NiSource (NYSE: NI) reported Q2 2026 GAAP net income available to common shareholders of $45.5 million, down from $102.2 million a year earlier, while diluted EPS fell to $0.09 from $0.22. Adjusted net income declined to $77.6 million from $101.9 million, and adjusted EPS decreased to $0.16 from $0.22. Weather relative to normal and operating initiative costs widened the gap between GAAP and adjusted results, although NiSource reaffirmed its full-year adjusted EPS guidance.
Core earnings data
Profit declined on both a GAAP and adjusted basis during the quarter ended June 30, 2026. The GAAP decrease was steeper because the quarter included $42.8 million of pretax operating-income adjustments, primarily related to NIPSCO work-continuity costs and weather compared with normal.
The diluted average share count also increased by about 1.9%, adding modest pressure to per-share results.
| Metric | Q2 2026 | Q2 2025 | YoY change |
|---|---|---|---|
| GAAP net income available to common shareholders | $45.5 million | $102.2 million | Down about 55.5% |
| GAAP diluted EPS | $0.09 | $0.22 | Down about 59.1% |
| Adjusted net income available to common shareholders | $77.6 million | $101.9 million | Down about 23.8% |
| Consolidated adjusted EPS | $0.16 | $0.22 | Down about 27.3% |
| Diluted average common shares | 481.2 million | 472.1 million | Up about 1.9% |
The first-half picture was less negative. For the six months ended June 30, adjusted net income rose about 4.1% to $587.2 million and adjusted EPS increased to $1.22 from $1.19. GAAP net income declined about 3.6% to $556.2 million, while GAAP EPS fell to $1.15 from $1.22.
Weather and operating costs created a $32.1 million net adjustment
NiSource’s Q2 reconciliation included $16.0 million for weather compared with normal, $21.4 million of incremental costs associated with NIPSCO work-continuity plans during an April 2026 lockout, and $5.4 million for the Value Captured initiative. The latter included nonrecurring third-party consulting and incremental severance costs.
Together, these items produced $42.8 million of pretax operating-income adjustments. After a $10.7 million tax effect, the total adjustment to GAAP net income was $32.1 million. Adjusted earnings nevertheless remained below the prior-year level, indicating that the excluded items explain only part of the quarterly profit decline.
Data center contracts support the long-term capital plan
NiSource advanced its data center strategy through regulatory approvals for special contracts with Amazon and Alphabet. The company said the agreements advance $1.4 billion in savings for existing customers.
Data center infrastructure represents $7.6 billion of NiSource’s $28.6 billion consolidated capital investment plan for 2026 through 2030. The remaining $21.0 billion consists of base capital investments. NiSource expects the overall plan to support consolidated rate-base growth of 9% to 11% from 2026 through 2033.
Earnings guidance
NiSource reaffirmed rather than changed its principal non-GAAP earnings targets. Management cited efficiency initiatives and regulatory mechanisms that provide visibility into cost recovery as support for its outlook.
| Metric | Latest guidance | Status |
|---|---|---|
| 2026 consolidated adjusted EPS | $2.02-$2.07 | Reaffirmed |
| Consolidated adjusted EPS CAGR, 2026-2033 | 9%-10% | Reaffirmed |
Beginning in 2026, consolidated adjusted EPS includes both base-plan adjusted EPS and adjusted EPS from data center operations and development activities. NiSource does not provide a corresponding GAAP guidance range because weather, asset sales, impairments and other unpredictable items prevent a reconciliation without unreasonable effort.
Recent insider transactions
The provided six-month summary reported 636,431 shares purchased and 62,080 shares sold, resulting in net purchases of 574,351 shares across 24 transactions. The latest 10 individual records consisted of three officer sales and seven director stock awards; these transactions do not, by themselves, establish insiders’ views about the company’s prospects.
| Date | Insider and position | Transaction | Price per share | Reported value |
|---|---|---|---|---|
| May 22, 2026 | Melanie B. Berman, Officer | Sale | $47.68 | $715,200 |
| May 21, 2026 | Lloyd M. Yates, CEO | Sale | $47.73 | $950,066 |
| May 20, 2026 | Melody Birmingham-Byrd, Officer | Sale | $47.18-$47.43 | $590,425 |
| May 11, 2026 | Cassandra S. Lee, Director | Stock award | $47.03 | $179,043 |
| May 11, 2026 | Deborah A. P. Hersman, Director | Stock award | $47.03 | $179,043 |
| May 11, 2026 | Eric L. Butler, Director | Stock award | $47.03 | $179,043 |
| May 11, 2026 | John McAvoy, Director | Stock award | $47.03 | $179,043 |
| May 11, 2026 | Sondra L. Barbour, Director | Stock award | $47.03 | $179,043 |
| May 11, 2026 | Peter A. Altabef, Director | Stock award | $47.03 | $179,043 |
| May 11, 2026 | Deborah Ann Henretta, Director | Stock award | $47.03 | $179,043 |
Risks investors need to monitor
- Data center execution and customer commitments: The growth plan depends on financing and completing generation or transmission assets on schedule and within initial cost estimates. Contract termination or reduced committed capacity could weaken expected returns.
- Regulatory cost recovery: Management’s outlook relies partly on regulatory mechanisms that support recovery of investments and operating costs. Unfavorable or delayed regulatory outcomes could affect earnings and cash generation.
- Weather and operating disruptions: Q2 included a $16.0 million weather adjustment and $21.4 million of NIPSCO work-continuity costs, demonstrating the potential earnings effect of weather variability and labor-related disruptions.
- Financing and credit ratings: The data center strategy requires significant additional financing. NiSource identified access to favorable funding and the maintenance of investment-grade credit ratings as important dependencies.
Summary
NiSource’s second-quarter profit declined materially even after adjusting for weather, work-continuity expenses and Value Captured initiative costs, but modest first-half adjusted earnings growth helped keep the full-year outlook intact. The main issues to monitor are cost control, regulatory recovery and execution of the data center investment program that underpins the company’s long-term rate-base and adjusted EPS growth targets.
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