Nisource Inc 10-Q for FY2026 Q3

Nisource Inc. (NI)

10-Q 2026-10-28 For: 2026-09-30

Added on October 28, 2026

About this 10-Q

Nisource Inc filed this 10-Q on October 28, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

NiSource says an EPA September 2026 rule lets customers avoid approximately $675 million in additional cost. It expects additional debt and equity financing for data center generation and transmission, while construction delays, cost overruns and counterparty defaults could reduce returns. AI summary

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.3B; up 4.7% from $1.24B a year earlier
Net income: $129.5M; up 36.7% from net income of $94.7M a year earlier
Diluted EPS: $0.27; up 35.0% from $0.20 a year earlier

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DE		35-2108964
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

801 East 86th Avenue
Merrillville,	IN	46410
(Address of principal executive offices)		(Zip Code)


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share	NI	NYSE


			Page

	Defined Terms		3

PART I	FINANCIAL INFORMATION

	Item 1.	Financial Statements - unaudited

		Condensed Statements of Consolidated Income (unaudited)	9

		Condensed Statements of Consolidated Comprehensive Income (unaudited)	10

		Condensed Consolidated Balance Sheets (unaudited)	11

		Condensed Statements of Consolidated Cash Flows (unaudited)	13

		Condensed Statements of Consolidated Equity (unaudited)	14

		Notes to Condensed Consolidated Financial Statements (unaudited)	17

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	43

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	67

	Item 4.	Controls and Procedures	67

PART II	OTHER INFORMATION

	Item 1.	Legal Proceedings	68

	Item 1A.	Risk Factors	68

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	73

	Item 3.	Defaults Upon Senior Securities	73

	Item 4.	Mine Safety Disclosures	73

	Item 5.	Other Information	73

	Item 6.	Exhibits	74

	Signature		75


DEFINED TERMS
The following is a list of frequently used abbreviations or acronyms that are found in this report:

NiSource Subsidiaries and Affiliates (not exhaustive)
Columbia of Kentucky			Columbia Gas of Kentucky, Inc.
Columbia of Maryland			Columbia Gas of Maryland, Inc.

Columbia of Ohio			Columbia Gas of Ohio, Inc.
Columbia of Pennsylvania			Columbia Gas of Pennsylvania, Inc.
Columbia of Virginia			Columbia Gas of Virginia, Inc.
GenCo			NiSource Generation Company LLC, formerly known as NIPSCO Generation LLC
Generation Holdings I			Generation Holdings I LLC
Generation Holdings II			Generation Holdings II LLC
NIPSCO			Northern Indiana Public Service Company LLC
NIPSCO Holdings I			NIPSCO Holdings I LLC
NIPSCO Holdings II			NIPSCO Holdings II LLC
NiSource ("we," "us" or "our")			NiSource Inc.
Rosewater			Rosewater Wind Generation LLC and its wholly owned subsidiary, Rosewater Wind Farm LLC
Indiana Crossroads Solar			Indiana Crossroads Solar Generation LLC and its wholly owned subsidiary, Meadow Lake Solar Park LLC
Indiana Crossroads Wind			Indiana Crossroads Wind Generation LLC and its wholly owned subsidiary, Indiana Crossroads Wind Farm LLC
Dunn's Bridge I			Dunn's Bridge I Solar Generation LLC and its wholly owned subsidiary, Dunns Bridge Solar Center, LLC




Abbreviations and Other

ADS			Amazon Data Services, Inc.
ADS Contract			NIPSCO agreement to provide electricity to ADS' data centers
ADS EPC Contracts			GenCo's EPC Contracts relating to the Contract Assets
AGP			Atlas Storage 1 LLC, an indirect subsidiary of AGP Capital Holdings Pte. Ltd.
AFUDC			Allowance for funds used during construction


Alphabet			Alphabet Inc.
Alphabet Contract			NIPSCO agreement to provide electricity to Alphabet's data centers
AOCI			Accumulated other comprehensive income (loss)
ASC			Accounting standards codification
ASU			Accounting standards update
ATM			At-the-market
BESS			Battery energy storage system


BIP Orion Holdco L.P.			BIP Orion Holdco L.P., a Delaware limited partnership and also an affiliate of Blackstone
BIP Orion Holdco II L.P.			BIP Orion Holdco II L.P., a Delaware limited partnership and also an affiliate of Blackstone
Blackstone			Blackstone Infrastructure Partners L.P.
Blackstone Investor			BIP Orion Holdco L.P. and BIP Orion Holdco II L.P. (GenCo Minority Interest Transaction)
BTA			Build-transfer agreement



CCGT			Combined cycle gas turbine


DEFINED TERMS
CCRs			Coal combustion residuals
CEO			Chief executive officer
CEP			Ohio capital expenditure program
CERCLA			Comprehensive Environmental Response Compensation and Liability Act (also known as Superfund)
CODM			Chief operating decision maker
Columbia Operations			Reportable segment comprised of the results of NiSource Gas Distribution Group, Inc., including all of its Columbia Gas distribution companies and related subsidiaries
Contract Assets			Generation assets and related transmission infrastructure to be developed in connection with the ADS Contract








CT			Combustion gas turbine
Current Data Center Contracts			The ADS Contract, Alphabet Contract and Microsoft Contract

DSM			Demand side management
Dunn's Bridge II			Dunn's Bridge II Solar Generation LLC

EPA			United States Environmental Protection Agency
EPC			Engineering, procurement, and construction

EPS			Earnings per share
ESA			Energy storage agreement
FAC			Fuel adjustment clause
FASB			Financial Accounting Standards Board
FERC			Federal Energy Regulatory Commission
FMCA			Indiana federally mandated cost adjustment mechanism
F-Frames EPC Contract			GenCo’s EPC Contract relating to the two 239 MW F-frame CTs we plan to construct as part of our Pool Resource Assets
GAAP			Generally Accepted Accounting Principles
GCA			Gas cost adjustment
GCT			Generation cost tracker
GenCo Minority Interest Transaction			A transaction between Generation Holdings I, Generation Holdings II (sole owner of GenCo) and Blackstone Investor entered into in October 2025, that offered equity interests in Generation Holdings II in exchange for capital contributions by the parties.

Generation Holdings II LLC Agreement			Amended and Restated Limited Liability Company Agreement of Generation Holdings II
GHG			Greenhouse gases
GWh			Gigawatt hours


IRP			Ohio infrastructure replacement program

IURC			Indiana Utility Regulatory Commission

JV			Joint venture






MGP			Manufactured gas plant
Microsoft			Microsoft Corporation
Microsoft Contract			NIPSCO Agreement to provide capacity and electric service to Microsoft's data center facility
MISO			Midcontinent Independent System Operator
MMDth			Million dekatherms
MW			Megawatts
MWAC			Megawatt alternating current
MWh			Megawatt hours


DEFINED TERMS
Net Zero Goal			A goal, announced in November 2022, of net zero GHG emissions by 2040 covering both Scope 1 and Scope 2 GHG emissions
NIPSCO Electric			The electric generation, transmission and distribution activities of the NIPSCO Operations reportable segment
NIPSCO Gas			The gas distribution activities of the NIPSCO Operations reportable segment
NIPSCO Holdings II LLC Agreement			Third Amended and Restated Limited Liability Company Agreement of NIPSCO Holdings II

NIPSCO Industrial Group			A group of NIPSCO industrial customers who regularly participate in matters before the IURC
NIPSCO Operations			Reportable segment comprised of the results of NIPSCO Holdings I, NIPSCO Holdings II, and NIPSCO and all related subsidiaries
NYMEX			New York Mercantile Exchange

OPEB			Other postemployment benefits
OUCC			Office of Utility Consumer Counselor

PHMSA			Pipeline and Hazardous Materials Safety Administration
Pool Resource Assets			Portfolio of electric generation assets and related assets owned or contracted for by NIPSCO and/or its affiliates (primarily including GenCo) and designed to serve the needs of data center customers.
PPA			Power purchase agreement
Quanta			Quanta Power Solutions, LLC







ROE			Return on equity
SAVE			Steps to advance Virginia's energy plan
Scope 1 GHG Emissions			Direct emissions from sources owned or controlled by us (e.g., emissions from our combustion of fuel, vehicles, and process emissions and fugitive emissions)
Scope 2 GHG Emissions			Indirect emissions from sources owned or controlled by us
SEC			Securities and Exchange Commission

SMRP			Kentucky safety modification and replacement program
SMS			Safety management system



TDSIC			Indiana transmission, distribution and storage system improvement charge
Templeton			Templeton Wind Energy Center LLC


VIE			Variable interest entity

2018 Plan			2018 integrated resource plan
2021 Plan			2021 integrated resource plan
2024 Plan			2024 integrated resource plan
2026 Plan			2026 integrated resource plan


Index			Page
Condensed Statements of Consolidated Income (unaudited)			9
Condensed Statements of Consolidated Comprehensive Income (unaudited)			10
Condensed Consolidated Balance Sheets (unaudited)			11
Condensed Statements of Consolidated Cash Flows (unaudited)			13
Condensed Statements of Consolidated Equity (unaudited)			14
Notes to Condensed Consolidated Financial Statements (unaudited)			17
1. Basis of Accounting Presentation			17
2. Recent Accounting Pronouncements			17
3. Revenue Recognition			17
4. Noncontrolling Interests			21
5. Earnings Per Share			23


6. Equity			24
7. Short-Term Borrowings			24
8. Long-Term Debt			25

9. Regulatory Matters			25
10. Risk Management Activities			28
11. Fair Value			30

12. Income Taxes			33
13. Pension and Other Postemployment Benefits			33
14. Other Commitments and Contingencies			35
15. Accumulated Other Comprehensive Loss			37
16. Business Segment Information			38
17. Other, Net			41
18. Supplemental Disclosures of Cash Flow Information			42


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions, except per share amounts)	2026		2025		2026		2025
Operating Revenues
Customer revenues	$	1,299.1	$	1,240.2	$	4,910.9	$	4,636.2
Other revenues	50.3		32.9		144.0		103.1
Total Operating Revenues	1,349.4		1,273.1		5,054.9		4,739.3
Operating Expenses
Cost of energy	207.3		193.6		1,070.1		1,102.9
Operation and maintenance	428.5		401.1		1,392.6		1,225.1
Depreciation and amortization	337.8		306.9		988.3		852.2
Loss on impairment of assets	—		—		—		0.7
Loss (gain) on sale of assets, net	1.0		(0.6)		1.0		0.2
Other taxes	34.5		74.6		215.3		238.4
Total Operating Expenses	1,009.1		975.6		3,667.3		3,419.5

Operating Income	340.3		297.5		1,387.6		1,319.8
Other Income (Deductions)
Interest expense, net	(210.5)		(179.8)		(601.3)		(451.7)
Other, net	22.3		9.9		54.9		16.2

Total Other Deductions, Net	(188.2)		(169.9)		(546.4)		(435.5)
Income before Income Taxes	152.1		127.6		841.2		884.3
Income Taxes	13.1		20.6		109.1		150.1


Net Income	139.0		107.0		732.1		734.2
Net income attributable to noncontrolling interest	9.5		12.3		50.0		62.5
Net Income Attributable to NiSource	129.5		94.7		682.1		671.7
Preferred dividends redemption premium	—		—		3.6		—
Net Income Available to Common Shareholders	$	129.5	$	94.7	$	685.7	$	671.7
Earnings Per Share
Basic Earnings Per Share	$	0.27	$	0.20	$	1.43	$	1.42
Diluted Earnings Per Share	$	0.27	$	0.20	$	1.42	$	1.42
Basic Average Common Shares Outstanding	479.8		472.1		479.5		471.1
Diluted Average Common Shares	481.1		473.7		481.1		472.8


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions, net of taxes)	2026		2025		2026		2025
Net Income	$	139.0	$	107.0	$	732.1	$	734.2
Other comprehensive (loss) income:
Net unrealized (loss) gain on available-for-sale debt securities(1)	(4.3)		1.3		(4.8)		3.1
Reclassification adjustment for cash flow hedges(2)	(0.1)		(0.1)		(0.3)		(0.3)
Unrecognized pension and OPEB benefit (costs)(3)	0.3		14.0		(2.3)		14.6
Total other comprehensive (loss) income	(4.1)		15.2		(7.4)		17.4
Comprehensive Income	$	134.9	$	122.2	$	724.7	$	751.6


(in millions)	September 30, 2026		December 31, 2025
ASSETS
Property, Plant and Equipment
Plant	$	41,563.1	$	38,058.8
Accumulated depreciation and amortization	(9,967.7)		(9,370.6)


Net Property, Plant and Equipment(1)	31,595.4		28,688.2
Investments and Other Assets
Unconsolidated affiliates	10.3		8.1
Available-for-sale debt securities (amortized cost of $173.0 and $145.8, respectively)	166.1		146.1
Other investments	120.5		118.6
Total Investments and Other Assets	296.9		272.8
Current Assets
Cash and cash equivalents	57.5		110.1
Restricted cash	25.3		25.6
Accounts receivable	861.8		1,238.1
Allowance for credit losses	(33.6)		(40.6)
Accounts receivable, net	828.2		1,197.5
Gas storage	271.8		252.0
Materials and supplies, at average cost	230.5		189.0
Electric production fuel, at average cost	25.7		8.5
Exchange gas receivable	34.0		66.0

Regulatory assets	466.6		274.2
Income tax receivable	16.7		15.7


Prepayments	226.4		149.3
Other current assets	180.8		89.3
Total Current Assets(1)	2,363.5		2,377.2
Other Assets
Regulatory assets	2,447.4		2,225.2
Goodwill	1,485.9		1,485.9

Deferred charges and other	677.7		809.4
Total Other Assets(2)	4,611.0		4,520.5
Total Assets	$	38,866.8	$	35,858.7


(in millions, except share amounts)	September 30, 2026		December 31, 2025
CAPITALIZATION AND LIABILITIES
Capitalization
Stockholders’ Equity
Common stock - $0.01 par value,750,000,000 shares authorized; 479,602,650 and 478,432,058 shares outstanding, respectively	$	4.8	$	4.8

Treasury stock	(99.9)		(99.9)
Additional paid-in capital	9,891.6		9,866.6
Retained deficit	(211.7)		(315.2)
Accumulated other comprehensive loss	(13.6)		(6.2)
Total NiSource Stockholders’ Equity	9,571.2		9,450.1
Noncontrolling interest in consolidated subsidiaries	2,383.2		2,209.8
Total Stockholders’ Equity	11,954.4		11,659.9
Long-term debt, excluding amounts due within one year	16,380.8		15,457.8
Total Capitalization	28,335.2		27,117.7
Current Liabilities
Current portion of long-term debt	1,101.8		19.7
Short-term borrowings	780.0		736.0
Accounts payable	1,241.3		1,124.5
Dividends payable - common stock	148.7		4.4

Customer deposits and credits	279.4		283.4
Taxes accrued	221.5		228.8
Interest accrued	238.9		206.2

Asset retirement obligations	41.4		55.0
Exchange gas payable	81.1		125.4


Regulatory liabilities	174.3		260.1
Accrued compensation and employee benefits	249.1		246.8


Other accruals	212.4		167.1

Total Current Liabilities(1)	$	4,769.9	3,457.4
Other Liabilities

Deferred income taxes	2,691.8		2,500.1


Deferred credits	80.3		77.2
Accrued liability for postretirement and postemployment benefits	139.0		153.1
Regulatory liabilities	1,633.4		1,513.3
Asset retirement obligations	832.0		781.9
Other noncurrent liabilities	385.2		258.0

Total Other Liabilities(1)	5,761.7		5,283.6
Commitments and Contingencies (Refer to Note 14, "Other Commitments and Contingencies")
Total Capitalization and Liabilities	$	38,866.8	$	35,858.7


Nine Months Ended September 30, (in millions)	2026		2025
Operating Activities
Net Income	$	732.1	$	734.2
Adjustments to Reconcile Net Income to Net Cash from Operating Activities:

Depreciation and amortization	988.3		852.2
Deferred income taxes and investment tax credits	162.2		153.5
Loss on sale of assets	1.0		0.2


Payments for asset retirement obligations	(18.6)		(50.0)
Other adjustments	48.5		22.5
Changes in Assets and Liabilities:








Components of working capital(1)	(221.9)		(26.0)
Regulatory assets/liabilities	(82.2)		(19.5)


Deferred charges and other noncurrent assets	(3.6)		(24.4)
Other noncurrent liabilities and deferred credits and charges	63.7		7.0
Net Cash Flows from Operating Activities	1,669.5		1,649.7
Investing Activities
Capital expenditures	(3,102.5)		(1,936.0)


Cost of removal	(186.5)		(113.8)


Milestone payments to renewable generation asset developers	—		(1,091.7)
Advanced deposits	(254.7)		(161.3)
Capital expenditure reimbursement	170.4		—
Other investing activities	(29.0)		(93.8)
Net Cash Flows used for Investing Activities	(3,402.3)		(3,396.6)
Financing Activities
Proceeds from issuance of long-term debt	1,982.2		2,362.0
Repayments of finance lease obligations	(14.5)		(17.3)
Repayments of long-term debt	—		(1,250.0)


Net change in commercial paper and other short-term borrowings	44.0		655.4
Issuance of common stock, net of issuance costs	10.4		259.1


Equity costs, premiums and other debt related costs	(28.1)		(22.0)
Contributions from NIPSCO and GenCo minority interest holders	194.4		145.3

Distribution to NIPSCO minority interest holders	(59.5)		(55.5)
Distributions to tax equity partners	(11.5)		(12.8)
Dividends paid - common stock	(437.5)		(396.4)



Net Cash Flows from Financing Activities	1,679.9		1,667.8
Change in cash, cash equivalents and restricted cash	(52.9)		(79.1)
Cash, cash equivalents and restricted cash at beginning of period	135.7		198.6
Cash, Cash Equivalents and Restricted Cash at End of Period	$	82.8	$	119.5
(1) Refer to Note 18, "Supplemental Disclosures of Cash Flow Information," for additional information.


(in millions)	September 30, 2026		December 31, 2025
Cash and cash equivalents	$	57.5	$	110.1
Restricted cash	25.3		25.6
Total Cash, Cash Equivalents and Restricted Cash	$	82.8	$	135.7


(in millions)	Common Stock		Treasury Stock		Additional Paid-In Capital		Retained Deficit		Accumulated Other Comprehensive Loss		Noncontrolling Interest in Consolidated Subsidiaries		Total
Balance as of June 30, 2026	$	4.8	$	(99.9)	$	9,875.4	$	(196.2)	$	(9.5)	$	2,319.8	$	11,894.4
Comprehensive Income:
Net income	—		—		—		129.5		—		9.5		139.0
Other comprehensive loss, net of tax	—		—		—		—		(4.1)		—		(4.1)
Dividends:
Common stock ($0.30 per share)	—		—		—		(145.0)		—		—		(145.0)

Noncontrolling Interests:
Contributions from noncontrolling interests	—		—		—		—		—		69.9		69.9
Distributions to noncontrolling interests	—		—		—		—		—		(16.0)		(16.0)

Stock Issuances:




Employee stock purchase plan	—		—		2.0		—		—		—		2.0
Long-term incentive plan	—		—		12.2		—		—		—		12.2
401(k) and profit sharing	—		—		2.0		—		—		—		2.0

Balance as of September 30, 2026	$	4.8	$	(99.9)	$	9,891.6	$	(211.7)	$	(13.6)	$	2,383.2	$	11,954.4


(in millions)	Common Stock		Treasury Stock		Additional Paid-In Capital		Retained Deficit		Accumulated Other Comprehensive Loss		Noncontrolling Interest in Consolidated Subsidiaries		Total
Balance as of December 31, 2025	$	4.8	$	(99.9)	$	9,866.6	$	(315.2)	$	(6.2)	$	2,209.8	$	11,659.9
Comprehensive Income:
Net income	—		—		—		682.1		—		50.0		732.1
Other comprehensive loss, net of tax	—		—		—		—		(7.4)		—		(7.4)
Dividends:
Common stock ($1.20 per share)	—		—		—		(582.2)		—		—		(582.2)

Noncontrolling Interests:

Contributions from noncontrolling interests	—		—		—		—		—		194.4		194.4
Distributions to noncontrolling interests	—		—		—		—		—		(71.0)		(71.0)


Stock Issuances:


Series A preferred stock redemption premium	—		—		—		3.6		—		—		3.6

Employee stock purchase plan	—		—		6.0		—		—		—		6.0
Long-term incentive plan	—		—		12.2		—		—		—		12.2
401(k) and profit sharing	—		—		6.8		—		—		—		6.8

Balance as of September 30, 2026	$	4.8	$	(99.9)	$	9,891.6	$	(211.7)	$	(13.6)	$	2,383.2	$	11,954.4


	Common
Shares (in thousands)	Shares	Treasury	Outstanding
Balance as of June 30, 2026	483,461	(3,963)	479,498
Issued:


Employee stock purchase plan	44	—	44
Long-term incentive plan	14	—	14
401(k) and profit sharing	47	—	47



Balance as of September 30, 2026	483,566	(3,963)	479,603

	Common
Shares (in thousands)	Shares	Treasury	Outstanding
Balance as of December 31, 2025	482,395	(3,963)	478,432
Issued:


Employee stock purchase plan	134	—	134
Long-term incentive plan	887	—	887
401(k) and profit sharing	150	—	150



Balance as of September 30, 2026	483,566	(3,963)	479,603


	Common
Shares (in thousands)	Shares	Treasury	Outstanding
Balance as of June 30, 2025	474,747	(3,963)	470,784
Issued:
Employee stock purchase plan	47	—	47
Long-term incentive plan	24	—	24
401(k) and profit sharing	55	—	55
ATM program	6,226	—	6,226


Balance as of September 30, 2025	481,099	(3,963)	477,136

	Common
Shares (in thousands)	Shares	Treasury	Outstanding
Balance as of December 31, 2024	473,785	(3,963)	469,822
Issued:

Employee stock purchase plan	141	—	141
Long-term incentive plan	768	—	768
401(k) and profit sharing	179	—	179
ATM program	6,226	—	6,226


Balance as of September 30, 2025	481,099	(3,963)	477,136


Three months ended September 30, 2026 (in millions)	Columbia Operations		NIPSCO Operations		Corporate and Other(4)		Total
Gas Distribution
Residential	$	343.4	$	75.1	$	—	$	418.5
Commercial	98.2		35.4		—		133.6
Industrial	36.0		19.9		—		55.9
Off-system	6.8		—		—		6.8


Miscellaneous(1)	8.5		2.6		—		11.1
Subtotal	$	492.9	$	133.0	$	—	$	625.9
Electric Generation and Power Delivery
Residential	—		249.4		—		249.4
Commercial	—		213.4		6.5		219.9
Industrial	—		178.8		—		178.8
Wholesale	—		15.7		4.0		19.7
Public Authority	—		4.1		—		4.1
Miscellaneous(1)	—		1.3		—		1.3
Subtotal	$	—	$	662.7	$	10.5	$	673.2
Total Customer Revenues(2)	492.9		795.7		10.5		1,299.1
Other Revenues(3)	9.3		39.5		1.5		50.3
Total Operating Revenues	$	502.2	$	835.2	$	12.0	$	1,349.4
(1)Amounts included in Columbia Operations primarily relate to earnings share mechanisms, late fees, and wholesale revenues. Amounts included in NIPSCO Operations primarily relate to late fees, property rentals, transmission revenue, and offsetting regulatory program deferrals. (2)Customer revenue amounts exclude intersegment revenues. See Note 16, "Business Segment Information," for discussion of intersegment revenues. (3)Amounts included in Columbia Operations primarily relate to alternative revenue programs including weather normalization adjustment mechanisms. Amounts included in NIPSCO Operations primarily relate to alternative revenue programs including weather normalization adjustment mechanisms, MISO multi-value projects and revenue from FERC jurisdictional transmission assets. Amounts included in Corporate and Other primarily relate to products and services revenue. (4)Amounts included in Corporate and Other primarily relate to data center customer revenue and wholesale revenues from excess capacity sales into the MISO Planning Resource Auction.

Three months ended September 30, 2025 (in millions)	Columbia Operations		NIPSCO Operations		Corporate and Other		Total
Gas Distribution
Residential	$	328.1	$	72.9	$	—	$	401.0
Commercial	95.1		32.2		—		127.3
Industrial	36.0		19.7		—		55.7
Off-system	13.8		—		—		13.8


Miscellaneous(1)	6.7		2.6		—		9.3
Subtotal	$	479.7	$	127.4	$	—	$	607.1
Electric Generation and Power Delivery
Residential	$	—	$	254.6	$	—	$	254.6
Commercial	—		210.6		—		210.6
Industrial	—		156.2		—		156.2

Wholesale	—		18.4		—		18.4


Nine months ended September 30, 2026 (in millions)	Columbia Operations		NIPSCO Operations		Corporate and Other(4)		Total
Gas Distribution
Residential	$	1,652.5	$	495.9	$	—	$	2,148.4
Commercial	553.8		192.4		—		746.2
Industrial	133.7		75.0		—		208.7
Off-system	35.1		—		—		35.1


Miscellaneous(1)	31.2		8.7		—		39.9
Subtotal	$	2,406.3	$	772.0	$	—	$	3,178.3
Electric Generation and Power Delivery
Residential	$	—	$	609.3	$	—	$	609.3
Commercial	—		567.2		6.5		573.7
Industrial	—		493.5		—		493.5
Wholesale	—		34.1		4.0		38.1
Public Authority	—		12.1		—		12.1
Miscellaneous(1)	—		5.9		—		5.9
Subtotal	$	—	$	1,722.1	$	10.5	$	1,732.6
Total Customer Revenues(2)	2,406.3		2,494.1		10.5		4,910.9
Other Revenues(3)	16.1		123.5		4.4		144.0
Total Operating Revenues	$	2,422.4	$	2,617.6	$	14.9	$	5,054.9
(1)Amounts included in Columbia Operations are primarily relate to earnings share mechanisms, late fees, and wholesale revenues. Amounts included in NIPSCO Operations primarily relate to late fees, property rentals, transmission revenue, and offsetting regulatory program deferrals. (2)Customer revenue amounts exclude intersegment revenues. See Note 16, "Business Segment Information," for discussion of intersegment revenues. (3)Amounts included in Columbia Operations primarily relate to alternative revenue programs including weather normalization adjustment mechanisms. Amounts included in NIPSCO Operations primarily relate to alternative revenue programs including weather normalization adjustment mechanisms, MISO multi-value projects and revenue from FERC jurisdictional transmission assets. Amounts included in Corporate and Other primarily relate to products and services revenue. (4)Corporate and Other revenues primarily relate to data center customer revenue and wholesale revenue from excess capacity sales into the MISO Planning Resource Auction.

Nine months ended September 30, 2025 (in millions)	Columbia Operations		NIPSCO Operations		Corporate and Other		Total
Gas Distribution
Residential	$	1,576.3	$	478.5	$	—	$	2,054.8
Commercial	527.8		180.8		—		708.6
Industrial	121.5		73.7		—		195.2
Off-system	58.9		—		—		58.9


Miscellaneous(1)	27.4		10.6		—		38.0
Subtotal	$	2,311.9	$	743.6	$	—	$	3,055.5
Electric Generation and Power Delivery
Residential	$	—	$	586.4	$	—	$	586.4
Commercial	—		531.7		—		531.7
Industrial	—		432.3		—		432.3

Wholesale	—		37.9		—		37.9


(in millions)	Columbia Operations		NIPSCO Operations		Total
Balance as of December 31, 2025	$	15.6	$	25.0	$	40.6
Current period provisions	39.5		15.3		54.8
Write-offs charged against allowance	(53.8)		(17.5)		(71.3)
Recoveries of amounts previously written off	7.5		2.0		9.5
Balance as of September 30, 2026	$	8.8	$	24.8	$	33.6


(in millions)	Columbia Operations		NIPSCO Operations		Total
Balance as of December 31, 2024	$	9.8	$	13.9	$	23.7
Current period provisions	42.3		25.0		67.3
Write-offs charged against allowance	(50.8)		(15.0)		(65.8)
Recoveries of amounts previously written off	14.3		1.1		15.4
Balance as of December 31, 2025	$	15.6	$	25.0	$	40.6


(in millions)	Customer Accounts Receivable, Billed (less reserve)		Customer Accounts Receivable, Unbilled (less reserve)
Balance as of December 31, 2025	$	698.8	$	465.2
Balance as of September 30, 2026	$	623.8	$	123.0


Recurring Fair Value Measurements September 30, 2026 (in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of September 30, 2026
Assets


Risk management assets	$	—	$	10.6	$	—	$	10.6

Available-for-sale debt securities	—		166.1		—		166.1
Equity securities(1)(2)	9.2		—		—		9.2
Total	$	9.2	$	176.7	$	—	$	185.9
Liabilities

Risk management liabilities	$	—	$	13.1	$	—	$	13.1
Total	$	—	$	13.1	$	—	$	13.1


Recurring Fair Value Measurements December 31, 2025 (in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2025
Assets



Risk management assets	$	—	$	18.8	$	—	$	18.8


Available-for-sale debt securities	—		146.1		—		146.1
Equity Securities(1)(2)	8.5		—		—		8.5
Total	$	8.5	$	164.9	$	—	$	173.4
Liabilities

Risk management liabilities	$	—	$	5.9	$	—	$	5.9
Total	$	—	$	5.9	$	—	$	5.9


September 30, 2026 (in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses(1)		Fair Value
Available-for-sale debt securities
U.S. Treasury debt securities	$	6.9	$	—	$	(0.1)	$	6.8
Corporate/Other debt securities	166.1		0.3		(7.1)		159.3
Total	$	173.0	$	0.3	$	(7.2)	$	166.1

December 31, 2025 (in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses(2)		Fair Value
Available-for-sale debt securities
U.S. Treasury debt securities	$	9.5	$	—	$	—	$	9.5
Corporate/Other debt securities	136.3		2.4		(2.1)		136.6
Total	$	145.8	$	2.4	$	(2.1)	$	146.1


(in millions)	Carrying Amount as of September 30, 2026		Estimated Fair Value as of September 30, 2026		Carrying Amount as of Dec. 31, 2025		Estimated Fair Value as of Dec. 31, 2025
Long-term debt (including current portion)	$	17,482.6	$	15,963.1	$	15,477.5	$	14,975.3


	Pension Benefits				OPEB
Three Months Ended September 30, (in millions)	2026		2025		2026		2025
Components of Net Periodic Benefit Cost(1)
Service cost	$	5.3	$	4.9	$	0.9	$	1.0
Interest cost	14.0		16.0		4.5		5.6
Expected return on assets	(22.5)		(23.1)		(4.1)		(4.2)
Amortization of prior service credit	—		—		(1.1)		(0.4)
Recognized actuarial loss	5.9		6.4		0.1		0.4
Settlement loss	4.7		5.6		—		—
Total Net Periodic Benefit Cost	$	7.4	$	9.8	$	0.3	$	2.4
(1)The service cost component and all non-service cost components of net periodic benefit (income) cost are presented in "Operation and maintenance" and "Other, net," respectively, on the Condensed Statements of Consolidated Income (unaudited).


(in millions)	Gains and Losses on Securities(1)		Gains and Losses on Cash Flow Hedges(1)		Pension and OPEB Items(1)		Accumulated Other Comprehensive Loss(1)
Balance as of June 30, 2026	$	(0.4)	$	(13.8)	$	4.7	$	(9.5)
Other comprehensive income (loss) before reclassifications	(4.4)		(0.1)		0.1		(4.4)
Amounts reclassified from accumulated other comprehensive loss	0.1		—		0.2		0.3
Net current-period other comprehensive income (loss)	(4.3)		(0.1)		0.3		(4.1)

Balance as of September 30, 2026	$	(4.7)	$	(13.9)	$	5.0	$	(13.6)
(1)All amounts are net of tax. Amounts in parentheses indicate debits.


Three Months Ended September 30, 2026
(in millions)	Columbia Operations		NIPSCO Operations		Total of Reportable Segments
Operating Revenues
External Revenue	$	502.2	$	835.2	$	1,337.4
Intersegment Revenue	3.4		0.3		3.7
Total Operating Revenue	$	505.6	$	835.5	$	1,341.1

Cost of energy	46.5		157.5		204.0
O&M	204.3		231.3		435.6
Depreciation	126.5		202.7		329.2
Total other taxes	8.4		20.5		28.9
Other segment items(1)	0.7		0.4		1.1




Operating Income	$	119.2	$	223.1	$	342.3


Three Months Ended September 30, 2025
(in millions)	Columbia Operations		NIPSCO Operations		Total of Reportable Segments
Operating Revenues
External revenue	$	484.9	$	787.0	$	1,271.9
Intersegment revenue	3.3		0.3		3.6
Total Operating Revenue	488.2		787.3		1,275.5

Cost of energy	58.5		135.2		193.7
O&M	212.8		215.1		427.9
Depreciation	112.7		185.3		298.0

Total other taxes	52.0		19.1		71.1
Other segment items(1)	0.1		—		0.1




Operating Income	$	52.1	$	232.6	$	284.7


Nine Months Ended September 30, 2026
(in millions)	Columbia Operations		NIPSCO Operations		Total of Reportable Segments
Operating Revenues
External revenue	$	2,422.4	$	2,617.6	$	5,040.0
Intersegment revenue	10.3		0.9		11.2
Total Operating Revenue	$	2,432.7	$	2,618.5	$	5,051.2

Cost of energy	511.2		554.6		1,065.8
O&M	707.9		723.1		1,431.0
Depreciation	378.8		587.6		966.4
Total other taxes	139.3		60.8		200.1
Other segment items(1)	0.7		0.4		1.1




Operating Income	$	694.8	$	692.0	$	1,386.8


Nine Months Ended September 30, 2025
(in millions)	Columbia Operations		NIPSCO Operations		Total of Reportable Segments
Operating Revenues
External revenue	$	2,326.7	$	2,409.0	$	4,735.7
Intersegment revenue	10.0		0.8		10.8
Total Operating Revenue	2,336.7		2,409.8		4,746.5

Cost of energy	548.7		554.3		1,103.0
O&M	663.5		628.1		1,291.6
Depreciation	332.6		492.5		825.1

Total other taxes	171.4		55.7		227.1
Other segment items(1)	0.4		0.7		1.1




Operating Income	$	620.1	$	678.5	$	1,298.6


Three Months Ended September 30, 2026
(in millions)	Total Reportable Segments		Corporate and Other		Eliminations		Consolidated NiSource
Total Operating Revenue	$	1,341.1	$	165.1	$	(156.8)	$	1,349.4
Operating Income	342.3		(2.0)		—		340.3


Index			Page
Executive Summary			44
Summary of Consolidated Financial Results			47
Results and Discussion of Segment Operations			53
Columbia Operations			54
NIPSCO Operations			49
Liquidity and Capital Resources			57
Regulatory, Environmental and Safety Matters			62
Market Risk Disclosures			65
Other Information			66


	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions, except per share amounts)	2026		2025		Favorable (Unfavorable)		2026		2025		Favorable (Unfavorable)
Operating Revenues	$	1,349.4	$	1,273.1	$	76.3	$	5,054.9	$	4,739.3	$	315.6
Operating Expenses
Cost of energy	207.3		193.6		(13.7)		1,070.1		1,102.9		32.8
Other operating expenses	801.8		782.0		(19.8)		2,597.2		2,316.6		(280.6)
Total Operating Expenses	1,009.1		975.6		(33.5)		3,667.3		3,419.5		(247.8)
Operating Income	340.3		297.5		42.8		1,387.6		1,319.8		67.8
Total Other Deductions, Net	(188.2)		(169.9)		(18.3)		(546.4)		(435.5)		(110.9)
Income Taxes	13.1		20.6		7.5		109.1		150.1		41.0


Net Income	139.0		107.0		32.0		732.1		734.2		(2.1)
Net income attributable to noncontrolling interest	9.5		12.3		2.8		50.0		62.5		12.5
Net Income Attributable to NiSource	129.5		94.7		34.8		682.1		671.7		10.4
Preferred dividends redemption premium	—		—		—		3.6		—		3.6
Net Income Available to Common Shareholders	$	129.5	$	94.7	$	34.8	$	685.7	$	671.7	$	14.0
Earnings Per Share
Basic Earnings Per Share	$	0.27	$	0.20	$	0.07	$	1.43	$	1.42	$	0.01
Diluted Earnings Per Share	$	0.27	$	0.20	$	0.07	$	1.42	$	1.42	$	—


	Favorable (Unfavorable)
Changes in Operating Revenues (in millions)	Three Months Ended September 30, 2026 vs 2025		Nine Months Ended September 30, 2026 vs 2025


Rates from base rate proceedings, regulatory capital and DSM programs	$	28.9	$	233.4
The effects of customer growth	1.5		7.9
The effects of customer usage	8.6		4.0
Tax credit passback	(15.5)		(22.9)
The effects of weather in 2026 compared to 2025, net of NIPSCO Gas' weather normalization mechanism	(1.8)		(19.0)
Policy adjustments	0.3		(14.0)



Other	(1.9)		6.6
Change in operating revenues (before cost of energy and other tracked items)	$	20.1	$	196.0
Operating revenues offset in operating expense
Higher tracker deferrals within operation and maintenance, depreciation and tax	5.8		12.5
Higher cost of energy billed to customers	22.3		0.2

Total change in operating revenues	$	48.2	$	208.7


	Favorable (Unfavorable)
Changes in Operating Expenses (in millions)	Three Months Ended September 30, 2026 vs 2025		Nine Months Ended September 30, 2026 vs 2025
Higher depreciation and amortization expense driven by new base rates	$	(15.1)	$	(92.0)
Workplace continuity related expenses	—		(30.5)
Higher outside services expenses	(5.2)		(22.0)
Higher employee and administrative expenses	(1.8)		(10.4)
Higher property taxes	(2.8)		(8.0)
Value Captured initiative	(3.1)		(6.0)
Higher uncollectibles	(1.9)		(5.4)
Higher materials and supplies expenses	(2.9)		(5.2)



Other	3.2		(3.0)
Change in operating expenses (before cost of energy and other tracked items)	$	(29.6)	$	(182.5)
Operating expenses offset in operating revenue
Lower tracker deferrals within operation and maintenance, depreciation and tax	(5.8)		(12.5)
Higher cost of energy billed to customers	(22.3)		(0.2)


Total change in operating expense	$	(57.7)	$	(195.2)


(in billions)	2027 Estimated	2028 Estimated	2029 Estimated	2030 Estimated	2031 Estimated
Capital Investments (Base Business)	$3.8 - 4.0	$3.6 - 3.8	$4.3 - 4.5	$4.1 - 4.3	$4.7 - 4.9
Capital Investments (GenCo)	3.1 - 3.3	3.1 - 3.3	1.0 - 1.2	0.3 - 0.5	0.0 - 0.2
Capital Investments (Total)	$6.9 - 7.3	$6.7 - 7.1	$5.3 - 5.7	$4.4 - 4.8	$4.7 - 5.1


(in millions)
Company	Approved ROE		Requested Incremental Revenue		Approved Incremental Revenue		Filing Date	Rates Effective
Approved Rate Cases
Columbia of Pennsylvania	10.00	%	$	110.4	$	55.6	March 20, 2025	January 2026
Columbia of Maryland	9.80	%	$	10.7	$	7.8	September 24, 2024	April 2025
Columbia of Kentucky	9.75	%	$	23.8	$	14.3	May 16, 2024	January 2025
Columbia of Virginia(1)	9.75	%	$	37.2	$	28.2	April 29, 2024	October 2024
Columbia of Ohio	9.60	%	$	221.4	$	68.3	June 30, 2021	March 2023
NIPSCO - Gas(2)	9.75	%	$	161.9	$	120.9	October 25, 2023	August 2024
NIPSCO - Electric(3)	9.75	%	$	368.7	$	257.0	September 12, 2024	July 2025
Pending Rate Cases
Columbia of Virginia(4)	In Process		$	64.4	In Process		May 7, 2026	October 2026 & 2027
Columbia of Kentucky	In Process		$	28.8	In Process		May 20, 2026	January 2027
Columbia of Ohio(5)	In Process		$	351.3	In Process		October 19, 2026	January 2028, 2029 & 2030



(4.1)			Fourth Supplemental Indenture, dated as of August 18, 2026, between NiSource Inc. and The Bank of New York Mellon, as trustee (incorporated by reference to Exhibit 4.1 to the NiSource Inc. Form 8-K filed on August 18, 2026).

(4.2)			Form of 6.250% Fixed-to-Fixed Reset Junior Subordinated Notes due 2057 (incorporated by reference to Exhibit 4.2 to the NiSource Inc. Form 8-K filed on August 18, 2026).

(31.1)			Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

(31.2)			Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

(32.1)			Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).*

(32.2)			Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).*

(101.INS)			Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

(101.SCH)			Inline XBRL Schema Document

(101.CAL)			Inline XBRL Calculation Linkbase Document

(101.LAB)			Inline XBRL Labels Linkbase Document

(101.PRE)			Inline XBRL Presentation Linkbase Document

(101.DEF)			Inline XBRL Definition Linkbase Document

(104)			Cover page Interactive Data File (formatted as inline XBRL, and contained in Exhibit 101.)

*			Exhibit filed herewith.
**			Schedules and similar attachments to this Exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally a copy of any omitted schedule or exhibit to the U.S. Securities and Exchange Commission (the “SEC”) upon request


/s/ Lloyd M. Yates
Lloyd M. Yates
President and Chief Executive Officer

Date: October 28, 2026