[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)

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]

[PART I - FINANCIAL INFORMATION](index=8&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2025, showing increased net income and diluted EPS year-over-year [Condensed Statements of Consolidated Income (unaudited)](index=8&type=section&id=Item%201.%20Financial%20Statements) | Indicator (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Total Operating Revenues** | $2,183.2 | $1,706.3 | | **Operating Income** | $759.4 | $583.4 | | **Net Income** | $526.7 | $400.3 | | **Net Income Attributable to NiSource** | $474.8 | $365.0 | | **Net Income Available to Common Shareholders** | $474.8 | $344.3 | | **Diluted Earnings Per Share** | $1.00 | $0.77 | [Condensed Consolidated Balance Sheet Highlights (unaudited)](index=8&type=section&id=Item%201.%20Financial%20Statements) | Asset/Liability (in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $33,105.1 | $31,788.1 | | Net Property, Plant and Equipment | $26,489.9 | $25,453.9 | | **Total Stockholders' Equity** | $10,946.0 | $10,668.3 | | **Total Liabilities** | $22,159.1 | $21,119.8 | | Long-term debt (including current portion) | $14,114.1 | $13,355.7 | [Condensed Statements of Consolidated Cash Flows (unaudited)](index=8&type=section&id=Item%201.%20Financial%20Statements) | Cash Flow Activity (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net Cash Flows from Operating Activities** | $686.4 | $456.2 | | **Net Cash Flows used for Investing Activities** | $(1,352.7) | $(723.0) | | **Net Cash Flows from (used for) Financing Activities** | $771.4 | $(1,873.8) | [Notes to Condensed Consolidated Financial Statements (unaudited)](index=15&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) Detailed notes disclose accounting policies, revenue, debt, and regulatory matters, including new segment reporting and a $750 million debt issuance - The company adopted ASU 2023-07 for segment reporting, enhancing disclosures about significant segment expenses and information about the Chief Operating Decision Maker (CODM)[33](index=33&type=chunk) [Revenue by Segment (Q1 2025 vs Q1 2024)](index=15&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) | Segment (in millions) | Q1 2025 Total Operating Revenues | Q1 2024 Total Operating Revenues | | :--- | :--- | :--- | | Columbia Operations | $1,240.6 | $953.7 | | NIPSCO Operations | $941.4 | $752.4 | | Corporate and Other | $1.2 | $0.2 | | **Total** | **$2,183.2** | **$1,706.3** | - In March 2025, NiSource issued **$750.0 million of 5.850% senior unsecured notes** due in 2055, with net proceeds of approximately **$739.6 million**[64](index=64&type=chunk) - NIPSCO made significant milestone payments for its renewable generation projects, including a **$336.6 million payment** for the Fairbanks project and a **$217.6 million payment** for the Dunns Bridge II project upon its substantial completion in January 2025[111](index=111&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, highlighting increased net income from new rates, liquidity, and strategic capital investments - Net income available to common shareholders increased by **$130.5 million** YoY, primarily due to higher revenues from capital investments, partially offset by increased operating and interest expenses[137](index=137&type=chunk)[138](index=138&type=chunk) - The company is advancing its energy transition, with **1,500 MW of owned renewable projects** and **600 MW of PPA projects** in service as of March 31, 2025. It remains on track to retire remaining coal units at R.M. Schahfer by the end of 2025[129](index=129&type=chunk) - NiSource is evaluating significant potential load growth from data center development in its northern Indiana service territory, which would require new generation resources[131](index=131&type=chunk) - The company plans to make capital investments of **$4.0 billion to $4.3 billion** in 2025 and approximately **$19.4 billion** during the 2025-2029 period[175](index=175&type=chunk) [Executive Summary](index=37&type=section&id=Executive%20Summary) NiSource's vision focuses on infrastructure investment, energy transition, operational excellence, and managing economic factors like data center growth - NiSource is advancing its energy transition by retiring coal-fired generation and replacing it with a balanced mix of low- or zero-emission sources. As of Q1 2025, **1,500 MW of owned renewable projects are in service**[129](index=129&type=chunk) - The company is evaluating potential data center development in its service territory, which could significantly increase power demand and require new generation resources[131](index=131&type=chunk) - An enterprise-wide transformation is underway, focusing on operational excellence and efficiency through investments in technology like the WAM program, which is expected to be fully implemented by the end of 2025[133](index=133&type=chunk) [Results and Discussion of Segment Operations](index=39&type=section&id=Results%20and%20Discussion%20of%20Segment%20Operations) Segment operations show increased operating income for both Columbia and NIPSCO, driven by new rates and favorable weather conditions [Columbia Operations Operating Income (in millions)](index=39&type=section&id=Results%20and%20Discussion%20of%20Segment%20Operations) | Period | Operating Income | Change (Favorable) | | :--- | :--- | :--- | | Q1 2025 | $445.8 | $83.8 | | Q1 2024 | $362.0 | | - Columbia Operations' revenue increase was primarily driven by new rates from base rate proceedings and regulatory capital programs (**$73.2M**) and the effects of colder weather (**$27.2M**)[147](index=147&type=chunk) [NIPSCO Operations Operating Income (in millions)](index=39&type=section&id=Results%20and%20Discussion%20of%20Segment%20Operations) | Period | Operating Income | Change (Favorable) | | :--- | :--- | :--- | | Q1 2025 | $311.9 | $95.5 | | Q1 2024 | $216.4 | | - NIPSCO Operations' revenue increase was primarily driven by new rates from base rate proceedings and regulatory programs (**$82.1M**) and the effects of weather (**$28.2M**)[157](index=157&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity, issued $750 million in debt, and is on track with its 2025 capital expenditure plans [Net Available Liquidity (in millions)](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) | Date | Net Available Liquidity | | :--- | :--- | | March 31, 2025 | $1,712.9 | | December 31, 2024 | $1,567.6 | - On March 27, 2025, the company issued **$750.0 million of 5.850% senior unsecured notes** maturing in 2055[170](index=170&type=chunk) - The company is on track to invest **$4.0 to $4.3 billion** in capital projects during 2025 and forecasts **$19.4 billion** in investments from 2025-2029[175](index=175&type=chunk) - Credit ratings from S&P, Moody's, and Fitch remain stable and investment-grade for both NiSource and NIPSCO[183](index=183&type=chunk) [Regulatory, Environmental and Safety Matters](index=52&type=section&id=Regulatory,%20Environmental%20and%20Safety%20Matters) The company addresses regulatory engagement, environmental goals including Net Zero by 2040, and safety protocols, monitoring new rules - The company has a **Net Zero GHG emissions goal by 2040** for Scope 1 and 2 emissions and had reduced Scope 1 emissions by approximately **72% from 2005 levels** as of the end of 2024[205](index=205&type=chunk) [Pending Rate Cases](index=52&type=section&id=Regulatory,%20Environmental%20and%20Safety%20Matters) | Company | Requested Incremental Revenue (in millions) | Status | | :--- | :--- | :--- | | NIPSCO - Electric | $368.7 | Settlement filed for $257.0M increase | | Columbia of Virginia | $37.2 | Settlement filed for $28.2M increase | | Columbia of Pennsylvania | $110.5 | In process | - The company is monitoring proposed PHMSA rules for leak detection and repair (LDAR) and safety of gas distribution pipelines (SGDP), which could impact operations and costs[195](index=195&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk) - The EPA's final GHG standards for power plants are not expected to impact NIPSCO's existing generation but may affect new generation and are estimated to add **$675 million in costs** to customers[203](index=203&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to Item 2 for market risk disclosures, focusing on commodity price, interest rate, and credit risks - The report directs readers to the Market Risk Disclosures section in Item 2 for detailed information[218](index=218&type=chunk) - A **100 basis point (1%) change** in short-term interest rates would impact interest expense by approximately **$2.5 million** for the three months ended March 31, 2025[212](index=212&type=chunk) - Commodity price risk is largely mitigated as prudently incurred costs, including gains or losses on derivatives, are recovered through regulatory mechanisms like GCA and FAC[209](index=209&type=chunk) [Item 4. Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) CEO and CFO concluded disclosure controls were effective as of March 31, 2025, with no material changes to internal controls - The CEO and CFO concluded that as of the end of the reporting period, the company's disclosure controls and procedures were effective at a reasonable assurance level[218](index=218&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[219](index=219&type=chunk) [PART II - OTHER INFORMATION](index=58&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 14 for legal proceedings, with the company expecting no material impact from pending claims - For details on legal proceedings, the report refers to Note 14, 'Other Commitments and Contingencies - B. Legal Proceedings,' in the financial statements[222](index=222&type=chunk) [Item 1A. Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from the Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the risk factors set forth in the Annual Report on Form 10-K for the year ended December 31, 2024[223](index=223&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported during the period - None reported for the period[224](index=224&type=chunk) [Item 5. Other Information](index=58&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during Q1 2025 - During the quarter ended March 31, 2025, no directors or executive officers adopted or terminated a Rule 10b5-1 trading plan or a non-Rule 10b5-1 trading arrangement[226](index=226&type=chunk) [Item 6. Exhibits](index=59&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including new notes, CEO/CFO certifications, and XBRL data - The list of exhibits includes CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and the form of the 5.850% Notes due 2055[229](index=229&type=chunk)

[First Quarter 2025 Earnings Release](index=1&type=section&id=First%20Quarter%202025%20Earnings%20Release) NiSource reported robust first-quarter 2025 financial performance, reaffirming its full-year guidance and providing essential disclosures on non-GAAP measures and forward-looking statements [Financial Highlights and Outlook](index=1&type=section&id=Financial%20Highlights%20and%20Outlook) NiSource reported strong first-quarter 2025 results with significant year-over-year growth in both GAAP and non-GAAP earnings per share, reaffirming full-year 2025 EPS guidance and long-term growth targets Q1 2025 vs Q1 2024 Financial Performance | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **GAAP Net Income** | $474.8 million | $344.3 million | +37.9% | | **GAAP Diluted EPS** | $1.00 | $0.77 | +29.9% | | **Non-GAAP Adjusted Net Income** | $462.3 million | $382.8 million | +20.8% | | **Non-GAAP Adjusted EPS** | $0.98 | $0.85 | +15.3% | - NiSource reaffirmed its financial guidance, signaling confidence in its long-term strategy[3](index=3&type=chunk)[5](index=5&type=chunk) Company Guidance | Period | Metric | Guidance | | :--- | :--- | :--- | | **2025** | Non-GAAP Adjusted EPS | $1.85 - $1.89 | | **2025-2029** | Annual Rate Base Growth | 8% - 10% | | **2025-2029** | Annual Non-GAAP Adjusted EPS Growth | 6% - 8% | - CEO Lloyd Yates attributed the strong Q1 results to the team's execution on growth and sustainability plans, highlighting the enduring and resilient nature of the company's investments despite market conditions[4](index=4&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=5&type=section&id=Schedule%201%20-%20Reconciliation%20of%20Consolidated%20Net%20Income%20Available%20to%20Common%20Shareholders%20to%20Adjusted%20Net%20Income%20Available%20to%20Common%20Shareholders%20%28Non-GAAP%29%20%28unaudited%29) The company provided a detailed reconciliation of its GAAP net income to non-GAAP adjusted net income for the first quarter, with primary adjustments related to weather impacts and a preferred dividends redemption premium Reconciliation of GAAP to Non-GAAP Net Income (in millions) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **GAAP Net Income Available to Common Shareholders** | **$474.8** | **$344.3** | | Weather impact (compared to normal) | $(16.8) | $32.9 | | Tax effect of adjustments | $4.3 | $(8.4) | | Preferred dividends redemption premium | — | $14.0 | | Total adjustments | $(12.5) | $38.5 | | **Adjusted Net Income Available to Common Shareholders** | **$462.3** | **$382.8** | Reconciliation of GAAP to Non-GAAP Diluted EPS | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **GAAP Diluted EPS** | **$1.00** | **$0.77** | | Adjustments to diluted EPS | $(0.02) | $0.08 | | **Adjusted EPS** | **$0.98** | **$0.85** | [Disclosures and Company Information](index=2&type=section&id=Disclosures%20and%20Company%20Information) This section contains important disclosures regarding the use of non-GAAP financial measures, a detailed safe harbor statement on forward-looking information and associated risks, and general information about NiSource's business operations and corporate profile [Non-GAAP Disclosure Statement](index=2&type=section&id=Non-GAAP%20Disclosure%20Statement) NiSource explains its use of non-GAAP measures to help investors evaluate ongoing business performance, noting the unpredictability of certain factors prevents GAAP reconciliation for guidance - Management uses non-GAAP financial measures because they believe it allows investors to evaluate the company's ongoing business performance with the same tools management uses[6](index=6&type=chunk) - NiSource does not provide a reconciliation of its non-GAAP adjusted EPS guidance to the comparable GAAP measure without unreasonable efforts due to the impact of unpredictable factors[6](index=6&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section cautions investors that the press release contains forward-looking statements subject to numerous risks and uncertainties, where actual results could differ materially from projections - Statements concerning guidance, plans, strategies, and expected performance are forward-looking and based on assumptions that may not be realized[10](index=10&type=chunk) - Material risks that could cause actual results to differ include the ability to execute on business plans like data center development, manage infrastructure and technology risks, regulatory changes, adverse economic conditions, and cybersecurity attacks[11](index=11&type=chunk) [About NiSource](index=2&type=section&id=About%20NiSource) NiSource is one of the largest fully-regulated utility companies in the U.S., serving approximately 3.3 million natural gas and 500,000 electric customers across six states - Serves approximately **3.3 million** natural gas customers and **500,000** electric customers across six states[8](index=8&type=chunk) - Employs approximately **7,700** people and is a member of the Dow Jones Sustainability - North America Index[8](index=8&type=chunk)

The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Middlesex Water (MSEX) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Middlesex Water is a member of our Utilities group, which includes 104 different companies and currently sits at #6 in the Zacks Sector R ...

Group 1 - Middlesex Water (MSEX) is currently outperforming its peers in the Utilities sector, with a year-to-date return of approximately 13.1% compared to the sector average of 2.8% [4] - The Zacks Rank for Middlesex Water is 2 (Buy), indicating a positive earnings outlook and improving analyst sentiment, as the consensus estimate for full-year earnings has increased by 1.3% over the past 90 days [3][4] - Middlesex Water belongs to the Utility - Water Supply industry, which has gained an average of 9.3% this year, further highlighting its strong performance within its specific industry [6] Group 2 - NiSource (NI) is another stock in the Utilities sector that has shown solid performance, with a year-to-date return of 8.2% and a Zacks Rank of 2 (Buy) [5] - The consensus EPS estimate for NiSource has increased by 2.7% over the past three months, indicating a positive trend in earnings expectations [5] - NiSource operates in the Utility - Electric Power industry, which has seen a gain of 3.3% this year, ranking 88 among 60 stocks in that industry [6]

Financial Data and Key Metrics Changes - The adjusted EPS for 2024 was reported at $1.75 per share, reflecting a year-over-year increase of 9.4% compared to 2023 [11][31] - The 2025 adjusted EPS guidance has been raised to a range of $1.85 to $1.89 per share, consistent with a 6% to 8% growth outlook [12][31] - The company's FFO to debt ratio improved to 14.6% in 2024, up from 14.1% in 2023 [35] Business Line Data and Key Metrics Changes - NiSource invested $6.9 billion in capital expenditures across six states to enhance system reliability and compliance with regulatory expectations [9] - The base capital plan for 2025 to 2029 is set at $19.4 billion, driving an expected rate base growth of 8% to 10% during this period [12][32] Market Data and Key Metrics Changes - The company reported a recovery of $340 million in revenue in 2024 associated with capital investments [9] - The regulatory landscape remains constructive, with rate case settlements approved in Pennsylvania and Kentucky, and a universal settlement reached in Virginia [21][22] Company Strategy and Development Direction - NiSource's strategy focuses on delivering safe and reliable energy while maintaining affordable pricing through efficient capital deployment and regulatory recovery mechanisms [6][7] - The company is actively pursuing opportunities in data center development, particularly in Northern Indiana, leveraging favorable infrastructure and regulatory conditions [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term growth rates, citing strong customer growth and effective regulatory execution [33][39] - The company remains optimistic about its ability to serve new customers while protecting existing ones, particularly in the context of large load customers and data centers [46][61] Other Important Information - NiSource's operational excellence initiatives have led to significant improvements in safety metrics and operational efficiency, including a 16% increase in work productivity [17][18] - The company has a robust portfolio of customer investments that could extend beyond the five-year plan horizon [13] Q&A Session Summary Question: Can you speak to the Genco filing and its implications? - Management indicated that the Genco filing allows for a regulated entity to serve large load customers while protecting existing customers and maintaining financial integrity [46][48] Question: What is the timing for potential data center deals? - Management reiterated that 2025 is expected to be a significant year for data center opportunities, with ongoing positive discussions [61][89] Question: How does the company plan to finance incremental CapEx? - The primary focus will be on cash from operations, with additional options including junior subordinated notes and maintaining flexibility in capital allocation [64][66] Question: What is the status of the La Porte facility with Microsoft? - Currently, there is no construction at the La Porte facility, but negotiations and discussions with multiple counterparties are progressing well [78] Question: Will IURC approval be needed for Genco before announcing deals? - IURC approval is required for the Genco declination but not for announcing deals with large load customers [72][96]