NiSource Q3 Earnings Surge on Strong Revenue Growth
Ticker: NI · Form: 10-Q · Filed: Oct 29, 2025 · CIK: 1111711
| Field | Detail |
|---|---|
| Company | Nisource INC. (NI) |
| Form Type | 10-Q |
| Filed Date | Oct 29, 2025 |
| Risk Level | medium |
| Pages | 15 |
| Reading Time | 18 min |
| Key Dollar Amounts | $0.01 |
| Sentiment | bullish |
Sentiment: bullish
Topics: Utilities, Earnings Growth, Infrastructure Investment, Debt Management, Data Centers, Regulatory Environment, Energy Sector
TL;DR
**NiSource is powering up with solid revenue and profit growth, but keep an eye on those rising interest costs.**
AI Summary
NiSource Inc. reported a significant increase in operating revenues and net income for both the three and nine months ended September 30, 2025. Customer revenues rose to $1,240.2 million for the three months, up from $1,046.1 million in the prior year, and reached $4,636.2 million for the nine months, compared to $3,743.2 million in 2024. Net income attributable to NiSource increased to $94.7 million for the quarter, up from $85.7 million, and to $671.7 million for the nine-month period, a substantial rise from $536.5 million. This growth was partially offset by higher operating expenses, including a cost of energy increase to $193.6 million for the quarter and $1,102.9 million for the nine months, and increased operation and maintenance costs of $401.1 million and $1,225.1 million, respectively. Interest expense, net, also rose significantly to $179.8 million for the quarter and $451.7 million for the nine months, reflecting increased financing activities. The company's strategic outlook includes managing data center growth and executing utility infrastructure investments, while facing risks related to construction, financing, and regulatory outcomes, as detailed in the forward-looking statements.
Why It Matters
This filing reveals NiSource's robust financial performance, driven by increased customer revenues and strategic investments in utility infrastructure. For investors, the 10.5% increase in quarterly net income to $94.7 million and 25.2% rise in nine-month net income to $671.7 million signals strong operational execution and potential for continued growth, especially with the focus on data center development. Employees and customers could see benefits from these investments in improved infrastructure and service reliability. However, the significant increase in interest expense, up 33.6% for the quarter, highlights rising financing costs, which could impact future profitability and competitive positioning in the utility sector.
Risk Assessment
Risk Level: medium — The risk level is medium due to significant increases in debt and interest expenses, alongside substantial capital expenditure plans. Long-term debt, excluding current portions, increased from $12,074.5 million at December 31, 2024, to $14,472.1 million at September 30, 2025, a 19.8% rise. Concurrently, interest expense, net, jumped 33.6% to $179.8 million for the three months ended September 30, 2025, compared to $134.6 million in the prior year, indicating higher financing costs that could strain future earnings.
Analyst Insight
Investors should monitor NiSource's ability to effectively manage its increasing debt load and interest expenses, especially as it pursues capital-intensive projects like data center development. While revenue and net income growth are positive, scrutinize the return on these investments and the impact of rising financing costs on free cash flow. Consider the sustainability of dividend payments given the increased financial leverage.
Financial Highlights
- debt To Equity
- 1.39
- revenue
- $1,273.1M
- operating Margin
- 23.4%
- total Assets
- $34,402.9M
- total Debt
- $14,472.1M
- net Income
- $94.7M
- eps
- $0.20
- gross Margin
- 69.0%
- cash Position
- $95.0M
- revenue Growth
- +18.3%
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Customer revenues | $1,240.2M | +18.5% |
| Other revenues | $32.9M | +9.0% |
| Total Operating Revenues | $1,273.1M | +18.3% |
Key Numbers
- $1,240.2M — Customer Revenues (Q3 2025) (Increased from $1,046.1 million in Q3 2024, indicating strong demand.)
- $4,636.2M — Customer Revenues (YTD 2025) (Increased from $3,743.2 million in YTD 2024, showing significant year-over-year growth.)
- $94.7M — Net Income Attributable to NiSource (Q3 2025) (Increased from $85.7 million in Q3 2024, representing a 10.5% rise.)
- $671.7M — Net Income Attributable to NiSource (YTD 2025) (Increased from $536.5 million in YTD 2024, a 25.2% increase.)
- $0.20 — Diluted EPS (Q3 2025) (Increased from $0.19 in Q3 2024.)
- $1.42 — Diluted EPS (YTD 2025) (Increased from $1.14 in YTD 2024.)
- $179.8M — Interest Expense, Net (Q3 2025) (Increased from $134.6 million in Q3 2024, a 33.6% rise.)
- $14,472.1M — Long-term debt (Sept 30, 2025) (Increased from $12,074.5 million at Dec 31, 2024, reflecting increased financing.)
- $28,000.1M — Net Property, Plant and Equipment (Sept 30, 2025) (Increased from $25,453.9 million at Dec 31, 2024, indicating significant capital investments.)
- 477,195,529 — Common Shares Outstanding (Oct 22, 2025) (Reflects the total shares outstanding as of the latest practicable date.)
Key Players & Entities
- NISOURCE INC. (company) — Registrant and utility holding company
- Blackstone Infrastructure Partners L.P. (company) — Affiliate involved in NIPSCO minority equity investment
- NIPSCO (company) — Northern Indiana Public Service Company LLC, a key subsidiary
- SEC (regulator) — Securities and Exchange Commission
- IURC (regulator) — Indiana Utility Regulatory Commission
- MISO (company) — Midcontinent Independent System Operator, relevant for capacity resources
- Columbia Gas of Kentucky, Inc. (company) — NiSource Gas Distribution company subsidiary
- Columbia Gas of Ohio, Inc. (company) — NiSource Gas Distribution company subsidiary
- Customer (company) — Purchaser of electricity under Data Center Contract
- NYSE (regulator) — New York Stock Exchange, where NI common stock is registered
FAQ
What were NiSource's total operating revenues for the nine months ended September 30, 2025?
NiSource's total operating revenues for the nine months ended September 30, 2025, were $4,739.3 million, a significant increase from $3,867.3 million for the same period in 2024.
How did NiSource's net income attributable to common shareholders change in Q3 2025?
Net income available to common shareholders for NiSource increased to $94.7 million for the three months ended September 30, 2025, up from $85.7 million in the prior year, representing a 10.5% increase.
What is the current amount of NiSource's long-term debt as of September 30, 2025?
As of September 30, 2025, NiSource's long-term debt, excluding amounts due within one year, stood at $14,472.1 million, an increase from $12,074.5 million at December 31, 2024.
What is the significance of the Data Center Contract for NiSource?
The Data Center Contract is an agreement for NIPSCO to provide electricity to a customer's data centers, involving the development of generation assets and related transmission infrastructure. This represents a strategic growth opportunity for NiSource.
What are the primary risks associated with NiSource's data center strategy?
Key risks include the ability to construct and place Contract Assets into service on time and within cost estimates, obtaining significant additional financing on favorable terms, the customer's performance under the Data Center Contract, and potential changes in MISO accreditation treatment of capacity resources.
How many common shares of NiSource Inc. were outstanding as of October 22, 2025?
As of October 22, 2025, NiSource Inc. had 477,195,529 shares of common stock outstanding, with a par value of $0.01 per share.
What was NiSource's basic earnings per share for the nine months ended September 30, 2025?
NiSource's basic earnings per share for the nine months ended September 30, 2025, was $1.42, an increase from $1.15 for the same period in 2024.
What is the role of Blackstone in NiSource's operations?
Blackstone, through its affiliates BIP Orion Holdco L.P. and BIP Orion Holdco II L.P., is an investor in connection with a minority equity investment in GenCo, a NiSource subsidiary, as part of the NIPSCO Minority Interest Transaction.
What are NiSource's total assets as of September 30, 2025?
NiSource's total assets as of September 30, 2025, amounted to $34,402.9 million, an increase from $31,788.1 million at December 31, 2024.
What is the meaning of 'AFUDC' in the NiSource 10-Q filing?
In the NiSource 10-Q filing, 'AFUDC' stands for Allowance for funds used during construction, which is an accounting convention used by utilities to capitalize the cost of funds used to finance construction projects.
Risk Factors
- Increased Interest Expense [medium — financial]: Interest expense, net, rose by 33.6% to $179.8 million for the quarter and 18.8% to $451.7 million year-to-date. This increase is attributed to higher financing activities, which could strain future profitability if debt levels and interest rates remain elevated.
- Rising Operating Expenses [medium — operational]: Cost of energy increased by 16.7% to $193.6 million for the quarter and 46.0% to $1,102.9 million year-to-date. Operation and maintenance costs also grew by 12.2% to $401.1 million for the quarter and 12.0% to $1,225.1 million year-to-date. These rising costs offset some of the revenue gains.
- Increased Debt Load [high — financial]: Long-term debt increased from $12,074.5 million at December 31, 2024, to $14,472.1 million at September 30, 2025. This 19.9% increase signifies substantial financing activities, likely to fund capital investments, but also increases financial leverage and risk.
- Capital Investment Execution [medium — operational]: The company is executing significant utility infrastructure investments and managing data center growth. Successful execution is critical, but risks related to construction, financing, and regulatory outcomes are inherent in these large-scale projects.
- Regulatory Outcomes [medium — regulatory]: The company faces risks associated with regulatory outcomes. Changes in regulations or unfavorable decisions could impact operations, pricing, and financial performance, as highlighted in the forward-looking statements.
Industry Context
NiSource operates in the regulated utility sector, providing essential energy services. The industry is characterized by significant capital investments in infrastructure, a focus on reliability and sustainability, and increasing demand from data centers. Competition is typically localized due to the nature of utility services, but the broader energy transition presents opportunities and challenges.
Regulatory Implications
As a regulated utility, NiSource is subject to extensive oversight by various state and federal agencies. Changes in regulatory frameworks, rate case outcomes, and environmental regulations can significantly impact financial performance and strategic decisions. The company's ability to secure necessary approvals for infrastructure projects is also a key regulatory consideration.
What Investors Should Do
- Monitor interest expense trends and debt levels.
- Analyze the drivers of increased operating expenses.
- Evaluate the execution of capital investment plans.
Key Dates
- 2025-09-30: End of Q3 2025 — Reporting period for the presented financial results, showing increased revenues and net income.
- 2025-12-31: End of Fiscal Year 2024 — Baseline for comparison of long-term debt and net property, plant, and equipment.
Glossary
- Customer revenues
- Revenue generated from the sale of energy and energy-related services to end-users. (Primary revenue driver for NiSource, indicating demand for its utility services.)
- Cost of energy
- The direct costs associated with purchasing or generating the energy supplied to customers. (A significant operating expense that directly impacts profitability, especially with fluctuating energy market prices.)
- Net Property, Plant and Equipment
- The value of a company's tangible assets used in operations, net of accumulated depreciation. (Represents the company's investment in its infrastructure, crucial for a utility company's service delivery.)
- Long-term debt
- Financial obligations that are due more than one year from the balance sheet date. (Indicates the company's leverage and financing strategy, impacting interest expenses and financial risk.)
- Noncontrolling interest
- The portion of equity in a subsidiary that is not attributable to the parent company. (Represents ownership stakes in consolidated subsidiaries, affecting the net income attributable to NiSource.)
Year-Over-Year Comparison
NiSource Inc. has demonstrated robust year-over-year growth, with customer revenues increasing by 18.5% for the quarter and 23.8% year-to-date. Net income attributable to NiSource also saw a substantial rise of 10.5% for the quarter and 25.2% year-to-date. This positive performance was achieved despite a significant increase in operating expenses, including cost of energy and operation and maintenance. However, a notable concern is the 33.6% surge in net interest expense for the quarter and a 18.8% increase year-to-date, alongside a considerable rise in long-term debt, indicating increased financial leverage to fund growth initiatives.
Filing Stats: 4,454 words · 18 min read · ~15 pages · Grade level 9.3 · Accepted 2025-10-29 06:41:46
Key Financial Figures
- $0.01 — ich Registered Common Stock, par value $0.01 per share NI NYSE Indicate by check m
Filing Documents
- nix-20250930.htm (10-Q) — 2580KB
- ni-ex101x20250930.htm (EX-10.1) — 492KB
- ni-ex102x20250930.htm (EX-10.2) — 686KB
- ni-ex311x20250930.htm (EX-31.1) — 11KB
- ni-ex312x20250930.htm (EX-31.2) — 11KB
- ni-ex321x20250930.htm (EX-32.1) — 5KB
- ni-ex322x20250930.htm (EX-32.2) — 5KB
- 0001111711-25-000055.txt ( ) — 13058KB
- nix-20250930.xsd (EX-101.SCH) — 68KB
- nix-20250930_cal.xml (EX-101.CAL) — 82KB
- nix-20250930_def.xml (EX-101.DEF) — 505KB
- nix-20250930_lab.xml (EX-101.LAB) — 735KB
- nix-20250930_pre.xml (EX-101.PRE) — 612KB
- nix-20250930_htm.xml (XML) — 2066KB
FINANCIAL INFORMATION
PART I FINANCIAL INFORMATION
Financial Statements - unaudited
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
Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 43
Quantitative and Qualitative Disclosures About Market Risk
Item 3. Quantitative and Qualitative Disclosures About Market Risk 67
Controls and Procedures
Item 4. Controls and Procedures 67
OTHER INFORMATION
PART II OTHER INFORMATION
Legal Proceedings
Item 1. Legal Proceedings 68
Risk Factors
Item 1A. Risk Factors 68
Unregistered Sales of Equity Securities and Use of Proceeds
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 71
Defaults Upon Senior Securities
Item 3. Defaults Upon Senior Securities 71
Mine Safety Disclosures
Item 4. Mine Safety Disclosures 71
Other Information
Item 5. Other Information 71
Exhibits
Item 6. Exhibits 73 Signature 74 2 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 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 Wind Indiana Crossroads Wind Generation LLC and its wholly owned subsidiary, Indiana Crossroads Wind Farm LLC Indiana Crossroads Solar Indiana Crossroads Solar Generation LLC and its wholly owned subsidiary, Meadow Lake Solar Park LLC Dunns Bridge I Dunn's Bridge I Solar Generation LLC and its wholly owned subsidiary, Dunns Bridge Solar Center, LLC Gibson Gibson Solar LLC Fairbanks Fairbanks Solar Energy Center LLC Abbreviations and Other AFUDC Allowance for funds used during construction 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
FINANCIAL STATEMENTS
ITEM 1. FINANCIAL STATEMENTS NiSource Inc. Condensed Statements of Consolidated Income (unaudited) Three Months Ended September 30, Nine Months Ended September 30, (in millions, except per share amounts) 2025 2024 2025 2024 Operating Revenues Customer revenues $ 1,240.2 $ 1,046.1 $ 4,636.2 $ 3,743.2 Other revenues 32.9 30.2 103.1 124.1 Total Operating Revenues 1,273.1 1,076.3 4,739.3 3,867.3 Operating Expenses Cost of energy 193.6 165.9 1,102.9 755.6 Operation and maintenance 401.1 357.4 1,225.1 1,093.5 Depreciation and amortization 306.9 269.5 852.2 765.1 Loss on impairment of assets — — 0.7 2.9 Loss (gain) on sale of assets, net ( 0.6 ) ( 0.5 ) 0.2 1.1 Other taxes 74.6 65.7 238.4 210.4 Total Operating Expenses 975.6 858.0 3,419.5 2,828.6 Operating Income 297.5 218.3 1,319.8 1,038.7 Other Income (Deductions) Interest expense, net ( 179.8 ) ( 134.6 ) ( 451.7 ) ( 380.2 ) Other, net 9.9 29.2 16.2 51.4 Total Other Deductions, Net ( 169.9 ) ( 105.4 ) ( 435.5 ) ( 328.8 ) Income before Income Taxes 127.6 112.9 884.3 709.9 Income Taxes 20.6 15.9 150.1 109.5 Net Income 107.0 97.0 734.2 600.4 Net income attributable to noncontrolling interest 12.3 11.3 62.5 63.9 Net Income Attributable to NiSource 94.7 85.7 671.7 536.5 Preferred dividends — — — ( 6.7 ) Preferred redemption premium — — — ( 14.0 ) Net Income Available to Common Shareholders $ 94.7 $ 85.7 $ 671.7 $ 515.8 Earnings Per Share Basic Earnings Per Share $ 0.20 $ 0.19 $ 1.42 $ 1.15 Diluted Earnings Per Share $ 0.20 $ 0.19 $ 1.42 $ 1.14 Basic Average Common Shares Outstanding 472.1 451.9 471.1 449.4 Diluted Average Common Shares 473.7 454.5 472.8 451.4 The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements. 9 Table of Contents
FINANCIAL STATEMENTS (continued)
ITEM 1. FINANCIAL STATEMENTS (continued) NiSource Inc. Condensed Statements of Consolidated Comprehensive Income (unaudited) Three Months Ended September 30, Nine Months Ended September 30, (in millions, net of taxes) 2025 2024 2025 2024 Net Income $ 107.0 $ 97.0 $ 734.2 $ 600.4 Other comprehensive income: Net unrealized gain on available-for-sale debt securities (1) 1.3 3.5 3.1 3.2 Reclassification adjustment for cash flow hedges (2) ( 0.1 ) ( 0.1 ) ( 0.3 ) ( 0.3 ) Unrecognized pension and OPEB benefit (3) 14.0 0.6 14.6 1.1 Total other comprehensive income 15.2 4.0 17.4 4.0 Comprehensive Income $ 122.2 $ 101.0 $ 751.6 $ 604.4 (1) Net unrealized gain on available-for-sale debt securities, net of $ 0.3 million tax expense and $ 0.9 million tax expense in the third quarter of 2025 and 2024, respectively, and $ 0.8 million tax expense for the nine months ended 2025 and 2024, respectively. (2) Reclassification adjustment for cash flow hedges, net of $ 0.1 million tax benefit and $ 0.1 million tax benefit in the third quarter of 2025 and 2024, respectively, and $ 0.2 million tax benefit and $ 0.1 million tax benefit for the nine months ended 2025 and 2024, respectively. (3) Unrecognized pension and OPEB benefit, net of $ 4.6 million tax expense and $ 0.2 million tax expense in the third quarter of 2025 and 2024, respectively, and $ 4.8 million tax expense and $ 0.4 million tax expense for the nine months ended 2025 and 2024, respectively. The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements. 10 Table of Contents
FINANCIAL STATEMENTS (continued)
ITEM 1. FINANCIAL STATEMENTS (continued) NiSource Inc. Condensed Consolidated Balance Sheets (unaudited) (in millions) September 30, 2025 December 31, 2024 ASSETS Property, Plant and Equipment Plant $ 37,201.7 $ 34,152.9 Accumulated depreciation and amortization ( 9,201.6 ) ( 8,699.0 ) Net Property, Plant and Equipment (1) 28,000.1 25,453.9 Investments and Other Assets Unconsolidated affiliates 7.7 6.5 Available-for-sale debt securities (amortized cost of $ 160.4 and $ 91.9 , allowance for credit losses of $ 0.1 and $ 0.1 , respectively) 159.0 86.7 Other investments 116.2 85.5 Total Investments and Other Assets 282.9 178.7 Current Assets Cash and cash equivalents 95.0 156.6 Restricted cash 24.5 42.0 Accounts receivable 719.6 987.9 Allowance for credit losses ( 18.6 ) ( 23.7 ) Accounts receivable, net 701.0 964.2 Gas storage 268.3 179.6 Materials and supplies, at average cost 183.3 173.3 Electric production fuel, at average cost 23.7 36.2 Exchange gas receivable 42.9 45.7 Regulatory assets 326.5 319.9 Prepayments 157.4 138.5 Other current assets 25.6 24.2 Total Current Assets (1) 1,848.2 2,080.2 Other Assets Regulatory assets 2,132.9 2,157.4 Goodwill 1,485.9 1,485.9 Deferred charges and other 652.9 432.0 Total Other Assets 4,271.7 4,075.3 Total Assets $ 34,402.9 $ 31,788.1 (1) Includes $ 1,284.4 million and $ 1,323.8 million at September 30, 2025 and December 31, 2024, respectively, of net property, plant and equipment assets and $ 59.6 million and $ 65.0 million at September 30, 2025 and December 31, 2024, respectively, of current assets of consolidated VIEs that may be used only to settle obligations of the consolidated VIEs. Refer to Note 4, "Noncontrolling Interests," for additional information. The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements. 11 Table of Contents
FINANCIAL STATEMENTS (continued)
ITEM 1. FINANCIAL STATEMENTS (continued) NiSource Inc. Condensed Consolidated Balance Sheets (unaudited) (continued) (in millions, except share amounts) September 30, 2025 December 31, 2024 CAPITALIZATION AND LIABILITIES Capitalization Stockholders' Equity Common stock - $ 0.01 par value, 750,000,000 shares authorized; 477,136,079 and 469,822,472 shares outstanding, respectively $ 4.8 $ 4.7 Treasury stock ( 99.9 ) ( 99.9 ) Additional paid-in capital 9,798.3 9,521.5 Retained deficit ( 572.0 ) ( 711.7 ) Accumulated other comprehensive loss ( 13.0 ) ( 30.4 ) Total NiSource Stockholders' Equity 9,118.2 8,684.2 Noncontrolling interest in consolidated subsidiaries 2,123.6 1,984.1 Total Stockholders' Equity 11,241.8 10,668.3 Long-term debt, excluding amounts due within one year 14,472.1 12,074.5 Total Capitalization 25,713.9 22,742.8 Current Liabilities Current portion of long-term debt 31.3 1,281.2 Short-term borrowings 1,260.0 604.6 Accounts payable 712.0 863.1 Dividends payable - common stock 137.4 — Customer deposits and credits 273.5 268.8 Taxes accrued 179.0 173.4 Interest accrued 198.2 157.0 Asset retirement obligations 66.3 84.6 Exchange gas payable 100.0 91.8 Regulatory liabilities 192.0 150.5 Accrued compensation and employee benefits 218.0 268.2 Other accruals 165.7 170.2 Total Current Liabilities (1) 3,533.4 4,113.4 Other Liabilities Deferred income taxes 2,405.4 2,281.6 Accrued liability for postretirement and postemployment benefits 174.4 207.5 Regulatory liabilities 1,487.0 1,431.2 Asset retirement obligations 751.4 698.6 Other noncurrent liabilities and deferred credits 337.4 313.0 Total Other Liabilities (1) 5,155.6 4,931.9 Commitments and Contingencies (Refer to Note 14, "Other Commitments and Contingencies") Total Capitalization and Liabilities $ 34,402.9 $ 31,788.1 (1) Includes $ 54.4 million and $ 53.7 million at September 30, 2025 and December 31, 2024, respectively, of current liabilities and
FINANCIAL STATEMENTS (continued)
ITEM 1. FINANCIAL STATEMENTS (continued) NiSource Inc. Condensed Statements of Consolidated Cash Flows (unaudited) Nine Months Ended September 30, (in millions) 2025 2024 Operating Activities Net Income $ 734.2 $ 600.4 Adjustments to Reconcile Net Income to Net Cash from Operating Activities: Depreciation and amortization 852.2 765.1 Deferred income taxes and investment tax credits 153.5 109.1 Loss on sale of assets 0.2 1.1 Payments for asset retirement obligations ( 50.0 ) ( 55.0 ) Other adjustments 22.5 ( 14.9 ) Changes in Assets and Liabilities: Components of working capital (1) ( 26.0 ) ( 85.8 ) Regulatory assets/liabilities ( 19.5 ) ( 35.6 ) Deferred charges and other noncurrent assets ( 24.4 ) ( 45.1 ) Other noncurrent liabilities and deferred credits 7.0 2.4 Net Cash Flows from Operating Activities 1,649.7 1,241.7 Investing Activities Capital expenditures ( 1,936.0 ) ( 1,854.0 ) Cost of removal ( 113.8 ) ( 108.9 ) Milestone payments to renewable generation asset developers ( 1,091.7 ) ( 478.8 ) Advanced deposits ( 161.3 ) — Other investing activities ( 93.8 ) 27.2 Net Cash Flows used for Investing Activities ( 3,396.6 ) ( 2,414.5 ) Financing Activities Proceeds from issuance of long-term debt 2,362.0 2,229.6 Repayments of finance lease obligations ( 17.3 ) ( 20.4 ) Repayments of long-term debt ( 1,250.0 ) — Repayment of short-term debt (maturity > 90 days) — ( 1,650.0 ) Net change in commercial paper and other short-term borrowings 655.4 ( 1,141.6 ) Issuance of common stock, net of issuance costs 259.1 507.9 Redemption of preferred stock — ( 486.1 ) Preferred stock redemption premium — ( 14.0 ) Equity costs, premiums and other debt related costs ( 22.0 ) ( 62.9 ) Contributions from NIPSCO minority interest holders 145.3 99.5 Distribution to NIPSCO minority interest holders ( 55.5 ) ( 32.0 ) Distributions to tax equity partners ( 12.8 ) ( 14.3 ) Dividends paid - common stock ( 396.4 ) ( 357.0 ) Div
FINANCIAL STATEMENTS (continued)
ITEM 1. FINANCIAL STATEMENTS (continued) NiSource Inc. Condensed Statements of Consolidated Equity (unaudited) (in millions) Common Stock Preferred Stock Treasury Stock Additional Paid-In Capital Retained Deficit Accumulated Other Comprehensive Loss Noncontrolling Interest in Consolidated Subsidiaries Total Balance as of June 30, 2025 $ 4.7 $ — $ ( 99.9 ) $ 9,538.0 $ ( 532.1 ) $ ( 28.2 ) $ 2,114.4 $ 10,996.9 Comprehensive Income: Net income — — — — 94.7 — 12.3 107.0 Other comprehensive income, net of tax — — — — — 15.2 — 15.2 Dividends: Common stock ($ 0.280 per share) — — — — ( 134.6 ) — — ( 134.6 ) Noncontrolling Interests: Contributions from noncontrolling interests — — — — — — 11.0 11.0 Distributions to noncontrolling interests — — — — — — ( 14.1 ) ( 14.1 ) Stock issuances: Employee stock purchase plan — — — 1.9 — — — 1.9 Long-term incentive plan — — — 7.2 — — — 7.2 401(k) and profit sharing — — — 2.4 — — — 2.4 ATM program 0.1 — — 248.8 — — — 248.9 Balance as of September 30, 2025 $ 4.8 $ — $ ( 99.9 ) $ 9,798.3 $ ( 572.0 ) $ ( 13.0 ) $ 2,123.6 $ 11,241.8 (in millions) Common Stock Preferred Stock Treasury Stock Additional Paid-In Capital Retained Deficit Accumulated Other Comprehensive Loss Noncontrolling Interest in Consolidated Subsidiaries Total Balance as of December 31, 2024 $ 4.7 $ — $ ( 99.9 ) $ 9,521.5 $ ( 711.7 ) $ ( 30.4 ) $ 1,984.1 $ 10,668.3 Comprehensive Income: Net income — — — — 671.7 — 62.5 734.2 Other comprehensive income, net of tax — — — — — 17.4 — 17.4 Dividends: Common stock ($ 1.120 per share) — — — — ( 532.0 ) — —