NiSource Inc

NiSource reported second quarter 2026 consolidated adjusted EPS of $0.16, down from $0.22 in the same period last year. Year-to-date consolidated adjusted EPS was $1.22, an increase of $0.03 versus the same period last year. Management said higher revenue from new rates and recovery mechanisms was offset by higher O&M tied to storm activity and union-related workforce continuity costs. For 2026, NiSource reaffirmed adjusted EPS guidance of $2.02 to $2.07, annual base plan adjusted EPS growth of 6% to 8% through 2030, and consolidated adjusted EPS CAGR of 9% to 10% from 2026 through 2033. The company also reaffirmed its capital outlook of $21 billion of base business investment, $2 billion of upside opportunities, and $7.6 billion of GenCo capital investment, and said it remains committed to FFO-to-debt of 14% to 16% with annual equity issuance of about $400 million to $600 million.

Lloyd Yates framed the quarter around NiSource’s regulated utility base, disciplined capital deployment, and the data-center strategy as the main engines of long-term value. He emphasized that the company is balancing reliability, customer affordability, and growth, and repeatedly said Indiana remains a constructive environment despite the latest TDSIC order and broader political noise. His tone was confident and steady, with recurring references to strong visibility, constructive regulatory relationships, and a disciplined approach to execution.

Shawn Anderson focused on the financial drivers behind the quarter and the outlook. He said Q2 adjusted EPS of $0.16 reflected higher revenue from new rates and recovery mechanisms, partially offset by higher O&M from storms and union-negotiation-related workforce continuity expense. He highlighted more than $40 million of cost optimization initiatives, reiterated the unchanged 5-year capital plan of $21 billion base, $2 billion upside, and $7.6 billion GenCo, and reaffirmed the 2026 EPS guide of $2.02 to $2.07. He also restated the financing plan, including FFO-to-debt of 14% to 16% and annual equity issuance of about $400 million to $600 million.

Analysts focused heavily on the Indiana TDSIC order, tracker recovery, and the timing/risk of future rate cases. Management said the order does not change the capex plan or EPS outlook, and that Indiana remains constructive; they will pursue recovery through multiple avenues, including other trackers, FMCA, and rate cases. Questions also centered on the 3 gigawatts of active strategic data-center negotiations and whether opportunities exist beyond the stated 9-gigawatt pipeline. Management said the pipeline is progressing well, declined to comment on specific counterparties, and said any future agreements will be disclosed when appropriate. Analysts also asked about the August 7 affordability conference; management said it should be balanced and collaborative and may inform timing of future filings.