NIMEDIUM SIGNALOPPORTUNITY10-K

NiSource has entered into a significant data center electricity supply agreement (ADS Contract) while substantially improving its financial performance across all key metrics.

The new ADS Contract represents a strategic pivot into the high-growth data center market, with NiSource establishing a dedicated subsidiary (Generation Holdings I/GenCo) to develop generation assets specifically for data center customers. This business expansion, combined with strong operational execution reflected in double-digit growth across revenue, profitability, and cash flow, positions the company well for future growth in an attractive market segment.

Comparing 2026-02-11 vs 2025-02-12View on EDGAR →
FINANCIAL ANALYSIS

NiSource delivered robust financial performance with operating income growing 26.1% to $1.8B and net income increasing 22.2% to $929.5M, while operating cash flow surged 32.6% to $2.4B. The company strengthened its balance sheet by reducing total debt 24.1% to $6.4B and decreasing current liabilities, though cash declined 29.7% likely due to capital deployment. Despite higher interest expense (+35.4%), the strong revenue growth and operational improvements demonstrate effective business execution and improved financial health.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+35.4%
$361.6M→$489.6M

Interest expense surged 35.4% — significant debt increase or rising rates materially impacting earnings.

Gross Profit
P&L
+34.2%
$902.5M→$1.2B

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Operating Cash Flow
Cash Flow
+32.6%
$1.8B→$2.4B

Operating cash flow surged 32.6% — exceptional cash generation, highest quality earnings signal.

Cash & Equivalents
Balance Sheet
-29.7%
$156.6M→$110.1M

Cash decreased 29.7% — monitor burn rate and upcoming capital needs.

Operating Income
P&L
+26.1%
$1.5B→$1.8B

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Accounts Receivable
Balance Sheet
+24.2%
$964.2M→$1.2B

Receivables grew 24.2% — monitor days sales outstanding for collection efficiency.

Total Debt
Balance Sheet
-24.1%
$8.5B→$6.4B

Debt reduced 24.1% — deleveraging strengthens balance sheet and reduces financial risk.

Net Income
P&L
+22.2%
$760.4M→$929.5M

Net income grew 22.2% — bottom-line growth signals improving overall business health.

Current Liabilities
Balance Sheet
-15.9%
$4.1B→$3.5B

Current liabilities reduced — improved short-term financial position and working capital health.

Current Assets
Balance Sheet
+14.3%
$2.1B→$2.4B

Current assets grew 14.3% — improving short-term liquidity or inventory/receivables build.

LANGUAGE CHANGES
NEW — 2026-02-11
PRIOR — 2025-02-12
ADDED
ADS Contract NIPSCO agreement to provide electricity to ADS data centers Amended LLC Agreement Third Amended and Restated Limited Liability Company Agreement of NIPSCO Holdings II AOCI Accumulated Other Comprehensive Income (Loss) ASC Accounting Standards Codification ASU Accounting Standards Update ATM At-the-market BIP BIP Blue Buyer L.L.C BIP Blue Buyer VCOC L.L.C BIP Blue Buyer VCOC L.L.C., a Delaware limited liability company and also an affiliate of Blackstone BIP Orion Holdco L.P.
BIP Orion Holdco L.P., a Delaware limited liability company and also an affiliate of Blackstone BIP Orion Holdco II L.P.
BIP Orion Holdco II L.P., a Delaware limited liability company and also an affiliate of Blackstone Blackstone Blackstone Infrastructure Partners L.P.
Investors and prospective investors should understand that many factors impact whether any forward-looking statement contained herein will, or can be, realized.
In addition, NiSource will develop the generation resources it plans to use in serving data center customers through its subsidiary Generation Holdings I (a holding company that holds a controlling interest in GenCo).
In 2025, we entered into the ADS Contract, a customized agreement under which NIPSCO will provide electric service to ADS by procuring power from GenCo, which will develop related generation assets, and we expect our data center operations to continue to grow.
In 2025, NiSource successfully maintained its ISO 55001 Asset Management certifications through LRQA, a global leader in engineering and technology services.
These certifications reaffirm our unwavering commitment to safety for our employees and partners, customers, and systems and highlight our continued dedication to operational excellence and the integrity of our SMS.
The remainder of our operations, which are not significant enough on a stand-alone basis to warrant treatment as an operating segment, consist of our centralized corporate activities and are primarily comprised of interest expense on holding company debt and unallocated corporate costs and activities, as well as new business development costs associated with GenCo.
There were no significant disruptions to our system or facilities during 2025.
REMOVED
Investors and prospective investors should understand that many factors govern whether any forward-looking statement contained herein will be or can be realized.
In 2024, NiSource was recognized with the ISO 55001 certification from LRQA, one of the world s leading providers of professional engineering and technology services.
Achieving this international certification for asset management systems recognizes NiSource s commitment to safety for our people, systems and customers.
These certifications are important milestones for our SMS and NiSource s ongoing journey towards operational excellence.
The remainder of our operations, which are not significant enough on a stand-alone basis to warrant treatment as an operating segment, consist of our centralized corporate activities and are primarily comprised of interest expense on holding company debt and unallocated corporate costs and activities.
Refer to Item 7, Management s Discussion and Analysis of Financial Condition and Results of Operations and Note 21, "Business Segment Information," in the Notes to Consolidated Financial Statements for additional information related to each segment.
There were no significant disruptions to our system or facilities during 2024.
Facility Name Location Type Storage Capacity (MCF) Blackhawk Underground Storage (1) Beaver Falls, PA Natural Gas 1,700,000 Eagle Cove Propane Petersburgh, VA Propane Gas 863 South Wales Propane Jeffersonton, VA Propane Gas 863 Portsmouth Propane-Air Portsmouth, VA Propane-Air Gas 17,300 Total Capacity 1,719,026 (1) NiSource has entered into an agreement to sell this facility, subject to approval by the Pennsylvania Public Utility Commission.
As of December 31, 2024, 33.9% of our residential customers and 41.2% of our commercial customers participated in such programs.
There were no significant disruptions to our system or facilities during 2024.
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