NiSource(NI) - 2025 Q2 - Quarterly Results

Executive Summary 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 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][5] - The company reaffirms expected annual 6%-8% non-GAAP adjusted EPS growth for 2025-2029, driven by $19.4 billion in capital expenditures[3][5] Financial Performance 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 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 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 NiSource provides updated 2025 guidance and reaffirms long-term growth targets, emphasizing strategic capital investments and operational focus 2025 Guidance & Long-Term Targets 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][5] - The company reaffirms expected annual 6%-8% non-GAAP adjusted EPS growth for the 2025-2029 period[3][5] - Annual rate base growth is projected at 8%-10%, supported by $19.4 billion in capital expenditures from 2025-2029[3] Management Commentary 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] - Base capital plan includes critical investments to ensure reliability for customers[4] - Increased 2025 earnings expectations are driven by dedication and ability to deliver on financial commitments while supporting system growth and reliability[4] Company Information This section provides an overview of NiSource Inc. as a utility company and directs investors to additional resources About NiSource 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] - Serves approximately 3.3 million natural gas customers and 500,000 electric customers across six states through Columbia Gas and NIPSCO brands[8] - Mission: Deliver safe, reliable energy that drives value to customers, with approximately 7,700 employees[8] - 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] Additional Resources 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] Legal & Financial Disclosures This section outlines the company's use of non-GAAP measures, forward-looking statements, associated risks, and provides reconciliation details Non-GAAP Disclosure Statement 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] - A GAAP equivalent for adjusted EPS guidance is not provided due to unpredictable factors like weather, asset sales, impairments, and other unusual items[6] Forward-Looking Statements 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 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] - Many factors govern whether forward-looking statements can be realized, and actual results could differ materially from projections[10] - Forward-looking statements include guidance on adjusted EPS, plans, strategies, objectives, expected performance, and expenditures[10] Risk Factors 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] - 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] - Financial and regulatory risks include debt obligations, credit ratings, adverse economic conditions, regulatory rate reviews, and compliance with laws and environmental regulations[11][12] Reconciliation of GAAP to Non-GAAP Measures 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]