SUPPLEMENTAL SLIDES 3Q 2025 RESULTS October 29, 2025 LEGAL DISCLAIMER Forward-Looking Statements This presentation 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"). Investors and prospective investors should understand that many factors govern whether any forward-looking statement contained herein will be or can be realized. Any one ...

Core Insights - NiSource reported quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.20 per share, representing a -5.00% earnings surprise [1] - The company posted revenues of $1.27 billion for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 8.33% and up from $1.08 billion a year ago [2] - NiSource shares have increased approximately 18% year-to-date, outperforming the S&P 500's gain of 17.2% [3] Earnings Performance - Over the last four quarters, NiSource has surpassed consensus EPS estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is $0.49 on revenues of $1.64 billion, and for the current fiscal year, it is $1.88 on revenues of $6.26 billion [7] Market Outlook - The company's earnings outlook and estimate revisions trend were favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The Utility - Electric Power industry, to which NiSource belongs, is currently in the top 21% of Zacks industries, suggesting a positive industry outlook [8]

Financial Performance - For the three months ended September 30, 2025, NiSource reported total operating revenues of $1,273.1 million, a 18.3% increase from $1,076.3 million in the same period of 2024[19]. - Customer revenues for the nine months ended September 30, 2025, reached $4,636.2 million, up 23.9% from $3,743.2 million in 2024[19]. - Operating income for the three months ended September 30, 2025, was $297.5 million, representing a 36.3% increase compared to $218.3 million in 2024[19]. - Net income attributable to NiSource for the nine months ended September 30, 2025, was $671.7 million, a 25.9% increase from $536.5 million in 2024[19]. - Basic earnings per share for the three months ended September 30, 2025, were $0.20, compared to $0.19 in the same period of 2024[19]. - Comprehensive income for the three months ended September 30, 2025, was $122.2 million, compared to $101.0 million in 2024[20]. - Net income for the nine months ended September 30, 2025, increased to $734.2 million, up from $600.4 million in 2024, representing a growth of approximately 22.3%[24]. - The total operating revenue for the three months ended September 30, 2025, was $1,275.5 million, an increase from $1,079.6 million in the same period of 2024, representing an 18.1% growth[128][130]. - Operating income for the three months ended September 30, 2025, was $284.7 million, compared to $212.5 million for the same period in 2024, reflecting a 34% increase[128][130]. - For the nine months ended September 30, 2025, total operating revenue reached $4,746.5 million, up from $3,877.1 million in 2024, marking a 22.4% increase[133]. Assets and Equity - Total assets as of September 30, 2025, amounted to $34,402.9 million, an increase from $31,788.1 million at the end of 2024[22]. - Total stockholders' equity increased to $11,241.8 million as of September 30, 2025, compared to $10,668.3 million at the end of 2024[23]. - The balance of additional paid-in capital increased to $9,798.3 million as of September 30, 2025, from $9,521.5 million at the end of 2024, reflecting a growth of about 2.9%[26]. - The company’s retained deficit improved to $(572.0) million as of September 30, 2025, compared to $(711.7) million at the end of 2024, indicating a reduction of approximately 19.6%[26]. - The balance of common stock increased from 451,345 thousand shares as of December 31, 2023, to 470,670 thousand shares as of September 30, 2024[28]. - The fair value of long-term debt as of September 30, 2025, was estimated at $14,050.3 million, compared to a carrying amount of $14,503.4 million[94]. Cash Flow and Capital Expenditures - Net cash flows from operating activities reached $1,649.7 million, compared to $1,241.7 million in the same period of 2024, indicating a year-over-year increase of about 32.8%[24]. - Capital expenditures for the nine months ended September 30, 2025, totaled $1,936.0 million, an increase from $1,854.0 million in 2024, reflecting a growth of approximately 4.4%[24]. - The company paid dividends of $396.4 million on common stock during the nine months ended September 30, 2025, compared to $357.0 million in 2024, representing an increase of approximately 11.0%[24]. - The company reported a cash and cash equivalents balance of $95.0 million as of September 30, 2025, down from $156.6 million at the end of 2024[215]. Debt and Financing - Long-term debt, excluding amounts due within one year, rose to $14,472.1 million as of September 30, 2025, up from $12,074.5 million at the end of 2024[23]. - Proceeds from the issuance of long-term debt amounted to $2,362.0 million, compared to $2,229.6 million in 2024, showing an increase of about 5.9%[24]. - The company had $1,060.0 million of commercial paper outstanding as of September 30, 2025, with a weighted-average interest rate of 4.40%[64]. - The revolving credit facility has a program limit of $1.85 billion, with no outstanding borrowings as of September 30, 2025[63]. - NiSource's credit ratings remain stable, with S&P rating at BBB+, Moody's at Baa2, and Fitch at BBB as of September 30, 2025[216]. Operational Highlights - The Columbia Operations segment reported residential gas distribution revenues of $328.1 million for the three months ended September 30, 2025, compared to $296.9 million in the same period of 2024, marking an increase of approximately 10.5%[40]. - NIPSCO Operations generated electric service revenues of $633.1 million for the three months ended September 30, 2025, up from $515.1 million in the same period of 2024, representing a growth of about 22.9%[40]. - The company executed a forward sale agreement in February 2025, settling for $80.0 million based on a net price of $40.02 per share[57]. - NIPSCO plans to retire remaining coal-fired electric generation by 2028, transitioning to a balanced mix of low- or zero-emission electric generation[155]. - NIPSCO has placed into service renewable projects totaling 3,051 MW of nameplate capacity since 2020, with additional projects expected to be operational between 2025 and 2027[194]. Regulatory and Compliance - The company is evaluating the impacts of recent accounting pronouncements on its financial disclosures and policies[33]. - The Indiana Utility Regulatory Commission approved a Joint Stipulation and Settlement Agreement on June 26, 2025, which implemented new rates in multiple steps starting July 2025[76]. - NIPSCO Gas filed for a CPCN on April 21, 2025, seeking recovery of $244.1 million related to federally mandated Pipeline Safety IV Compliance Plan costs, which was granted on October 22, 2025[211]. - The company recorded a liability of $84.6 million for environmental remediation as of September 30, 2025, compared to $91.8 million as of December 31, 2024[112]. Employee and Talent Management - Increased competition for talent has led to higher costs for attracting and retaining employees, prompting NIPSCO to enhance its internal human capital programs[162].

Financial Performance - NiSource reported a net income of $94.7 million, or $0.20 per diluted share, for Q3 2025, compared to $85.7 million, or $0.19 per diluted share, in Q3 2024, representing a 10.5% increase in net income year-over-year [2]. - For the nine months ended September 30, 2025, NiSource's net income was $671.7 million, or $1.42 per diluted share, up from $515.8 million, or $1.14 per diluted share, in the same period of 2024, marking a 30.3% increase [2]. - Non-GAAP adjusted net income for Q3 2025 was $91.8 million, or $0.19 per adjusted EPS, compared to $89.9 million, or $0.20 per adjusted EPS, in Q3 2024 [3]. - For the nine months ended September 30, 2025, non-GAAP adjusted net income was $656.0 million, or $1.38 per adjusted EPS, compared to $567.4 million, or $1.26 per adjusted EPS, in the same period of 2024, reflecting a 16.0% increase [3]. Guidance and Growth Projections - NiSource reaffirmed its 2025 non-GAAP adjusted EPS guidance in the range of $1.85-$1.89 and introduced a 2026 guidance of $2.02-$2.07 [4]. - The company extended its base capital plan to 2030, with expected annual non-GAAP adjusted EPS growth of 6%-8%, driven by $21.0 billion in capital expenditures [4]. - The expected consolidated non-GAAP adjusted EPS compound annual growth rate (CAGR) is projected to be 8%-9% from 2026 through 2033 [4]. Capital Expenditure Plans - NiSource announced a consolidated capital expenditure plan of $28.0 billion, which is approximately $8.6 billion more than the previous five-year plan, including nearly $7.0 billion for strategic data center investments [3]. Customer Commitment - NiSource serves approximately 3.3 million natural gas customers and 500,000 electric customers across six states, emphasizing its commitment to delivering reliable energy [9]. - The company aims to protect customers from the costs of large-load development while ensuring affordability remains central to its strategy [5].

Core Viewpoint - NiSource Inc. is expected to report its third-quarter 2025 results on October 29, with a prior earnings surprise of 4.76% in the last quarter [1] Factors Impacting Q3 Performance - The approval of the Northern Indiana Public Service Company LLC Electric rate case and the Columbia Gas of Virginia rate case is anticipated to positively influence NiSource's performance in Q3 [2] - Increased investments in data center developments and infrastructure to support higher demand are expected to contribute positively to earnings [3] - However, higher operation and maintenance expenses may partially offset these positive impacts [3] Q3 Expectations - The Zacks Consensus Estimate for earnings is 19 cents per share, reflecting a year-over-year decline of 5% [4] - Revenue is estimated at $1.15 billion, indicating a 6.9% increase from the previous year [4][8] Earnings Prediction - The company's Earnings ESP is +8.11%, suggesting a strong likelihood of an earnings beat [5] - NiSource currently holds a Zacks Rank of 3, indicating a hold position [6] Other Industry Players - Xcel Energy, Inc. is also expected to report on October 30, with an Earnings ESP of +0.38% and a Zacks Rank of 3 [7] - Eversource Energy is set to report on November 4, with an Earnings ESP of +5.13% and a Zacks Rank of 3 [9] - Duke Energy will report on November 7, with an Earnings ESP of +1.65% and a Zacks Rank of 2 [10]

Core Insights - NiSource is positioned to continue its earnings-beat streak, having a history of surpassing earnings estimates, particularly in the last two quarters with an average surprise of 6.83% [1][5] Earnings Performance - In the most recent quarter, NiSource reported earnings of $0.22 per share against an expectation of $0.21, resulting in a surprise of 4.76% [2] - For the previous quarter, the consensus estimate was $0.90 per share, while the actual earnings were $0.98 per share, leading to a surprise of 8.89% [2] Earnings Estimates and Predictions - Estimates for NiSource have been trending higher, influenced by its history of earnings surprises [5] - The company has a positive Zacks Earnings ESP of +8.11%, indicating that analysts are optimistic about its earnings prospects [8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong possibility of another earnings beat in the upcoming report [8] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7] Future Outlook - NiSource's next earnings report is anticipated to be released on October 29, 2025 [8]

NiSource (NI) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on October 29, might help the stock move higher if these key numbers are better than expectati ...

Core Insights - NiSource Inc. is a prominent U.S. utility holding company with a market cap of $20.2 billion, serving nearly 4 million natural gas and electric customers across six states [1] - The company is expected to report a fiscal third-quarter earnings of $0.17 per share, reflecting a 15% decline year-over-year [2] - For the full fiscal year 2025, analysts project an EPS of $1.88, a 7.4% increase from $1.75 in fiscal 2024, with further growth anticipated to $2.03 in fiscal 2026 [3] Stock Performance - NiSource's stock has increased by 25.9% over the past 52 weeks, outperforming the S&P 500 Index's 14.4% gains and the Utilities Select Sector SPDR Fund's 14.7% gains [4] - The stock's performance is attributed to strong financial results, strategic initiatives, and favorable market sentiment [5] Analyst Ratings - The consensus opinion on NiSource stock is moderately bullish, with a "Moderate Buy" rating from analysts; 10 out of 15 analysts recommend a "Strong Buy" while 5 suggest a "Hold" [6] - The average analyst price target for NI stock is $44.77, indicating a potential upside of 4.8% from current levels [6] Capital Expenditure - NiSource has outlined a robust capital expenditure plan of $19.4 billion for the years 2025–2029, aimed at modernizing infrastructure and improving service reliability [5]

Group 1 - NiSource (NYSE: NI) operates five local distribution utility companies and one gas and electric utility, NIPSCO [1] - The stock price increase has positively impacted utilities that may supply AI data centers [1] - Laura Starks, founder and CEO of Starks Energy Economics, has extensive experience in energy investment and analysis [1] Group 2 - The coverage of Laura Starks includes various sectors such as utilities, independent power producers, and all sectors of oil and natural gas [1]

Company Overview - NiSource (NI) is based in Merrillville and operates in the Utilities sector, with a year-to-date share price change of 15.29% [3] - The company currently pays a dividend of $0.28 per share, resulting in a dividend yield of 2.64%, which is lower than the Utility - Electric Power industry's yield of 3.21% and the S&P 500's yield of 1.53% [3] Dividend Performance - NiSource's annualized dividend of $1.12 has increased by 5.7% from the previous year [4] - Over the past five years, the company has raised its dividend five times, achieving an average annual increase of 6.29% [4] - The current payout ratio for NiSource is 59%, indicating that the company distributes 59% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, NiSource anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $1.88 per share, reflecting a 7.43% increase from the previous year [5] Investment Considerations - NiSource is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6] - The company is positioned as a more stable dividend option compared to high-growth firms or tech start-ups, which typically do not offer dividends [6]