01—Abstract
Summary
Summary of the 10-Q filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
NiSource Inc. reported first-quarter 2026 net income of $556.2 milliona, up from $526.7 million a year earlier, and net income available to common shareholders of $510.7 million versus $474.8 million.
Diluted EPS was $1.06b compared with $1.00. Operating revenues rose to $2,363.1 million from $2,183.2 million, and operating income increased to $819.2 million from $759.4 million. Management attributes the higher earnings primarily to revenues tied to capital investments, partially offset by higher operation and maintenance expense, depreciation, and interest expense, which increased to $191.6 million from $132.8 million.
Cash flow from operations was $442.3 millionc, down from $686.4 million, mainly due to working capital changes. Capital expenditures were $805.2 million. Short-term borrowings rose to $1,291.0 million in commercial paper, and net available liquidity was $1,630.9 million at March 31, 2026.
The company's debt-to-capitalization ratio was 51.5%d against a covenant maximum of 70.0%. Its senior unsecured ratings were BBB+ (S&P), Baa2 (Moody's), and BBB (Fitch), all with stable outlooks. Data center development is a major focus.
NIPSCO entered into an Alphabet contract pending IURC approval, and amended the ADS Contract to accelerate capacity deliveries and raise total committed capacity to 2,800 MW by the end of 2032, subject to approvals. The company estimates the aggregate cost of Contract Assets and Pool Resource Assets supporting existing data center customers at $9.25 to $9.75 billion, and it notes that further data center growth would require significant additional financing.
02—Key points
Key Highlights
- Net income attributable to NiSource rose to $507.1 million in Q1 2026 from $474.8 million; diluted EPS was $1.06 versus $1.00.
- Total operating revenues increased to $2,363.1 million from $2,183.2 million, and operating income rose to $819.2 million from $759.4 million.
- Interest expense, net increased to $191.6 million from $132.8 million.
- Operating cash flow fell to $442.3 million from $686.4 million, while capital expenditures were $805.2 million.
- Commercial paper outstanding rose to $1,291.0 million; net available liquidity was $1,630.9 million, down from $2,024.1 million at year-end 2025.
- The company amended the ADS Contract and signed an Alphabet contract, with total committed capacity under the ADS amendments reaching 2,800 MW by the end of 2032, subject to IURC and FERC approval.
- The R.M. Schahfer coal facility remains under successive 202(c) emergency orders, currently through June 21, 2026, and NIPSCO deferred $65.9 million of related incremental costs to non-current regulatory assets.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 6, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.32B$2.15B | +8.0% |
| Operating Income | $819.20M$759.40M | +7.9% |
| Net Income | $507.10M$474.80M | +6.8% |
| EPS (Basic) | $1.06$1.01 | +5.0% |
| EPS (Diluted) | $1.06$1.00 | +6.0% |
| Shares Outstanding (Basic) | 479.00M470.40M | +1.8% |
| Shares Outstanding (Diluted) | 480.90M472.50M | +1.8% |
05—Questions
Frequently Asked Questions
How did NiSource perform in the first quarter of 2026 compared with the prior year?
Net income attributable to NiSource was $507.1 million, compared with $474.8 million in the first quarter of 2025. Diluted EPS was $1.06, up from $1.00. Higher revenues tied to capital investments drove the increase, partly offset by higher operating and financing costs.
Is NiSource's liquidity position changing?
Net available liquidity fell to $1,630.9 million at March 31, 2026, from $2,024.1 million at December 31, 2025, as commercial paper rose to $1,291.0 million. The revolving credit facility is $2.50 billion and the commercial paper program limit was increased to $2.50 billion in March 2026. The company's debt-to-capitalization ratio was 51.5% against a 70.0% covenant maximum.
What is the company's exposure to its data center contracts?
The company estimates the aggregate cost of Contract Assets and Pool Resource Assets supporting existing data center customers at $9.25 to $9.75 billion. It states that further data center contracts would require significant additional financing, and the ADS Contract amendments and Alphabet Contract remain subject to regulatory approval.
What regulatory matters could affect future results?
The IURC is expected to issue an order on the NIPSCO Electric Special Contract and GenCo PPA in the second quarter of 2026, and an order on the Alphabet contract is expected in the third quarter of 2026. The R.M. Schahfer 202(c) emergency order runs through June 21, 2026, and an IURC investigation into gas meter accuracy has a hearing scheduled for July 2026.
06—Continue