Preliminary Information [Defined Terms](index=3&type=section&id=Defined%20Terms) This section provides a comprehensive list of frequently used abbreviations and acronyms within the report for clarity - This section provides a comprehensive list of frequently used abbreviations and acronyms within the report, covering NiSource subsidiaries, affiliates, and various financial and regulatory terms to ensure clarity and understanding[8](index=8&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) [Note regarding forward-looking statements](index=5&type=section&id=Note%20regarding%20forward-looking%20statements) This note cautions that forward-looking statements are subject to various factors that could cause actual results to differ materially from projections - The report contains forward-looking statements regarding plans, strategies, objectives, expected performance, and expenditures, which are subject to various factors that could cause actual results to differ materially from projections[12](index=12&type=chunk) - Key risk factors include the ability to execute business plans, manage data center growth, operational risks, technology adaptation, infrastructure aging, insurance coverage, electric generation strategy success, construction and supply risks, demand fluctuations, energy commodity price volatility, workforce management, new initiatives, third-party performance, carbon emission reduction goals, cybersecurity, activist stockholders, reputation damage, natural disasters, climate change impacts, debt obligations, credit ratings, adverse economic conditions, regulatory outcomes, and legal proceedings[13](index=13&type=chunk)[16](index=16&type=chunk) PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) This section presents NiSource Inc.'s unaudited condensed consolidated financial statements and detailed notes for the three and six months ended June 30, 2025 and 2024 [Condensed Statements of Consolidated Income (unaudited)](index=8&type=section&id=Condensed%20Statements%20of%20Consolidated%20Income%20(unaudited)) This table presents the unaudited condensed consolidated income statements for the three and six months ended June 30, 2025 and 2024 Condensed Statements of Consolidated Income (unaudited) | (in millions, except per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Operating Revenues | $1,283.0 | $1,084.7 | $3,466.2 | $2,791.0 | | Total Operating Expenses | $1,020.1 | $847.7 | $2,443.9 | $1,970.6 | | Operating Income | $262.9 | $237.0 | $1,022.3 | $820.4 | | Income before Income Taxes | $124.3 | $120.7 | $756.7 | $597.0 | | Net Income Attributable to NiSource | $102.2 | $85.8 | $577.0 | $450.8 | | Basic Earnings Per Share | $0.22 | $0.19 | $1.22 | $0.96 | | Diluted Earnings Per Share | $0.22 | $0.19 | $1.22 | $0.95 | [Condensed Statements of Consolidated Comprehensive Income (unaudited)](index=9&type=section&id=Condensed%20Statements%20of%20Consolidated%20Comprehensive%20Income%20(unaudited)) This table presents the unaudited condensed consolidated comprehensive income statements for the three and six months ended June 30, 2025 and 2024 Condensed Statements of Consolidated Comprehensive Income (unaudited) | (in millions, net of taxes) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income | $100.5 | $103.1 | $627.2 | $503.4 | | Total other comprehensive income | $1.0 | $0.2 | $2.2 | $— | | Comprehensive Income | $101.5 | $103.3 | $629.4 | $503.4 | [Condensed Consolidated Balance Sheets (unaudited)](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(unaudited)) This table presents the unaudited condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (unaudited) | (in millions) | June 30, 2025 | December 31, 2024 | | :------------ | :------------ | :---------------- | | Total Assets | $34,028.9 | $31,788.1 | | Total Stockholders' Equity | $10,996.9 | $10,668.3 | | Long-term debt, excluding amounts due within one year | $14,473.8 | $12,074.5 | | Total Capitalization | $25,470.7 | $22,742.8 | | Total Current Liabilities | $3,412.3 | $4,113.4 | | Total Other Liabilities | $5,145.9 | $4,931.9 | | Total Capitalization and Liabilities | $34,028.9 | $31,788.1 | [Condensed Statements of Consolidated Cash Flows (unaudited)](index=12&type=section&id=Condensed%20Statements%20of%20Consolidated%20Cash%20Flows%20(unaudited)) This table presents the unaudited condensed consolidated cash flow statements for the six months ended June 30, 2025 and 2024 Condensed Statements of Consolidated Cash Flows (unaudited) | Six Months Ended June 30, (in millions) | 2025 | 2024 | | :-------------------------------------- | :-------- | :-------- | | Net Cash Flows from Operating Activities | $1,181.8 | $901.7 | | Net Cash Flows used for Investing Activities | $(2,566.3) | $(1,594.0) | | Net Cash Flows from (used for) Financing Activities | $1,551.5 | $(1,452.9) | | Change in cash, cash equivalents and restricted cash | $167.0 | $(2,145.2) | | Cash, Cash Equivalents and Restricted Cash at End of Period | $365.6 | $135.9 | [Condensed Statements of Consolidated Equity (unaudited)](index=13&type=section&id=Condensed%20Statements%20of%20Consolidated%20Equity%20(unaudited)) This section presents the unaudited condensed consolidated statements of equity for the six months ended June 30, 2025 and 2024 Condensed Statements of Consolidated Equity (unaudited) - June 30, 2025 | (in millions) | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Deficit | Accumulated Other Comprehensive Loss | Noncontrolling Interest in Consolidated Subsidiaries | Total | | :------------ | :----------- | :------------- | :------------------------- | :--------------- | :----------------------------------- | :------------------------------------------------- | :---- | | Balance as of January 1, 2025 | $4.7 | $(99.9) | $9,521.5 | $(711.7) | $(30.4) | $1,984.1 | $10,668.3 | | Net income | — | — | — | 577.0 | — | 50.2 | 627.2 | | Other comprehensive gain, net of tax | — | — | — | — | 2.2 | — | 2.2 | | Dividends: Common stock | — | — | — | (397.4) | — | — | (397.4) | | Contributions from noncontrolling interests | — | — | — | — | — | 134.3 | 134.3 | | Distributions to noncontrolling interests | — | — | — | — | — | (54.2) | (54.2) | | Stock issuances | — | — | 16.5 | — | — | — | 16.5 | | Balance as of June 30, 2025 | $4.7 | $(99.9) | $9,538.0 | $(532.1) | $(28.2) | $2,114.4 | $10,996.9 | Condensed Statements of Consolidated Equity (unaudited) - June 30, 2024 | (in millions) | Common Stock | Preferred Stock | Treasury Stock | Additional Paid-In Capital | Retained Deficit | Accumulated Other Comprehensive Loss | Noncontrolling Interest in Consolidated Subsidiaries | Total | | :------------ | :----------- | :-------------- | :------------- | :------------------------- | :--------------- | :----------------------------------- | :------------------------------------------------- | :---- | | Balance as of January 1, 2024 | $4.5 | $486.1 | $(99.9) | $8,879.5 | $(967.0) | $(33.6) | $1,866.7 | $10,136.3 | | Net income | — | — | — | — | 450.8 | — | 52.6 | 503.4 | | Dividends: Common stock | — | — | — | — | (357.9) | — | — | (357.9) | | Preferred stock | — | — | — | — | (8.1) | — | — | (8.1) | | Contributions from noncontrolling interests | — | — | — | — | — | — | 59.7 | 59.7 | | Distributions to noncontrolling interest | — | — | — | — | — | — | (28.4) | (28.4) | | Series B and B-1 Preferred stock redemption | — | (486.1) | — | — | — | — | — | (486.1) | | Series B and B-1 Preferred stock redemption premium | — | — | — | — | (14.0) | — | — | (14.0) | | Stock issuances | — | — | — | 14.7 | — | — | — | 14.7 | | Balance as of June 30, 2024 | $4.5 | $— | $(99.9) | $8,894.2 | $(896.2) | $(33.6) | $1,950.6 | $9,819.6 | [Notes to Condensed Consolidated Financial Statements (unaudited)](index=16&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section provides detailed explanatory notes to the unaudited condensed consolidated financial statements, covering accounting policies and specific financial items [1. Basis of Accounting Presentation](index=16&type=section&id=1.%20Basis%20of%20Accounting%20Presentation) This note outlines the basis for preparing the unaudited condensed consolidated financial statements in accordance with GAAP and SEC rules - The unaudited Condensed Consolidated Financial Statements are prepared in accordance with GAAP and SEC rules, reflecting all normal recurring adjustments. They include NiSource, its majority-owned subsidiaries, and Variable Interest Entities (VIEs) where NiSource is the primary beneficiary[31](index=31&type=chunk)[33](index=33&type=chunk) - Interim period income may not be indicative of full calendar year results due to weather variations and other factors[32](index=32&type=chunk) [2. Recent Accounting Pronouncements](index=16&type=section&id=2.%20Recent%20Accounting%20Pronouncements) This note details recently issued and adopted accounting pronouncements, including new FASB ASUs on expense disaggregation and income tax disclosures - The FASB issued ASU 2024-03 (Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures) in November 2024, requiring disaggregated expense disclosures for public business entities, effective for fiscal years beginning after December 15, 2026[34](index=34&type=chunk) - ASU 2023-09 (Income Taxes) was issued in December 2023, enhancing income tax disclosures, effective for annual periods beginning after December 15, 2024[35](index=35&type=chunk) - NiSource adopted ASU 2023-07 (Segment Reporting) as of December 31, 2024, enhancing disclosures about significant segment expenses and CODM's use of reported measures[36](index=36&type=chunk) [3. Revenue Recognition](index=17&type=section&id=3.%20Revenue%20Recognition) This note describes the company's revenue recognition policies, disaggregating revenue by segment and customer class, and detailing customer accounts receivable - Revenue is disaggregated by reportable segment (Columbia Operations and NIPSCO Operations) and customer class (residential, commercial, industrial, off-system, wholesale, miscellaneous)[37](index=37&type=chunk) Total Operating Revenues by Segment and Customer Class (Three Months Ended June 30, 2025) | (in millions) | Columbia Operations | NIPSCO Operations | Corporate and Other | Total | | :------------ | :------------------ | :---------------- | :------------------ | :---- | | Gas Distribution: Residential | $397.0 | $114.2 | $— | $511.2 | | Gas Distribution: Commercial | $126.2 | $45.5 | $— | $171.7 | | Gas Distribution: Industrial | $37.6 | $22.6 | $— | $60.2 | | Electric Generation and Power Delivery: Residential | $— | $163.9 | $— | $163.9 | | Electric Generation and Power Delivery: Commercial | $— | $161.0 | $— | $161.0 | | Electric Generation and Power Delivery: Industrial | $— | $133.5 | $— | $133.5 | | Total Customer Revenues | $592.3 | $654.2 | $— | $1,246.5 | | Other Revenues | $8.9 | $26.4 | $1.2 | $36.5 | | Total Operating Revenues | $601.2 | $680.6 | $1.2 | $1,283.0 | Total Operating Revenues by Segment and Customer Class (Six Months Ended June 30, 2025) | (in millions) | Columbia Operations | NIPSCO Operations | Corporate and Other | Total | | :------------ | :------------------ | :---------------- | :------------------ | :---- | | Gas Distribution: Residential | $1,248.2 | $405.6 | $— | $1,653.8 | | Gas Distribution: Commercial | $432.7 | $148.6 | $— | $581.3 | | Gas Distribution: Industrial | $85.5 | $54.0 | $— | $139.5 | | Electric Generation and Power Delivery: Residential | $— | $331.8 | $— | $331.8 | | Electric Generation and Power Delivery: Commercial | $— | $321.1 | $— | $321.1 | | Electric Generation and Power Delivery: Industrial | $— | $276.1 | $— | $276.1 | | Total Customer Revenues | $1,832.2 | $1,563.8 | $— | $3,396.0 | | Other Revenues | $9.6 | $58.2 | $2.4 | $70.2 | | Total Operating Revenues | $1,841.8 | $1,622.0 | $2.4 | $3,466.2 | - Customer accounts receivable include billed and unbilled amounts, with significant seasonal fluctuations. The allowance for credit losses is determined using a model considering historical collections, current information, and forecasts, and increased from **$23.7 million** at January 1, 2025, to **$27.3 million** at June 30, 2025[41](index=41&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) [4. Noncontrolling Interests](index=21&type=section&id=4.%20Noncontrolling%20Interests) This note explains the consolidation of Variable Interest Entities and details contributions from and distributions to noncontrolling interest holders - NiSource consolidates four wind and solar Joint Ventures (Rosewater, Indiana Crossroads Wind, Indiana Crossroads Solar, and Dunns Bridge I) as Variable Interest Entities (VIEs) because NIPSCO is the managing member and controls significant decisions[45](index=45&type=chunk) - Assets of consolidated VIEs totaled **$1,356.6 million** at June 30, 2025, and liabilities totaled **$148.5 million**, which can only be used to settle obligations of the respective VIEs[50](index=50&type=chunk) Contributions from and Distributions to NIPSCO Minority Interest Holders | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Contributions from NIPSCO minority interest holders | $99.5 | $59.7 | $134.3 | $59.7 | | Distributions to NIPSCO minority interest holders | $26.9 | $20.2 | $44.4 | $20.2 | [5. Earnings Per Share](index=22&type=section&id=5.%20Earnings%20Per%20Share) This note details the calculation of basic and diluted earnings per share using the two-class method due to participating securities - Basic and diluted EPS are calculated using the two-class method due to participating securities (non-vested restricted stock units with dividend rights)[52](index=52&type=chunk)[53](index=53&type=chunk) Basic and Diluted EPS Calculation | (in millions, except per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income Available to Common Shareholders - Basic | $101.9 | $85.4 | $575.9 | $429.4 | | Average common shares outstanding - Basic | 471.0 | 448.5 | 470.6 | 448.2 | | Basic Earnings Per Share | $0.22 | $0.19 | $1.22 | $0.96 | | Average Common Shares - Diluted | 472.1 | 450.2 | 472.3 | 449.8 | | Diluted Earnings Per Share | $0.22 | $0.19 | $1.22 | $0.95 | [6. Equity](index=23&type=section&id=6.%20Equity) This note describes the At-the-Market program for common stock issuance and the redemption of preferred stock - NiSource has an At-the-Market (ATM) program allowing the sale of up to **$900.0 million** of common stock, with approximately **$47.5 million** available as of June 30, 2025. The company executed three forward sale agreements in February, March, and June 2025, totaling **6,225,713 shares**, with settlement expected by December 31, 2025[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - On March 15, 2024, NiSource redeemed all outstanding Series B and B-1 Preferred Stock for a total of **$500.0 million**[59](index=59&type=chunk) [7. Short-Term Borrowings](index=24&type=section&id=7.%20Short-Term%20Borrowings) This note details the company's short-term borrowing arrangements, including its revolving credit facility and commercial paper program - NiSource utilizes a **$1.85 billion** revolving credit facility and a **$1.85 billion** commercial paper program for short-term borrowings. As of June 30, 2025, there were no outstanding borrowings under the revolving credit facility or commercial paper program (compared to **$604.6 million** outstanding commercial paper at December 31, 2024)[62](index=62&type=chunk)[63](index=63&type=chunk) - Columbia of Ohio, NIPSCO, and Columbia of Pennsylvania maintain accounts receivable transfer programs, treated as secured borrowings, with a maximum borrowing capacity of **$245.0 million** as of June 30, 2025. No short-term borrowings related to these securitization transactions were outstanding at June 30, 2025[64](index=64&type=chunk)[66](index=66&type=chunk) [8. Long-Term Debt](index=24&type=section&id=8.%20Long-Term%20Debt) This note outlines recent long-term debt issuances, including senior unsecured notes, and their net proceeds - On March 27, 2025, NiSource issued **$750.0 million** of 5.850% senior unsecured notes maturing in 2055, yielding **$739.6 million** in net proceeds[69](index=69&type=chunk) - On June 27, 2025, the company issued an additional **$750.0 million** of the same 5.850% senior unsecured notes due 2055, bringing the total to **$1.5 billion**. Concurrently, **$900.0 million** of 5.350% senior unsecured notes maturing in 2035 were issued, with these June issuances generating approximately **$1.616 billion** in total net proceeds[70](index=70&type=chunk) [9. Regulatory Matters](index=25&type=section&id=9.%20Regulatory%20Matters) This note discusses regulatory accounting practices and recent regulatory filings and approvals impacting NIPSCO's operations and rates - NiSource follows ASC Topic 980 for regulatory accounting, deferring certain expenses and credits as regulatory assets and liabilities, which are recognized in the income statement as they are recovered or refunded through customer rates[71](index=71&type=chunk) - NIPSCO filed a petition in February 2025 to modify a prior IURC order to allow full ownership of the Templeton power purchase agreement, with a final order expected in October 2025[72](index=72&type=chunk) - NIPSCO GenCo filed a declination of jurisdiction petition in January 2025 to establish a framework for accommodating megaload customers, including data centers, with an order expected in Q3 2025[73](index=73&type=chunk) - The IURC approved NIPSCO's Electric rate case settlement agreement on June 26, 2025, with new rates to be implemented in multiple steps from July 2025 through early 2026[74](index=74&type=chunk) [10. Risk Management Activities](index=25&type=section&id=10.%20Risk%20Management%20Activities) This note details the company's use of derivatives to manage commodity price and interest rate risks, avoiding speculative energy trading - NiSource uses derivatives to manage commodity price risk (natural gas purchases) and interest rate risk, aiming to limit volatility and is not involved in speculative energy trading[75](index=75&type=chunk)[77](index=77&type=chunk)[80](index=80&type=chunk) Risk Management Assets and Liabilities (in millions) | (in millions) | June 30, 2025 Assets | June 30, 2025 Liabilities | December 31, 2024 Assets | December 31, 2024 Liabilities | | :------------ | :------------------- | :---------------------- | :----------------------- | :------------------------ | | Current Derivatives not designated as hedging instruments | $16.6 | $1.7 | $9.1 | $2.3 | | Noncurrent Derivatives not designated as hedging instruments | $20.3 | $3.8 | $17.9 | $1.2 | | Total | $36.9 | $5.5 | $27.0 | $3.5 | - As of June 30, 2025, NiSource had **90.8 MMDth** of net energy derivative volumes outstanding for natural gas hedges (up from **77.8 MMDth** at December 31, 2024). Gains and losses on these derivatives are deferred as regulatory assets or liabilities and passed through to customers[77](index=77&type=chunk)[79](index=79&type=chunk) [11. Fair Value](index=27&type=section&id=11.%20Fair%20Value) This note provides fair value measurements for various assets and liabilities, including derivatives and debt securities, categorized by valuation levels Recurring Fair Value Measurements (June 30, 2025) | (in millions) | Level 1 | Level 2 | Level 3 | Balance as of June 30, 2025 | | :------------ | :------ | :------ | :------ | :-------------------------- | | Assets: U.S. Treasury debt securities | $1.5 | $— | $— | $1.5 | | Assets: Risk management assets | $— | $36.9 | $— | $36.9 | | Assets: Available-for-sale debt securities | $— | $144.9 | $— | $144.9 | | Assets: Equity securities | $6.1 | $— | $— | $6.1 | | Total Assets | $7.6 | $181.8 | $— | $189.4 | | Liabilities: Risk management liabilities | $— | $5.5 | $— | $5.5 | | Total Liabilities | $— | $5.5 | $— | $5.5 | - Risk management assets and liabilities include exchange-traded derivatives (Level 1) and non-exchange-traded derivatives (Level 2), with valuations incorporating market-based information. Available-for-sale debt securities are valued using a matrix pricing model (Level 2)[82](index=82&type=chunk)[83](index=83&type=chunk)[86](index=86&type=chunk) Available-for-Sale Debt Securities (June 30, 2025) | (in millions) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | | :------------ | :------------- | :--------------------- | :---------------------- | :-------------------------- | :--------- | | U.S. Treasury debt securities | $4.3 | $— | $— | $— | $4.3 | | Corporate/Other debt securities | $143.6 | $1.4 | $(4.3) | $(0.1) | $140.6 | | Total | $147.9 | $1.4 | $(4.3) | $(0.1) | $144.9 | Long-Term Debt Fair Value (in millions) | (in millions) | Carrying Amount as of June 30, 2025 | Estimated Fair Value as of June 30, 2025 | Carrying Amount as of Dec. 31, 2024 | Estimated Fair Value as of Dec. 31, 2024 | | :------------ | :---------------------------------- | :------------------------------------- | :---------------------------------- | :------------------------------------- | | Long-term debt (including current portion) | $15,756.0 | $15,106.3 | $13,355.7 | $12,505.2 | [12. Goodwill](index=31&type=section&id=12.%20Goodwill) This note presents the goodwill balance by segment and confirms no impairment was recorded after the annual qualitative assessment Goodwill Balance by Segment (June 30, 2025) | (in millions) | Columbia Operations | NIPSCO Operations | Corporate and Other | Total | | :------------ | :------------------ | :---------------- | :------------------ | :---- | | Goodwill | $1,468.1 | $17.8 | $— | $1,485.9 | - An annual qualitative 'step 0' assessment for goodwill impairment as of May 1, 2025, determined that the estimated fair value of reporting units substantially exceeded their carrying value, with no impairments recorded during the periods presented[94](index=94&type=chunk) [13. Income Taxes](index=31&type=section&id=13.%20Income%20Taxes) This note analyzes the effective tax rates, explaining their deviation from the federal statutory rate and period-over-period changes Effective Tax Rates | Period | Effective Tax Rate 2025 | Effective Tax Rate 2024 | | :----- | :---------------------- | :---------------------- | | Three Months Ended June 30 | 19.1% | 14.6% | | Six Months Ended June 30 | 17.1% | 15.7% | - The effective tax rates differ from the federal statutory rate of **21%** primarily due to noncontrolling interest, amortization of excess deferred income taxes, federal tax credits, state income taxes, and other permanent book-to-tax differences[95](index=95&type=chunk) - The increase in the three-month effective tax rate (**4.5%**) and six-month effective tax rate (**1.4%**) in 2025 compared to 2024 was primarily driven by higher state income taxes and lower AFUDC equity, partially offset by increased federal tax credits for the three-month period[96](index=96&type=chunk) [14. Pension and Other Postemployment Benefits](index=31&type=section&id=14.%20Pension%20and%20Other%20Postemployment%20Benefits) This note details the company's defined contribution and benefit retirement plans, including contributions and net periodic benefit costs - NiSource provides defined contribution and noncontributory defined benefit retirement plans, along with health care and life insurance benefits for certain retired employees. Regulatory assets and liabilities are recorded for postretirement benefit costs where future recovery is probable[98](index=98&type=chunk) Contributions to Pension and OPEB Plans (Six Months Ended June 30) | (in millions) | 2025 | 2024 | | :------------ | :---- | :---- | | Pension plans | $1.0 | $1.3 | | OPEB plans | $10.5 | $10.7 | Net Periodic Benefit Cost (Six Months Ended June 30, in millions) | Components of Net Periodic Benefit Cost | Pension Benefits 2025 | Pension Benefits 2024 | OPEB 2025 | OPEB 2024 | | :-------------------------------------- | :-------------------- | :-------------------- | :-------- | :-------- | | Service cost | $9.8 | $10.9 | $2.0 | $2.6 | | Interest cost | $32.0 | $32.6 | $11.2 | $10.9 | | Expected return on assets | $(46.2) | $(47.6) | $(8.4) | $(8.0) | | Recognized actuarial loss | $12.8 | $14.4 | $0.8 | $1.6 | | Total Net Periodic Benefit Cost | $8.4 | $10.3 | $4.8 | $6.3 | [15. Other Commitments and Contingencies](index=31&type=section&id=15.%20Other%20Commitments%20and%20Contingencies) This note outlines various commitments and contingencies, including guarantees, legal proceedings, environmental matters, and generation transition activities [A. Guarantees and Indemnities](index=32&type=section&id=A.%20Guarantees%20and%20Indemnities) This section details outstanding stand-by letters of credit and guarantees for renewable generation projects and service agreements - NiSource had **$9.4 million** in stand-by letters of credit outstanding as of June 30, 2025, for third parties[101](index=101&type=chunk) - Guarantees for renewable generation projects under Build-Transfer Agreements (BTAs) totaled **$86.5 million** at June 30, 2025, significantly down from **$1,127.5 million** at December 31, 2024, with amounts decreasing upon substantial completion of facilities[102](index=102&type=chunk) - Guarantees for rail and pipeline service agreements could require payments up to **$52.0 million** at June 30, 2025, if contractual obligations are not met[103](index=103&type=chunk) [B. Legal Proceedings](index=32&type=section&id=B.%20Legal%20Proceedings) This section addresses various legal and regulatory claims, noting the uncertainty of outcomes and the establishment of reserves - NiSource is subject to various legal and regulatory claims, with outcomes uncertain but potentially material to financial results or cash flows. Reserves are established, but actual results may exceed these amounts[104](index=104&type=chunk)[105](index=105&type=chunk) - Other claims and proceedings arising in the ordinary course of business are not considered individually or in aggregate material at this time[106](index=106&type=chunk) [C. Environmental Matters](index=33&type=section&id=C.%20Environmental%20Matters) This section discusses environmental compliance, remediation liabilities for various sites, and costs related to the EPA's Legacy CCR Rule - NiSource's operations comply with environmental regulations, and management expects most remediation and asset retirement costs to be recoverable through rates[107](index=107&type=chunk)[108](index=108&type=chunk) - A liability of **$85.8 million** was recorded at June 30, 2025, for environmental remediation at various sites, with estimates subject to change based on evolving factors[109](index=109&type=chunk) - For Manufactured Gas Plant (MGP) sites, the estimated liability was **$79.1 million** at June 30, 2025, with a reasonably possible variance of up to **$16.7 million**[112](index=112&type=chunk) - An additional **$38.8 million** was accrued in Q2 2025 for probable compliance activities related to the EPA's Legacy Coal Combustion Residuals (CCR) Rule, with NIPSCO expecting cost recovery through depreciation rates[115](index=115&type=chunk) [D. Other Matters (Generation Transition)](index=34&type=section&id=D.%20Other%20Matters%20(Generation%20Transition)) This section outlines NIPSCO's generation portfolio transition, including PPA conversions and milestone payments for renewable asset development - NIPSCO is transitioning its generation portfolio, converting the Templeton PPA to a BTA and seeking IURC approval for full ownership. Purchase obligations for Templeton and Gibson are contingent on timely construction completion[116](index=116&type=chunk) - Milestone payments to renewable generation asset developers included **$336.6 million** for Fairbanks (mechanical completion in Jan 2025), **$141.4 million** for Fairbanks (substantial completion in May 2025), **$217.6 million** for Dunns Bridge II (substantial completion in Jan 2025), and **$262.4 million** for Gibson (mechanical completion in June 2025)[117](index=117&type=chunk)[118](index=118&type=chunk) [16. Accumulated Other Comprehensive Loss](index=35&type=section&id=16.%20Accumulated%20Other%20Comprehensive%20Loss) This note details the components of accumulated other comprehensive loss, including gains and losses on securities, cash flow hedges, and pension/OPEB items Components of Accumulated Other Comprehensive Loss (June 30, 2025) | (in millions) | Gains and Losses on Securities | Gains and Losses on Cash Flow Hedges | Pension and OPEB Items | Accumulated Other Comprehensive Loss | | :------------ | :----------------------------- | :----------------------------------- | :--------------------- | :----------------------------------- | | Balance as of January 1, 2025 | $(4.0) | $(13.2) | $(13.2) | $(30.4) | | Net current-period other comprehensive income (loss) | $1.8 | $(0.2) | $0.6 | $2.2 | | Balance as of June 30, 2025 | $(2.2) | $(13.4) | $(12.6) | $(28.2) | [17. Business Segment Information](index=36&type=section&id=17.%20Business%20Segment%20Information) This note provides financial information for NiSource's reportable segments, Columbia Operations and NIPSCO Operations, detailing revenues, income, and assets - NiSource operates through two primary reportable segments: Columbia Operations (regulated natural gas in five states) and NIPSCO Operations (regulated gas and electric in northern Indiana). Corporate and Other includes holding company interest expense and unallocated corporate costs[121](index=121&type=chunk)[122](index=122&type=chunk) Operating Income by Segment (Three Months Ended June 30) | (in millions) | Columbia Operations 2025 | NIPSCO Operations 2025 | Total Reportable Segments 2025 | Columbia Operations 2024 | NIPSCO Operations 2024 | Total Reportable Segments 2024 | | :------------ | :----------------------- | :----------------------- | :----------------------------- | :----------------------- | :----------------------- | :----------------------------- | | Operating Revenues | $604.7 | $680.8 | $1,285.5 | $490.5 | $597.4 | $1,087.9 | | Operating Income | $122.2 | $134.0 | $256.2 | $96.6 | $142.3 | $238.9 | Operating Income by Segment (Six Months Ended June 30) | (in millions) | Columbia Operations 2025 | NIPSCO Operations 2025 | Total Reportable Segments 2025 | Columbia Operations 2024 | NIPSCO Operations 2024 | Total Reportable Segments 2024 | | :------------ | :----------------------- | :----------------------- | :----------------------------- | :----------------------- | :----------------------- | :----------------------------- | | Operating Revenues | $1,848.5 | $1,622.5 | $3,471.0 | $1,447.4 | $1,350.1 | $2,797.5 | | Operating Income | $568.0 | $445.9 | $1,013.9 | $458.6 | $358.7 | $817.3 | Assets by Segment (in millions) | (in millions) | June 30, 2025 | December 31, 2024 | | :------------ | :------------ | :---------------- | | Columbia Operations | $14,982.7 | $14,769.5 | | NIPSCO Operations | $17,511.3 | $15,823.5 | | Corporate and Other | $1,534.9 | $1,195.1 | | Consolidated Assets | $34,028.9 | $31,788.1 | [18. Other, Net](index=39&type=section&id=18.%20Other,%20Net) This note itemizes the components of "Other, Net," including interest income, AFUDC equity, and pension/postretirement non-service costs Components of Other, Net (in millions) | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Interest income | $1.5 | $1.9 | $3.5 | $4.4 | | AFUDC equity | $8.6 | $13.3 | $17.8 | $24.6 | | Pension and other postretirement non-service cost | $(1.6) | $(2.1) | $(5.4) | $(4.3) | | Tax penalties | $(8.1) | $— | $(9.2) | $— | | Miscellaneous | $0.1 | $(0.1) | $(0.4) | $(2.5) | | Total Other, net | $0.5 | $13.0 | $6.3 | $22.2 | [19. Supplemental Disclosures of Cash Flow Information](index=39&type=section&id=19.%20Supplemental%20Disclosures%20of%20Cash%20Flow%20Information) This note provides supplemental disclosures on cash flow information, detailing changes in working capital and significant non-cash transactions Components of Working Capital (Six Months Ended June 30, in millions) | (in millions) | 2025 | 2024 | | :------------ | :------ | :------- | | Accounts receivable | $185.6 | $238.0 | | Inventories | $20.9 | $118.6 | | Accounts payable | $(146.9) | $(160.6) | | Customer deposits and credits | $(108.9) | $(106.7) | | Total change in working capital | $(64.8) | $(116.2) | Non-Cash Transactions (Six Months Ended June 30, in millions) | (in millions) | 2025 | 2024 | | :------------ | :----- | :----- | | Capital expenditures included in current liabilities | $426.6 | $283.6 | | Dividends declared but not paid | $135.1 | $120.0 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on NiSource's financial condition, operational results, key strategies, and future outlook, covering energy transition and economic environment [Executive Summary](index=42&type=section&id=Executive%20Summary) This summary outlines NiSource's business as a regulated energy holding company, its strategic vision, energy transition efforts, and operational transformation roadmap - NiSource is an energy holding company with fully regulated natural gas and electric utility subsidiaries in six states, generating substantially all operating income through Columbia Operations and NIPSCO Operations segments[139](index=139&type=chunk) - The company's vision is to be a premier, innovative, and trusted energy partner, focusing on safe, reliable energy delivery, long-term infrastructure investment, tariff alignment, and value creation in an evolving energy ecosystem[140](index=140&type=chunk) - NiSource is advancing its energy transition strategy by retiring coal-fired generation by 2028, replacing it with low- or zero-emission sources. As of June 30, 2025, **1,750 MW** of owned renewable and **800 MW** of PPA renewable projects are in service, with an additional **400 MW** BTA and **400 MW** PPA projects under development[141](index=141&type=chunk) - NIPSCO's 2024 Integrated Resource Plan (IRP) maintains prior retirement decisions and capacity additions, calling for additional generation resources through 2029 to support anticipated load growth from data centers and other economic development opportunities[143](index=143&type=chunk) - The company's enterprise-wide transformation roadmap focuses on operational excellence, safety, and efficiency, including the implementation of a three-phased Work and Asset Management (WAM) ERP program, with the final phase expected by end of 2025[145](index=145&type=chunk) - NiSource is monitoring economic risks such as supply chain constraints, material shortages, increased material prices, and competition for talent, which could impact operations and costs[146](index=146&type=chunk)[147](index=147&type=chunk) [Summary of Consolidated Financial Results](index=44&type=section&id=Summary%20of%20Consolidated%20Financial%20Results) This section summarizes NiSource's consolidated financial performance, highlighting changes in net income, operating expenses, and effective tax rates Consolidated Financial Results (Three and Six Months Ended June 30) | (in millions, except per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Favorable (Unfavorable) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Favorable (Unfavorable) | | :-------------------------------------- | :------------------------------- | :------------------------------- | :---------------------- | :----------------------------- | :----------------------------- | :---------------------- | | Operating Revenues | $1,283.0 | $1,084.7 | $198.3 | $3,466.2 | $2,791.0 | $675.2 | | Total Operating Expenses | $1,020.1 | $847.7 | $(172.4) | $2,443.9 | $1,970.6 | $(473.3) | | Operating Income | $262.9 | $237.0 | $25.9 | $1,022.3 | $820.4 | $201.9 | | Net Income Attributable to NiSource | $102.2 | $85.8 | $16.4 | $577.0 | $450.8 | $126.2 | | Diluted Earnings Per Share | $0.22 | $0.19 | $0.03 | $1.22 | $0.95 | $0.27 | - The increase in net income available to common shareholders for both periods was primarily due to higher revenues from capital investments, partially offset by increased operating expenses (including depreciation) and interest expense[150](index=150&type=chunk) - The effective tax rates for the three and six months ended June 30, 2025, were **19.1%** and **17.1%**, respectively, compared to **14.6%** and **15.7%** in 2024, primarily due to higher state income taxes and lower AFUDC equity[95](index=95&type=chunk)[96](index=96&type=chunk)[152](index=152&type=chunk) - Management does not believe the recently signed One Big Beautiful Bill Act (OBBBA) will have a material impact on the Company's financial position or results of operations[153](index=153&type=chunk) [Results and Discussion of Segment Operations](index=45&type=section&id=Results%20and%20Discussion%20of%20Segment%20Operations) This section analyzes the financial and operational performance of Columbia and NIPSCO Operations, detailing revenue and expense changes, sales volumes, and NIPSCO's generation transition [Columbia Operations](index=46&type=section&id=Columbia%20Operations) This section provides a financial summary for Columbia Operations, detailing changes in operating revenues, expenses, and sales volumes driven by rates and weather Columbia Operations Financial Summary (Three and Six Months Ended June 30) | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Favorable (Unfavorable) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Favorable (Unfavorable) | | :------------ | :------------------------------- | :------------------------------- | :---------------------- | :----------------------------- | :----------------------------- | :---------------------- | | Operating Revenues | $604.7 | $490.5 | $114.2 | $1,848.5 | $1,447.4 | $401.1 | | Total Operating Expenses | $482.5 | $393.9 | $(88.6) | $1,280.5 | $988.8 | $(291.7) | | Operating Income | $122.2 | $96.6 | $25.6 | $568.0 | $458.6 | $109.4 | - Operating revenues increased by **$114.2 million** (three months) and **$401.1 million** (six months) primarily due to new rates from base rate proceedings and regulatory capital programs, favorable weather effects, and higher cost of energy billed to customers[160](index=160&type=chunk) - Total sales and transportation volumes increased by **3.4 MMDth** (three months) and **27.0 MMDth** (six months) due to colder weather, particularly impacting residential and commercial customers[158](index=158&type=chunk)[162](index=162&type=chunk) - Operating expenses increased by **$88.6 million** (three months) and **$291.7 million** (six months), driven by higher cost of energy billed to customers, increased depreciation and amortization, and higher employee and administrative expenses[165](index=165&type=chunk) - All Columbia Operations companies have state-approved recovery mechanisms for prudently incurred gas costs, ensuring that increases in tracked operating expenses are offset by increases in operating revenues with essentially no impact on net income[163](index=163&type=chunk) [NIPSCO Operations](index=49&type=section&id=NIPSCO%20Operations) This section presents NIPSCO Operations' financial summary, discussing revenue and expense drivers, sales volumes, and the ongoing electric generation transition strategy NIPSCO Operations Financial Summary (Three and Six Months Ended June 30) | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Favorable (Unfavorable) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Favorable (Unfavorable) | | :------------ | :------------------------------- | :------------------------------- | :---------------------- | :----------------------------- | :----------------------------- | :---------------------- | | Operating Revenues | $680.8 | $597.4 | $83.4 | $1,622.5 | $1,350.1 | $272.4 | | Total Operating Expenses | $546.8 | $455.1 | $(91.7) | $1,176.6 | $991.4 | $(185.2) | | Operating Income | $134.0 | $142.3 | $(8.3) | $445.9 | $358.7 | $87.2 | - Operating revenues increased by **$83.3 million** (three months) and **$272.3 million** (six months), driven by new rates, weather effects, customer growth, and higher cost of energy billed to customers[171](index=171&type=chunk) - Electric sales volumes increased by **2.6 GWh** (three months) and **365.4 GWh** (six months), primarily due to increased industrial usage. Gas sales volumes increased by **5.2 MMDth** (three months) and **15.5 MMDth** (six months), mainly from industrial and residential customers due to colder weather[167](index=167&type=chunk)[168](index=168&type=chunk)[173](index=173&type=chunk) - Operating expenses increased by **$91.7 million** (three months) and **$185.2 million** (six months), largely due to higher cost of energy billed to customers, increased depreciation and amortization, and higher outside services expenses[176](index=176&type=chunk) - NIPSCO is executing its electric generation transition, aiming to retire remaining coal units by 2028 and replace them with renewable sources (wind, solar, battery storage) and flexible natural gas resources. As of June 30, 2025, Dunns Bridge II and Fairbanks projects were placed into service[177](index=177&type=chunk)[178](index=178&type=chunk) Remaining Renewables Projects Under Development | Remaining Renewables Projects | Transaction Type | Technology | Nameplate Capacity (MW) | Storage Capacity (MW) | | :---------------------------- | :--------------- | :--------- | :---------------------- | :-------------------- | | Gibson | BTA | Solar | 200 | — | | Templeton | BTA | Wind | 200 | — | | Appleseed | 20 year PPA | Solar | 200 | — | | Carpenter | 20 year PPA | Wind | 200 | — | [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) This section details NiSource's funding strategies, including cash flow, debt, and equity, along with capital investment plans, liquidity, debt covenants, and credit ratings [ATM program](index=54&type=section&id=ATM%20program) This section details the At-the-Market program's remaining capacity and recent forward sale agreements for common stock issuance - As of June 30, 2025, the ATM program had approximately **$47.5 million** of common stock available for issuance, expiring on December 31, 2025[185](index=185&type=chunk) - NiSource executed three forward sale agreements in February, March, and June 2025, allowing the issuance of fixed numbers of shares at future settlement prices, with total potential proceeds of approximately **$248.9 million** based on June 30, 2025, net prices[185](index=185&type=chunk) [Long-Term Debt](index=54&type=section&id=Long-Term%20Debt) This section outlines recent issuances of senior unsecured notes, including their maturities and net proceeds - In March 2025, NiSource issued **$750.0 million** of 5.850% senior unsecured notes due 2055, generating **$739.6 million** in net proceeds[185](index=185&type=chunk) - In June 2025, an additional **$750.0 million** of 5.850% senior unsecured notes due 2055 and **$900.0 million** of 5.350% senior unsecured notes due 2035 were issued, resulting in approximately **$1.616 billion** in total net proceeds[185](index=185&type=chunk) [Cash Flow Activities](index=55&type=section&id=Cash%20Flow%20Activities) This section analyzes cash flow changes from operating, investing, and financing activities, alongside planned capital investments for 2025-2029 Cash Flow Activities (Six Months Ended June 30, in millions) | (in millions) | 2025 | 2024 | Change in 2025 vs 2024 | | :------------ | :-------- | :-------- | :--------------------- | | Operating Activities | $1,181.8 | $901.7 | $280.1 | | Investing Activities | $(2,566.3) | $(1,594.0) | $(972.3) | | Financing Activities | $1,551.5 | $(1,452.9) | $3,004.4 | - Cash from operating activities increased by **$280.1 million**, driven by changes in exchange gas receivables, higher net income, deferred income taxes, and investments, partially offset by higher inventory and accounts receivables[187](index=187&type=chunk) - Cash used for investing activities increased by **$972.3 million**, primarily due to milestone payments to renewable generation asset developers and advanced deposits[188](index=188&type=chunk) - NiSource plans capital investments of **$4.0 billion to $4.3 billion** in 2025 and approximately **$19.4 billion** during 2025-2029, including generation transition strategy support[189](index=189&type=chunk) [Regulatory Capital Programs](index=56&type=section&id=Regulatory%20Capital%20Programs) This section describes ongoing system upgrades and details approved regulatory capital programs aimed at enhancing safety and reliability - NiSource is upgrading and modernizing its electric and gas systems to enhance safety, reliability, and reduce GHG emissions, supported by regulatory capital programs across its six states[190](index=190&type=chunk) Approved Regulatory Capital Programs (Selected) | Company | Program | Capital Investment Approved (in millions) | Investment Period | | :------ | :------ | :-------------------------------------- | :---------------- | | Columbia of Ohio | IRP - 2025 | $978.7 | 4/21-12/24 | | Columbia of Ohio | CEP - 2024 | $763.3 | 4/21-12/23 | | NIPSCO - Electric | TDSIC - 6 | $555.0 | 7/22-9/24 | | NIPSCO - Electric | GCT - 1 | $149.4 | 9/23-10/25 | - NIPSCO Gas filed an FMCA CPCN in April 2025, seeking recovery of **$244.1 million** in estimated capital for federally mandated Pipeline Safety IV Compliance Plan costs[191](index=191&type=chunk) [Financing Activities](index=56&type=section&id=Financing%20Activities) This section summarizes financing activities, including common stock, long-term debt, short-term debt, and noncontrolling interest transactions - Financing activities include common stock issuances (refer to Note 6), long-term debt issuances (refer to Note 8), short-term debt activities (refer to Note 7), and contributions/distributions from noncontrolling interests (refer to Note 4)[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk) [Sources of Liquidity](index=57&type=section&id=Sources%20of%20Liquidity) This section presents the company's current liquidity position, including available revolving credit, accounts receivable programs, and cash Current Liquidity Position (in millions) | (in millions) | June 30, 2025 | December 31, 2024 | | :------------ | :------------ | :---------------- | | Revolving Credit Facility | $1,850.0 | $1,850.0 | | Accounts Receivable Programs | $245.0 | $175.0 | | Less: Commercial Paper | $— | $604.6 | | Less: Letters of Credit Outstanding Under Credit Facility | $— | $9.4 | | Add: Cash and Cash Equivalents | $335.4 | $156.6 | | Net Available Liquidity | $2,430.4 | $1,567.6 | [Debt Covenants](index=57&type=section&id=Debt%20Covenants) This section outlines the debt to capitalization ratio covenant under the revolving credit facility and the company's compliance - NiSource must maintain a debt to capitalization ratio not exceeding **70.0%** under its revolving credit facility. As of June 30, 2025, the ratio was **55.2%**[195](index=195&type=chunk) [Credit Ratings](index=57&type=section&id=Credit%20Ratings) This section provides current credit ratings and outlooks for NiSource and NIPSCO, noting potential collateral requirements upon downgrade Credit Ratings as of June 30, 2025 | Entity | S&P Rating | S&P Outlook | Moody's Rating | Moody's Outlook | Fitch Rating | Fitch Outlook | | :----- | :--------- | :---------- | :------------- | :-------------- | :----------- | :------------ | | NiSource | BBB+ | Stable | Baa2 | Stable | BBB | Stable | | NIPSCO | BBB+ | Stable | Baa1 | Stable | BBB | Stable | | Commercial Paper | A-2 | Stable | P-2 | Stable | F2 | Stable | - There have been no changes to NiSource's or NIPSCO's credit ratings or outlooks since February 2020[196](index=196&type=chunk) - A downgrade below investment grade could trigger collateral requirements of approximately **$145.0 million** as of June 30, 2025[197](index=197&type=chunk) [Equity](index=57&type=section&id=Equity) This section states the number of common and preferred shares outstanding as of June 30, 2025 - As of June 30, 2025, NiSource had **470,784,423 shares** of common stock outstanding and no shares of preferred stock outstanding[198](index=198&type=chunk) [Contractual Obligations](index=57&type=section&id=Contractual%20Obligations) This section confirms no material changes to contractual obligations occurred during the period, aside from recent debt issuances - No material changes to contractual obligations occurred during the six months ended June 30, 2025, other than the March and June 2025 debt issuances[199](index=199&type=chunk) [Guarantees, Indemnities and Other Of Balance Sheet Arrangements](index=58&type=section&id=Guarantees,%20Indemnities%20and%20Other%20Of%20Balance%20Sheet%20Arrangements) This section describes various agreements, including guarantees and stand-by letters of credit, providing financial or performance assurance to third parties - NiSource and its subsidiaries enter into various agreements, including guarantees and stand-by letters of credit, to provide financial or performance assurance to third parties[200](index=200&type=chunk) [Regulatory, Environmental and Safety Matters](index=59&type=section&id=Regulatory,%20Environmental%20and%20Safety%20Matters) This section details NiSource's engagement with regulatory, environmental, and safety frameworks, covering cost recovery, rate cases, PHMSA compliance, and climate change initiatives [Cost Recovery and Trackers](index=59&type=section&id=Cost%20Recovery%20and%20Trackers) This section explains regulatory trackers for cost recovery and rate design changes aimed at mitigating revenue volatility and ensuring fixed cost recovery - Regulatory trackers allow for the recovery of certain costs, such as gas and fuel costs, through rates, generally resulting in offsetting increases in operating revenues and expenses with no significant impact on operating income[201](index=201&type=chunk)[202](index=202&type=chunk)[204](index=204&type=chunk) - Gas distribution companies offer energy efficiency programs and have pursued rate design changes, such as straight fixed variable rates and weather normalization adjustments, to better match cost recoveries with fixed charges and mitigate weather-related revenue volatility[203](index=203&type=chunk) - NIPSCO expects future growth in per customer electric usage due to increasing electric applications like electric vehicles, which will likely lead to innovative rate designs to ensure fixed cost recovery[205](index=205&type=chunk) [Rate Case Actions](index=60&type=section&id=Rate%20Case%20Actions) This section provides an overview of approved and pending rate case actions across various operating companies, including requested and approved incremental revenues Approved Rate Cases (Selected) | Company | Approved ROE | Requested Incremental Revenue (in millions) | Approved Incremental Revenue (in millions) | Filing Date | Rates Effective | | :------ | :----------- | :---------------------------------------- | :----------------------------------------- | :---------- | :-------------- | | Columbia of Pennsylvania | None specified | $124.1 | $74.0 | March 15, 2024 | December 2024 | | Columbia of Maryland | 9.80 % | $10.7 | $7.8 | September 24, 2024 | April 2025 | | NIPSCO - Electric | 9.75 % | $368.7 | $257.0 | September 12, 2024 | July 2025 | Pending Rate Cases (Selected) | Company | Requested Incremental Revenue (in millions) | Filing Date | Rates Effective | | :------ | :---------------------------------------- | :---------- | :-------------- | | Columbia of Pennsylvania | $110.5 | March 20, 2025 | December 2025 | | NIPSCO - Electric | $315.6 | May 27, 2

[Executive Summary](index=1&type=section&id=Executive%20Summary) NiSource reported increased Q2 2025 GAAP and non-GAAP adjusted net income and EPS, narrowing 2025 guidance and reaffirming long-term growth targets [Announcement & Key Highlights](index=1&type=section&id=Announcement%20%26%20Key%20Highlights) NiSource reported strong Q2 2025 financial results, with increased net income and EPS, and updated its 2025 and long-term growth outlook Key Financial Highlights (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------------- | :------ | :------ | :----------- | | GAAP Net Income Available to Common Shareholders | $102.2M | $85.8M | +19.1% | | GAAP Diluted EPS | $0.22 | $0.19 | +15.8% | | Non-GAAP Adjusted Net Income Available to Common Shareholders | $101.9M | $94.7M | +7.6% | | Non-GAAP Adjusted EPS | $0.22 | $0.21 | +4.8% | Key Financial Highlights (Six Months Ended June 30, 2025 vs 2024) | Metric | YTD 2025 | YTD 2024 | Change (YoY) | | :-------------------------------- | :------- | :------- | :----------- | | GAAP Net Income Available to Common Shareholders | $577.0M | $430.1M | +34.2% | | GAAP Diluted EPS | $1.22 | $0.95 | +28.4% | | Non-GAAP Adjusted Net Income Available to Common Shareholders | $564.2M | $477.5M | +18.2% | | Non-GAAP Adjusted EPS | $1.19 | $1.06 | +12.3% | - NiSource is narrowing its **2025 non-GAAP adjusted EPS guidance** to the upper half of **$1.85-$1.89**[3](index=3&type=chunk)[5](index=5&type=chunk) - The company reaffirms expected annual **6%-8% non-GAAP adjusted EPS growth** for 2025-2029, driven by **$19.4 billion in capital expenditures**[3](index=3&type=chunk)[5](index=5&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) This section details NiSource's GAAP and non-GAAP adjusted financial results for Q2 and the first half of 2025, highlighting year-over-year growth [GAAP Financial Results](index=1&type=section&id=GAAP%20Financial%20Results) NiSource reported an increase in GAAP net income and diluted EPS for both the second quarter and the first six months of 2025 compared to the same periods in 2024 GAAP Net Income Available to Common Shareholders (Millions) | Period | 2025 (Millions) | 2024 (Millions) | YoY Change | | :-------------------- | :-------------- | :-------------- | :--------- | | Three Months Ended June 30 | $102.2 | $85.8 | +19.1% | | Six Months Ended June 30 | $577.0 | $430.1 | +34.2% | GAAP Diluted Earnings Per Share (EPS) | Period | 2025 | 2024 | YoY Change | | :-------------------- | :--- | :--- | :--------- | | Three Months Ended June 30 | $0.22 | $0.19 | +15.8% | | Six Months Ended June 30 | $1.22 | $0.95 | +28.4% | [Non-GAAP Adjusted Financial Results](index=1&type=section&id=Non-GAAP%20Adjusted%20Financial%20Results) The company also reported growth in non-GAAP adjusted net income and adjusted EPS for both the second quarter and the first half of 2025, reflecting management's view of ongoing business performance Non-GAAP Adjusted Net Income Available to Common Shareholders (Millions) | Period | 2025 (Millions) | 2024 (Millions) | YoY Change | | :-------------------- | :-------------- | :-------------- | :--------- | | Three Months Ended June 30 | $101.9 | $94.7 | +7.6% | | Six Months Ended June 30 | $564.2 | $477.5 | +18.2% | Non-GAAP Adjusted Earnings Per Share (EPS) | Period | 2025 | 2024 | YoY Change | | :-------------------- | :--- | :--- | :--------- | | Three Months Ended June 30 | $0.22 | $0.21 | +4.8% | | Six Months Ended June 30 | $1.19 | $1.06 | +12.3% | [Business Outlook & Strategy](index=1&type=section&id=Business%20Outlook%20%26%20Strategy) NiSource provides updated 2025 guidance and reaffirms long-term growth targets, emphasizing strategic capital investments and operational focus [2025 Guidance & Long-Term Targets](index=1&type=section&id=2025%20Guidance%20%26%20Long-Term%20Targets) NiSource has refined its 2025 non-GAAP adjusted EPS guidance and reiterated its commitment to long-term growth through substantial capital investments - **2025 non-GAAP adjusted EPS guidance** has been narrowed to the upper half of the **$1.85-$1.89 range**[3](index=3&type=chunk)[5](index=5&type=chunk) - The company reaffirms expected annual **6%-8% non-GAAP adjusted EPS growth** for the **2025-2029 period**[3](index=3&type=chunk)[5](index=5&type=chunk) - Annual **rate base growth** is projected at **8%-10%**, supported by **$19.4 billion in capital expenditures** from 2025-2029[3](index=3&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) NiSource's CEO highlighted the company's focus on strategic execution, operational reliability, and delivering financial commitments through infrastructure investments - Management is focused on strong execution of strategy and operations to serve customers and communities[4](index=4&type=chunk) - Base capital plan includes critical investments to ensure reliability for customers[4](index=4&type=chunk) - Increased **2025 earnings expectations** are driven by dedication and ability to deliver on financial commitments while supporting system growth and reliability[4](index=4&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) This section provides an overview of NiSource Inc. as a utility company and directs investors to additional resources [About NiSource](index=2&type=section&id=About%20NiSource) NiSource Inc. is a major fully-regulated utility company in the U.S., serving millions of natural gas and electric customers across six states, committed to delivering safe, reliable energy and recognized for its sustainability efforts - NiSource Inc. (NYSE: NI) is one of the **largest fully-regulated utility companies** in the United States[8](index=8&type=chunk) - Serves approximately **3.3 million natural gas customers** and **500,000 electric customers** across six states through Columbia Gas and NIPSCO brands[8](index=8&type=chunk) - Mission: Deliver safe, reliable energy that drives value to customers, with approximately **7,700 employees**[8](index=8&type=chunk) - Recognized as a member of the **Dow Jones Sustainability - North America Index** and on Forbes lists for America's Best Employers for Women and Diversity[8](index=8&type=chunk) [Additional Resources](index=2&type=section&id=Additional%20Resources) Investors can find more detailed financial and segment information, including a presentation, on the Investors section of NiSource's website and through its social media channels - Additional information for the quarter ended June 30, 2025, including segment and financial information and a presentation, is available on the Investors section of **www.nisource.com**[7](index=7&type=chunk) - NiSource intends to use its Investors website section and social media channels to disseminate important information to investors[7](index=7&type=chunk) [Legal & Financial Disclosures](index=2&type=section&id=Legal%20%26%20Financial%20Disclosures) This section outlines the company's use of non-GAAP measures, forward-looking statements, associated risks, and provides reconciliation details [Non-GAAP Disclosure Statement](index=2&type=section&id=Non-GAAP%20Disclosure%20Statement) This section clarifies the use of non-GAAP financial measures, such as adjusted net income and adjusted EPS, explaining their purpose and why GAAP guidance is not provided - Non-GAAP financial measures (**adjusted net income, adjusted EPS**) are included because management believes they help investors evaluate ongoing business performance[6](index=6&type=chunk) - A GAAP equivalent for adjusted EPS guidance is not provided due to unpredictable factors like weather, asset sales, impairments, and other unusual items[6](index=6&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The report includes forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from projections [General Statement](index=3&type=section&id=General%20Statement) This section clarifies that the press release contains forward-looking statements, which are subject to various factors that could cause actual results to differ - The press release contains "**forward-looking statements**" as defined by the Securities Act and Exchange Act[10](index=10&type=chunk) - Many factors govern whether forward-looking statements can be realized, and actual results could differ materially from projections[10](index=10&type=chunk) - Forward-looking statements include guidance on **adjusted EPS**, plans, strategies, objectives, expected performance, and expenditures[10](index=10&type=chunk) [Risk Factors](index=3&type=section&id=Risk%20Factors) Various factors, including operational, financial, and regulatory risks, could cause actual results to differ from forward-looking statements - Factors that could cause actual results to differ include the ability to execute business plans, manage data center growth, operating risks, technological advances, aging infrastructure, and insurance coverage[11](index=11&type=chunk) - Other risks include construction and supply risks, fluctuations in demand and commodity prices, workforce management, third-party performance, and achieving carbon emission reduction goals[11](index=11&type=chunk) - Financial and regulatory risks include debt obligations, credit ratings, adverse economic conditions, regulatory rate reviews, and compliance with laws and environmental regulations[11](index=11&type=chunk)[12](index=12&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=5&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Schedule 1 provides a detailed reconciliation of GAAP to Non-GAAP adjusted net income and EPS for Q2 and H1 2025 and 2024, outlining specific adjustments Reconciliation of Consolidated Net Income Available to Common Shareholders to Adjusted Net Income Available to Common Shareholders (Non-GAAP) (unaudited) | (in millions, except per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP Net Income Available to Common Shareholders | $102.2 | $85.8 | $577.0 | $430.1 | | Adjustments to Operating Income: | | | | | | (1) Weather - compared to normal | (0.3) | 12.1 | (17.1) | 45.0 | | Total adjustments to operating income | (0.3) | 12.1 | (17.1) | 45.0 | | Income Taxes: | | | | | | (2) Tax effect of above items | — | (3.2) | 4.3 | (11.6) | | Preferred Dividends: | | | | | | (3) Preferred dividends redemption premium | — | — | — | 14.0 | | Total adjustments to net income | (0.3) | 8.9 | (12.8) | 47.4 | | Adjusted Net Income Available to Common Shareholders | $101.9 | $94.7 | $564.2 | $477.5 | | Diluted Average Common Shares | 472.1 | 450.2 | 472.3 | 449.8 | | (4) GAAP Diluted Earnings Per Share | $0.22 | $0.19 | $1.22 | $0.95 | | Adjustments to diluted earnings per share | — | 0.02 | (0.03) | 0.11 | | Adjusted Earnings Per Share | $0.22 | $0.21 | $1.19 | $1.06 | - Adjustments include the estimated impact of actual weather compared to normal, the income tax effect of these adjustments, and preferred dividends redemption premium[14](index=14&type=chunk)

Core Viewpoint - NiSource (NI) is set to release its second-quarter 2025 results on August 6, with an earnings surprise of 8.9% in the previous quarter [1] Factors Impacting Q2 Performance - The second-quarter earnings are expected to benefit from new electric and gas rates effective in the company's service regions [2][8] - The completion of the Dunns Bridge II solar and storage project by Northern Indiana Public Service Company LLC (NIPSCO) is anticipated to positively impact performance [2][8] - Increased investments in infrastructure enhancement and capital programs, along with flat operation and maintenance expenses, are expected to support the bottom line [3][8] - However, higher depreciation and amortization expenses may offset some of these positive factors [3] Q2 Expectations - The Zacks Consensus Estimate for earnings is 21 cents per share, indicating no change from the previous year [4] - The Zacks Consensus Estimate for revenues is $1.15 billion, reflecting a 6.1% increase from the year-ago figure [4] Earnings Prediction Model - The current model does not predict an earnings beat for NiSource, with an Earnings ESP of 0.00% [5] - NiSource holds a Zacks Rank of 2 (Buy) [6] Comparable Stocks - Spire (SR) is expected to report an earnings beat with an Earnings ESP of +14.81% and a Zacks Rank 3 [7] - ONE Gas (OGS) is also likely to report an earnings beat with an Earnings ESP of +3.22% and a Zacks Rank 2 [9] - MDU Resources Group (MDU) is predicted to have an earnings beat with an Earnings ESP of +20% and a Zacks Rank 2 [10]

Company Overview - NiSource (NI) is a utilities stock headquartered in Merrillville, with a price change of 15.48% year-to-date [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 3.24% and the S&P 500's yield of 1.48% [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 is 60%, indicating that the company distributes 60% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - The Zacks Consensus Estimate for NiSource's earnings in 2025 is projected at $1.88 per share, reflecting a year-over-year growth rate of 7.43% [5] - The company is expected to experience earnings expansion in the current fiscal year [5] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [5] - NiSource is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [6]

Company Overview - NiSource (NI) is expected to report flat earnings of $0.21 per share for the quarter ended June 2025, with revenues projected at $1.15 billion, reflecting a 6.1% increase year-over-year [3][12] - The earnings report is scheduled for release on August 6, and the actual results will significantly influence the stock price depending on whether they meet or exceed expectations [2][12] Earnings Estimates and Trends - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] - NiSource's Earnings ESP is 0%, suggesting no recent changes in analyst views compared to the consensus estimate [12] Historical Performance - In the last reported quarter, NiSource exceeded the expected earnings of $0.90 per share by delivering $0.98, resulting in a positive surprise of +8.89% [13] - Over the past four quarters, NiSource has consistently beaten consensus EPS estimates [14] Industry Context - In the broader Zacks Utility - Electric Power industry, Dominion Energy is expected to report earnings of $0.69 per share for the same quarter, representing a year-over-year increase of +25.5% [18] - Dominion Energy's revenue is anticipated to be $3.64 billion, up 4.6% from the previous year, with an unchanged Earnings ESP of 0% [19][20]

Group 1 - NiSource (NI) is currently outperforming its peers in the Utilities sector, with a year-to-date return of approximately 14%, compared to the sector average of 11.2% [4][5] - NiSource holds a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3][5] - The Zacks Consensus Estimate for NiSource's full-year earnings has increased by 0.1% over the past quarter, reflecting improving analyst sentiment [3] Group 2 - The Utilities sector consists of 108 individual stocks and currently has a Zacks Sector Rank of 1, indicating strong overall performance [2] - NiSource is part of the Utility - Electric Power industry, which includes 59 stocks and is ranked 74 in the Zacks Industry Rank, with stocks in this group gaining about 11.2% year-to-date [5] - Another outperforming stock in the Utilities sector is Telefonica (TEF), which has returned 34.3% year-to-date and also holds a Zacks Rank of 2 (Buy) [4][6]

Economic Overview - Consumer confidence index declined to 93 in June, a 5.4-point drop from May's 98.4, and significantly lower than the expected rise to 100 [4][10] - Concerns over job availability and uncertainty regarding President Trump's tariffs contributed to the decline in consumer confidence [5][10] - The labor market differential fell to 11.1 in June from 12.7 in May, marking its lowest point in four years [5] Investment Recommendations - It is advisable to invest in safe-haven defensive stocks from the utility and consumer staples sectors, including Atmos Energy Corporation (ATO), NiSource Inc. (NI), Fortis, Inc. (FTS), Ingredion Incorporated (INGR), and Altria Group, Inc. (MO) [2][10] - These stocks are categorized as low-beta (beta greater than 0 but less than 1) and are expected to provide high dividend yields along with favorable Zacks Ranks [3][10] Company Profiles Atmos Energy Corporation (ATO) - Engaged in regulated natural gas distribution and storage, serving approximately 3.3 million customers across eight states [9] - Expected earnings growth rate of 6% for the current year, with a Zacks Rank 2 and a current dividend yield of 2.22% [11] NiSource Inc. (NI) - Provides natural gas and electricity to around 3.7 million customers in six states, with one of the largest natural gas distribution networks in the U.S. [12] - Expected earnings growth rate of 7.4% for the current year, with a Zacks Rank 2 and a current dividend yield of 2.76% [13] Fortis, Inc. (FTS) - Operates in the electric and gas utility business, primarily in Canada, the U.S., and the Caribbean [14] - Expected earnings growth rate of 3.4% for the current year, with a Zacks Rank 2 and a current dividend yield of 3.76% [15] Ingredion Incorporated (INGR) - Specializes in nature-based sweeteners, starches, and nutrition ingredients, serving various sectors [16] - Expected earnings growth rate of 6.1% for the current year, with a Zacks Rank 2 and a current dividend yield of 2.33% [17] Altria Group, Inc. (MO) - Evolving beyond traditional cigarettes into the smokeless category due to rising health consciousness and regulatory pressures [18] - Expected earnings growth rate of 4.9% for the current year, with a Zacks Rank 2 and a current dividend yield of 6.81% [19]

Market Overview - Volatility has returned to Wall Street due to escalating tensions between Iran and Israel, with the U.S. gradually getting involved [2][5] - The Dow declined by 0.7%, while the S&P 500 and Nasdaq fell by 0.8% and 0.9%, respectively [5] - Recent geopolitical tensions have unsettled markets, which could remain volatile for an extended period [9] Investment Recommendations - It is advisable to invest in safe-haven defensive stocks from the utility sector, including Atmos Energy Corporation (ATO), Fortis, Inc. (FTS), MDU Resources Group, Inc. (MDU), and NiSource Inc. (NI) [3][11] - These stocks are characterized by low beta (greater than 0 but less than 1), high dividend yields, and favorable Zacks Ranks [4][11] Company Profiles Atmos Energy Corporation (ATO) - Engaged in regulated natural gas distribution and storage, serving approximately 3.3 million customers across eight states [10] - Expected earnings growth rate of 6% for the current year, with a Zacks Consensus Estimate improvement of 0.6% over the last 60 days [12] - Current dividend yield is 2.27% and beta is 0.71 [12] Fortis, Inc. (FTS) - Operates in the electric and gas utility business, primarily in Canada, the U.S., and the Caribbean [13] - Expected earnings growth rate of 3.4% for the current year, with a Zacks Consensus Estimate improvement of 3.3% over the last 60 days [14] - Current dividend yield is 3.70% and beta is 0.49 [14] MDU Resources Group, Inc. (MDU) - Provides value-added natural resource products and regulated energy delivery services [15] - Expected earnings growth rate of 5.6% for the current year, with a Zacks Consensus Estimate improvement of 1.1% over the last 60 days [15] - Current dividend yield is 3.18% and beta is 0.72 [15] NiSource Inc. (NI) - Delivers natural gas and electricity to approximately 3.7 million customers across six states [16] - Expected earnings growth rate of 7.4% for the current year, with a Zacks Consensus Estimate improvement of 0.5% over the last 60 days [17] - Current dividend yield is 2.83% and beta is 0.54 [17]

Financial Performance - The company reported adjusted EPS of $0.98 for Q1 2025, a 15% increase from $0.85 in the same quarter last year [7][21] - The company reaffirmed its 2025 adjusted EPS guidance of $1.85 to $1.89 and annual growth of 6% to 8% through 2029 [7][24] - The company achieved over 52% of its projected midpoint earnings for the year, an increase of 8% compared to the same period last year [21] Business Lines and Capital Investments - The company continues to advance its energy transition strategy, having installed 2,100 megawatts of renewable nameplate capacity [18] - The capital investment outlook projects over $19 billion over the next five years, with $2 billion identified for safety and reliability improvements [19] - The company is actively developing its base plan to include investments that meet its standards, focusing on electric generation, gas and electric customer growth, and system modernization [19][20] Market and Regulatory Environment - The company is engaged in collaborative regulatory processes to ensure resources for critical investments, such as the Ohio legislative proposal to modernize natural gas rate making [6][10] - The company has filed new rate cases in Pennsylvania and Virginia to recover significant anticipated investments necessary for reliable service [13][14] - The regulatory framework is seen as stable, which helps mitigate the impact of rising product costs on the business [23][24] Strategic Direction and Industry Competition - The company emphasizes operational excellence through initiatives like AI and Project Apollo, which aim to enhance efficiency and reduce waste [12][11] - The company is focused on maintaining a strong balance sheet and enhancing visibility into how investments convert into earnings [26] - The company is positioned to capitalize on economic development opportunities, particularly in data center development and onshoring manufacturing [28][102] Management Commentary on Future Outlook - Management expressed confidence in achieving 2025 guidance and sustaining long-term growth through a balanced and diversified business plan [24][26] - The company is assessing the impact of regulatory changes and executive orders on its operational plans, particularly regarding coal asset retirements [40][41] - Management highlighted the importance of flexibility in capital allocation decisions to adapt to changing market conditions [20][26] Other Important Information - The company is leveraging AI to optimize operations, resulting in significant productivity improvements across various regions [12] - The company has secured a significant portion of critical equipment to support its operations and capital plans for the five-year horizon [22] - The company is exploring opportunities for data center development across its service territories, including Ohio and Virginia [94][95] Q&A Session Summary Question: On the NIPSCO, Jenco filing, do you need to receive an outcome before announcing a signed agreement? - The company can proceed with a special contract and announce it without having the Genco completed [31] Question: How do you think about the pricing of PPAs relative to regulatory perspectives? - The Genco structure allows flexibility to respond to stakeholder needs, and NIPSCO will still be the resource adequacy provider [33] Question: Is there an opportunity to accelerate the $2.2 billion currently outside of the base plan? - The $2.2 billion upside does not include data center development; any data center capital would be incremental to the plan [35] Question: How are you assessing the impact of executive orders on your asset retirement plans? - The company is currently assessing the impact and will work with regulators to determine the best course of action [41] Question: What is the current engagement pace with large load prospective customers? - The company is making excellent progress but emphasizes the complexity of these transactions [55] Question: Can you discuss the regulatory cap structure for Genco? - The financing structure for Genco has not been disclosed yet, as the focus is on completing special contracts with customers [59] Question: What are the expectations for O&M costs moving forward? - The company expects O&M to remain flat year over year, driven by efficiency initiatives [116]

Financial Performance & Growth - NiSource reaffirmed its 2025 adjusted EPS guidance of $1.85-$1.89[12] - The company projects an annual adjusted EPS growth of 6%-8% from 2025-2029[9, 12] - NiSource anticipates an 8%-10% rate base growth from 2025-2029[9] - The company is targeting a 14%-16% annual FFO/Debt through 2029[9, 12] - NiSource reported Q1 2025 GAAP net income available to common shareholders of $474.8 million, compared to $344.3 million in Q1 2024, an increase of $130.5 million[26] - Adjusted net income available to common shareholders for Q1 2025 was $462.3 million, up from $382.8 million in Q1 2024, representing a $79.5 million increase[26] - Adjusted earnings per share for Q1 2025 was $0.98, compared to $0.85 in Q1 2024, a $0.13 increase[26] Capital Investments & Funding - NiSource plans a base plan capital investment of $19.4 billion from 2025-2029[9, 12] - The company has an upside 5-year capital opportunity of $2.2 billion from 2025-2029, which is not included in the base plan[29] - The capital investment funding sources are projected to be 50%-55% from cash from operations, 35%-40% from net new debt, 6%-8% from equity, and 3%-5% from minority interest contribution[31] Strategic Initiatives - NiSource aims to achieve Net Zero emissions by 2040[9, 58] - The company is focused on building a constructive regulatory foundation, including rate case filings and approvals in various states[12, 19] - NiSource is prioritizing operational excellence through AI utilization and continuous improvement initiatives[12, 16]