NiSource narrows 2026 earnings outlook and sets US$40B spending plan
The utility forecasts 2027 adjusted earnings of US$2.22 to US$2.30 a share, with data centre investments supporting faster growth.
Ines Halvorsen
For 2026, consolidated adjusted earnings per share guidance narrowed to the upper half of US$2.02 to US$2.07 as NiSource Inc. NYSENI reported results on Wednesday. The utility also extended its spending plan through 2033, with US$40 billion in planned capital expenditures.
NiSource introduced 2027 adjusted earnings guidance of US$2.22 to US$2.30 a share. It expects consolidated adjusted earnings per share to grow at a compound annual rate of 10 to 11 per cent over the new planning period.
The capital forecast covers 2027 through 2033 and separates US$32 billion in base utility investments from data centre spending. The data centre portion accounts for another US$8 billion over that period, making those operations a separate source of growth alongside the regulated business.
The pre-release NYSENI quote showed US$43.60 at the Oct. 27 close, as of 4:03 p.m. EDT. That close preceded Wednesday's earnings announcement.
NiSource supplies natural gas and electricity through its Columbia Gas and NIPSCO brands. In its Oct. 28 release, the company said it served approximately 3.3 million gas customers and 500,000 electric customers.
For the quarter ended Sept. 30, adjusted net income available to common shareholders rose to US$130.9 million from US$91.8 million a year earlier. Adjusted earnings per share increased to US$0.27 from US$0.19.
For the first nine months of 2026, adjusted earnings reached US$1.49 a share, compared with US$1.38 a year earlier. The forward earnings targets are non-GAAP measures; NiSource does not provide corresponding GAAP guidance.
Reported net income available to common shareholders was US$129.5 million in the third quarter, compared with US$94.7 million a year earlier. The Oct. 28 SEC filing includes the earnings release as an exhibit.
"Our seven-year capital plan supports critical infrastructure investments to enhance the safety, reliability, and resiliency of our systems while enabling significant economic development across our footprint," NiSource chief executive Lloyd Yates said in the release.
Base Utility Growth Depends On Investment Recovery
The Oct. 28 outlook forecasts base utility rate base growth of 8 to 10 per cent. It pairs that investment growth with annual base plan adjusted earnings per share growth of 6 to 8 per cent for 2027 through 2033. Rate base represents the utility investment on which regulated earnings depend.
NiSource's consolidated investment base growth forecast is 9 to 10 per cent over 2027 through 2033. Its higher consolidated adjusted earnings per share growth target includes data centre operations, which management excludes from base plan adjusted earnings per share because it expects a different growth profile.
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Funding and investment recovery remain execution requirements for holders. In its September 2026 investor presentation, NiSource identified significant additional financing needs for generation and transmission assets serving data centres.
That presentation also identified maintaining investment-grade credit ratings and recovering investment and expected returns under data centre contracts as risks. Those disclosures predate Wednesday's expanded plan; the spending forecast itself does not establish that financing has closed.
Management's next scheduled update is the earnings conference call at 11 a.m. EDT on Oct. 28, when NiSource will review the quarter and provide a business update.
