01—Abstract
Summary
Summary of the 10-Q filed August 5, 2026. Cited figures are marked; the original filing is the authoritative source.
NiSource Inc. reported second-quarter 2026 results with operating revenues of $1,342.4 milliona, up from $1,283.0 million a year earlier, but net income available to common shareholders fell to $45.5 million from $102.2 million, and diluted EPS was $0.09 versus $0.22.
Operating income declined to $228.1 millionb from $262.9 million, driven by higher operation and maintenance expense (primarily outside services and labor costs), higher depreciation and amortization, and higher interest expense of $199.2 million versus $139.1 million. For the six months, net income available to common shareholders was $556.2 million and diluted EPS was $1.15, compared with $1.22 in the prior-year period. The company's data center strategy drove significant capital commitments.
The aggregate cost of Contract Assets and Pool Resource Assets supporting existing data center customers is estimated at $9.25 to $9.75 billionc. Capital expenditures for the six months were $1,902.6 million, and the company completed May 2026 senior unsecured note issuances totaling $1.25 billion in principal ($500.0 million of 4.75% notes due 2031 and $750.0 million of 5.30% notes due 2036), with approximately $1.236 billion of net proceeds. Long-term debt including current portion rose to $16,711.0 million at June 30, 2026, from $15,477.5 million at December 31, 2025.
The debt-to-capitalization ratio under the revolving credit facility covenant was 52.6%d against a 70.0% limit. Regulatory and operational developments include an IURC order approving the ADS Contract in June 2026, the R.M.
Schahfer coal facility operating under successive 202(c) emergency orders currently through September 19, 2026, and a NIPSCO union lockout from April 2 to May 2026 that ended with ratified agreements. Management also initiated a multi-year Value Captured efficiency program amid customer affordability concerns, which includes involuntary employee separations.
02—Key points
Key Highlights
- Q2 2026 total operating revenues rose to $1,342.4 million from $1,283.0 million, while operating income fell to $228.1 million from $262.9 million.
- Q2 2026 net income available to common shareholders was $45.5 million ($0.09 diluted EPS), compared with $102.2 million ($0.22 diluted EPS) in Q2 2025.
- Six-month 2026 diluted EPS was $1.15 versus $1.22, with interest expense, net, increasing to $390.8 million from $271.9 million.
- Data center strategy involves an estimated $9.25 to $9.75 billion aggregate cost for Contract Assets and Pool Resource Assets supporting existing data center customers.
- In May 2026, NiSource issued $500.0 million of 4.75% notes due 2031 and $750.0 million of 5.30% notes due 2036, with about $1.236 billion net proceeds.
- Net available liquidity was $2,098.0 million at June 30, 2026, and credit ratings from S&P, Moody's and Fitch were BBB+, Baa2 and BBB, all with stable outlooks.
- The R.M. Schahfer coal facility remains under 202(c) emergency orders, and NIPSCO has deferred $102.2 million of incremental compliance costs to non-current regulatory assets.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 5, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $1.29B$1.25B | +3.4% |
| Operating Income | $228.10M$262.90M | −13.2% |
| Net Income | $45.50M$102.20M | −55.5% |
| EPS (Basic) | $0.10$0.22 | −54.5% |
| EPS (Diluted) | $0.09$0.22 | −59.1% |
| Shares Outstanding (Basic) | 479.70M471.00M | +1.8% |
| Shares Outstanding (Diluted) | 481.20M472.10M | +1.9% |
05—Questions
Frequently Asked Questions
Why did net income decline in the second quarter of 2026?
The filing attributes the decline primarily to higher operation and maintenance expense, mainly outside services and labor costs, along with increased depreciation expense and higher interest expense, partially offset by higher revenues associated with capital investments. Net income attributable to NiSource fell to $45.5 million from $102.2 million.
How is NiSource funding its data center growth?
The company expects to finance Contract Assets and Pool Resource Assets through funds received under data center contracts, debt and equity financing raised by NiSource, and capital contributions from Blackstone affiliates into NIPSCO Holdings II and Generation Holdings II. It notes it will need significant additional financing for any further data center contracts and may consider JVs, BTAs or other arrangements to support its investment grade ratings.
What is the status of the R.M. Schahfer coal facility?
Following its planned retirement at the end of December 2025, NIPSCO received successive 202(c) emergency orders to keep the facility operating in 90-day increments, currently through September 19, 2026. NIPSCO filed in August 2026 to recover $38.0 million of net costs incurred in the first quarter of 2026 to comply with the December order.
How did the NIPSCO labor dispute affect operations?
NIPSCO initiated a lockout of United Steelworkers-represented employees on April 2, 2026, after contract negotiations. Agreements were ratified in late April and May 2026, ending the lockout. The company incurred incremental work continuity costs, and NIPSCO Operations' operation and maintenance expense included $30.5 million of workplace continuity related expenses in both the three- and six-month periods.
06—Continue