01—Abstract
Summary
Summary of the 10-Q filed October 29, 2025. Cited figures are marked; the original filing is the authoritative source.
NiSource Inc. reported third-quarter 2025 net income attributable to NiSource of $94.7 milliona, or $0.20 diluted EPS, compared with $85.7 million, or $0.19 diluted EPS, in the third quarter of 2024.
For the nine months ended September 30, 2025, net income attributable to NiSource was $671.7 millionb, or $1.42 diluted EPS, versus $536.5 million, or $1.14 diluted EPS, a year earlier. Total operating revenues were $1.27 billion for the quarter and $4.74 billion for the nine months, and operating income rose to $297.5 million and $1.32 billion, respectively. Results were driven mainly by higher revenues from capital investments, partially offset by higher operation and maintenance expense, depreciation and interest expense.
The filing centers on the Data Center Contract signed September 18, 2025, under which NIPSCO will provide electricity to a wholly owned subsidiary of a large publicly traded company, with committed capacity rising to 2,400 MW by the end of 2032. GenCo plans to build 400 MW of battery storage and two 1,300 MW gas-fired combined-cycle turbines, and the aggregate cost of the Contract Assets is estimated at approximately $7 billionc. Subsequent to quarter-end, on October 28, 2025, Blackstone affiliates acquired a 19.9% indirect equity interest in GenCo for $35.2 million and committed up to $1.325 billion in additional capital contributions over seven years.
The company expects to fund the buildout through a mix of Data Center Contract receipts, debt, NiSource equity and Blackstone capital. Balance sheet and financing activity increased materially. Total assets were $34.40 billiond at September 30, 2025, up from $31.79 billion at year-end 2024, and long-term debt was $14.47 billion excluding current portion.
Net available liquidity was $905.0 million, down from $1,567.6 million, and the debt-to-capitalization ratio covenant stood at 54.7% against a 70.0% limit. Investors should weigh the company's large capital program, including an expected $4.0 billion to $4.3 billion of 2025 capital investments and $21.0 billion for the 2026-2030 base business, against the execution, financing and customer-concentration risks described in the filing.
02—Key points
Key Highlights
- Net income attributable to NiSource was $94.7 million ($0.20 diluted EPS) in Q3 2025, up from $85.7 million ($0.19) in Q3 2024; nine-month net income attributable to NiSource was $671.7 million ($1.42 diluted EPS) versus $536.5 million ($1.14).
- Total operating revenues were $1,273.1 million in Q3 2025 versus $1,076.3 million a year earlier, and $4,739.3 million for the nine months versus $3,867.3 million.
- The Data Center Contract with a large publicly traded customer calls for capacity rising to 2,400 MW by the end of 2032, with the aggregate Contract Assets cost estimated at approximately $7 billion.
- On October 28, 2025, Blackstone affiliates acquired a 19.9% indirect equity interest in GenCo for $35.2 million, with up to $1.325 billion in additional capital contributions over seven years.
- Long-term debt excluding the current portion rose to $14,472.1 million at September 30, 2025 from $12,074.5 million at December 31, 2024, following $2.36 billion of debt issuances in the nine months and $1.25 billion of repayments.
- Net available liquidity fell to $905.0 million at September 30, 2025 from $1,567.6 million at December 31, 2024, and short-term borrowings increased to $1,260.0 million.
- The Customer may terminate the Data Center Contract for convenience or halve committed capacity to 1,200 MW by March 31, 2029, with reimbursement subject to caps, which the filing identifies as a key risk.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 29, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $1.24B$1.08B | +15.2% |
| Operating Income | $297.50M$218.30M | +36.3% |
| Net Income | $94.70M$85.70M | +10.5% |
| EPS (Basic) | $0.20$0.19 | +5.3% |
| EPS (Diluted) | $0.20$0.19 | +5.3% |
| Shares Outstanding (Basic) | 472.10M451.90M | +4.5% |
| Shares Outstanding (Diluted) | 473.70M454.50M | +4.2% |
05—Questions
Frequently Asked Questions
How did NiSource's earnings change in the third quarter and first nine months of 2025?
Net income attributable to NiSource rose to $94.7 million ($0.20 diluted EPS) in the third quarter of 2025 from $85.7 million ($0.19) a year earlier. For the nine months, it rose to $671.7 million ($1.42 diluted EPS) from $536.5 million ($1.14 diluted EPS). The filing attributes the increase mainly to higher revenues driven by capital investments, partially offset by higher operating expenses and interest expense.
What is the Data Center Contract and what does it require of NiSource?
On September 18, 2025, NIPSCO agreed to provide electricity to a wholly owned subsidiary of a large publicly traded company's data centers, subject to IURC approval. Capacity commitments begin in 2027 and increase annually to 2,400 MW by the end of 2032, and NIPSCO will construct up to 3,000 MW of dispatchable generation. The initial term is 15 years from initial energization, and the charges are designed to return invested capital over that term.
What are the main risks the filing highlights for investors?
The filing cites construction delays, cost overruns and performance shortfalls on the Contract Assets, the need for significant additional financing, and the possibility that the Customer terminates or reduces committed capacity. It also flags customer concentration, the risk that MISO accreditation changes reduce capacity value, and the possibility that construction overruns could affect the application of ASC Topic 980. Reimbursement for the Customer's early termination or capacity reduction is capped.
How is NiSource funding its capital program and how strong is its liquidity position?
The company expects to fund the approximately $7 billion Contract Assets through Data Center Contract receipts, debt, NiSource equity and capital contributions from Blackstone affiliates. In 2025 it issued $750.0 million of 5.850% notes due 2055 in March, another $750.0 million of those notes plus $900.0 million of 5.350% notes due 2035 in June, and raised equity through its ATM program. Net available liquidity was $905.0 million at September 30, 2025, and the debt-to-capitalization ratio was 54.7% versus a 70.0% covenant limit.
What did the October 28, 2025 Blackstone transaction involve?
NiSource issued a 19.9% indirect equity interest in its wholly owned subsidiary GenCo to BIP Orion Holdco L.P. and BIP Orion Holdco II L.P., affiliates of Blackstone, in exchange for $35.2 million. Under the LLC Agreement, the investor will provide up to $1.325 billion in additional capital contributions over seven years, backed by an Equity Commitment Letter, and will appoint two of seven directors to the Generation Holdings II board. A separate amendment to the NIPSCO Holdings II agreement increased the investor's mandatory capital contributions by $175 million over seven years.
06—Continue