NI · NiSource Inc.

NiSource delivered robust Q1 2026 financial performance with revenue growth of 8.0% to $2.3 billion, primarily from base rate proceedings and returns on regulatory capital programs. This offset weather-related pressures, as the company calculates variances based on customer demand changes from normal cooling and heating degree days, net of NIPSCO Gas' weather normalization mechanism. Warmer conditions impacted volumes, with heating and cooling degree days varying in effect depending on timing and location.

Operating income rose 7.9% to $819.2 million, yielding a 35.3% margin, as higher rates from approved investments more than compensated for elevated depreciation and O&M expenses tied to expanded infrastructure. Net income increased 6.8% to $507.1 million, with diluted EPS at $1.06, up 6%, reflecting efficient capital deployment despite higher interest costs from financing ongoing programs.

Cash flow from operating activities fell to $442.3 million, compressed by working capital volatility including exchange gas and inventory fluctuations. This compares to prior year levels, highlighting seasonal and operational swings. Free cash flow stood at negative $362.9 million, as capital expenditures accelerated to $805.2 million to fund core safety, infrastructure, and Pool Resource Assets developed for contracted data center demand. Management continually evaluates financing availability to support these investments, working capital, and business operations.