NiSource reported Q2 adjusted EPS of $0.16, down from $0.22. The company reaffirmed full-year guidance, citing data-center agreements with Amazon and Alphabet that drive $1.4B in customer savings.
NiSource reported second-quarter adjusted earnings of $0.16 per share, down from $0.22 a year earlier, while reaffirming its full-year 2026 outlook and long-term growth targets. Year-to-date adjusted earnings rose to $1.22 per share, up $0.03 from the same period in 2025.
President and Chief Executive Officer Lloyd Yates said the company remains on track to meet its 2026 commitments, supported by regulatory progress and its strategy to serve large data-center customers. "With strong visibility into second-half performance, we remain firmly on track to deliver on our full-year commitments," Yates said.
The lower quarterly profit reflected higher operations and maintenance expense tied to an unusually active storm season and costs to maintain workforce continuity during ongoing union negotiations. NiSource said 2026 has included a record number of tornadoes across its service territory.
Chief Financial Officer Shawn Anderson said higher revenue from new rates and recovery mechanisms, including rate implementation at NIPSCO Electric and Columbia Gas operations in Ohio and Pennsylvania, partially offset those costs. The company expects earnings growth to be more heavily weighted toward the second half of the year. Anderson cited approved recovery mechanisms, new regulatory activity in Virginia and Ohio, and Alphabet-related energization activity expected during the second half.
NiSource highlighted its data-center agreements with Amazon and Alphabet as a source of growth and customer bill relief. Yates said the company has signed contracts representing 4 gigawatts of load, has 3 GW in active strategic negotiations, and sees approximately 2 GW of additional potential customers. The company is also reviewing ways to expand its opportunity set beyond the current 9 GW pipeline.
Michael Luhrs, executive vice president of technology, customer and chief commercial officer, said the company's work to assess potential expansion reflects planning around land, zoning, transmission, fuel supply and equipment. He said investors should not interpret that effort as a sign of constraints on the existing 9 GW pipeline.
The agreements are expected to provide roughly $1.4 billion in bill reductions for existing NIPSCO electric customers over the contract terms. NiSource said the savings could equal up to $124 annually for an average residential customer, or about one month of an electric bill. Benefits could begin reaching customers as early as the fourth quarter of 2026.
The Indiana Utility Regulatory Commission approved the original Amazon special contract and the related power purchase agreement in June. NiSource subsequently filed for approval of amendments to Amazon's agreement that would increase contracted load by 400 megawatts, seeking a final order by November. The commission also approved the Alphabet agreement in July. NiSource said it is prepared to energize that project this summer, with load expected to ramp to full capacity by 2030.
Management addressed a recent IURC order related to NIPSCO's gas modernization investments. Yates said the company was still evaluating the order. He said the commission recognized the need for continued investment while indicating the company should more clearly demonstrate the benefits of individual projects. NiSource said it could seek recovery through other tracker mechanisms or future base-rate proceedings. Anderson said the company was not reporting any change to its capital-expenditure plan or earnings outlook. Management said the order does not change its rate-case timing.
NiSource plans to participate in an Indiana affordability technical conference scheduled for Aug. 7. Yates said he expects the discussions to be collaborative and balanced, with attention to bill transparency, multi-year rate planning, return on equity and the risks associated with those frameworks.
NiSource's five-year capital investment outlook was unchanged. The plan includes $21 billion in base-business investment, up to $2 billion of additional upside opportunities and $7.6 billion of GenCo capital investment supporting data-center customers. The company said possible investments outside its current base and upside plans include electric generation needed for MISO resource requirements, gas and electric transmission, grid resiliency work and PHMSA compliance. NiSource expects to begin reporting GenCo segment information by the end of the fiscal year.
Its financing plan targets funds from operations to debt of 14% to 16% annually, supported by operating cash flow, long-term debt, annual equity issuance of roughly $400 million to $600 million, and minority-interest contributions.
The company reaffirmed its 2026 adjusted EPS guidance of $2.02 to $2.07. It also reaffirmed its base-plan adjusted EPS growth target of 6% to 8% annually through 2030, and a consolidated adjusted EPS compound annual growth rate of 9% to 10% from 2026 through 2033.
NiSource has identified more than $40 million in cost-optimization initiatives, including process improvements and technology-enabled efficiencies, that management expects to improve its cost structure beyond 2026 while benefiting customer rate structures.
Yates said the company continues to view economic development, including data centers, onshoring and manufacturing investment, as important to improving affordability while supporting infrastructure investment and long-term customer demand.
NiSource carries an Alpha Score of 46 out of 100, a Mixed label in the Utilities sector. More detail is available on the NI stock page.
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