01—Abstract
Summary
Summary of the 10-Q filed May 7, 2025. Cited figures are marked; the original filing is the authoritative source.
NiSource Inc. reported first-quarter 2025 net income attributable to NiSource of $474.8 milliona, compared with $365.0 million in the first quarter of 2024.
Diluted EPS was $1.00b, compared with $0.77 a year earlier. Total operating revenues rose to $2,183.2 million from $1,706.3 million, driven by higher cost of energy billed to customers, new rates from base rate proceedings and regulatory capital programs, and colder weather. Operating income increased to $759.4 million from $583.4 million, and interest expense, net rose to $132.8 million from $116.3 million.
Management attributes the earnings increase mainly to revenue growth from capital investments, partly offset by higher depreciation and interest expense. Capital investment and financing dominated the quarter. Net cash from operating activities was $686.4 millionc, while investing outflows were $1,352.7 million, including $554.2 million of milestone payments to renewable generation developers and $125.3 million of advanced deposits.
NiSource issued $750.0 milliond of 5.850% senior unsecured notes due 2055 in March 2025, and it has forward sale agreements for ATM equity with about $147.5 million still available. Management expects capital investments of $4.0 billion to $4.3 billion in 2025 and about $19.4 billion over 2025 to 2029. Total long-term debt including the current portion was $14,114.1 million at March 31, 2025, and the revolving credit facility's debt-to-capitalization ratio was 53.8% against a 70.0% covenant limit.
The filing also highlights NIPSCO's generation transition. Several renewable projects are in development, including the Templeton wind project, which remains pending IURC approval, and NIPSCO has a pending electric rate case seeking a $368.7 million requested incremental revenue increase, with a settlement reflecting an annual revenue increase of $257.0 million. Management noted that data center interest in northern Indiana has accelerated, and that large load growth would require new generation resources.
02—Key points
Key Highlights
- Net income attributable to NiSource rose to $474.8 million from $365.0 million; diluted EPS was $1.00 versus $0.77.
- Total operating revenues increased to $2,183.2 million from $1,706.3 million, with cost of energy rising to $647.5 million from $425.0 million, largely passed through to customers.
- Operating income grew to $759.4 million from $583.4 million, with Columbia Operations contributing $445.8 million and NIPSCO Operations $311.9 million.
- Net cash from operations was $686.4 million, while investing outflows of $1,352.7 million included $554.2 million of renewable developer milestone payments.
- NiSource issued $750.0 million of 5.850% senior unsecured notes due 2055 in March 2025, netting approximately $739.6 million.
- Management projects 2025 capital investments of $4.0 billion to $4.3 billion and about $19.4 billion for 2025 to 2029.
- The debt-to-capitalization covenant ratio was 53.8% against a 70.0% maximum, and net available liquidity was $1,712.9 million.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 7, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $2.15B$1.71B | +26.0% |
| Operating Income | $759.40M$583.40M | +30.2% |
| Net Income | $474.80M$365.00M | +30.1% |
| EPS (Basic) | $1.01$0.77 | +31.2% |
| EPS (Diluted) | $1.00$0.77 | +29.9% |
| Shares Outstanding (Basic) | 470.40M447.90M | +5.0% |
| Shares Outstanding (Diluted) | 472.50M449.40M | +5.1% |
05—Questions
Frequently Asked Questions
What drove the increase in NiSource's first-quarter 2025 earnings?
Management attributed the increase in net income available to common shareholders primarily to higher revenues driven by capital investments, partially offset by higher operating expenses, including increased depreciation and higher interest expense. Operating income rose by $176.0 million, and colder weather contributed to higher volumes.
How is NiSource funding its large capital program?
The company relies on cash flow from operations, long-term debt issuance, accounts receivable securitization, and its $1.85 billion commercial paper program backed by a revolving credit facility. In March 2025 it issued $750.0 million of 5.850% notes due 2055, and it has an ATM equity program with about $147.5 million of capacity remaining, including forward sale agreements.
What is the status of NIPSCO's renewable generation projects?
Several owned and PPA renewable projects have been placed in service, and others remain under development. Fairbanks achieved mechanical completion in January 2025, and Dunns Bridge II reached substantial completion. The Templeton wind project is pending IURC approval, with a final order expected in October 2025.
Are there pending rate cases that could affect future revenues?
Yes. NIPSCO Electric's pending rate case reflects a Joint Stipulation and Settlement Agreement for an annual revenue increase of $257.0 million, with new rates implemented in two steps by September 2025 and March 2026. Columbia of Pennsylvania has a pending case requesting $110.5 million of incremental revenue, with rates expected in December 2025.
What does the filing say about data center demand?
Customer interest in data center development in northern Indiana has accelerated. Management is evaluating how to manage potential power demand, generation sources, and transmission capacity, and it expects large load growth would require new generation resources. The filing also notes that the Net Zero Goal projections did not include assumptions related to data center development.
06—Continue