NiSource (NI -0.78%), a fully regulated utility serving gas and electric customers across the Midwest and Mid-Atlantic, released its second quarter 2025 earnings on August 6, 2025. The standout news was its adjusted non-GAAP earnings per share (EPS) of $0.22, which exceeded analyst estimates by $0.02 (non-GAAP) and showed growth from the prior year's $0.21 non-GAAP adjusted EPS. The company did not report revenue data for the period, making comprehensive top-line comparison unavailable. Overall, the quarter reflected consistent earnings delivery, a narrowed and confident 2025 guidance, and ongoing execution in regulatory and infrastructure investment initiatives.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.22 | $0.20 | $0.21 | 4.8% |
| EPS (GAAP) | $0.22 | $0.19 | 15.8% | |
| Net Income Available to Common Shareholders (Non-GAAP) | $101.9 million | $94.7 million | 7.6% | |
| Net Income Available to Common Shareholders (GAAP) | $102.2 million | $85.8 million | 19.1% | |
| Revenue (Estimate basis, see note) | $1,213.31 million | N/A |
Source: Analyst estimates for the quarter provided by FactSet.
Note: Revenue for Q2 2025 was not reported by the company. The figure in the estimate column is based on analyst consensus.
Business Overview and Strategic Focus
NiSource is a regulated utility primarily providing natural gas to about 3.3 million customers and electricity to around 500,000 customers across six states, including Indiana, Ohio, Pennsylvania, Virginia, Maryland, and Kentucky. It operates through subsidiaries such as Columbia Gas and NIPSCO. The company's earnings and growth are strongly shaped by state and federal regulation, rate case outcomes, and infrastructure investment.
In recent years, NiSource has focused on modernizing its infrastructure, transitioning to cleaner energy sources, and improving reliability. Key success factors for the business include constructive regulatory relationships, disciplined capital allocation, and efficiency improvements through technology. Its strategy is closely linked to long-term plans to achieve net-zero greenhouse gas emissions by 2040 while growing its rate base and earnings through targeted capital expenditures including pipeline upgrades, renewable generation, and customer expansion.
Quarter Highlights: Execution, Regulatory Progress, and Growth Initiatives
During the quarter, NiSource exceeded consensus expectations for non-GAAP adjusted EPS and delivered year-over-year growth in both adjusted (non-GAAP) and GAAP net income. The $0.22 non-GAAP adjusted EPS was 4.8% higher than the same period of 2024, while Net income attributable to common shareholders under generally accepted accounting principles (GAAP) rose by 19.1% compared to the same period of 2024.
The company continued to advance its $19.4 billion infrastructure investment plan for the 2025–2029 period. Recent milestones include bringing the Dunns Bridge II solar facility online. With this addition, more than 2,100 megawatts of renewable generation capacity are now in place—achieved at a cost approximately 50 % below current market rates according to management. Additional renewable energy projects, including the Fairbanks and Gibson solar facilities, remain on track for service commencement this year.
Operational efficiency was another area of progress. NiSource continued to benefit from technology-driven initiatives such as Project Apollo, which targets sustainable cost savings and business process improvements. To date, more than 17 operation centers use artificial intelligence scheduling and work management tools, resulting in over 60,000 hours of productivity improvement compared to the same period in 2023. These efforts have helped the company maintain its operating and maintenance (O&M) cost run rate near $1.4 billion annually since 2016, demonstrating an emphasis on cost discipline.
On the regulatory front, the company noted several state-level developments. Maryland approved a final order related to critical capital investments, while Pennsylvania advanced a settlement on its latest rate case. Specialized regulatory strategies, such as the Genco initiative in Indiana, aim to support large-load customers like data centers by providing new contract structures designed to separate costs from existing customers and deliver new capacity more quickly. Settlement discussions and regulatory filings around these new approaches were ongoing at quarter end, with multiple paths to approval under consideration. These programs are being developed to support large-scale industrial and hyperscale data center growth in NiSource's service territories, although these projects are not yet included in its formal capital guidance.
The company is also addressing the timeline for retiring its coal plants, with Schaefer planned for retirement at the end of 2025 and Michigan City by the end of 2028. However, management confirmed it is reassessing these plans due to potential changes from regulatory and executive orders that could impact the retirement schedule. The energy transition plan aims to modernize the generation mix and reach net-zero emissions by 2040, backed by government incentives and cost-effective project execution.
Guidance, Outlook, and Key Areas to Watch
Management narrowed its fiscal 2025 non-GAAP adjusted EPS guidance to the upper half of the $1.85–$1.89 range, citing confidence in both operating and financial execution. Long-term forecasts remain unchanged, calling for 6%–8% annual non-GAAP adjusted EPS growth and 8%–10% annual rate base growth through 2029. The five-year capital expenditure plan for 2025–2029 is $19.4 billion, with management reaffirming its targets and stating that any incremental load growth—especially from data centers—would represent upside not yet included in guidance.
For the quarters ahead, the most important variables for NiSource include the resolution of data center and large customer contract structures, continued regulatory approvals for rate recovery and capital plans, and disciplined expense management. The outcome of ongoing settlement discussions and regulatory filings, as well as decisions regarding potential extensions to coal plant operations, will shape how quickly NiSource can adapt to customer growth needs and policy changes. The company indicated its capital expenditure and financing programs are on track, with labor contract renewals in key territories set for negotiation in 2026.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
