NiSource (NI) Q3 2024 earnings summary

Executive summary

• Achieved Q3 2024 GAAP net income of $85.7M and adjusted net income of $89.9M, both up year-over-year, with a trailing 12-month earned ROE of 9.9%.

• Reaffirmed 2024 adjusted EPS guidance of $1.70–$1.74 and initiated 2025 guidance of $1.84–$1.88, maintaining a 6–8% annual EPS growth target through 2029.

• Regulatory progress includes multiple rate case settlements and approvals in Pennsylvania, Kentucky, and Indiana, and major Indiana generation and technology investments.

• Data center opportunities in Northwest Indiana are being actively evaluated, with potential for substantial value creation for all stakeholders.

• The NIPSCO Minority Interest Transaction provided $2.16B in cash, strengthening liquidity and enabling debt repayment.

Financial highlights

• Q3 2024 adjusted EPS was $0.20, up $0.01 year-over-year, with GAAP net income of $85.7M and adjusted net income of $89.9M.

• Revenue for Q3 2024 increased to $1,076.3M from $1,027.4M, driven by new rates and customer growth.

• Customer count and usage growth contributed $2.6M in the quarter and over $28M year-to-date.

• Year-to-date adjusted net income reached $567.4M, up from $477.0M; adjusted EPS YTD was $1.26, up from $1.07.

• Consolidated adjusted operating income for Q3 was $223.9M, down from $242.0M year-over-year.

Outlook and guidance

• Five-year capital plan increased to $19.3B, supporting 8–10% annual rate base growth and 6–8% annual EPS growth from 2025–2029.

• Management expects to invest $3.3–$3.5B in capital in 2024 and $19.3B from 2025–2029.

• Dividend payout ratio targeted at 60–70%; total shareholder return expected at 9–11% annually.

• Less than 5% average annual bill increases projected across the plan.

• NIPSCO's 2024 Integrated Resource Plan will guide future generation investments, with a focus on reliability and anticipated load growth, including data centers.