as shown in the condensed consolidated statements of cash flows.

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We are organized as a corporation for tax purposes and subject to a tax sharing agreement as a wholly-owned subsidiary of ITC Investment Holdings. Additionally, we record income taxes based on our separate company tax position and make or receive tax-related payments with ITC Investment Holdings. See Note 13 for information on income tax payments made to ITC Investment Holdings.


	September 30,		December 31,
(In millions of USD)	2025		2024
Statements of financial position activity:
Accounts receivable from Fortis and Fortis affiliates	$	1	$	1

Net income tax receivable from ITC Investment Holdings (a)	5		—
Net income tax payable to ITC Investment Holdings (b)	—		7

____________________________

(a)Recorded in prepaid and other current assets on the condensed consolidated statements of financial position.

(b)Recorded in accrued taxes on the condensed consolidated statements of financial position.


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions of USD)	2025		2024		2025		2024
Statements of comprehensive income activity:
Billed from Fortis and Fortis affiliates (a)	$	2	$	2	$	11	$	10
Billed to Fortis and Fortis affiliates (b)	1		—		3		3

____________________________

(a)Recorded in general and administrative expenses in the condensed consolidated statements of comprehensive income.

(b)Recorded as an offset to general and administrative expenses in the condensed consolidated statements of comprehensive income.

12. COMMITMENTS AND CONTINGENT LIABILITIES

Environmental Matters

We are subject to federal, state and local environmental laws and regulations, which impose limitations on the discharge of pollutants into the environment, require reporting of emissions from certain equipment, establish standards for the management, treatment, storage, transportation and disposal of hazardous materials and of solid and hazardous wastes, and impose obligations to investigate and remediate contamination in certain circumstances. Liabilities relating to investigation and remediation of contamination, as well as other liabilities concerning hazardous materials or contamination, such as claims for personal injury or property damage, may arise at many locations, including formerly owned or operated properties and sites where wastes have been treated or disposed of, as well as properties currently owned or operated by us. Such liabilities may arise even where the contamination does not result from noncompliance with applicable environmental laws. Under some environmental laws, such liabilities may also be joint and several, meaning that a party can be held responsible for more than its share of the liability involved, or even the entire share. Although environmental requirements generally have become more stringent and compliance with those requirements more expensive, we are not aware of any specific developments that would increase our costs for such compliance in a manner that would be expected to have a material adverse effect on our financial condition, results of operations or liquidity.

Our assets and operations also involve the use of materials classified as hazardous, toxic or otherwise dangerous. Some of the properties that we own or operate have been used for many years and include older facilities and equipment that may be more likely than newer ones to contain or be made from such materials. Some of these properties include above ground or underground storage tanks and associated piping. Some of them also include large electrical equipment filled with mineral oil, which may contain or previously have contained polychlorinated biphenyls. Some of our facilities and electrical equipment may also contain asbestos containing materials. Our facilities and equipment are often situated close to or on property owned by others so that, if they are the source of contamination, the property of others may be affected. For example, above ground

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and underground transmission lines sometimes traverse properties that we do not own and transmission assets that we own or operate are sometimes commingled at our transmission stations with distribution assets owned or operated by our transmission customers.

Some properties in which we have an ownership interest or at which we operate are, or are suspected of being, affected by environmental contamination. We are not aware of any pending or threatened claims against us with respect to environmental contamination relating to these properties, or of any investigation or remediation of contamination at these properties, that entail costs likely to materially affect us. Some facilities and properties are located near environmentally sensitive areas, including wetlands and habitat for threatened and endangered species.

Litigation

We are involved in certain legal proceedings before various courts, governmental agencies and mediation panels concerning matters arising in the ordinary course of business. These may include proceedings such as contract disputes, eminent domain and vegetation management activities, regulatory matters and pending judicial matters. We cannot predict the final disposition of such proceedings. We regularly review legal matters and record provisions for claims that are considered reasonably estimable and probable of loss.

Rate of Return on Equity Complaints

Two complaints were filed with the FERC by combinations of consumer advocates, consumer groups, municipal parties and other parties challenging the base ROE in MISO. The complaints were filed under Section 206 of the Federal Power Act requesting that the FERC find the MISO regional base ROE rate (the “base ROE”) for all MISO TOs, including our MISO Regulated Operating Subsidiaries, to no longer be just and reasonable.

Initial Complaint

On November 12, 2013, the Association of Businesses Advocating Tariff Equity, Coalition of MISO Transmission Customers, Illinois Industrial Energy Consumers, Indiana Industrial Energy Consumers, Inc., Minnesota Large Industrial Group and Wisconsin Industrial Energy Group (collectively, the “complainants”) filed the Initial Complaint with the FERC. The complainants sought a FERC order to reduce the base ROE used in the formula transmission rates for our MISO Regulated Operating Subsidiaries to 9.15%, reducing the equity component of our capital structure and terminating the ROE adders approved for certain MISO Regulated Operating Subsidiaries. The FERC set the base ROE for hearing and settlement procedures, while denying all other aspects of the Initial Complaint. The ROE collected through the MISO Regulated Operating Subsidiaries’ rates during the period November 12, 2013 through September 27, 2016 consisted of a base ROE of 12.38% plus applicable incentive adders.

Second Complaint

On February 12, 2015, the Second Complaint was filed with the FERC by Arkansas Electric Cooperative Corporation, Mississippi Delta Energy Agency, Clarksdale Public Utilities Commission, Public Service Commission of Yazoo City and Hoosier Energy Rural Electric Cooperative, Inc., seeking a FERC order to reduce the base ROE used in the formula transmission rates of our MISO Regulated Operating Subsidiaries to 8.67%, with an effective date of February 12, 2015.

On June 30, 2016, the presiding administrative law judge issued an initial decision that recommended a base ROE of 9.70% for the refund period from February 12, 2015 through May 11, 2016, with a maximum ROE of 10.68%, which also would be applicable going forward from the date of a final FERC order. The Second Complaint was dismissed as a result of an order issued by the FERC on November 21, 2019 and the dismissal of the complaint was reaffirmed in the May 2020 Order.

Previous FERC Orders

Since the filing of the Initial Complaint, the FERC issued three separate orders in these proceedings resulting in multiple revisions to the base ROE and refund settlements. The MISO TOs, along with our MISO Regulated Operating Subsidiaries, and various other parties have challenged certain aspects of these orders through requests for rehearing. In the May 2020 Order, the FERC determined that a methodology using three financial models should be used to determine the base ROE. By applying the new methodology, the FERC determined that the base ROE for the Initial Complaint should be 10.02% and the top of the range of reasonableness for that period should be 12.62%. The FERC determined that this base ROE should apply

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during the first refund period of November 12, 2013 to February 11, 2015 and from the date of the order issued by the FERC on September 28, 2016 prospectively. The FERC ordered refunds to be made in accordance with the May 2020 Order. Refund settlements were finalized in 2022.

August 2022 D.C. Circuit Court Decision

On August 9, 2022, in response to appeals of the FERC's orders on the MISO ROE Complaints, the D.C. Circuit Court issued an opinion that rejected the FERC’s use of a risk premium model in the methodology used to determine the revised base ROE for MISO TOs. The D.C. Circuit Court decision vacated the FERC’s orders on the MISO ROE Complaints, dismissed the remaining outstanding appeals of these orders and remanded the matter to the FERC for further proceedings.

October 2024 Order

On October 17, 2024, in response to the August 2022 D.C. Circuit Court decision, the FERC issued the October 2024 Order that revised the methodology used to determine base ROE put forth in the May 2020 Order. In this order, the FERC removed the use of the risk premium model from the calculation, while maintaining other modifications to the methodology as described in previous orders on the MISO ROE Complaints. By applying the revised methodology, the FERC determined that the base ROE for the Initial Complaint should be 9.98% for all MISO TOs, including our MISO Regulated Operating Subsidiaries, and the top of the range of reasonableness for that period should be 12.58%. The FERC determined that this base ROE should apply during the first refund period of November 12, 2013 to February 11, 2015 and from the date of the order issued by the FERC on September 28, 2016 prospectively. The FERC ordered refunds to be made in accordance with the order by December 1, 2025. The FERC also reaffirmed its previous finding that no refunds would be ordered on the Second Complaint. Certain MISO TOs, including us, filed a request for rehearing on November 18, 2024 and filed an appeal of the order with the D.C. Circuit Court on January 31, 2025. The request for rehearing and appeal primarily focused on the prospective refund period and the related interest. On March 25, 2025, the FERC issued an order addressing requests for rehearing that made no changes to the October 2024 Order, including the required refunds from September 28, 2016 to the October 2024 Order. The FERC further rejected the MISO TOs’ request that the FERC decline to award interest on any refunds that it ordered the MISO TOs to pay. The MISO TOs continue to pursue an appeal at the D.C. Circuit Court of the October 2024 Order and the subsequent order issued by the FERC on March 25, 2025. On August 14, 2025, the MISO TOs filed a petitioner brief with the D.C. Circuit Court seeking appeal of the FERC’s orders on the matters of the duration of the refund period and the failure of FERC to directly dismiss the second complaint as unlawful. Timing of a decision on the appeal is unknown. On September 22, 2025, MISO and the MISO TOs requested an extension of the refund resettlement period until June 30, 2026.

During the nine months ended September 30, 2025, we made refund settlement payments of $13 million in accordance with the refund provisions of the order. As of September 30, 2025 and December 31, 2024, the aggregate refund liability in current regulatory liabilities was $15 million and $27 million, respectively, and included interest of $4 million and $6 million, respectively.

See Note 5 for a summary of our authorized ROE, which is composed of our base ROE and incentive adders for transmission rates.

13. SUPPLEMENTAL FINANCIAL INFORMATION

Reconciliation of Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the condensed consolidated statements of financial position that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows:


	September 30,				December 31,
(In millions of USD)	2025		2024		2024		2023
Cash and cash equivalents	$	4	$	130	$	19	$	328
Restricted cash included in other non-current assets	28		6		8		5
Total cash, cash equivalents and restricted cash	$	32	$	136	$	27	$	333

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Supplementary Cash Flows Information


	Nine Months Ended
	September 30,
(In millions of USD)	2025		2024

Interest paid (net of interest capitalized)	$	266	$	247
Income taxes paid to ITC Investment Holdings	45		49
Income taxes paid to state jurisdictions	2		1

Non-cash investing and financing activities:
Additions to property, plant and equipment (a)	143		128

Allowance for equity funds used during construction	32		34

Other	6		—

____________________________

(a)Amounts consist of current and accrued liabilities for construction, labor, materials and other costs that have not been included in investing activities. These amounts have not been paid for as of September 30, 2025 or 2024, respectively, but will be or have been included as a cash outflow from investing activities for expenditures for property, plant and equipment when paid.

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14. SEGMENT INFORMATION

We identify reportable segments based on factors including the regulatory environment of our subsidiaries and the business activities performed to earn revenues and incur expenses. The following tables show our financial information by reportable segment:


	Regulated
	Operating		ITC Holdings		Reconciliations/
(In millions of USD)	Subsidiaries		and Other		Eliminations		Total
Three Months Ended September 30, 2025
Statements of comprehensive income activity
Operating revenues	$	463	$	—	$	(9)	$	454
Depreciation and amortization	88		—		—		88
Interest expense, net	47		45		—		92
Other segment items (a)	101		9		(9)		101
Income (loss) before income taxes	227		(54)		—		173
Income tax provision (benefit)	55		(15)		—		40
Subsidiary net earnings	—		172		(172)		—
Net income	172		133		(172)		133
Nine Months Ended September 30, 2025
Statements of comprehensive income activity
Operating revenues	$	1,365	$	—	$	(27)	$	1,338
Depreciation and amortization	258		—		—		258
Interest expense, net	137		135		—		272
Other segment items (a)	306		22		(27)		301
Income (loss) before income taxes	664		(157)		—		507
Income tax provision (benefit)	161		(41)		—		120
Subsidiary net earnings	—		503		(503)		—
Net income	503		387		(503)		387
Statements of cash flows activity
Expenditures for property, plant and equipment	974		—		(1)		973
As of September 30, 2025
Statements of financial position balances
Property, plant and equipment, net	12,905		7		—		12,912
Goodwill	950		—		—		950
Total assets (b)	14,382		7,606		(7,453)		14,535

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	Regulated
	Operating		ITC Holdings		Reconciliations/
(In millions of USD)	Subsidiaries		and Other		Eliminations		Total
Three Months Ended September 30, 2024
Statements of comprehensive income activity
Operating revenues	$	416	$	—	$	(8)	$	408
Depreciation and amortization	80		—		—		80
Interest expense, net	43		45		—		88
Other segment items (a)	86		(1)		(8)		77
Income (loss) before income taxes	207		(44)		—		163
Income tax provision (benefit)	50		(11)		—		39
Subsidiary net earnings	—		157		(157)		—
Net income	157		124		(157)		124
Nine Months Ended September 30, 2024
Statements of comprehensive income activity
Operating revenues	$	1,249	$	—	$	(28)	$	1,221
Depreciation and amortization	242		—		—		242
Interest expense, net	126		131		—		257
Other segment items (a)	268		(5)		(28)		235
Income (loss) before income taxes	613		(126)		—		487
Income tax provision (benefit)	148		(34)		—		114
Subsidiary net earnings	—		465		(465)		—
Net income	465		373		(465)		373
Statements of cash flows activity
Expenditures for property, plant and equipment	752		—		(1)		751
As of December 31, 2024
Statements of financial position balances
Property, plant and equipment, net	12,122		7		—		12,129
Goodwill	950		—		—		950
Total assets (b)	13,556		7,135		(6,970)		13,721

____________________________

(a)Other segment items includes taxes other than income taxes, general and administrative expense, operation and maintenance expense, allowance for equity funds used during construction and other expense and income items.

(b)Reconciliation of total assets results primarily from differences in the netting of deferred tax assets and liabilities in our segments as compared to the classification in the condensed consolidated statements of financial position.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995

Our reports, filings and other public announcements contain certain statements that describe our management’s beliefs concerning future business conditions, plans and prospects, forecasted capital expenditures, dividend payments, growth opportunities, the outlook for our business and the electric transmission industry, and expectations with respect to various legal and regulatory proceedings based upon information available at the time such statements are made. All statements, other than statements of historical fact, included in this report are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Wherever possible, we have identified these forward-looking statements by words such as “will,” “may,” “anticipates,” “believes,” “intends,” “estimates,” “expects,” “forecasted,” “projects,” “likely,” “could,” “might,” “target,” “would,” “plan,” “potential,” “continue,” “should,” “predict,” “seeks,” and the negative of these terms, and similar phrases. These forward-looking statements are based upon assumptions our management believes are reasonable. Such forward-looking statements are based on estimates and assumptions and are subject to significant risks and uncertainties which could cause our actual results, performance and achievements to differ materially from those expressed in, or implied by, these statements, including, among others, the following risks and uncertainties listed in “Item 1A. Risk Factors” of our Form 10-K for the year ended December 31, 2024 and those included in or modified by this report or our other reports filed with the SEC from time to time:

•Certain elements of our Regulated Operating Subsidiaries’ Formula Rates have been and can be challenged, which could result in lowered rates and/or refunds of amounts previously collected and thus may have an adverse effect on our business, financial condition, results of operations and cash flows.

•Our actual capital investment may be lower than planned, which would cause a lower than anticipated rate base and would therefore result in lower revenues, earnings and associated cash flows compared to our current expectations. In addition, we may incur expenses related to the pursuit of strategic investment opportunities, which may be higher than forecasted.

•The regulations to which we are subject may limit our ability to raise capital and/or pursue acquisitions, development opportunities or other transactions or may subject us to liabilities.

•Changes in energy laws, regulations or policies could impact our business, financial condition, results of operations and cash flows.

•Each of our MISO Regulated Operating Subsidiaries depends on its primary customer for a substantial portion of its revenues, and any material failure by those primary customers to make payments for transmission services could have a material adverse effect on our business, financial condition, results of operations and cash flows.

•A significant amount of the land on which our assets are located is subject to easements, mineral rights and other similar encumbrances. As a result, we must comply with the provisions of various easements, mineral rights and other similar encumbrances, which may adversely impact our ability to complete construction projects in a timely manner.

•We contract with third parties to provide services for certain aspects of our business. If any of these agreements are terminated, we may face a shortage of labor or replacement contractors to provide the services formerly provided by these third parties.

•Hazards associated with high-voltage electricity transmission may result in suspension of our operations, costly litigation or the imposition of civil or criminal penalties.

•A cyber-attack or incident could have a material adverse effect on our business, financial condition, results of operations and cash flows.

•We are subject to environmental regulations and to laws that can give rise to substantial liabilities from environmental contamination.

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•If amounts billed for transmission service for our Regulated Operating Subsidiaries’ transmission systems are lower than expected, or our actual revenue requirements are higher than expected, the timing of actual collection of our total revenues would be delayed.

•Natural disasters, severe weather and other related phenomena, including those due to climate change, and the regulatory and legislative developments related to climate change, may have a material adverse effect on our business, financial condition, results of operations and cash flows.

•We are subject to various regulatory requirements, including reliability standards; contract filing requirements; reporting, recordkeeping and accounting requirements; and transaction approval requirements. Violations of these requirements, whether intentional or unintentional, may result in penalties that, under some circumstances, could have a material adverse effect on our business, financial condition, results of operations and cash flows.

•Changes in tax laws or regulations may negatively affect our financial condition, results of operations, net income, cash flows and credit metrics.

•The widespread outbreak of an illness or other communicable disease, or any other public health crisis, could have a material adverse impact on our business, financial condition, results of operations, cash flows and credit metrics.

•Acts of war, terrorist attacks and other catastrophic events may have a material adverse effect on our business, financial condition, results of operations and cash flows.

•Advances in technology may negatively impact our business, financial condition, results of operations and cash flows.

•ITC Holdings is a holding company with no operations, and unless we receive dividends or other payments from our subsidiaries, we may be unable to fulfill our cash obligations.

•We have a considerable amount of debt and our reliance on debt financing may limit our ability to fulfill our debt obligations and/or to obtain additional financing.

•Adverse changes in our credit ratings may negatively affect us.

•Certain provisions in our debt instruments limit our financial and operating flexibility.

Forward-looking statements speak only as of the date made and can be affected by assumptions we might make or by known or unknown risks and uncertainties. Many factors mentioned in our discussion in this report will be important in determining future results. Consequently, we cannot assure you that our expectations or forecasts expressed in such forward-looking statements will be achieved. Except as required by law, we undertake no obligation to publicly update any of our forward-looking or other statements, whether as a result of new information, future events or otherwise.

Overview

ITC Holdings and our Regulated Operating Subsidiaries provide safe and reliable electric transmission service to connect consumers to more sustainable and cost-effective energy resources. Our Regulated Operating Subsidiaries continue to make investments in a modernized grid to maintain reliability and accommodate future demands as lifestyles and the economy become increasingly dependent on electricity.

Our business consists primarily of the electric transmission operations of our Regulated Operating Subsidiaries. Through our Regulated Operating Subsidiaries, we own, operate, maintain and invest in high-voltage transmission systems in Michigan’s Lower Peninsula and portions of Iowa, Minnesota, Illinois, Missouri, Kansas, Oklahoma and Wisconsin that transmit electricity from generating stations to local distribution facilities connected to our transmission systems.

Our Regulated Operating Subsidiaries’ primary operating responsibilities include maintaining, improving and expanding their transmission systems to meet their customers’ ongoing needs, scheduling outages on system elements to allow for maintenance and construction, maintaining appropriate system voltages and monitoring flows over transmission lines and other facilities to ensure physical limits are not exceeded.

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Our Regulated Operating Subsidiaries earn revenues for the use of their electric transmission systems by their customers, which include investor-owned utilities, municipalities, cooperatives, power marketers and alternative energy suppliers. As independent transmission companies, our Regulated Operating Subsidiaries are subject to rate regulation only by the FERC, and our cost-based rates are discussed in Note 5 to the condensed consolidated interim financial statements.

Significant matters that influenced our financial condition, results of operations and cash flows for the nine months ended September 30, 2025 or that may affect future results include:

•Our capital expenditures of $973 million at our Regulated Operating Subsidiaries during the nine months ended September 30, 2025, as described below under “— Capital Investment and Operating Results Trends;”

•Debt activity, including derivatives, as described in Note 6 to the condensed consolidated interim financial statements;

•The Iowa courts’ rulings on ROFR proceedings, as described below under “ — Recent Developments;”

•The October 2024 Order and appeal proceedings as described in Note 12 to the condensed consolidated interim financial statements; and

•NOPRs previously issued by the FERC proposing changes to transmission incentives policy, as described in Note 5 to the condensed consolidated interim financial statements.

Recent Developments

Iowa Courts’ Rulings on Right of First Refusal and First Tranche of MISO’s LRTP

In 2020, the State of Iowa enacted a state law that granted incumbent Iowa electric transmission owners, including ITC Midwest, a ROFR to construct, own and maintain certain electric transmission assets in the state. On October 14, 2020, LS Power Midcontinent, LLC and Southwest Transmission, LLC sued the IUC and several individual defendants, seeking a judgment that the ROFR provisions violated the Iowa Constitution and requesting a temporary injunction of the ROFR until the case was resolved. The case was dismissed in district court based on the plaintiffs’ lack of standing in the case and the court of appeals later affirmed the district court’s ruling.

Following appeal, on March 24, 2023, the Iowa Supreme Court issued an opinion that the plaintiffs have standing to challenge the ROFR provision, thereby vacating the decision of the court of appeals, reversing the district court’s judgment and remanding the case to the Iowa District Court for Polk County to determine the merits regarding the constitutionality of the ROFR statute. As part of this opinion, the Iowa Supreme Court also issued a temporary injunction staying the enforcement of the ROFR. However, ITC Midwest had already exercised its right to construct certain electric transmission projects approved and awarded by MISO, as the decision for assignment of the first tranche of LRTP projects in Iowa was finalized by MISO on July 25, 2022. MISO is the only entity charged with determining what projects are to be competitively bid pursuant to its tariff.

On December 4, 2023, the Iowa District Court for Polk County issued a decision finding that the manner in which Iowa’s ROFR statute was passed is unconstitutional. The court did not make any determination on the merits of the ROFR itself. The district court issued a permanent injunction preventing ITC Midwest and others from taking further action to construct the first tranche of Iowa’s LRTP projects in reliance on the ROFR. However, the district court ordered that the injunction does not prohibit ITC Midwest from seeking approval from the IUC to construct projects included in the first tranche of LRTP, so long as the approval is unrelated to a claim under the ROFR statute. ITC Midwest has filed for reconsideration of the district court’s decision with respect to the scope of the injunction. On March 19, 2024, the district court issued an order denying all motions for reconsideration of its decision. ITC Midwest appealed this order on April 17, 2024.

On July 5, 2024, the Iowa Supreme Court granted a motion filed by ITC Midwest requesting a stay of the injunction issued by the district court while the district court’s orders are appealed. LS Power Midcontinent, LLC and Southwest Transmission, LLC requested quorum review of the stay of the injunction. On August 7, 2024, the Iowa Supreme Court vacated the stay and reinstated the injunction. On May 30, 2025, the Iowa Supreme Court issued an order denying ITC Midwest’s appeal and affirming the permanent injunction.

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On May 28, 2024, MISO confirmed commencement of a variance analysis process on the grounds that there was an inability to construct a portion of the first tranche of MISO’s LRTP projects in Iowa due to the injunction imposed by the district court order. On August 29, 2024, MISO publicly posted the conclusion of the variance analysis whereby its Competitive Transmission Executive Committee, which maintains authority to oversee and implement variance analyses pursuant to the MISO tariff, reaffirmed MISO’s assignment of ownership and construction responsibility for the portion of the first tranche of MISO’s LRTP projects in Iowa to ITC Midwest and MidAmerican Energy Company. While the results of MISO’s variance analysis process allow ITC Midwest to move forward with development of its portion of the first tranche of MISO’s LRTP projects in Iowa, uncertainty remains around the ultimate resolution of these matters. On June 27, 2025, ITC Midwest filed a supplemental brief in response to a June 5, 2025 letter from the IUC requesting ITC Midwest to identify the basis upon which the IUC should proceed consistent with the Iowa Supreme Court’s May 30, 2025 decision. On July 22, 2025, in a hearing related to one of the projects assigned to ITC Midwest in Iowa in the first tranche of MISO’s LRTP, the IUC recognized MISO’s variance analysis as the proper remedy to the injunction which allows the continued development of these projects in Iowa.

Our plan for forecasted capital expenditures for the period from 2026 through 2030 includes approximately $700 million in estimated capital investment in Iowa for the first tranche of MISO’s LRTP. Approximately 70% of ITC Midwest’s first tranche of MISO’s LRTP projects are upgrades to existing ITC Midwest facilities in Iowa along existing rights of way, which under MISO’s tariff grants ITC Midwest the option to construct the upgrades regardless of the outcome of the ROFR proceedings.

Revenue Accruals and Deferrals — Effects of Monthly Network Peak Loads

For our MISO Regulated Operating Subsidiaries, monthly network peak loads are used for billing network revenues, which currently is the largest component of our operating revenues. One of the primary factors that impacts the revenue accruals and deferrals at our MISO Regulated Operating Subsidiaries is actual monthly network peak loads experienced as compared to those forecasted in establishing the annual network transmission rate. Under their cost-based Formula Rates that contain a true-up mechanism, our MISO Regulated Operating Subsidiaries accrue or defer revenues to the extent that their actual revenue requirement for the reporting period is higher or lower, respectively, than the amounts billed relating to that reporting period. These revenue accruals and deferrals are recorded to the condensed consolidated statements of financial position within regulatory assets or regulatory liabilities, respectively. See Note 5 to the condensed consolidated interim financial statements for additional information on our Formula Rates. Although monthly network peak loads do not impact operating revenues recognized, network load affects the timing of our cash flows from transmission service. The monthly network peak load of our MISO Regulated Operating Subsidiaries is generally impacted by weather, economic conditions and other significant factors, and is seasonally shaped with higher load in the summer months when cooling demand is higher. We are unable to predict the possible future impacts of weather, economic conditions and other factors on monthly network peak loads at our MISO Regulated Operating Subsidiaries.

Capital Investment and Operating Results Trends

We expect a long-term upward trend in rate base resulting from our anticipated capital investment, in excess of depreciation and any acquisition premiums, from our Regulated Operating Subsidiaries’ long-term capital investment programs to improve reliability, increase system capacity and upgrade the transmission network to support new generating resources. Investments in property, plant and equipment, when placed in-service upon completion of a capital project, are added to the rate base of our Regulated Operating Subsidiaries. We expect increases in rate base to result in a corresponding long-term upward trend in revenues and earnings. Our revenues and earnings may be impacted by future increases or decreases to our rates for ROE incentive adders and base ROE. As of September 30, 2025, we estimate that each 10 basis point change in the authorized ROE would impact annual consolidated net income by approximately $6 million. See Note 5 and Note 12 to the condensed consolidated interim financial statements for additional information related to matters that have impacted base ROE and may impact future rates for incentive adders and base ROE.

Our Regulated Operating Subsidiaries incur significant costs to invest in their transmission systems and maintain the assets on their systems. While we have been impacted by increases in inflation and supply chain disruptions, these challenges have not had a material impact on our current or forecasted capital expenditures. We work closely with our suppliers to manage costs and deliveries of required materials and supplies and attempt to ensure that our asset and inventory purchases adequately support our construction and maintenance

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activities. In response to these challenges, we have increased levels of certain materials and supplies inventories over time to help reduce risks related to global supply chain constraints. We continue to monitor and evaluate the potential impacts of these macroeconomic trends on our forecasted capital expenditures and maintenance activities. Recently announced changes and proposed changes to the U.S. global trade policy, along with potential international retaliatory measures, have resulted in volatility in global markets and uncertainty around short- and long-term economic impacts in the United States, including concerns over tariffs and their potential impacts on the cost of goods, inflation, recession and slowing growth. As such, we continue to monitor and evaluate the potential impacts of these changes and measures, including the imposition of new or revised tariffs, on our business and operations. It is not currently possible to predict the impact of any changes or proposed changes to the U.S. global trade policy, or any international retaliatory measures, on our forecasted capital expenditures for the years 2026 through 2030 or our long-term financial condition, results of operations and cash flows. However, we do not currently expect a significant financial impact in 2025.

We are also monitoring and evaluating the potential impact of various executive orders issued by the U.S. government on our business, including potential impacts to our financial condition, results of operations and cash flows. On October 1, 2025, FERC issued a final rule to comply with the executive order entitled “Zero-Based Regulatory Budgeting to Unleash American Energy,” which establishes a sunset date for certain regulations. We do not expect a significant impact from the final rule.

Our Regulated Operating Subsidiaries strive for high reliability of their systems and improvement in system accessibility for all generation resources. The FERC requires compliance with certain reliability standards and may take enforcement actions against violators, including the imposition of substantial fines. NERC is responsible for developing and enforcing these mandatory reliability standards. We continually assess our transmission systems against standards established by NERC, as well as the standards of applicable regional entities under NERC that have been delegated certain authority for the purpose of proposing and enforcing reliability standards. We believe that we meet the applicable standards in all material respects, although further investment in our transmission systems and an increase in maintenance activities will likely be needed to maintain compliance, improve reliability and address any new standards that may be promulgated.

We also assess our transmission systems against our own planning criteria that are filed annually with the FERC. Based on our planning studies, we see needs to make capital investments to: (1) maintain and replace our current transmission infrastructure to enhance system reliability and accommodate load growth; (2) expand access to electricity markets to reduce the overall cost of delivered energy to customers and provide access to competitive markets for economic development; (3) interconnect new generation resources; and (4) upgrade physical and technological grid security to protect critical infrastructure.

In addition to future investments identified through our planning studies, MISO continues to identify capital investment needs through its LRTP initiative. The objective of this initiative is to ensure grid reliability while integrating the different operating characteristics of new generation resources and increase resiliency of the grid during severe weather events. The MISO LRTP will result in additional capital investments across MISO’s Midwest subregion, including investments for our MISO Regulated Operating Subsidiaries. On December 12, 2024 MISO’s board of directors approved a portfolio of the second tranche of 24 LRTP projects (“Tranche 2.1”) with estimated total associated transmission costs of approximately $22 billion. Based on the MISO portfolio of Tranche 2.1 projects, we expect a range of $3.7 billion to $4.2 billion of additional capital investments for our MISO Regulated Operating Subsidiaries. At this time, this range includes the estimate of future capital investments for projects from the Tranche 2.1 portfolio that are not subject to a competitive bidding process. We currently anticipate that the majority of our investments for the Tranche 2.1 portfolio will occur beyond our five-year plan for forecasted capital expenditures for the years 2026 through 2030. On July 30, 2025, certain state regulatory commissions in the MISO region filed a complaint at the FERC challenging the manner in which MISO developed the Tranche 2.1 portfolio and the designation of projects in the portfolio as multi-value projects. We are monitoring developments in the complaint proceedings; however, we are unable to determine the possible impacts to capital expenditures for Tranche 2.1 projects at this time.

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The following table shows our actual and expected capital expenditures at our Regulated Operating Subsidiaries:


	Actual Capital		Forecasted
	Expenditures for the		Capital
	Nine Months Ended		Expenditures
(In millions of USD)	September 30, 2025		2026 — 2030
Expenditures for property, plant and equipment (a)	$	973	$	7,291

____________________________

(a)Amounts represent the cash payments to acquire or construct property, plant and equipment, as presented in the condensed consolidated statements of cash flows. These amounts exclude non-cash additions to property, plant and equipment for the AFUDC equity as well as accrued liabilities for construction, labor and materials that have not yet been paid.

Our five-year forecasted capital expenditure plan for the years 2026 through 2030 results in a forecasted 25% increase in our plan for capital expenditures compared to the previous plan that was developed for the years 2025 through 2029. The increase is primarily driven by the addition to the plan of expenditures for the first tranche of MISO’s LRTP projects, the incorporation of capital expenditures for projects not subject to a competitive bidding process in Tranche 2.1 of MISO’s LRTP, capital expenditures not included in the previous plan for customer and generator interconnection projects and other base capital expenditures considered necessary to our business.

Our long-term growth plan includes ongoing investments in our current regulated transmission systems and the identification of incremental strategic projects primarily located in and around our service territories. In addition, evolving technologies such as data centers, with increasing energy demand and load capacity requirements, will require electric transmission systems to adapt to future demands at a scale and pace beyond the historical trends of development.

Our capital expenditure forecast is subject to continuing review and modification. Investments in property, plant and equipment could be lower than expected due to a variety of factors, as discussed in “Item 1A. Risk Factors.” Actual capital expenditures may vary from estimates due to the actions of Fortis, changes in projected electric load growth, safety and reliability needs, regulatory decisions, construction challenges such as permitting, legislative initiatives, tax policy, alternative plans for meeting long-term energy needs, environmental initiatives and regulation and other matters. In addition, investments in transmission network upgrades for generator interconnection projects could materially change from prior estimates due to changes in the MISO or SPP queue for generation projects and other factors beyond our control.

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Results of Operations


	Three Months Ended						Percentage		Nine Months Ended						Percentage
	September 30,				Increase		Increase		September 30,				Increase		Increase
(In millions of USD)	2025		2024		(Decrease)		(Decrease)		2025		2024		(Decrease)		(Decrease)
OPERATING REVENUES
Transmission and other services	$	515	$	488	$	27	6	%	$	1,363	$	1,278	$	85	7	%
Formula Rate true-up	(61)		(80)		19		24	%	(25)		(57)		32		56	%
Total operating revenues	454		408		46		11	%	1,338		1,221		117		10	%
OPERATING EXPENSES
Operation and maintenance	36		30		6		20	%	95		84		11		13	%
General and administrative	37		30		7		23	%	111		89		22		25	%
Depreciation and amortization	88		80		8		10	%	258		242		16		7	%
Taxes other than income taxes	44		35		9		26	%	136		116		20		17	%
Other operating expenses (income), net	—		—		—		n/a		—		(1)		1		100	%
Total operating expenses	205		175		30		17	%	600		530		70		13	%
OPERATING INCOME	249		233		16		7	%	738		691		47		7	%
OTHER EXPENSES (INCOME)
Interest expense, net	92		88		4		5	%	272		257		15		6	%
Allowance for equity funds used during construction	(12)		(12)		—		—	%	(32)		(34)		2		6	%
Other expenses (income), net	(4)		(6)		2		33	%	(9)		(19)		10		53	%
Total other expenses (income)	76		70		6		9	%	231		204		27		13	%
INCOME BEFORE INCOME TAXES	173		163		10		6	%	507		487		20		4	%
INCOME TAX PROVISION	40		39		1		3	%	120		114		6		5	%
NET INCOME	$	133	$	124	$	9	7	%	$	387	$	373	$	14	4	%

Operating Revenues

The following tables set forth the components of and changes in operating revenues for the three and nine months ended September 30, 2025 and 2024, which included revenue accruals and deferrals, as described in Note 5 to the condensed consolidated interim financial statements:


	Three Months Ended				Three Months Ended						Percentage
	September 30, 2025				September 30, 2024				Increase		Increase
(In millions of USD)	Amount		Percentage		Amount		Percentage		(Decrease)		(Decrease)
Network revenues (a)	$	327	72	%	$	295	72	%	$	32	11	%
Regional cost sharing revenues (a)	110		24	%	99		24	%	11		11	%
Point-to-point	6		1	%	5		1	%	1		20	%
Scheduling, control and dispatch (a)	4		1	%	4		1	%	—		—	%
Other	7		2	%	5		2	%	2		40	%

Total	$	454	100	%	$	408	100	%	$	46	11	%

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	Nine Months Ended				Nine Months Ended						Percentage
	September 30, 2025				September 30, 2024				Increase		Increase
(In millions of USD)	Amount		Percentage		Amount		Percentage		(Decrease)		(Decrease)
Network revenues (a)	$	950	71	%	$	871	72	%	$	79	9	%
Regional cost sharing revenues (a)	329		25	%	296		24	%	33		11	%
Point-to-point	21		1	%	16		1	%	5		31	%
Scheduling, control and dispatch (a)	12		1	%	14		1	%	(2)		(14)	%
Other	26		2	%	24		2	%	2		8	%

Total	$	1,338	100	%	$	1,221	100	%	$	117	10	%

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(a)Includes a portion of Formula Rate true-up revenue.

Operating revenues for the three and nine months ended September 30, 2025 increased compared to the same periods in 2024 primarily due to higher rate base associated with higher balances of property, plant and equipment and resulting return. Other contributors included increased recoverable operating expenses.

Operating Expenses

Operation and maintenance

Operation and maintenance expense increased during the three and nine months ended September 30, 2025 compared to the same periods in 2024 primarily due to increased substation and overhead line maintenance activities, increased vegetation management requirements and increased equipment expenses.

General and administrative

General and administrative expense increased during the three and nine months ended September 30, 2025 compared to the same periods in 2024 primarily due to an increase in share based compensation.

Depreciation and amortization

Depreciation and amortization expense increased during the three and nine months ended September 30, 2025 compared to the same periods in 2024 primarily due to an increase in plant in service.

Taxes other than income taxes

Taxes other than income taxes increased during the three and nine months ended September 30, 2025 compared to the same periods in 2024 primarily due to an increase in property taxes as a result of expiring state tax exemptions in Kansas and additional plant in service.

Other Expenses (Income)

Other expenses (income), net

Other expenses (income), net increased for the three and nine months ended September 30, 2025 compared to the same periods in 2024 primarily due to a decrease in interest income.

Liquidity and Capital Resources

We expect to maintain our approach of funding our future capital requirements with cash provided by operations at our Regulated Operating Subsidiaries, future issuances under our commercial paper program and amounts available under our revolving credit agreement (the terms of which are described in Note 6 to the condensed consolidated interim financial statements). In addition, we may secure fixed debt funding in the capital markets, although we can provide no assurance that we will be able to obtain financing on favorable terms or at all. As market conditions warrant, we may also from time to time repurchase debt securities issued by us in the open market, in privately negotiated transactions, by tender offer or otherwise. We expect that our capital requirements will arise principally from our need to:

•Fund capital expenditures at our Regulated Operating Subsidiaries. Our plans with regard to property, plant and equipment investments are described in detail above under “ — Capital Investment and Operating Results Trends.”

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•Fund our debt service requirements, including principal repayments and periodic interest payments.

•Fund working capital requirements.

In addition to the expected capital requirements above, any adverse determinations or settlements relating to the regulatory matters or contingencies described in Notes 5 and 12 to the condensed consolidated interim financial statements would result in additional capital requirements. Our contractual obligations are described in our Form 10-K for the year ended December 31, 2024. There have been no material changes to that information since December 31, 2024 other than the items described in Note 6 to the condensed consolidated interim financial statements.

We believe that we have sufficient capital resources to meet our currently anticipated short-term (within twelve months) needs. However, we rely on both internal and external sources of liquidity to provide working capital and fund capital investments. An extended period of economic disruption could impact our ability to access the capital markets requiring us to seek alternative forms of financing which could negatively impact our liquidity and capital resources. Additionally, we will continue to monitor and assess interest rates and the lending environment to inform our funding strategy, including the utilization of various types of debt instruments.

ITC Holdings’ sources of cash are dividends and other payments received by us from our Regulated Operating Subsidiaries and any of our other subsidiaries as well as the proceeds raised from the sale of our debt securities. Each of our Regulated Operating Subsidiaries, while wholly-owned by ITC Holdings, is legally distinct from ITC Holdings and has no obligation, contingent or otherwise, to make funds available to ITC Holdings.

To address our short-term (within twelve months) cash requirements, we expect to utilize cash provided by operations at our Regulated Operating Subsidiaries, future issuances under our commercial paper program, amounts available under our revolving credit agreement, and long-term debt financing, as needed. As of September 30, 2025, we had consolidated indebtedness under our revolving credit agreement of $489 million, with unused capacity of $511 million. Additionally, ITC Holdings had $202 million of commercial paper issued and outstanding as of September 30, 2025, with the ability to issue an additional $198 million under the commercial paper program. See Note 6 to the condensed consolidated interim financial statements for a detailed discussion of the commercial paper program and our revolving credit agreement.

To address our future long-term capital requirements, we expect that we will need to obtain additional long-term debt financing. Certain of our capital projects could be delayed if we experience difficulties in accessing capital. We expect to be able to obtain such additional financing, as needed, in amounts and upon terms that will be acceptable to us due to our strong credit ratings and our historical ability to obtain financing.

Credit Ratings

Credit ratings by nationally recognized statistical rating agencies are an important component of our liquidity profile. Credit ratings relate to our ability to issue debt securities and the cost to borrow money, and should not be viewed as a recommendation to buy, sell or hold securities. Ratings are subject to revision or withdrawal at any time and each rating should be evaluated independently of any other rating. An explanation of these ratings may be obtained from the respective rating agency. Additional information related to our credit ratings and outlook reported by rating agencies is included in “Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operation — Credit Rating” of our Form 10-K for the year ended December 31, 2024. On March 3, 2025, S&P Global increased the debt ratings for each of our Regulated Operating Subsidiaries to A+ with a negative outlook.

Covenants

Our debt instruments contain numerous financial and operating covenants that place significant restrictions on certain transactions, such as incurring additional indebtedness, engaging in sale and lease-back transactions, creating liens or other encumbrances, entering into mergers, consolidations, liquidations or dissolutions, creating or acquiring subsidiaries and selling or otherwise disposing of all or substantially all of our assets. In addition, the covenants require us to meet certain financial ratios, such as maintaining certain debt to capitalization ratios and certain funds from operations to debt levels. As of September 30, 2025, we were not in violation of any debt covenant. In the event of a downgrade in our credit ratings, none of the covenants would be directly impacted, although the borrowing costs under our revolving credit agreement may increase.

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Cash Flows


	Nine Months Ended						Percentage
	September 30,				Increase		Increase
(In millions of USD)	2025		2024		(Decrease)		(Decrease)
Cash flows provided by (used in):
Operating activities	$	667	$	617	$	50	8	%
Investing activities	(974)		(760)		214		28	%
Financing activities	312		(54)		366		678	%
Net increase (decrease) in cash, cash equivalents and restricted cash	$	5	$	(197)

Cash Flows From Operating Activities

Net cash provided by operating activities increased primarily due to an increase in cash received from operating revenues of $94 million, a decrease in income taxes paid of $3 million and a decrease due to the settlement of interest rate swaps paid of $3 million during the nine months ended September 30, 2025 compared to the same period in 2024. This increase was partially offset by an increase in interest paid of $19 million, an increase in property taxes paid of $15 million, and an increase in ROE refunds, excluding interest, related to the October 2024 Order of $9 million, and a decrease in interest income of $8 million during the nine months ended September 30, 2025 compared to the same period in 2024.

Cash Flows From Investing Activities

Net cash used in investing activities increased primarily due to an increase in capital expenditures during the nine months ended September 30, 2025 compared to the same period in 2024.

Cash Flows From Financing Activities

Net cash provided by financing activities increased primarily due to a decrease in repayments of long-term debt of $450 million, an increase in net borrowings under our revolving credit agreement of $215 million, an increase in net issuances of commercial paper of $202 million, a decrease in dividend payments of $121 million, and a decrease in net repayments of refundable deposits from generators for transmission network upgrades of $5 million during the nine months ended September 30, 2025 compared to the same period in 2024. This increase was partially offset by a decrease in issuances of long-term debt of $634 million during the nine months ended September 30, 2025 compared to the same period in 2024.

Critical Accounting Estimates

The condensed consolidated interim financial statements are prepared in accordance with GAAP. The preparation of these condensed consolidated interim financial statements requires the application of appropriate technical accounting rules and guidance, as well as the use of estimates. The application of these policies requires judgments regarding future events.

These estimates and judgments, in and of themselves, could materially impact the condensed consolidated interim financial statements and disclosures based on varying assumptions, as future events rarely develop exactly as forecasted, and even the best estimates routinely require adjustment.

The accounting policies discussed in “Item 7 — Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Estimates” of our Form 10-K for the year ended December 31, 2024 are considered by management to be the most important to an understanding of the condensed consolidated interim financial statements because of their significance to the portrayal of our financial condition and results of operations or because their application places the most significant demands on management’s judgment and estimates about the effect of matters that are inherently uncertain. There have been no material changes to that information during the nine months ended September 30, 2025.

Recent Accounting Pronouncements

See Note 2 to the condensed consolidated interim financial statements for information related to recently issued and adopted FASB guidance.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As described in our Form 10-K for the year ended December 31, 2024, we are subject to: (1) interest rate risk on our fixed rate debt, revolving credit agreement and derivative instruments and hedging activities; (2) commodity price risk from market price fluctuations; and (3) credit risk primarily with DTE Electric, Consumers Energy and IP&L, our primary customers. During the nine months ended September 30, 2025, there were no material changes in these risks, other than as described below.

Interest Rate Risk

Commercial Paper

At September 30, 2025, ITC Holdings had $202 million of commercial paper issued and outstanding under the commercial paper program. At December 31, 2024, ITC Holdings did not have any commercial paper issued and outstanding under the commercial paper program. Due to the short-term nature of these financial instruments, the carrying value approximates fair value. A 10% increase or decrease in annual interest rates for commercial paper compared to the weighted average interest rates in effect at September 30, 2025 would increase or decrease annual interest expense, net by less than $1 million, at levels consistent with amounts issued and outstanding at the end of the period.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to provide reasonable assurance that material information required to be disclosed in our reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required financial disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, with a company have been detected.

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15 of the Exchange Act. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective, at the reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the quarter ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Table of Contents

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

See Note 12 to the condensed consolidated interim financial statements for a description of certain pending legal proceedings, which description is incorporated herein by reference.

ITEM 1A. RISK FACTORS

For information regarding risk factors affecting us, see “Item 1A. Risk Factors” of our Form 10-K for the year ended December 31, 2024. There have been no material changes to the risk factors set forth therein.

ITEM 6. EXHIBITS

The following exhibits are filed as part of this report (unless otherwise noted to be previously filed, and therefore incorporated herein by reference). Our SEC file number is 001-32576.


Exhibit No.						Description of Document
























31.1						Certification of Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2						Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32						Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS						XBRL Instance Document - the instance document does not appear in the Interactive Data file because its XBRL tags are embedded within the Inline XBRL document

101.SCH						Inline XBRL Taxonomy Extension Schema

101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase

101.DEF						Inline XBRL Taxonomy Extension Definition Database

101.LAB						Inline XBRL Taxonomy Extension Label Linkbase

101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase

104						The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, formatted in Inline XBRL and contained in Exhibit 101



ITC HOLDINGS CORP.


By:			Linda H. Apsey
			Linda H. Apsey
			Chief Executive Officer (duly authorized officer)


By:			Gretchen L. Holloway
			Gretchen L. Holloway
			Senior Vice President and Chief Financial Officer (principal financial and accounting officer)