NiSource Q1 2025 slides: adjusted EPS jumps 15%, company reaffirms growth targets

NiSource Inc. (NASDAQ:NYSE:NI) reported strong first-quarter 2025 results on May 7, showcasing significant year-over-year growth in both GAAP and adjusted earnings. The utility company reaffirmed its long-term financial commitments while highlighting progress on renewable energy investments and operational excellence initiatives.

Quarterly Performance Highlights

NiSource delivered impressive financial results for the first quarter of 2025, with adjusted earnings per share reaching $0.98, a 15% increase from $0.85 in the same period last year. This performance follows a mixed fourth quarter of 2024, when the company missed EPS expectations but exceeded revenue forecasts.

As shown in the following consolidated results table, GAAP net income available to common shareholders rose to $474.8 million in Q1 2025, up significantly from $344.3 million in Q1 2024. On a per-share basis, GAAP earnings increased to $1.00 from $0.77 year-over-year:

Breaking down the results by segment, both Columbia Operations and NIPSCO Operations showed strong growth. As illustrated in the operating income results below, Columbia Operations’ adjusted operating income increased to $437.6 million from $381.0 million in the prior year, while NIPSCO Operations saw adjusted operating income rise to $303.3 million from $230.3 million:

Strategic Initiatives

NiSource continues to make significant investments in renewable energy, particularly in Indiana. The company’s presentation highlighted a robust portfolio of Build Transfer Agreement (BTA) projects and Power Purchase Agreement (PPA) projects with various in-service dates.

The following slide details NiSource’s renewable investments in Indiana, including wind, solar, and storage projects, with a total investment of approximately $3.6 billion:

Beyond renewable energy, NiSource is focusing on operational excellence across its business. The company is prioritizing safety and reliability while driving predictable operations and fostering a culture of continuous improvement. Key initiatives include advanced leak survey technology, accelerated in-line inspection capabilities, and system hardening.

Forward-Looking Statements

NiSource reaffirmed its 2025 adjusted EPS guidance of $1.85-$1.89 and its long-term financial commitments. The company continues to target 6%-8% annual adjusted EPS growth from 2025-2029, supported by 8%-10% rate base growth over the same period.

The following slide illustrates NiSource’s track record of execution and growth, showing consistent increases in adjusted EPS from $1.37 in 2021 to a projected $1.85-$1.89 in 2025, along with steady dividend growth:

To support its growth objectives, NiSource has outlined a $19.4 billion base capital investment plan for 2025-2029, with potential for an additional $2.2 billion in upside opportunities. The company’s sustainable investment opportunities are broken down by category and recovery time in the following chart:

NiSource’s financial commitments are underpinned by key targets, including an expected annual total shareholder return of 9%-11%, a target dividend payout ratio of 60%-70%, and a commitment to maintaining 14%-16% FFO/Debt annually through 2029:

Competitive Industry Position

NiSource is positioning itself as a premier energy partner with a focus on sustainable growth. The company’s consistent execution has driven strong financial performance, as illustrated in the following chart showing adjusted EPS growth:

The utility is also working to build a constructive regulatory foundation across its service territories. Recent developments include a Columbia Gas of Maryland rate case final order approval, a Columbia Gas of Pennsylvania rate case filing in March, and efforts to promote natural gas ratemaking legislation in Ohio.

The following slide provides details on key rate cases, including NIPSCO Electric, which has a settlement filing with a revenue increase of $257 million, and Columbia Gas of Pennsylvania, which is requesting a net revenue increase of $110.5 million:

NiSource’s stock closed at $39.36 on May 6, 2025, near its 52-week high of $41.45, reflecting investor confidence in the company’s strategy and execution. With a market capitalization of approximately $18.07 billion, NiSource continues to attract investors seeking both growth and stability in the utility sector.

The company’s commitment to sustainability, including its goal to achieve net zero emissions for Scope 1 and 2 by 2040 and retire all coal plants by 2028, positions it favorably in an increasingly environmentally conscious market. This sustainability focus, combined with strong financial performance and clear growth strategies, suggests NiSource is well-positioned to deliver on its long-term commitments to shareholders and customers alike.

Full presentation:

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