NI

On August 5, NiSource Inc. (NYSE:NI) held its second-quarter earnings call, and the numbers told two different stories at once. Adjusted EPS fell to $0.16 from $0.22 a year earlier, yet management walked away reaffirming every long-term target on the books. That gap between a rough quarter and an unshaken outlook is the story here, and it centers on a data center bet that regulators keep approving faster than expected. NiSource's growth story increasingly runs through data centers rather than traditional rate base additions. In June, the Indiana Utility Regulatory Commission approved the original Amazon special contract along with its related power purchase agreement, and in July it approved the company's Alphabet partnership too, with load expected to ramp toward full capacity by 2030. Those two agreements alone are projected to return about $1.4 billion in bill reductions to existing NIPSCO electric customers over the life of the contracts, or up to $124 a year for an average residential bill, with savings starting as early as the fourth quarter of 2026. Demand keeps building behind that: management pointed to 3 gigawatts of large-load customers in active negotiations, another 2 gigawatts with clear line of sight, and a broader 9 gigawatt pipeline. Despite the weak quarter, NiSource reaffirmed 2026 adjusted EPS guidance of $2.02 to $2.07 and its long-term growth rate of 6% to 8% through 2030. The company also flagged more than $40 million in cost optimization work already identified. Economic momentum is showing up outside the utility too, with Virginia landing more than $1.7 billion in new aerospace and defense manufacturing investment. The quarter's earnings decline was not just a rounding issue. Management pointed to higher operations and maintenance spending tied to an unusually active storm season, calling 2026 a record year for tornadoes across its service territory, along with elevated costs to keep its workforce steady during ongoing union negotiations. Regulatory risk is also showing up in less predictable places. In June, NiSource received a third federal order requiring it to keep running the Schahfer coal plant, and the company is now trying to recover those compliance costs through a FERC filing, with approval sought within 60 days. Rate cases filed in Virginia and Kentucky will not see decisions until the first half of 2027, leaving those investments in limbo for months. Funding the buildout is not free either. NiSource's five-year plan calls for $21 billion in base capital spending plus $7.6 billion tied to its data center customers, supported by roughly $400 million to $600 million of annual equity issuance and a targeted FFO to debt ratio of 14% to 16%. And in Indiana, affordability discussions tied to the GenCo strategy were only just getting underway as of August 7, meaning the regulatory framework around the company's biggest growth driver is still being negotiated. Hedge fund ownership of NiSource slipped from 50 funds to 47 in the most recent quarter, a modest pullback rather than a rush for the exits. Short interest sits at just 3.57% of the float, suggesting little organized skepticism toward the stock. As of August 14, shares trade at a forward price-to-earnings ratio of 20.83, a premium that assumes the data center pipeline converts into earnings largely as promised. NiSource is asking investors to look past a rough quarter and focus on a data center pipeline regulators keep approving. Management's reaffirmed guidance assumes the Amazon and Alphabet ramps will offset a stretch of storm damage and coal plant costs. But the unresolved Schahfer recovery and delayed Virginia and Kentucky rate decisions are reminders that a regulated utility does not fully control its own timeline. Whether the data center bet outpaces those cost pressures should start to show up in results as those two contracts ramp toward full capacity in the coming years. While we acknowledge the potential of NI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Future Stocks to Buy Under $10 and 12 Best Performing Semiconductor Stocks to Invest In. Disclosure: None. Follow Insider Monkey on Google News.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 11 a.m. ET Head of Investor Relations - Durgesh Chopra President and Chief Executive Officer - Lloyd Yates Executive Vice President and Chief Financial Officer - Shawn Anderson Executive Vice President of Technology, Customer and Chief Commercial Officer - Michael Luhrs Executive Vice President and Group President of NiSource Utilities - Melody Birmingham Operator: Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to Q2 2026 NiSource Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Durgesh Chopra, Head of Investor Relations. Please go ahead. Durgesh Chopra: Thank you. Good morning, and welcome to NiSource's Second Quarter 2026 Investor Call. Joining me today are President and Chief Executive Officer, Lloyd Yates; Executive Vice President and Chief Financial Officer, Shawn Anderson; Executive Vice President of Technology, Customer and Chief Commercial Officer, Michael Luhrs; and Executive Vice President and Group President of NiSource Utilities, Melody Birmingham. Today, we'll review NiSource's financial performance for the second quarter and share updates on operations, strategy and growth drivers. Following our prepared remarks, we'll open the line for your questions. Slides for today's call are available in the Investor Relations section of our website. Some statements made during this presentation will be forward-looking. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the statements. Information concerning such risks and uncertainties is included in the Risk Factors and MD&A sections of our periodic SEC filings. Additionally, some statements made on this call relate to non-GAAP financial measures. Please refer to the supplemental slides, segment information and full financial schedules for information on the most directly comparable GAAP measure and a reconciliation of these measures. With that, I'll turn the call over to Lloyd. Lloyd Yates: Thank you, Durgesh, and good morning, everyone. I'll begin on Slide 3. At NiSource, our strategy remains grounded in delivering safe, reliable and affordable energy while creating long-term value for our customers, communities and shareholders. Disciplined capital deployment, operational excellence, along with constructive regulatory and stakeholder relationships across our jurisdictions continue to support successful execution. Our value proposition is anchored in regulated utility operations across 6 states, providing diversification in both asset mix and regulatory environment. Our base business provides stability and flexibility as we continue to modernize our electric and gas infrastructure. Our data center strategy adds a differentiated growth platform, returning an expected $1.4 billion in savings to our customers over the lives of our data center contracts. Together, these businesses position NiSource to deliver on our commitments while supporting the significant energy needs emerging across our service territories. Turning to our key priorities on Slide 4. Regulatory execution continues to advance our strategy and support the financial plan as evidenced by rate case filings in Virginia and Kentucky as well as several regulatory advances in our data center strategy, including IURC approvals of our data center agreements. At the same time, we continue to advance operational improvements through AI-enabled efficiency and continuous improvement initiatives helping us work more effectively and strengthening execution across the business. Today, we reported second quarter consolidated adjusted EPS of $0.16, bringing our year-to-date consolidated adjusted EPS to $1.22. With strong visibility into second half performance, we remain firmly on track to deliver on our full year commitments. Moving to operational excellence on Slide 5. Safety remains our top priority and the foundation of how we serve our customers. This quarter, our teams responded safely and effectively to multiple severe weather events across our service territory. 2026 has been an unusually active year with a record number of tornadoes driving increased outages and system impacts. Our field teams supported by operations and customer care worked around the clock to assess damage, restore service and support impact communities as quickly and safely as possible. This quarter reinforced our proactive investment in our systems and technology matters. We continue to harden our distribution systems to improve resiliency while enabling employees to interact with enterprise data through AI-powered experiences that accelerate decision-making beyond traditional reports and dashboards. This system, our speech analytics and storm response solution is another example of how Project Apollo leverages artificial intelligence, advanced analytics and other technology-enabled tools to standardize work, improve visibility and reduce waste. On Slide 6, we continue to make strong progress on our regulatory agenda. In Ohio, we received approval of key infrastructure and safety-related tracker mechanisms. And since our last call, we filed rate cases in Virginia and Kentucky to support timely recovery of critical investments that improve system safety and reliability. As we modernize our systems, we remain focused on managing the pace of investment and the resulting impact on customer bills. We expect decisions on both filings by the first half of 2027. At NIPSCO, we continue to invest in projects that strengthen system reliability and deliver customer value. We're reviewing the order issued today from the IURC regarding our continued gas modernization investments in safety and reliability, which informs our program going forward and the meaningful progress we have made modernizing NIPSCO's natural gas system over the past decade. We remain confident in the investment thesis as Indiana offers multiple pathways to recover prudent investments through the FMCA and/or base rate cases. Notably, the commission recognized the need for continued investment and encouraged us to pursue recovery while demonstrating the specific benefits delivered by the individual projects. In June, we were issued a third federal order requiring the continued operation of the Schahfer coal plant. We are pursuing recovery of the associated compliance costs through a FERC Section 205 filing and seeking approval within 60 days. As we navigate these federal directives, our plan remains flexible and focused on balancing reliability, customer impact and our financial commitments. Recently, CNBC named its ranking for America's top states for business, which includes several of the states we serve, led by Ohio at #1 and 2 others in the top 10, Virginia and Indiana. This recognition underscores the strong economic development momentum we are seeing across our service territories, bringing new jobs and investment to the communities we serve. For example, in Virginia, 2 major aerospace and defense manufacturers have announced projects representing more than $1.7 billion of planned investment in over 1,300 new jobs. These projects highlight the importance of reliable natural gas infrastructure and supporting long-term growth in our communities. Turning to updates across our state operations. We believe Pennsylvania remains a constructive regulatory environment. We continue to proactively engage with all stakeholders, including the governor's office and the commission as we evaluate our investment plans and regulatory requirements. Our planned 2026 capital program is fully supported under the framework established in our most recent rate case. And as we move forward, we continue to evaluate trackers and other recovery mechanisms to support future investments. Moving to Indiana. The recent approvals of our Amazon and Alphabet agreements reinforce the constructive regulatory support we continue to see for GenCo. Together, our data center agreements support continued economic growth and investment in the state while providing substantial bill relief for existing customers. We are engaged in the affordability discussions underway while the commission is evaluating a range of issues. We're encouraged by the collaborative and constructive nature of the discussions scheduled to begin on August 7. We expect the process to remain balanced and focused on enhancing customer affordability through economic development, greater bill transparency and thoughtful targeted refinements to the state's regulatory framework. Importantly, state leaders have acknowledged the significant customer savings delivered through our GenCo strategy and continue to recognize the role that economic development and investment recovery mechanisms play in supporting the reliable infrastructure our customers depend on. The diversity of our portfolio helps mitigate risk and preserves flexibility as jurisdiction-specific developments evolve. Affordability and customer outcomes remain central to the regulatory dialogue, and we believe economic development is an important part of the solution. We will continue to engage openly with our state commissions and other stakeholders as these efforts advance. We continue to identify opportunities to help manage customer costs through disciplined planning and constructive stakeholder engagement. In Indiana, the IURC's recent 2026 residential electric bill survey shows our customers' bills declining year-over-year, driven in part by our strategic investments in renewable generation and the associated cost efficiencies those resources provide. In Ohio, we are continuing to pursue avenues to reduce property taxes that create ongoing savings for customers. In addition, an approved economic development agreement for a peaking plant project in Jasper County, Indiana is expected to lower property taxes by nearly 40% over the life of the investment, generating meaningful customer savings and supporting long-term affordability. These actions complement our broader affordability focused efforts, including our GenCo strategy. We remain focused on capturing the benefits of growing energy demand while protecting our existing customers, as shown on Slide 7. Our agreements with Amazon and Alphabet are expected to provide approximately $1.4 billion of bill reductions for existing NIPSCO electric customers over their respective contract terms. For an average residential customer, that equates to up to $124 annually or roughly 1 month of an electric bill. We expect these benefits to begin flowing to customers as early as the fourth quarter of this year, and we see further opportunity for this to grow as we advance opportunities through our pipeline on Slide 8. Demand from large load customers remains robust with 3 gigawatts in active strategic negotiations and line of sight to approximately 2 gigawatts of additional potential customers. We remain disciplined in pursuing opportunities that align with our customers' protections, commercial requirements and return expectations as we look forward to providing updates as these discussions advance. We continue to see favorable market dynamics that could expand opportunities beyond our current 9 gigawatt pipeline and are assessing execution pathways to advance and integrate that additional growth into our pipeline. Slide 9 highlights the continued progress we are making to move our data center strategy from commercial agreements to regulatory approval and execution. In June, the IURC approved the original Amazon special contract, the related power purchase agreement and the generation resources proposed to support the agreement. Parties also agreed to support expedited procedural schedules of 90 to 120 days for future agreements. This approval represents an important validation of the structure and establishes a foundation for advancing future data center agreements. On July 17, we filed NIPSCO's request for approval of amendments to its existing Amazon data center electric service agreement and the associated PPA with GenCo. Collectively, the amendments increased Amazon's contracted load by 400 megawatts, which we announced with our first quarter earnings and are already incorporated in our near- and long-term guidance. We're seeking final order by November. We also continue to execute on our Alphabet partnership, receiving IURC approval of the agreement in July. We are ready to energize this project, which is on track to occur this summer with load expected to ramp to full capacity by 2030. We are encouraged by the progress we have made and remain focused on converting this momentum into disciplined execution. Our teams are advancing the regulatory, commercial and operational work necessary to serve these customers successfully and deliver the benefits embedded in our agreements. With that, I'll turn the call over to Shawn. Shawn Anderson: Thanks, Lloyd, and good morning, everyone. Turning to Slides 10 and 11. Second quarter consolidated adjusted earnings per share was $0.16 compared with $0.22 for the same period last year. This brings our year-to-date consolidated adjusted earnings per share to $1.22, an increase of $0.03 versus the same period last year. Our year-over-year results reflect increased revenue from new rates and recovery mechanisms, including the continued benefit of rate implementation at NIPSCO Electric and Columbia Gas of Ohio and Pennsylvania. These benefits were offset by higher O&M, reflecting higher-than-usual storm activity and elevated expense to maintain workforce continuity during the ongoing union negotiations. These investments supported safe and reliable service and strengthened operational readiness across our business. Second quarter results typically exhibit a shoulder quarter for our business and regulatory activity begins to phase in across the quarter and will strengthen as recovery mechanisms are implemented throughout the year. Based on first half results and our current run rate, the business remains on track. Many of the principal drivers supporting our 2026 outlook are already in place, reinforcing our confidence in our full year guidance. We expect earnings growth to be more weighted toward the second half, supported by approved recovery mechanisms, new regulatory activity in Virginia and Ohio and Alphabet's energization activity, which remains on track for the second half. We also have line of sight to over $40 million of cost optimization initiatives across the business as part of our broader efforts to reduce costs for our customers. These initiatives include process improvements, technology-enabled efficiencies and other actions designed to lower overall costs while maintaining service quality and execution against our broader financial plan. Many of these initiatives are expected to continue to improve our cost structure beyond 2026 and will have a direct benefit to our customer rate structures. Our 5-year capital investment outlook remains unchanged, shown on Slide 12 with $21 billion of base business investment, $2 billion of upside opportunities and $7.6 billion of GenCo capital investment supporting data center customers. Our consolidated plan remains diversified and highly executable. Investments span our gas and electric businesses across 6 states, providing flexibility to allocate capital based on customer needs, regulatory frameworks and the timing of recovery. Slide 13 highlights additional investment opportunities that are not currently included in our base or upside plans, including electric generation to meet MISO resource requirements, gas and electric transmission and system modernization to enhance the resiliency of our systems, MISO long-range transmission projects to expand grid reliability, PHMSA compliance and advanced metering infrastructure to enhance safety and service for our customers. We are actively advancing these opportunities and developing the investment thesis in collaboration with stakeholders. As these projects progress, we will remain disciplined in selecting investments that deliver attractive risk-adjusted returns while supporting constructive recovery and creating meaningful value for our customers and communities. Slide 14, while unchanged, continues to highlight the generation additions and project pipeline supporting NIPSCO's ability to meet growing customer demand and advance the energy transition. Turning to Slide 15. We are reaffirming NiSource's 2026 consolidated adjusted EPS guidance range of $2.02 to $2.07 per share. We are also reaffirming our annual base plan adjusted EPS growth rate of 6% to 8% through 2030 in our consolidated adjusted EPS compound annual growth rate of 9% to 10% from 2026 through 2033. Our capital investment plan supports base plan rate base growth of 8% to 10% through 2030 and consolidated rate base growth of 9% to 11% from 2026 through 2033. These commitments reflect our confidence in efficiently converting capital investment into earnings growth in a manner that is accretive to shareholder value. With the IURC's approval of our Amazon and Alphabet special contracts, GenCo remains on track to deliver incremental value to NiSource's consolidated earnings for 2026 and beyond, as shown on Slide 16. We look forward to sharing additional updates as we progress through the year and as we build on our momentum with confidence to deliver incremental value as a result of our data center agreements. Slide 17 highlights our 5-year financing plan. We remain committed to maintaining FFO to debt of 14% to 16% in each year of the plan, supported by a balanced mix of cash from operations, long-term debt, annual equity issuance of approximately $400 million to $600 million and minority interest contributions. As we execute, we will continue to evaluate financing decisions based on market conditions, project timing, credit metrics and long-term shareholder value. This disciplined approach allows us to derisk the plan while preserving the flexibility necessary to advance future opportunities. And finally, Slide 18. We remain confident in our ability to deliver our 2026 outlook and long-term financial commitments. Our regulatory execution provides visibility into earnings and cash flow. Our capital investment plan is diversified across businesses, jurisdictions and investment categories. Our operational initiatives are supporting productivity and cost discipline. And our data center strategy adds a meaningful layer of growth while protecting existing retail customers. We continue to build a strong track record of execution. Our commitment to customers, investors, employees and all our stakeholders remain central to everything we do. NiSource offers a diversified and fully regulated utility with the opportunity to invest in programmatic gas infrastructure and long-term energy transition for a fully integrated electric business. We believe continued progress accessing unprecedented energy development and power demand resulting from robust economic development, onshoring as well as new data center development truly differentiates the value proposition relative to many alternatives in the marketplace today. And with that, operator, please open the line for questions. Operator: [Operator Instructions] And our first question comes from the line of Julien Dumoulin-Smith with Jefferies. Julien Dumoulin-Smith: Nicely done again. Look, maybe just to kick off here in light of the news this morning. Can you talk about the affordability backdrop and specifically today's [ TDSIC ] order, if you can use that acronym that way or pronounce it that way. How are you thinking about tracker recovery and multiyear rate plan risk at this point? Again, I don't think today's development was necessarily surprising or shocking per se, but I'm curious on how you think about the road forward here specifically in response to the latest outcome this morning. Lloyd Yates: Julien, thanks for the question. So let me say, first of all, we are still in the midst of evaluating that order that occurred probably less than an hour ago. As we take a look at, I will tell you that this decision is not really a reflection of the broader regulatory environment in Indiana. We believe Indiana will continue to be a constructive regulatory environment for NIPSCO. So the decision doesn't preclude us from seeking recovery of that investment in future regulatory proceedings, including applying for other trackers for recovering those costs in the rate case. I think the signal we got out of that order is we need to continue to invest but do a better job of demonstrating the benefits of those investments, which we will do. So we are confident that this commission is constructive. They want us to continue to invest in the natural -- because this was a natural gas TDSIC. They want to continue to invest in the natural gas system, do a better job of demonstrating the benefits and come back and recover those costs. I think with respect to broader affordability, of course, when you think about all the affordability issues that are occurring, they have occurred mostly on the electric side here in Indiana. I think for us, so I'd say gas is not in the crosshairs, but we'll pay attention to affordability. We're going to invest prudently. We continue to do a good job of taking cost out of the business, making sure we're allocating capital efficiently. And we're happy to engage with the commission on any other affordability issues they have associated with the gas business in Indiana. Julien Dumoulin-Smith: Excellent, right. But it doesn't change your rate case timing right, obviously. Lloyd Yates: It does not. Julien Dumoulin-Smith: Excellent. And then if I can, getting back more to an ongoing question here. I mean can you speak a little bit to the backdrop here on the 3 gigawatts? I mean, Lloyd, I certainly heard the tone of your voice in talking about where you stand on these strategic negotiations. And how advanced are they? And specifically, there's been some public reporting around these large developments in LaPorte County specifically. I'd love to hear your latest thoughts and any color you can add around where those in particular stand, state seems very keen to see some of the stuff materialize. Can you comment at all? Lloyd Yates: So what I'll comment and say we -- I think we did a joint announcement with Microsoft back in 2024. We've been talking to Microsoft since then but I'm not going to comment on that specific opportunity. What I will comment on is I talked in my comments about we signed 4 gigawatts. We're active with strategic negotiations for another 3 gigawatts, and we have another 2 gigawatts behind that. We're also looking at the system to see how we can expand beyond those 9 gigawatts. So we like where we are. We think the data center business is a huge opportunity for NiSource/NIPSCO. We think that a key to affordability is this GenCo model, the fact that we're giving back $1.4 billion to our customers. And as we add more data centers, that number grows, not including the thousands of jobs that will occur as a result of data center development. So I know I didn't answer you directly in commenting on Microsoft and report. But I do say we like where we are. We're confident that we're going to execute and looking forward to reporting more information to you guys as soon as we have it. Michael, do you want to add anything to that? Michael Luhrs: No, I would just echo the comments that we're very confident in our pipeline. We only have more confidence in it as we continue to have these discussions and negotiations. And just like we've done previously as they come to fruition. We will be very disciplined in communicating those once they occur. Operator: Our next question comes from the line of Shar Pourreza with Wells Fargo. Andrew Kadavy: Actually, it's Andrew Kadavy on for Shar. I was wondering, could you guys maybe give us some expectations for what we should expect out of the August 7 Technical Conference on the ROEs and the trackers. Lloyd Yates: So our expectation is, I think the results will be balanced. They will be collaborative. I think that when you look at the affordability report, they looked a lot of build transparency. I think that we want to take a hard look at a group around multiyear rate planning and the ROE -- how much risk should be applied to ROEs with respect to multiyear rate planning. A lot of this was contemplated in House Bill 1002 in that legislation. So we're optimistic here. We think it will be balanced. We think it will be, again, be good for customers, we think we'll have a lot of input into the results of that. Melody, anything you want to add to that? Melody Birmingham: No. You summarized it, I would say, Lloyd, completely. We do believe it will be balanced. And we understand the importance of the commission having this hearing on the seventh. And so we're just awaiting any findings, and we'll participate and cooperate with the IURC. Andrew Kadavy: And then switching gears a little bit to GenCo. With earnings starting this year, when should we expect kind of the segment be broken out. Should be this year, maybe next year or when there's more ramp load? Lloyd Yates: Shawn, do you want to add that? Shawn Anderson: Yes, absolutely. Yes, we continue to be on track to start reporting segment information by the end of the fiscal year. Operator: Next question comes from the line of Nick Campanella with Barclays. Nicholas Campanella: Maybe just really quick on the TDSIC. I know you're still digesting it, but just mechanically, if you could just kind of clarify for folks, this is a capital tracker that would kind of true you up in '27, if I have that right? And how much is the capital? And just is there a way to think about the EPS impact? Lloyd Yates: Shawn, you want to look at that? Shawn Anderson: Yes. Thanks, Nick. What I'd answer, Nick, is Lloyd hit the important point, which is the thesis and the need for this investment inventory remains unchanged. In fact, the commission is encouraging NIPSCO to invest in all reasonable and necessary projects, and we need to focus on demonstrating these projects as reasonable and necessary, which was part of our filing. We'll look at options for us to include this CapEx across either the TDSIC mechanism itself, the FMCA, which is another mechanism that can account for and qualify some of this investment as well as in rate case activity at NIPSCO Gas, which can include a forward look on CapEx investment. So we don't believe the CapEx plan is unchanged. We'll look at the flexibility we have across the array of options that we have in Indiana to recover that CapEx. So we're not reporting any change in CapEx plans or any change in EPS outlook as of today. Nicholas Campanella: Okay. And then maybe just kind of going back to the 9 gigawatts and doing the study to see what you can do beyond that. It just -- it seems like you're progressing well on the data center pipeline. I mean, is it possible that you've executed agreements that just haven't been disclosed yet? And if so, what's preventing you from talking about those? Lloyd Yates: Again, I would say, let me just -- things are progressing well. I think that we have a lot of confidence in our ability to execute those agreements. And when we have the appropriate information to disclose to the market, we'll get it to you as soon as we can. Operator: Next question comes from the line of Nick Amicucci with Evercore ISI. Nicholas Amicucci: Just a couple of quick ones for me. I know -- so obviously, a lot of political rhetoric just kind of out of Indiana. And I guess if we could just kind of level set at the risk of kind of sounding like a broken record because I feel like we asked this quarter-on-quarter. But just I guess, what is the governor's kind of ultimate objective? And how do those align with what you guys are seeing and across the state? Lloyd Yates: Yes. The way I think about it in spite of the activity that you're seeing in Indiana and specifically around the commission changes, we believe -- and in some of our conversations, we believe that Indiana will continue to be a very constructive regulatory environment. I think when you look -- when you talk to the governor and all the relevant stakeholders, I think everyone is aligned on the importance of economic development that growth is the key to affordability in Indiana. And we believe that the data center opportunity, reshoring manufacturing and all of those things not only deal with affordability if you think about what we're doing, the $1.4 billion back to customers, but the thousands of jobs being created in the state of Indiana as a result of that economic development. So I think there's significant alignment around that. I think that we're all focused in that area, and I think that's what the market should pay attention to because I mean, no one is deviating from that at all. We also understand affordability is important, but the key to that is economic development. Nicholas Amicucci: Great. And then as we think about -- so obviously, just kind of looking at Slide 12 here, very helpful. And as we kind of think about the upside to the base plan, I guess, how -- just because there's a little bit layered in 2026 and a little bit in 2027. And so it seems, obviously, '29 and 2030 kind of the brunt of it. Just as we think about like the needed expectation for some type of an announcement or the ability to execute on that upside, like how -- from a timing perspective, is it -- is that 2026 upside able to be pushed into 2027 and then you still hold the entirety of that $2 billion in the capital plan? Or just trying to think through that. Lloyd Yates: Shawn, why don't you handle that? Shawn Anderson: You bet. Just to square the upside plan, just to clarify, pertains only to the base business, does not include any GenCo CapEx. So the $2 billion inventory is largely attributed to generation, some gas AMI and PHMSA-related work, economic development, T&D on the electric side. So there's an array of options in there. They don't require disclosure. We can usually work those directly into our plan in the context of either the tracker programs or the regulatory recovery mechanisms we have. We still have the flexibility to do that, and we still believe that some of the 2026 CapEx will get executed, and it doesn't change the outlook of either the $21 billion inventory, the current year guidance nor the outlook that up to $2 billion of upside could still flow. So no change to any of that. The thesis of that is currently being worked into our existing programs and plans, and we still retain the flexibility to achieve all of that either in '26, '27 and beyond. Operator: Next question comes from the line of Travis Miller with Morningstar. Travis Miller: Just to stay on the whole affordability theme. Jim, can you talk a little bit about how you're thinking about schedule and time line as you move through this affordability discussion overlaying your rate case potential filing at some point in the next year or 2. What's your thought in terms of that timing element? Do you want to get through all the affordability discussions before doing a rate case in Indiana? Or are you happy to do them together? Lloyd Yates: I think August 7, we'll learn more about the affordability conversations and more important, the outcomes of those conversations. Those are not connected to our rate cases yet. We're studying when we're going to file our rate cases and when we need cost recoveries associated with those. So I would not connect those 2. I think that the August 7 conversations and the outcomes will inform when we decide to file rate cases. We know that we have to go into -- in terms of multiyear rate planning and file in the second half of 2028, and that hasn't changed at all. Travis Miller: Okay. Is the rate case filing -- remind me, rate case filing the way that you'll return those customer savings from the data centers? Or is there a separate mechanism for you to do? Lloyd Yates: No. Once we energize -- after you get the appropriate regulatory approvals, and we energize those savings will start to flow immediately. And that will show up as [ direct payment ] on the customers' bill. Operator: [Operator Instructions] Next question comes from the line of Stephen D'Ambrisi with RBC Capital Markets. Stephen D’Ambrisi: Just a follow-up. And you made a comment in response to Julien's question just about looking at the system and potentially seeing how you can expand beyond the 9 gigawatts. I guess can you just explain what you mean by that and/or what would be required like across the system? Is it other than just more generation? Is it transmission? Is it -- and then just also, does that mean, like am I to interpret that, that the up to 9 gigawatts is like a constrained pipeline and that there's developing opportunities or some other bucket beyond that? Just want to understand kind of the commentary there. Lloyd Yates: I am going to throw this question to Michael Luhrs, our Chief Commercial Officer. Michael Luhrs: So basically, I mean, it's just part of our normal process that we work through. And it's not pointing to any specific constraints with the 9 gigawatts. It's literally what Lloyd says, looking beyond the 9 gigawatts and the opportunities there. And so we're consistently looking at the pipeline and facilitating that and also what we could do in expansion beyond it given the demand we're seeing from counterparties. And that means we're looking at all the factors related to that, whether that be land, zoning, transmission, fuel supply, equipment, et cetera, and just planning ahead like we've consistently done to enable that pipeline growth as we see it occur. We feel good about it. We feel good about the opportunities, and you should not interpret that we're looking at the ability to expand further as any sign of a constraint, but more as preplanning so that we can focus on execution. Stephen D’Ambrisi: Understood. Very clear. And then just as a follow-up, I understand you're still digesting the order. But from my read, it looks pretty clear that they are indicating that you should use the FMCA at a minimum and maybe some other preapproval tools. So can you just highlight, I guess, roughly how much of the ask from a capital standpoint was federally mandated spending? Shawn Anderson: We don't disclose the breakdown in the inventory by state nor by mechanism, but we're confident we have recovery mechanisms to secure all of our 2026 and 2027 CapEx and earnings guidance. We'll continue to work with stakeholders to understand on a longer-term basis, how the multiyear view of this inventory should get recovered. However, we're confident that we have the avenues in play for the near term. Operator: There are no further questions at this time. I would like to turn the call back over to our CEO, Lloyd Yates. Lloyd Yates: Again, thank you for your interest in NiSource. We appreciate the questions and look forward to talking to you soon. Thanks. Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining and you may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. NiSource (NI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. NiSource (NI) shares came into focus after the company released its second quarter 2026 results, reporting higher revenue but lower net income and earnings per share compared with the same period last year. See our latest analysis for NiSource. NiSource's share price has slipped over the past month, with a 30 day share price return of 9.15% down and a 90 day share price return of 9.40% down. At the same time, its 5 year total shareholder return of 96.81% points to strong longer term compounding and a shift from recent momentum to a more mixed picture. If NiSource's recent moves have you rethinking where the next opportunity might come from, it could be worth scanning for other regulated energy and grid plays through the 37 power grid technology and infrastructure stocks NiSource shares have slipped even as analyst targets and intrinsic value estimates sit well above the current price. Is the recent pullback a reset toward fair value, or a sign that expectations need trimming? NiSource's most followed narrative places fair value at $50.03 compared with the last close at $42.61, which implies a meaningful gap that investors are weighing against the utility's current fundamentals. Read the complete narrative. Curious what has to happen for that gap to close. The narrative leans on steady revenue expansion, rising margins and a richer future earnings multiple. Want to see which assumptions really move the fair value needle. Result: Fair Value of $50.03 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this NiSource narrative still faces real pressure if heavy gas infrastructure spending meets faster electrification, or if regulators slow approvals and weaken future returns. Find out about the key risks to this NiSource narrative. The NiSource narrative leans on analyst targets that sit about 14.8% above the current $42.61 share price. On simple earnings, the stock trades at a P/E of 22.6x, which is higher than the global Integrated Utilities average of 18.7x yet close to its own fair ratio of 23.3x. That mix of premium to peers and proximity to the fair ratio points to limited room for error if earnings or sentiment soften from here. How comfortable are you paying close to what the market could move toward when other utilities are cheaper on the same metric? For a closer look at how this earnings based view stacks up against peers and the fair ratio, See what the numbers say about this price — find out in our valuation breakdown. If this NiSource story seems finely balanced between opportunity and risk, do not wait around for a consensus. Check the 2 key rewards and 3 important warning signs. Do not stop with NiSource. The next opportunity on your list could be just a few filters away in the Simply Wall Street Screener. Target dependable cash generators by scanning companies screened as 8 dividend fortresses that may appeal if you prioritise income and stability. Hunt for potential value opportunities with the 52 high quality undervalued stocks and see which stocks currently trade below their estimated worth. Prioritise resilience by checking the 83 resilient stocks with low risk scores so you can focus on businesses that score well on financial strength and risk. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in NiSource, Inc? Here are five stocks we like better. NiSource reaffirmed its 2026 outlook despite lower second-quarter adjusted EPS of $0.16, down from $0.22 a year earlier. The company maintained its $2.02–$2.07 adjusted EPS guidance and long-term earnings growth targets. Data-center agreements with Amazon and Alphabet are a major growth driver, representing 4 GW of signed load and $7.6 billion in planned GenCo investment. NiSource expects the contracts to reduce NIPSCO customers’ bills by approximately $1.4 billion, with savings potentially beginning in the fourth quarter of 2026. NiSource kept its five-year capital plan unchanged, including $21 billion in base-business investment and up to $2 billion in additional opportunities. Management said regulatory developments in Indiana have not changed its capital spending, earnings outlook or rate-case timing. EVs Are Big Winners of the Iran War—Just Not American Ones NiSource (NYSE:NI) reported second-quarter 2026 adjusted earnings of $0.16 per share, compared with $0.22 per share a year earlier, while reaffirming its full-year earnings outlook and long-term growth targets. Year-to-date adjusted earnings rose to $1.22 per share, up $0.03 from the same period in 2025. President and Chief Executive Officer Lloyd Yates said the company remains on track to meet its 2026 commitments, supported by regulatory progress, infrastructure investment and its strategy to serve large data-center customers. NiSource operates regulated gas and electric utilities across six states. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling AI’s Biggest Bottleneck Could Make These 2 Stocks Soar “With strong visibility into second-half performance, we remain firmly on track to deliver on our full-year commitments,” Yates said. Chief Financial Officer Shawn Anderson said higher revenue from new rates and recovery mechanisms, including rate implementation at NIPSCO Electric and Columbia Gas operations in Ohio and Pennsylvania, supported results. Those benefits were offset by increased operations and maintenance expense associated with unusually active storm activity and expenses intended to maintain workforce continuity during ongoing union negotiations. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Why This Midwest Utility Is the Hottest Stock on Wall Street Right Now NiSource said 2026 has included a record number of tornadoes, which contributed to outages and other system impacts across its service territory. The company said its field, operations and customer-care teams responded to assess damage, restore service and support affected communities. The company expects earnings growth to be more heavily weighted toward the second half of 2026. Anderson cited approved recovery mechanisms, new regulatory activity in Virginia and Ohio, and Alphabet-related energization activity expected during the second half. → No Hangover: Revisiting Microsoft One Week After Earnings NiSource reaffirmed its 2026 adjusted EPS guidance of $2.02 to $2.07. It also reaffirmed its base-plan adjusted EPS growth target of 6% to 8% annually through 2030, as well as a consolidated adjusted EPS compound annual growth rate of 9% to 10% from 2026 through 2033. The company said it has identified more than $40 million in cost-optimization initiatives, including process improvements and technology-enabled efficiencies. NiSource expects many of these efforts to improve its cost structure beyond 2026 while benefiting customer rate structures. NiSource highlighted its data-center strategy as a source of growth and customer bill relief. The company said its agreements with Amazon and Alphabet are expected to provide approximately $1.4 billion in bill reductions for existing NIPSCO electric customers over the terms of the contracts. According to the company, the savings could equal up to $124 annually for an average residential customer, or roughly one month of an electric bill. NiSource expects those benefits to begin reaching customers as early as the fourth quarter of 2026. The Indiana Utility Regulatory Commission approved the original Amazon special contract, the related power purchase agreement and supporting generation resource in June. NiSource subsequently filed for approval of amendments to Amazon’s agreement that would increase contracted load by 400 megawatts. The company is seeking a final order by November. NiSource also received IURC approval of its Alphabet agreement in July. The company said it is prepared to energize that project this summer, with load expected to ramp to full capacity by 2030. Yates said NiSource has signed agreements representing 4 gigawatts of load, has 3 GW in active strategic negotiations and sees approximately 2 GW of additional potential customers. The company is also reviewing ways to expand its opportunity set beyond its current 9 GW pipeline. Michael Luhrs, executive vice president of technology, customer and chief commercial officer, said the company’s work to assess potential expansion reflects planning around factors including land, zoning, transmission, fuel supply and equipment. He said investors should not interpret that effort as a sign of constraints on the existing 9 GW pipeline. Management addressed a recent IURC order related to NIPSCO’s gas modernization investments. Yates said the company was still evaluating the order, but he said it did not alter NiSource’s view that Indiana remains a constructive regulatory environment. The commission recognized the need for continued investment, according to Yates, while indicating that the company should more clearly demonstrate the specific benefits of individual projects. NiSource said it could seek recovery through other tracker mechanisms, the FMCA mechanism, or future base-rate proceedings. Anderson said the company was not reporting any change to its capital-expenditure plan or earnings outlook. Management said the order does not change its rate-case timing. NiSource also plans to participate in an Indiana affordability technical conference scheduled for Aug. 7. Yates said he expects the discussions to be collaborative and balanced, with attention to bill transparency, multi-year rate planning, return on equity and the risks associated with those frameworks. The company said savings tied to data-center agreements will flow to customers once projects receive appropriate approvals and are energized, rather than waiting for a future rate case. NiSource’s five-year capital investment outlook was unchanged. The plan includes $21 billion in base-business investment, up to $2 billion of additional upside opportunities and $7.6 billion of GenCo capital investment supporting data-center customers. $21 billion of base-business investment across gas and electric operations. Up to $2 billion of potential upside investment, primarily related to generation, gas advanced metering infrastructure, system modernization, economic development and electric transmission and distribution. $7.6 billion of GenCo capital investment associated with serving data-center customers. The company said possible investments outside its current base and upside plans include electric generation needed for MISO resource requirements, gas and electric transmission, grid resiliency work, PHMSA compliance and advanced metering infrastructure. NiSource expects to begin reporting GenCo segment information by the end of the fiscal year. Its financing plan targets funds from operations to debt of 14% to 16% annually, supported by operating cash flow, long-term debt, annual equity issuance of roughly $400 million to $600 million, and minority-interest contributions. Yates said the company continues to view economic development, including data centers, onshoring and manufacturing investment, as important to improving affordability while supporting infrastructure investment and long-term customer demand. NiSource, Inc (NYSE: NI) is a publicly traded energy holding company headquartered in Merrillville, Indiana, that primarily owns and operates regulated local gas and electric utilities in the United States. Through its operating subsidiaries, the company delivers natural gas and electricity to residential, commercial and industrial customers and provides the associated distribution and transmission services that keep local energy systems functioning. The company's core activities include natural gas distribution, electric transmission and distribution, system operations, maintenance and emergency response. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "NiSource Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Reaffirming 2026 non-GAAP consolidated adjusted EPS guidance Reaffirming 2026-2033 non-GAAP consolidated adjusted EPS compound annual growth rate of 9%-10% Continuing to execute $28.6 billion 2026-2030 consolidated capital investment plan Advancing $1.4 billion in savings for existing customers through recently approved Amazon and Alphabet agreements MERRILLVILLE, Ind., August 05, 2026--(BUSINESS WIRE)--NiSource Inc. (NYSE: NI) today announced, on a GAAP basis, net income available to common shareholders for the quarter ended June 30, 2026 of $45.5 million, or $0.09 of earnings per diluted share, compared to net income available to common shareholders of $102.2 million, or $0.22 of earnings per diluted share, for the same period of 2025. For the six months ended June 30, 2026, on a GAAP basis, NiSource's net income available to common shareholders was $556.2 million, or $1.15 diluted earnings per share, compared to net income available to common shareholders of $577.0 million, or $1.22 diluted earnings per share, for the same period of 2025. NiSource also reported second quarter 2026 non-GAAP adjusted net income available to common shareholders of $77.6 million, or $0.16 of consolidated adjusted EPS, compared to non-GAAP adjusted net income available to common shareholders of $101.9 million, or $0.22 of consolidated adjusted EPS, for the same period of 2025. For the six months ended June 30, 2026, NiSource's non-GAAP adjusted net income available to common shareholders was $587.2 million, or $1.22 of consolidated adjusted EPS, compared to non-GAAP adjusted net income available to common shareholders of $564.2 million, or $1.19 of consolidated adjusted EPS, for the same period of 2025. Schedule 1 of this press release contains a complete reconciliation of GAAP measures to non-GAAP measures. ** NiSource is reaffirming its 2026 non‑GAAP consolidated adjusted EPS guidance of $2.02-$2.07 and its compound annual growth rate (CAGR) with respect to non-GAAP consolidated adjusted EPS of 9%-10% from 2026-2033. The company’s 2026-2030 consolidated capital investment plan of $28.6 billion, including $21.0 billion of base capital investments and $7.6 billion of strategic data center infrastructure investments, is expected to support 9%-11% consolidated rate base growth from 2026-2033. "Our teams continue to deliver a strong value proposition for our utility customers by providing safe and reliable service across a range of weather conditions," said President and CEO Lloyd Yates. "I want to thank our employees and partners for the dedication they demonstrated serving customers during the elevated storm activity we experienced this season. We also advanced our data center strategy with regulatory approvals of our Amazon and Alphabet special contracts, important proof points that demonstrate our ability to support economic growth while creating value for customers. As we enter the second half of the year, we remain confident in our plan, supported by disciplined execution of our efficiency initiatives and regulatory mechanisms that provide visibility into cost recovery." **Non-GAAP Disclosure Statement This press release includes financial results and guidance for NiSource with respect to adjusted net income available to common shareholders, base plan adjusted EPS and consolidated adjusted EPS, which are non-GAAP financial measures as defined by the SEC. Commencing in 2026, the company began to present base plan adjusted EPS and consolidated adjusted EPS. As presented, guidance with respect to base plan adjusted EPS, including annual base plan adjusted EPS growth, excludes, in addition to the items historically excluded from adjusted EPS, the impact of data center operations and development activities relating to provision of electric service to current and future data center or other large load customers. The company provides guidance regarding base plan adjusted EPS because it expects that the earnings from its data center operations and development activities will experience a different growth profile compared to the base plan adjusted EPS growth. Providing guidance with respect to base plan adjusted EPS growth, together with guidance regarding consolidated adjusted EPS growth, provides investors with the same information that management considers to evaluate the company’s ongoing business performance and provide greater transparency into the performance of different aspects of our business that are impacted by distinct trends and factors. Consolidated adjusted EPS represents base plan adjusted EPS together with adjusted EPS from our data center operations and development activities. The company includes these measures because management believes they permit investors to view the company’s performance using the same tools that management uses and to better evaluate the company’s ongoing business performance. With respect to guidance on base plan adjusted EPS and consolidated adjusted EPS, NiSource reminds investors that it does not provide a GAAP equivalent of its guidance on base plan adjusted EPS or consolidated adjusted EPS due to the impact of unpredictable factors such as fluctuations in weather, impact of asset sales and impairments and other unusual or infrequent items included in the comparable GAAP measures, which may be material. The company is not able to estimate the impact of such factors on the comparable GAAP measures and, as such, the company is not able to provide a reconciliation of its non-GAAP base plan adjusted EPS guidance or its non-GAAP consolidated adjusted EPS guidance to the comparable GAAP equivalents without unreasonable efforts. Additional Information Additional information for the quarter ended June 30, 2026, is available on the Investors section of www.nisource.com and includes segment and financial information and a presentation. The company alerts investors that it intends to use the Investors section of its website, www.nisource.com, and the company’s social media channels to disseminate important information about the company to its investors. Investors are advised to look at NiSource’s website and social media channels for future important information about the company. About NiSource NiSource Inc. (NYSE: NI) is one of the largest fully-regulated utility companies in the United States, serving approximately 3.3 million natural gas customers and 500,000 electric customers across six states through its local Columbia Gas and NIPSCO brands. The mission of our approximately 7,700 employees is to deliver safe, reliable energy that drives value to our customers. NiSource is a member of the Dow Jones Sustainability - North America Index and is on Forbes lists of America’s Best Employers for Women and Diversity. Learn more about NiSource’s record of leadership in sustainability, investments in the communities it serves and how we live our vision to be an innovative and trusted energy partner at www.NiSource.com. The content of our website is not incorporated by reference into this document or any other report or document NiSource files with the Securities and Exchange Commission ("SEC"). NI-F Forward-Looking Statements This Press Release contains "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements in this press release include, but are not limited to, statements concerning our guidance on base and consolidated adjusted EPS, plans, strategies, objectives, expected performance, planned expenditures, recovery of expenditures through rates, stated on either a consolidated or segment basis, and any and all underlying assumptions and other statements that are not statements of historical fact. Expressions of future goals and expectations and similar expressions reflecting something other than historical fact, including "may," "will," "should," "could," "would," "aims," "seeks," "expects," "plans," "anticipates," "intends," "believes," "estimates," "predicts," "potential," "targets," "forecast," and "continue," are intended to identify forward-looking statements. All forward-looking statements are based on assumptions that management believes to be reasonable; however, there can be no assurance that actual results will not differ materially. Investors and prospective investors should understand that many factors impact whether any forward-looking statement contained herein will or can be realized. Any one of those factors could cause actual results to differ materially from those projected. Factors that could cause actual results to differ materially from those projected in any forward-looking statement discussed in this Press Release include, among other things: our ability to execute our business plan or growth strategy, including utility infrastructure investments, or business opportunities; our ability to manage data center growth in our service territories; potential incidents and other operating risks associated with our business; our ability to work successfully with our JV partners; our ability to construct, develop and place into service the generation or transmission assets we develop to support our customers under our current and any future data center contracts on time or at all and consistent with initial cost estimates, as well as the performance of such assets once constructed and placed into service; our ability to obtain the significant additional financing required to construct such generation or transmission assets we develop to support data center contracts on favorable terms, if at all; our ability to recover our investments and realize our expected return under our current and any future data center contracts that we enter into; our ability to maintain our investment grade credit ratings as we finance and pursue our data center strategy, including our performance under our current and any future data center contracts that we enter into; performance by our customers under our current and any future data center contracts; any decision by our current data center customers and any future data center customers to terminate our current or any future data center contracts or reduce the committed capacity thereunder; potential changes in the MISO accreditation treatment of capacity resources; our ability to adapt to, and manage costs related to, advances in technology, including alternative energy sources and changes in related laws and regulations; our increased dependency on technology; impacts related to our aging infrastructure; our ability to obtain sufficient insurance coverage and whether such coverage will protect us against significant losses; the success of our electric generation strategy; construction risks and supply risks; fluctuations in demand from residential and commercial customers; fluctuations in the price of energy commodities and related transportation costs or an inability to obtain an adequate, reliable and cost-effective fuel supply to meet customer demand; our ability to attract, retain or re-skill a qualified workforce and maintain good labor relations; our ability to manage new initiatives and organizational changes; the performance and quality of third-party suppliers and service providers; our ability to manage the financial and operational risks related to achieving our carbon emission reduction goals, including our Net Zero Goal, including any future associated impact from business opportunities such as data center development as those opportunities evolve; regulation and the impact of regulatory rate reviews; our ability to obtain expected financial or regulatory outcomes; potential cybersecurity attacks or security breaches; increased requirements and costs related to cybersecurity; any damage to our reputation; the impacts of natural disasters, acts of terrorism, acts of war or other catastrophic events; the physical impacts of climate change and the transition to a lower carbon future; our debt obligations; any changes to our credit ratings or the credit ratings of certain of our subsidiaries; adverse economic and capital market conditions, including increases in inflation or interest rates, recession, or changes in investor sentiment; the actions of activist stockholders; economic conditions in certain industries; the ability of customers and suppliers to fulfill their payment and contractual obligations; the ability of our subsidiaries to generate cash; pension funding obligations; potential impairments of goodwill; the outcome of legal and regulatory proceedings, investigations, incidents, claims and litigation; compliance with changes in, or new interpretations of applicable laws, regulations and tariffs; the cost of compliance with environmental laws and regulations and the costs of associated liabilities; changes in tax laws or the interpretation thereof; and other matters set forth in Item 1, "Business," Item 1A, "Risk Factors" and Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and matters set forth in our subsequent Quarterly Reports on Form 10-Q, some of which risks are beyond our control. In addition, the relative contributions to profitability by each business segment, and the assumptions underlying the forward-looking statements relating thereto, may change over time. All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statement to reflect changed assumptions, the occurrence of anticipated or unanticipated events or changes to expected results over time or otherwise, except as required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805518599/en/ Contacts FOR ADDITIONAL INFORMATION Media [email protected] Investors [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes long-term value creation to a diversified asset mix across six states, balancing regulated utility stability with a high-growth data center platform. The 'GenCo' strategy is positioned as a primary affordability driver, expected to return $1.4 billion in savings to NIPSCO customers over the life of current data center contracts. Operational performance in Q2 was impacted by record tornado activity, which increased O&M expenses due to storm restoration and workforce continuity efforts during union negotiations. Regulatory strategy focuses on 'Project Apollo,' utilizing AI and advanced analytics to standardize work and improve decision-making efficiency across the enterprise. Management emphasizes that economic development, particularly in Ohio, Virginia, and Indiana, is the fundamental solution to long-term customer affordability and infrastructure modernization. The company maintains a disciplined approach to capital allocation, prioritizing projects that offer attractive risk-adjusted returns while managing the pace of customer bill impacts. NiSource reaffirmed its 2026 adjusted EPS guidance of $2.02 to $2.07, with earnings growth expected to be weighted toward the second half of the year. The company is targeting a 9% to 10% consolidated adjusted EPS CAGR through 2033, supported by a $21 billion base business investment plan and $7.6 billion in GenCo capital. Management identified over $40 million in cost optimization initiatives for 2026, including technology-enabled efficiencies intended to structurally lower the long-term cost base. The data center pipeline remains robust with 3 gigawatts in active strategic negotiations and an additional 2 gigawatts of potential customers currently under assessment. Guidance assumes the successful energization of the Alphabet project in the second half of 2026, with load expected to ramp to full capacity by 2030. The Indiana Utility Regulatory Commission (IURC) issued an order regarding gas modernization investments; management is evaluating the impact but believes it does not preclude future recovery through other mechanisms. A third federal order requires the continued operation of the Schahfer coal plant; NiSource is seeking recovery of associated compliance costs through a FERC Section 205 filing. Management flagged unusually high storm activity in 2026 as a headwind to O&M, though it is being offset by new rates and recovery mechanisms in Ohio and Pennsylvania. The company remains committed to a 14% to 16% FFO-to-debt ratio, supported by annual equity issuances of approximately $400 million to $600 million. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated the order is not a reflection of the broader Indiana regulatory environment and does not change their capital expenditure plans or EPS outlook. The commission encouraged continued investment but requested better demonstration of specific project benefits; NiSource will pursue recovery via the FMCA or future base rate cases. Management declined to comment on specific rumors regarding Microsoft but expressed high confidence in the 9 gigawatt total pipeline. They are currently assessing system expansion capabilities to move beyond the 9 gigawatt mark, focusing on land, transmission, and fuel supply readiness. NiSource expects a balanced and collaborative discussion focused on bill transparency and the risk-sharing framework for multi-year rate plans. Management emphasized that state leaders recognize economic development as the key to affordability, which aligns with NiSource's GenCo strategy. CFO Shawn Anderson confirmed the company is on track to begin reporting GenCo as a separate segment by the end of the 2026 fiscal year.

NiSource (NI) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.67%. A quarter ago, it was expected that this energy holding company would post earnings of $1.06 per share when it actually produced earnings of $1.06, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates two times. NiSource, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $1.36 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.98%. This compares to year-ago revenues of $1.28 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. NiSource shares have added about 6.6% since the beginning of the year versus the S&P 500's gain of 13%. While NiSource has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for NiSource was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.21 on $1.35 billion in revenues for the coming quarter and $2.09 on $6.94 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Algonquin Power & Utilities (AQN), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 7. This utility operator is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Algonquin Power & Utilities' revenues are expected to be $552.5 million, up 4.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NiSource, Inc (NI) : Free Stock Analysis Report Algonquin Power & Utilities Corp. (AQN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. NiSource Inc (NYSE:NI) reaffirmed its 2026 adjusted EPS guidance of $2.2 to $2.7 per share and long-term growth rates of 6% to 8% through 2030, reflecting confidence in its financial plan. The company secured regulatory approvals for its Amazon and Alphabet data center agreements in Indiana, which are expected to provide approximately $1.4 billion in bill relief for existing customers. NiSource Inc (NYSE:NI) has a robust data center pipeline with 3 gigawatts in active negotiations and line of sight to 2 gigawatts of additional potential customers, supporting future growth. The company is advancing cost optimization initiatives, including over $40 million in 2026, to reduce costs for customers and improve operational efficiency. NiSource Inc (NYSE:NI) continues to see strong economic development momentum across its service territories, with major projects like aerospace and defense investments bringing new jobs and growth. NiSource Inc (NYSE:NI) reported lower second quarter adjusted EPS of $0.16 compared to $0.22 in the prior year, impacted by higher O&M from severe weather and union negotiations. The Indiana Utility Regulatory Commission (IURC) issued an order regarding gas modernization investments that requires the company to better demonstrate project benefits, potentially affecting recovery mechanisms. The company faces ongoing affordability discussions in Indiana, which could lead to regulatory changes or increased scrutiny on rate recovery. NiSource Inc (NYSE:NI) is navigating federal orders requiring continued operation of the Schafer coal plant, adding complexity and potential cost recovery challenges. The company's earnings growth is expected to be more weighted to the second half of 2026, with first-half results reflecting a shoulder quarter and higher storm-related expenses. Warning! GuruFocus has detected 10 Warning Signs with NI. Is NI fairly valued? Test your thesis with our free DCF calculator. Q: In light of the IURC order this morning regarding the gas modernization tracker (TDSIC), how are you thinking about tracker recovery and multi-year rate plan risk going forward?A: Lloyd Yates (President and CEO): We are still evaluating the order, but this decision is not a reflection of the broader regulatory environment in Indiana, which we believe remains constructive. The order does not preclude us from seeking recovery of that investment in future regulatory proceedings, including applying for other trackers or recovering costs in a rate case. The signal is that we need to continue to invest but do a better job of demonstrating the benefits of those investments. We are confident the commission wants us to invest in the natural gas system and will support recovery when benefits are clearly shown. Q: Can you provide an update on the 3 gigawatts in active strategic negotiations and the broader data center pipeline, specifically regarding large developments in La Porte County?A: Lloyd Yates (President and CEO): We announced a joint announcement with Microsoft in 2024 and have been in discussions since, but I won't comment on that specific opportunity. We have signed 4 gigawatts, have 3 gigawatts in active strategic negotiations, and another 2 gigawatts behind that. We are also looking at the system to see how we can expand beyond those 9 gigawatts. The data center business is a huge opportunity for NiSource, and the key to affordability is this GCO model, which is giving back $1.4 billion to customers. As we add more data centers, that number grows, not including the thousands of jobs created. Q: What should we expect from the August 7th technical conference on the REs and trackers?A: Lloyd Yates (President and CEO): We expect the results to be balanced and collaborative. The affordability report focused heavily on bill transparency, and we expect a hard look at multi-year rate planning and the ROE risks that should be applied. Much of this was contemplated in House Bill 1002. We are optimistic it will be balanced and good for customers. Melody Birmingham (EVP of NiSource Utilities) added that we understand the importance of the hearing and will participate and cooperate fully with the IURC. Q: With GenCo earnings starting this year, should we expect the segment to be broken out this year or next year?A: Sean Anderson (EVP and CFO): We continue to be on track to start reporting segment information by the end of the fiscal year. Q: Regarding the TDSIC order, is this a capital tracker that would true you up in 2027, and how much capital is involved? Is there a way to think about the EPS impact?A: Sean Anderson (EVP and CFO): The thesis and need for this investment inventory remains unchanged. The commission is encouraging NIPSCO to invest in all reasonable and necessary projects, and we need to focus on demonstrating these projects as reasonable and necessary. We will look at options to include this capital in the TDSIC mechanism, the FMCA, or in rate case activity at NIPSCO Gas, which can include a forward look on investment. We are not reporting any change in CapEx plans or EPS outlook as of today. Q: Given the political rhetoric out of Indiana, what is the governor's ultimate objective and how does it align with what you are seeing across the state?A: Lloyd Yates (President and CEO): In spite of the activity around commission changes, we believe Indiana will continue to be a very constructive regulatory environment. Everyone is aligned on the importance of economic developmentgrowth is the key to affordability in Indiana. The data center opportunity and reshoring manufacturing not only deal with affordability through the $1.4 billion back to customers but also create thousands of jobs. There is significant alignment around that, and no one is deviating from that at all. Q: As we think about the upside to the base plan, how should we think about the timing of the $2 billion upside and whether 2026 upside can be pushed to 2027?A: Sean Anderson (EVP and CFO): The $2 billion upside pertains only to the base business and does not include any GenCo CapEx. The inventory is largely attributed to generation, some gas AMI and FSA related work, economic development, and T&D. These don't require disclosure and can be worked directly into our plan through tracker programs or regulatory recovery mechanisms. We still believe some of the 2026 CapEx will get executed, and it doesn't change the outlook of the $21 billion inventory, current year guidance, or the up to $2 billion of upside that could still flow. Q: How are you thinking about the schedule and timeline as you move through the affordability discussion, and how does it overlay with your potential rate case filing?A: Lloyd Yates (President and CEO): On August 7th we will learn more about the affordability conversations and the outcomes. Those are not connected to our rate cases yet. We are studying when to file rate cases and when we need recovery. The August 7th conference and outcomes will inform when we decide to file. We know we have to go for multi-year rate planning in the second half of 2028, and that hasn't changed. Q: Is the rate case filing the way you will return the cost savings from the data centers, or is there a separate mechanism?A: Lloyd Yates (President and CEO): Once we get the appropriate approvals and energize, those savings will start to flow immediately and will show up as a credit on the customer's bill. It doesn't require a rate case filing. Q: You mentioned looking at the system to potentially extend beyond the 9 gigawattswhat would be required, and does that mean the 9 gigawatts is a constrained pipeline?A: Michael Lowers (EVP of Technology, Customer and Chief Commercial Officer): It's part of our normal process to look beyond the 9 gigawatts and the opportunities there. We are consistently looking at the pipeline and facilitating growth, which means looking at all factorsland, zoning, transmission, fuel supply, equipment, etc. You should not interpret that we are looking at the ability to expand further as a constraint, but more as preplanning so we can focus on execution. Q: From the TDSIC order, it looked clear they are indicating you should use the FMCA at a minimumhow much of the ask from a capital standpoint was federally mandated spending?< For the complete transcript of the earnings call, please refer to the full earnings call transcript.

NiSource Inc. NI reported second-quarter 2026 adjusted earnings of 16 cents per share, beating the Zacks Consensus Estimate of 15 cents by 6.67%. However, the bottom line declined 27.3% from 22 cents in the year-ago quarter. Operating revenues of $1.36 billion topped the consensus estimate of $1.33 billion by 1.95% and increased 5.9% year over year. NIPSCO’s stronger operating performance and higher electric sales partly offset weaker Columbia results and elevated operating costs. Columbia operations generated revenues of $610.3 million, up 0.8% from $605.6 million a year ago. The segment’s adjusted operating income declined 6.1% to $115.6 million.NIPSCO operations recorded revenues of $750.4 million, up 10.4% year over year. Adjusted operating income increased 13.6% to $150.9 million, making the segment the primary source of consolidated operating growth. NiSource, Inc price-consensus-eps-surprise-chart | NiSource, Inc Quote Adjusted operating expenses totaled $1.09 billion, up 6.6% from the prior-year quarter. Operation and maintenance expenses increased 13% to $411.6 million, while depreciation and amortization rose 26.4% to $362 million. The cost of energy declined 26.1% to $193.6 million. NIPSCO Electric sales volumes, excluding weather, increased 5% to 4,195.3 gigawatt-hours (GWh). Industrial sales rose 10.4% to 2,246.2 GWh, while residential sales declined 5.8% to 757.7 GWh.Columbia sales and transportation volumes, excluding weather, fell 1.7% to 112.4 million dekatherms. NIPSCO Gas volumes on the same basis decreased 3.5% to 77.5 million dekatherms. The company recorded a $16 million revenue adjustment for weather compared with normal conditions.Adjusted operating income improved 3.2% to $270.9 million, but net interest expense climbed 43.2% to $199.2 million, pressuring adjusted net income available to common shareholders. NiSource advanced its data center strategy with regulatory approvals for special contracts involving Amazon and Alphabet. The agreements are expected to provide $1.4 billion in savings for existing customers.The company has around 4 GW of signed GenCo capacity, with 3 GW under strategic negotiations and up to 2 GW of developing opportunities. Its data center pipeline could reach up to 9 GW of capacity by 2035. NiSource is also developing a diversified portfolio of generation, battery storage and contracted resources to support the additional load. Total debt was about $17.4 billion as of June 30, 2026, including roughly $16.7 billion of long-term debt. The weighted average maturity was about 11.5 years, with a weighted average interest rate of approximately 4.87%.Net available liquidity was about $2.1 billion at quarter-end. NiSource also had roughly $2.7 billion of committed facilities, including a $2.5 billion revolving credit facility and about $200 million of accounts receivable securitization facilities. NiSource reaffirmed its 2026 consolidated adjusted earnings guidance of $2.02-$2.07 per share. The company also maintained its 2026-2033 consolidated adjusted earnings compound annual growth rate target of 9-10%.NiSource continues to execute a $28.6 billion capital investment plan for 2026-2030. This includes $21 billion of base plan investments and $7.6 billion of data center-related spending, supporting expected consolidated rate base growth of 9-11% through 2033. NiSource currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Dominion Energy, Inc. D reported second-quarter 2026 operating earnings of 79 cents per share, up 5.3% year over year. The figure surpassed the Zacks Consensus Estimate of 73 cents by 8.22%.Operating revenues increased 17.6% to $4.48 billion and beat the consensus mark of $4.06 billion by 10.32%. Results benefited from stronger Dominion Energy Virginia earnings, supported by regulatory impacts, rider returns and customer usage. Weather-normal regulated electric sales rose 4.1% over the trailing 12 months.NextEra Energy NEE reported second-quarter 2026 results with adjusted earnings per share of $1.15, up 9.5% from $1.05 a year ago. The figure beat the Zacks Consensus Estimate of $1.09 by 5.5%.Total operating revenues were $7.53 billion, up 12.4% year over year but missed the Zacks Consensus Estimate of $7.99 billion by 5.8%. A key highlight was NextEra Energy Resources’ record renewables and storage origination, which added 3.6 GW to backlog. Xcel Energy Inc. XEL reported second-quarter 2026 ongoing earnings of 93 cents per share, beating the Zacks Consensus Estimate of 79 cents by 17.72%. Earnings increased 24% from 75 cents in the year-ago quarter, aided by greater recovery of electric infrastructure investments.Revenues of $3.12 billion missed the consensus estimate of $3.61 billion by 13.48% and declined 5.1% year over year. Weather-adjusted retail electric sales rose 1.5%, while electric and natural gas customer counts each increased 0.7%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NiSource, Inc (NI) : Free Stock Analysis Report Xcel Energy Inc. (XEL) : Free Stock Analysis Report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Dominion Energy Inc. (D) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research