Nisource Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 28 October 2026: press release. Guidance figures: 2 raised, 4 new, 1 kept. The quarter’s numbers.

Key takeaways

GAAP earnings rose to $0.27: On a GAAP basis, third quarter net income available to common shareholders was $129.5 million, or $0.27 diluted EPS, against $94.7 million, or $0.20, a year earlier. Source
Adjusted EPS rose to $0.27: Non-GAAP consolidated adjusted EPS was $0.27 for the quarter, against $0.19 a year earlier. Adjusted net income was $130.9 million, compared with $91.8 million. Source
Microsoft agreement added to GenCo savings: A new Microsoft agreement was announced, and GenCo savings for existing customers were expanded to about $1.75 billion. Source
Seven-year capital plan of $40.0 billion: Consolidated capital expenditures of $40.0 billion over seven years are expected to support 9%-10% investment base growth from 2027 to 2033. The prior plan covered 2026-2030 at $28.6 billion. Source
2026 EPS range narrowed upward: The 2026 non-GAAP consolidated adjusted EPS range of $2.02-$2.07 was kept, and management narrowed it to the upper half of that range. Source
2027 EPS range introduced: Management introduced a 2027 non-GAAP consolidated adjusted EPS range of $2.22-$2.30. Source
Consolidated EPS growth target raised: Consolidated adjusted EPS compound annual growth is now 10%-11% for 2027-2033, up from 9%-10% for 2026-2033 in the second-quarter release. Source

“The extension of our long-term plan reflects the significant opportunities ahead for NiSource and our confidence in our ability to deliver,”
Lloyd Yates, President and Chief Executive Officer of NiSource

Guidance

Area	Period	Figure	Against last quarter
2026 non-GAAP consolidated adjusted EPS Source	full year 2026	upper half of $2.02-$2.07	Kept
Non-GAAP consolidated adjusted EPS Source	2027	$2.22-$2.30	New
Consolidated adjusted EPS compound annual growth rate Source	2027-2033	10%-11%	Raised from 9%-10% for 2026-2033
Base plan adjusted EPS annual growth Source	2027-2033	6%-8% annually	New
Base plan rate base growth Source	2027-2033	8%-10%	New
Consolidated investment base growth Source	2027-2033	9%-10%
Seven-year consolidated capital expenditures Source	2027-2033	$40.0 billion	New
Customer savings under GenCo agreements Source	not stated	approximately $1.75 billion	Raised from $1.4 billion for existing customers under Amazon and Alphabet agreements

What changed from last quarter

Guidance kept: The 2026 EPS range of $2.02-$2.07 was kept, and management narrowed it to the upper half. Source
Guidance raised: The consolidated adjusted EPS CAGR was raised from 9%-10% to 10%-11%, now covering 2027-2033. Source
New guidance: A 2027 consolidated adjusted EPS range of $2.22-$2.30 was introduced. Source
New guidance: Base plan adjusted EPS growth and base plan rate base growth guidance was introduced for 2027-2033. Source
Guidance raised: Expected customer savings under GenCo agreements were raised from $1.4 billion to about $1.75 billion. Source
New: A new GenCo agreement with Microsoft was announced. Source
New: The capital plan was extended through 2033, with seven-year capital expenditures of $40.0 billion. Source

Third quarter results

GAAP earnings rose to $0.27: On a GAAP basis, third quarter net income available to common shareholders was $129.5 million, or $0.27 diluted EPS, against $94.7 million, or $0.20, a year earlier. Source
Adjusted EPS rose to $0.27: Non-GAAP consolidated adjusted EPS was $0.27 for the quarter, against $0.19 a year earlier. Adjusted net income was $130.9 million, compared with $91.8 million. Source
Nine-month adjusted EPS reached $1.49: For the nine months, adjusted EPS was $1.49, compared with $1.38 in 2025. GAAP diluted EPS was $1.42 in both periods. Source

Customer agreements and savings

Microsoft agreement added to GenCo savings: A new Microsoft agreement was announced, and GenCo savings for existing customers were expanded to about $1.75 billion. Source
Earlier Amazon and Alphabet savings: The second-quarter release reported $1.4 billion of savings for existing customers under the recently approved Amazon and Alphabet agreements.

“This year's extreme weather events have reinforced the importance of those investments, while opportunities such as Microsoft and our GenCo pipeline further strengthen the outlook.”
Lloyd Yates, President and Chief Executive Officer of NiSource

Cost items and adjustments

Value Captured costs added: Third quarter adjustments included $6.0 million of non-recurring consulting and severance tied to the Value Captured initiative, and $11.4 million for nine months. Source
Weather adjustments differed by period: The weather adjustment to operating revenues was $(4.0) million in the quarter, equal to 2025. For nine months it was $15.7 million, against $(21.1) million a year earlier. Source
Preferred redemption refund in nine months: A $3.6 million excise tax refund from the 2023 preferred stock redemption premium was included in nine-month adjustments. Source

Capital plan extended to 2033

Seven-year capital plan of $40.0 billion: Consolidated capital expenditures of $40.0 billion over seven years are expected to support 9%-10% investment base growth from 2027 to 2033. The prior plan covered 2026-2030 at $28.6 billion. Source
Base and data center capital split: The plan is driven by $32.0 billion of base plan capital expenditures and $8.0 billion for data center investments for 2027-2033. Source
Capital plan extended through 2033: Management said the company is extending its capital plan through 2033. Source

“Our seven-year capital plan supports critical infrastructure investments to enhance the safety, reliability, and resiliency of our systems while enabling significant economic development across our footprint.”
Lloyd Yates, President and Chief Executive Officer of NiSource

Guidance for 2026 and 2027

2026 EPS range narrowed upward: The 2026 non-GAAP consolidated adjusted EPS range of $2.02-$2.07 was kept, and management narrowed it to the upper half of that range. Source
2027 EPS range introduced: Management introduced a 2027 non-GAAP consolidated adjusted EPS range of $2.22-$2.30. Source
Base plan growth guidance added: Base plan adjusted EPS, which excludes data center operations, is guided at 6%-8% annual growth for 2027-2033, with 8%-10% rate base growth. Source

Long-term growth targets

Consolidated EPS growth target raised: Consolidated adjusted EPS compound annual growth is now 10%-11% for 2027-2033, up from 9%-10% for 2026-2033 in the second-quarter release. Source
Data center earnings reported separately: Consolidated adjusted EPS combines base plan adjusted EPS with adjusted EPS from data center operations and development activities. Source
Base plan growth period extended: The release extended base plan annual EPS growth guidance of 6%-8% to cover 2027-2033. Source

Employees and service restoration

Thanks for restoring service: Management thanked employees for their dedication to serving customers and restoring service during severe weather events. Source
Storm activity noted in second quarter: The second-quarter release also thanked employees and partners for serving customers during elevated storm activity that season.
Regulators and partners credited: Management credited employees, regulators, policymakers, customers, investors and community partners with positioning the company to execute the plan. Source

Coming up, as management said on 28 October 2026

2027 EPS range: Management expects 2027 non-GAAP consolidated adjusted EPS within $2.22-$2.30. Source
GenCo savings expected to be delivered: Management said the signed GenCo agreements are expected to deliver the stated customer savings. Source
Quarter detail on investor website: Segment and financial information and a presentation for the quarter are available on the Investors section of the company website. Source

Figures management reported

Figure	Reported
Rate base growth Source	8%-10% base plan, 2027-2033
Capital plan Source	$40.0 billion seven-year, 2027-2033
EPS growth target Source	10%-11% consolidated CAGR, 2027-2033; 6%-8% base plan annual growth
Investment base growth Source	9%-10% consolidated, 2027-2033

Risks management discussed

External: Management said unpredictable factors such as weather fluctuations, asset sales and impairments could be material to GAAP results and cannot be estimated. Source

Earlier plans management reported on

Not stated: Management narrowed the 2026 EPS guidance to the upper half of the existing range. Source
Not stated: Management said the capital plan is being extended through 2033. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

FOR ADDITIONAL INFORMATION

Media Investors

media@nisource.com investors@nisource.com

NiSource announces third quarter results

Narrowing 2026 non-GAAP consolidated adjusted EPS guidance to upper half of $2.02-$2.07 range
Introducing 2027 non-GAAP consolidated adjusted EPS guidance
Extending base plan expected non-GAAP adjusted EPS annual growth guidance of 6%-8% to 2027-2033
Raising consolidated expected non-GAAP adjusted EPS compound annual growth rate to 10%-11% for 2027-2033
Expanding GenCo cost savings for existing customers to approximately $1.75 billion through new agreement with Microsoft

MERRILLVILLE, Ind. - NiSource Inc. (NYSE: NI) today announced, on a GAAP basis, net income available to common shareholders for the quarter ended September 30, 2026 of $129.5 million, or $0.27 of earnings per diluted share, compared to net income available to common shareholders of $94.7 million, or $0.20 of earnings per diluted share, for the same period of 2025. For the nine months ended September 30, 2026, on a GAAP basis, NiSource's net income available to common shareholders was $685.7 million, or $1.42 of diluted earnings per share, compared to net income available to common shareholders of $671.7 million, or $1.42 of diluted earnings per share, for the same period of 2025.

NiSource also reported third quarter 2026 non-GAAP adjusted net income available to common shareholders of $130.9 million, or $0.27 of consolidated adjusted EPS, compared to non-GAAP adjusted net income available to common shareholders of $91.8 million, or $0.19 of consolidated adjusted EPS, for the same period of 2025. For the nine months ended September 30, 2026, NiSource's non-GAAP adjusted net income available to common shareholders was $718.1 million, or $1.49 of consolidated adjusted EPS, compared to non-GAAP adjusted net income available to common shareholders of $656.0 million, or $1.38 of consolidated adjusted EPS, for the same period of 2025. Schedule 1 of this press release contains a complete reconciliation of GAAP measures to non-GAAP measures. **

NiSource is narrowing its 2026 non-GAAP consolidated adjusted EPS guidance to the upper half of $2.02-$2.07. In 2027, non-GAAP consolidated adjusted EPS is expected to be in the range of $2.22-$2.30.

NiSource is extending its capital plan through 2033. The new consolidated seven-year total capital expenditures of $40.0 billion are expected to support 9%-10% consolidated investment base growth from 2027-2033 and an expected consolidated non-GAAP adjusted EPS compound annual growth rate (CAGR) of 10%-11% for 2027-2033. The company’s base plan non-GAAP adjusted EPS growth is expected to be 6%-8% annually with 8%-10% rate base growth expected from 2027-2033.

The consolidated capital expenditure plan is driven by $32.0 billion in base plan capital expenditures and $8.0 billion for data center investments for 2027-2033.

“The extension of our long-term plan reflects the significant opportunities ahead for NiSource and our confidence in our ability to deliver,” said Lloyd Yates, President and Chief Executive Officer of NiSource. “Our seven-year capital plan supports critical infrastructure investments to enhance the safety, reliability, and resiliency of our systems while enabling significant economic development across our footprint."

“This year's extreme weather events have reinforced the importance of those investments, while opportunities such as Microsoft and our GenCo pipeline further strengthen the outlook. Our signed GenCo agreements are expected to deliver approximately $1.75 billion in customer savings, positioning us to deliver industry-leading growth and long-term value for customers, communities, and shareholders.

“I also want to thank our employees for their dedication to serving customers and restoring service during severe weather events. Their commitment, along with the support of our regulators, policymakers, customers, investors, and community partners, positions us well to execute this plan and deliver sustainable value for all stakeholders.”

**Non-GAAP Disclosure Statement

This press release includes financial results and guidance for NiSource with respect to adjusted net income available to common shareholders, base plan adjusted EPS and consolidated adjusted EPS, which are non-GAAP financial measures as defined by the SEC. Commencing in 2026, the company began to present base plan adjusted EPS and consolidated adjusted EPS. As presented, guidance with respect to base plan adjusted EPS, including annual base plan adjusted EPS growth, excludes, in addition to the items historically excluded from adjusted EPS, the impact of data center operations and development activities relating to provision of electric service to current and future data center or other large load customers. The company provides guidance regarding base plan adjusted EPS because it expects that the earnings from its data center operations and development activities will experience a different growth profile compared to the base plan adjusted EPS growth. Providing guidance with respect to base plan adjusted EPS growth, together with guidance regarding consolidated adjusted EPS growth, provides investors with the same information that management considers to evaluate the company’s ongoing business performance and provide greater transparency into the performance of different aspects of our business that are impacted by distinct trends and factors. Consolidated adjusted EPS represents base plan adjusted EPS together with adjusted EPS from our data center operations and development activities. The company includes these measures because management believes they permit investors to view the company’s performance using the same tools that management uses and to better evaluate the company’s ongoing business performance. With respect to guidance on base plan adjusted EPS and consolidated adjusted EPS, NiSource reminds investors that it does not provide a GAAP equivalent of its guidance on base plan adjusted EPS or consolidated adjusted EPS due to the impact of unpredictable factors such as fluctuations in weather, impact of asset sales and impairments and other unusual or infrequent items included in the comparable GAAP measures, which may be material. The company is not able to estimate the impact of such factors on the comparable GAAP measures and, as such, the company is not able to provide a reconciliation of its non-GAAP base plan adjusted EPS guidance or its non-GAAP consolidated adjusted EPS guidance to the comparable GAAP equivalents without unreasonable efforts.

Additional Information

Additional information for the quarter ended September 30, 2026 is available on the Investors section of www.nisource.com and includes segment and financial information and a presentation. The company alerts investors that it intends to use the Investors section of its website, www.nisource.com, and the company’s social media channels to disseminate important information about the company to its investors. Investors are advised to look at NiSource’s website and social media channels for future important information about the company.

About NiSource

NiSource Inc. (NYSE: NI) is one of the largest fully-regulated utility companies in the United States, serving approximately 3.3 million natural gas customers and 500,000 electric customers across six states through its local Columbia Gas and NIPSCO brands. The mission of our approximately 7,700 employees is to deliver safe, reliable energy that drives value to our customers. NiSource is a member of the Dow Jones Sustainability - North America Index and is on Forbes lists of America’s Best Employers for Women and Diversity. Learn more about NiSource’s record of leadership in sustainability, investments in the communities it serves and how we live our vision to be an innovative and trusted energy partner at www.NiSource.com.

The content of our website is not incorporated by reference into this document or any other report or document NiSource files with the Securities and Exchange Commission (“SEC”).

NI-F

Forward-Looking Statements

Forward-looking statements notice

This Press Release contains "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements in this press release include, but are not limited to, statements concerning our guidance on base plan and consolidated adjusted EPS, plans, strategies, objectives, expected performance, planned expenditures, recovery of expenditures through rates, stated on either a consolidated or segment basis, anticipated savings for existing customers resulting from our partnerships with data center customers, and any and all underlying assumptions and other statements that are not statements of historical fact. Expressions of future goals and expectations and similar expressions reflecting something other than historical fact, including "may," "will," "should," "could," "would," "aims," "seeks," "expects," "plans," "anticipates," "intends," "believes," "estimates," "predicts," "potential," "targets," "forecast," and "continue," are intended to identify forward-looking statements. All forward-looking statements are based on assumptions that management believes to be reasonable; however, there can be no assurance that actual results will not differ materially. Investors and prospective investors should understand that many factors impact whether any forward-looking statement contained herein will or can be realized. Any one of those factors could cause actual results to differ materially from those projected.

Factors that could cause actual results to differ materially from those projected in any forward-looking statement discussed in this Press Release include, among other things: our ability to execute our business plan or growth strategy, including utility infrastructure investments, or business opportunities; our ability to manage data center growth in our service territories; potential incidents and other operating risks associated with our business; our ability to work successfully with our JV partners; our ability to construct, develop and place into service the generation and transmission assets we develop to support our current and any future data center customers on time or at all and consistent with initial cost estimates, as well as the performance of such assets once constructed and placed into service; our ability to obtain the significant additional financing required to construct such generation and transmission assets we develop to support our current and any future data center contracts on favorable terms, if at all; our ability to recover our investments and realize our expected return under our current and any future data center contracts that we enter into; our ability to maintain our investment grade credit ratings as we finance and pursue our data center strategy, including our performance under our current and any future data center contracts that we enter into; performance by our customers under our current and any future data center contracts; any default by a current or future data center customer or any decision by a current or future data center customer, if applicable, to reduce the committed capacity under, or to terminate, such contracts; potential changes in the MISO accreditation treatment of capacity resources; our ability to adapt to, and manage costs related to, advances in technology, including alternative energy sources and changes in related laws and regulations; our increased dependency on technology; impacts related to our aging infrastructure; our ability to obtain sufficient insurance coverage and whether such coverage will protect us against significant losses; the success of our electric generation strategy; construction risks and supply risks; fluctuations in demand from residential and commercial customers; fluctuations in the price of energy commodities and related transportation costs or an inability to obtain an adequate, reliable and cost-effective fuel supply to meet customer demand; our ability to attract, retain or re-skill a qualified workforce and maintain good labor relations; our ability to manage new initiatives and organizational changes; the performance and quality of third-party suppliers and service providers; our ability to manage the financial and operational risks related to achieving our carbon emission reduction goals, including our Net Zero Goal, including any future associated impact from business opportunities such as data center development as those opportunities evolve; regulation and the impact of regulatory rate reviews; our ability to obtain expected financial or regulatory outcomes; any damage to our reputation; the impacts of natural disasters, acts of terrorism, acts of war or other catastrophic events; the physical impacts of climate change and the transition to a lower carbon future; potential cybersecurity attacks or security breaches; increased requirements and costs related to cybersecurity; our debt obligations; any changes to our credit ratings or the credit ratings of certain of our subsidiaries; adverse economic and capital market conditions, including increases in inflation or interest rates, recession, or changes in investor sentiment; the actions of activist stockholders; economic conditions in certain industries; the ability of customers and suppliers to fulfill their payment and contractual obligations; the ability of our subsidiaries to generate cash; pension funding obligations; potential impairments of goodwill; the outcome of legal and regulatory proceedings, investigations, incidents, claims and litigation; compliance with changes in, or new interpretations of applicable laws, regulations and tariffs; the cost of compliance with environmental laws and regulations and the costs of associated liabilities; changes in tax laws or the interpretation thereof; and other matters set forth in Item 1, "Business," Item 1A, "Risk Factors" and Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and matters set forth in our subsequent Quarterly Reports on Form 10-Q, some of which risks are beyond our control. In addition, the relative contributions to profitability by each business segment, and the assumptions underlying the forward-looking statements relating thereto, may change over time.

All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statement to reflect changed assumptions, the occurrence of anticipated or unanticipated events or changes to expected results over time or otherwise, except as required by law.

Schedule 1 - Reconciliation of Consolidated Net Income Available to Common Shareholders to Adjusted Net Income Available to Common Shareholders (Non-GAAP) and Consolidated Adjusted Earnings Per Share (Non-GAAP) (unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions, except per share amounts)		2026		2025		2026		2025
GAAP Net Income Available to Common Shareholders	$129.5		$94.7		$685.7		$671.7
Adjustments to Operating Income:
Operating Revenues:
Weather - compared to normal	(4.0)		(4.0)		15.7		(21.1)
Operating Expenses:
Workplace continuity	-		-		21.4		-
Value Captured initiative	6.0		-		11.4		-
Total adjustments to operating income	2.0		(4.0)		48.5		(21.1)
Income Taxes:
Tax effect of above items	(0.6)		1.1		(12.5)		5.4
Preferred Dividends:
Preferred dividends redemption premium	-		-		(3.6)		-
Total adjustments to net income	1.4		(2.9)		32.4		(15.7)
Adjusted Net Income Available to Common Shareholders (Non-GAAP)	$130.9		$91.8		$718.1		$656.0
Diluted Average Common Shares	481.1		473.7		481.1		472.8
GAAP Diluted Earnings Per Share	$0.27		$0.20		$1.42		$1.42
Adjustments to diluted earnings per share	-		(0.01)		0.07		(0.04)
Consolidated Adjusted Earnings Per Share (Non-GAAP)	$0.27		$0.19		$1.49		$1.38

Represents the estimated impact of actual weather during the period compared to expected normal weather.

Represents incremental costs to support our NIPSCO work continuity plans during the April 2026 lockout period. Costs include external contractors, security and administrative costs, net of any internal labor savings, that would not have been incurred had a lockout been avoided.

Represents non-recurring third-party consulting costs and incremental severance incurred in connection with the Value Captured initiative.

Represents income tax expense associated with adjustments to GAAP amounts calculated using the applicable statutory tax rates.

Represents the excise tax refund from the 2023 preferred stock redemption premium.

GAAP Diluted Earnings Per Share includes the effects of income allocated to participating securities. Please refer to Note 5, "Earnings Per Share," within the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2026.