filings.toolsItem 1. FINANCIAL STATEMENTS
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Item 1. FINANCIAL STATEMENTS
NiSource Inc.
Condensed Statements of Consolidated Income (unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (in millions, except per share amounts) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Operating Revenues | |||||||||||||||||||||||
| Customer revenues | $ | 1,289.5 | $ | 1,246.5 | $ | 3,611.8 | $ | 3,396.0 | |||||||||||||||
| Other revenues | 52.9 | 36.5 | 93.7 | 70.2 | |||||||||||||||||||
| Total Operating Revenues | 1,342.4 | 1,283.0 | 3,705.5 | 3,466.2 | |||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||
| Cost of energy | 193.6 | 261.8 | 862.8 | 909.3 | |||||||||||||||||||
| Operation and maintenance | 474.9 | 396.2 | 964.1 | 824.0 | |||||||||||||||||||
| Depreciation and amortization | 362.2 | 286.7 | 650.5 | 545.3 | |||||||||||||||||||
| Loss on impairment of assets | — | 0.4 | — | 0.7 | |||||||||||||||||||
| Loss on sale of assets, net | — | 0.8 | — | 0.8 | |||||||||||||||||||
| Other taxes | 83.6 | 74.2 | 180.8 | 163.8 | |||||||||||||||||||
| Total Operating Expenses | 1,114.3 | 1,020.1 | 2,658.2 | 2,443.9 | |||||||||||||||||||
| Operating Income | 228.1 | 262.9 | 1,047.3 | 1,022.3 | |||||||||||||||||||
| Other Income (Deductions) | |||||||||||||||||||||||
| Interest expense, net | (199.2) | (139.1) | (390.8) | (271.9) | |||||||||||||||||||
| Other, net | 18.2 | 0.5 | 32.6 | 6.3 | |||||||||||||||||||
| Total Other Deductions, Net | (181.0) | (138.6) | (358.2) | (265.6) | |||||||||||||||||||
| Income before Income Taxes | 47.1 | 124.3 | 689.1 | 756.7 | |||||||||||||||||||
| Income Taxes | 10.2 | 23.8 | 96.0 | 129.5 | |||||||||||||||||||
| Net Income | 36.9 | 100.5 | 593.1 | 627.2 | |||||||||||||||||||
| Net income (loss) attributable to noncontrolling interest | (8.6) | (1.7) | 40.5 | 50.2 | |||||||||||||||||||
| Net Income Attributable to NiSource | 45.5 | 102.2 | 552.6 | 577.0 | |||||||||||||||||||
| Preferred dividends redemption premium | — | — | 3.6 | — | |||||||||||||||||||
| Net Income Available to Common Shareholders | $ | 45.5 | $ | 102.2 | $ | 556.2 | $ | 577.0 | |||||||||||||||
| Earnings Per Share | |||||||||||||||||||||||
| Basic Earnings Per Share | $ | 0.10 | $ | 0.22 | $ | 1.16 | $ | 1.22 | |||||||||||||||
| Diluted Earnings Per Share | $ | 0.09 | $ | 0.22 | $ | 1.15 | $ | 1.22 | |||||||||||||||
| Basic Average Common Shares Outstanding | 479.7 | 471.0 | 479.4 | 470.6 | |||||||||||||||||||
| Diluted Average Common Shares | 481.2 | 472.1 | 481.0 | 472.3 |
The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Condensed Statements of Consolidated Comprehensive Income (unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (in millions, net of taxes) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Net Income | $ | 36.9 | $ | 100.5 | $ | 593.1 | $ | 627.2 | |||||||||||||||
| Other comprehensive (loss) income: | |||||||||||||||||||||||
| Net unrealized (loss) gain on available-for-sale debt securities(1) | 0.7 | 1.0 | (0.5) | 1.8 | |||||||||||||||||||
| Reclassification adjustment for cash flow hedges(2) | (0.1) | (0.1) | (0.2) | (0.2) | |||||||||||||||||||
| Unrecognized pension and OPEB benefit (costs)(3) | (0.9) | 0.1 | (2.6) | 0.6 | |||||||||||||||||||
| Total other comprehensive (loss) income | (0.3) | 1.0 | (3.3) | 2.2 | |||||||||||||||||||
| Comprehensive Income | $ | 36.6 | $ | 101.5 | $ | 589.8 | $ | 629.4 | |||||||||||||||
(1)Net unrealized (loss) gain on available-for-sale debt securities, net of zero tax benefit and $0.3 million tax expense in the second quarter of 2026 and 2025, respectively, and $0.3 million of tax benefit and $0.5 million of tax expense for the six months ended 2026 and 2025, respectively.
(2)Reclassification adjustment for cash flow hedges, net of $0.1 million tax benefit in the second quarter and six months ended 2026 and 2025, respectively.
(3)Unrecognized pension and OPEB benefit (cost), net of $0.1 million tax benefit and $0.1 million tax expense in the second quarter of 2026 and 2025, respectively, and $1.4 million of tax expense and $0.2 million of tax expense for the six months ended 2026 and 2025, respectively.
The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Condensed Consolidated Balance Sheets (unaudited)
| (in millions) | June 30, 2026 | December 31, 2025 | |||||||||
| ASSETS | |||||||||||
| Property, Plant and Equipment | |||||||||||
| Plant | $ | 40,300.8 | $ | 38,058.8 | |||||||
| Accumulated depreciation and amortization | (9,779.5) | (9,370.6) | |||||||||
| Net Property, Plant and Equipment(1) | 30,521.3 | 28,688.2 | |||||||||
| Investments and Other Assets | |||||||||||
| Unconsolidated affiliates | 8.2 | 8.1 | |||||||||
| Available-for-sale debt securities (amortized cost of $164.6 and $145.8, respectively) | 163.3 | 146.1 | |||||||||
| Other investments | 121.5 | 118.6 | |||||||||
| Total Investments and Other Assets | 293.0 | 272.8 | |||||||||
| Current Assets | |||||||||||
| Cash and cash equivalents | 70.0 | 110.1 | |||||||||
| Restricted cash | 25.4 | 25.6 | |||||||||
| Accounts receivable | 886.7 | 1,238.1 | |||||||||
| Allowance for credit losses | (40.2) | (40.6) | |||||||||
| Accounts receivable, net | 846.5 | 1,197.5 | |||||||||
| Gas storage | 173.6 | 252.0 | |||||||||
| Materials and supplies, at average cost | 212.4 | 189.0 | |||||||||
| Electric production fuel, at average cost | 22.4 | 8.5 | |||||||||
| Exchange gas receivable | 37.9 | 66.0 | |||||||||
| Regulatory assets | 400.0 | 274.2 | |||||||||
| Income tax receivable | 7.6 | 15.7 | |||||||||
| Prepayments | 246.1 | 149.3 | |||||||||
| Other current assets | 157.5 | 89.3 | |||||||||
| Total Current Assets(1) | 2,199.4 | 2,377.2 | |||||||||
| Other Assets | |||||||||||
| Regulatory assets | 2,360.8 | 2,225.2 | |||||||||
| Goodwill | 1,485.9 | 1,485.9 | |||||||||
| Deferred charges and other | 683.2 | 809.4 | |||||||||
| Total Other Assets(2) | 4,529.9 | 4,520.5 | |||||||||
| Total Assets | $ | 37,543.6 | $ | 35,858.7 |
(1)Includes $1,764.0 million and $1,312.7 million at June 30, 2026 and December 31, 2025, respectively, of net property, plant and equipment assets and $223.4 million and $90.1 million at June 30, 2026 and December 31, 2025, 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.
(2)Includes $210.7 million and $305.4 million at June 30, 2026 and December 31, 2025, respectively, of advanced deposits of project costs and $10.0 million and zero, respectively, of regulatory assets at June 30, 2026 and December 31, 2025, respectively, 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.
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Condensed Consolidated Balance Sheets (unaudited) (continued)
| (in millions, except share amounts) | June 30, 2026 | December 31, 2025 | ||||||||||||
| CAPITALIZATION AND LIABILITIES | ||||||||||||||
| Capitalization | ||||||||||||||
| Stockholders’ Equity | ||||||||||||||
| Common stock - $0.01 par value,750,000,000 shares authorized; 479,498,053 and 478,432,058 shares outstanding, respectively | $ | 4.8 | $ | 4.8 | ||||||||||
| Treasury stock | (99.9) | (99.9) | ||||||||||||
| Additional paid-in capital | 9,875.4 | 9,866.6 | ||||||||||||
| Retained deficit | (196.2) | (315.2) | ||||||||||||
| Accumulated other comprehensive loss | (9.5) | (6.2) | ||||||||||||
| Total NiSource Stockholders’ Equity | 9,574.6 | 9,450.1 | ||||||||||||
| Noncontrolling interest in consolidated subsidiaries | 2,319.8 | 2,209.8 | ||||||||||||
| Total Stockholders’ Equity | 11,894.4 | 11,659.9 | ||||||||||||
| Long-term debt, excluding amounts due within one year | 15,612.6 | 15,457.8 | ||||||||||||
| Total Capitalization | 27,507.0 | 27,117.7 | ||||||||||||
| Current Liabilities | ||||||||||||||
| Current portion of long-term debt | 1,098.4 | 19.7 | ||||||||||||
| Short-term borrowings | 692.0 | 736.0 | ||||||||||||
| Accounts payable | 1,135.6 | 1,124.5 | ||||||||||||
| Dividends payable - common stock | 148.0 | 4.4 | ||||||||||||
| Customer deposits and credits | 163.8 | 283.4 | ||||||||||||
| Taxes accrued | 246.3 | 228.8 | ||||||||||||
| Interest accrued | 241.4 | 206.2 | ||||||||||||
| Asset retirement obligations | 48.1 | 55.0 | ||||||||||||
| Exchange gas payable | 76.8 | 125.4 | ||||||||||||
| Regulatory liabilities | 188.1 | 260.1 | ||||||||||||
| Accrued compensation and employee benefits | 190.7 | 246.8 | ||||||||||||
| Other accruals | 185.3 | 167.1 | ||||||||||||
| Total Current Liabilities(1) | 4,414.5 | 3,457.4 | ||||||||||||
| Other Liabilities | ||||||||||||||
| Deferred income taxes | 2,623.8 | 2,500.1 | ||||||||||||
| Deferred credits | 78.7 | 77.2 | ||||||||||||
| Accrued liability for postretirement and postemployment benefits | 140.1 | 153.1 | ||||||||||||
| Regulatory liabilities | 1,586.2 | 1,513.3 | ||||||||||||
| Asset retirement obligations | 811.8 | 781.9 | ||||||||||||
| Other noncurrent liabilities | 381.5 | 258.0 | ||||||||||||
| Total Other Liabilities(1) | 5,622.1 | 5,283.6 | ||||||||||||
| Commitments and Contingencies (Refer to Note 15, "Other Commitments and Contingencies") | ||||||||||||||
| Total Capitalization and Liabilities | $ | 37,543.6 | $ | 35,858.7 |
(1)Includes $335.6 million and $56.9 million at June 30, 2026 and December 31, 2025, respectively, of current liabilities and $57.0 million and $55.7 million at June 30, 2026 and December 31, 2025, respectively, of other liabilities, and finance leases of $40.0 million and $40.1 million at June 30, 2026 and December 31, 2025, respectively, of consolidated VIEs that creditors do not have recourse to our general credit. 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.
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Condensed Statements of Consolidated Cash Flows (unaudited)
| Six Months Ended June 30, (in millions) | 2026 | 2025 | |||||||||
| Operating Activities | |||||||||||
| Net Income | $ | 593.1 | $ | 627.2 | |||||||
| Adjustments to Reconcile Net Income to Net Cash from Operating Activities: | |||||||||||
| Depreciation and amortization | 650.5 | 545.3 | |||||||||
| Deferred income taxes and investment tax credits | 107.6 | 120.4 | |||||||||
| Loss on sale of assets | — | 0.8 | |||||||||
| Payments for asset retirement obligations | (12.1) | (31.3) | |||||||||
| Other adjustments | 38.2 | 22.3 | |||||||||
| Changes in Assets and Liabilities: | |||||||||||
| Components of working capital(1) | (272.0) | (64.8) | |||||||||
| Regulatory assets/liabilities | (56.1) | (23.7) | |||||||||
| Deferred charges and other noncurrent assets | 18.0 | (14.9) | |||||||||
| Other noncurrent liabilities and deferred credits and charges | 55.5 | 0.5 | |||||||||
| Net Cash Flows from Operating Activities | 1,122.7 | 1,181.8 | |||||||||
| Investing Activities | |||||||||||
| Capital expenditures | (1,902.6) | (1,295.5) | |||||||||
| Milestone payments to renewable generation asset developers | — | (958.0) | |||||||||
| Advanced deposits | (92.1) | (160.9) | |||||||||
| Other investing activities | (112.1) | (151.9) | |||||||||
| Net Cash Flows used for Investing Activities | (2,106.8) | (2,566.3) | |||||||||
| Financing Activities | |||||||||||
| Proceeds from issuance of long-term debt | 1,239.7 | 2,362.0 | |||||||||
| Repayments of finance lease obligations | (10.4) | (10.9) | |||||||||
| Net change in commercial paper and other short-term borrowings | (44.0) | (604.6) | |||||||||
| Issuance of common stock, net of issuance costs | 7.0 | 6.8 | |||||||||
| Equity costs, premiums and other debt related costs | (24.7) | (17.7) | |||||||||
| Contributions from NIPSCO and GenCo minority interest holders | 124.5 | 134.3 | |||||||||
| Distribution to NIPSCO minority interest holders | (47.0) | (44.4) | |||||||||
| Distributions to tax equity partners | (8.0) | (9.8) | |||||||||
| Dividends paid - common stock | (293.3) | (264.2) | |||||||||
| Net Cash Flows from Financing Activities | 943.8 | 1,551.5 | |||||||||
| Change in cash, cash equivalents and restricted cash | (40.3) | 167.0 | |||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 135.7 | 198.6 | |||||||||
| Cash, Cash Equivalents and Restricted Cash at End of Period | $ | 95.4 | $ | 365.6 | |||||||
| (1) Refer to Note 19, "Supplemental Disclosures of Cash Flow Information," for additional information. |
Reconciliation to Balance Sheet
| (in millions) | June 30, 2026 | December 31, 2025 | |||||||||
| Cash and cash equivalents | $ | 70.0 | $ | 110.1 | |||||||
| Restricted cash | 25.4 | 25.6 | |||||||||
| Total Cash, Cash Equivalents and Restricted Cash | $ | 95.4 | $ | 135.7 |
The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Condensed Statements of Consolidated Equity (unaudited)
| (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 March 31, 2026 | $ | 4.8 | $ | (99.9) | $ | 9,859.1 | $ | (96.6) | $ | (9.2) | $ | 2,269.3 | $ | 11,927.5 | |||||||||||||||||||||||||||||||||
| Comprehensive Income: | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | 45.5 | — | (8.6) | 36.9 | ||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss, net of tax | — | — | — | — | (0.3) | — | (0.3) | ||||||||||||||||||||||||||||||||||||||||
| Dividends: | |||||||||||||||||||||||||||||||||||||||||||||||
| Common stock ($0.30 per share) | — | — | — | (145.1) | — | — | (145.1) | ||||||||||||||||||||||||||||||||||||||||
| Noncontrolling Interests: | |||||||||||||||||||||||||||||||||||||||||||||||
| Contributions from noncontrolling interests | — | — | — | — | — | 91.0 | 91.0 | ||||||||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | — | — | — | — | — | (31.9) | (31.9) | ||||||||||||||||||||||||||||||||||||||||
| Stock Issuances: | |||||||||||||||||||||||||||||||||||||||||||||||
| Employee stock purchase plan | — | — | 2.1 | — | — | — | 2.1 | ||||||||||||||||||||||||||||||||||||||||
| Long-term incentive plan | — | — | 12.0 | — | — | — | 12.0 | ||||||||||||||||||||||||||||||||||||||||
| 401(k) and profit sharing | — | — | 2.2 | — | — | — | 2.2 | ||||||||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2026 | $ | 4.8 | $ | (99.9) | $ | 9,875.4 | $ | (196.2) | $ | (9.5) | $ | 2,319.8 | $ | 11,894.4 | |||||||||||||||||||||||||||||||||
| (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 | — | — | — | 552.6 | — | 40.5 | 593.1 | ||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss, net of tax | — | — | — | — | (3.3) | — | (3.3) | ||||||||||||||||||||||||||||||||||||||||
| Dividends: | |||||||||||||||||||||||||||||||||||||||||||||||
| Common stock ($0.90 per share) | — | — | — | (437.2) | — | — | (437.2) | ||||||||||||||||||||||||||||||||||||||||
| Noncontrolling Interests: | |||||||||||||||||||||||||||||||||||||||||||||||
| Contributions from noncontrolling interests | — | — | — | — | — | 124.5 | 124.5 | ||||||||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | — | — | — | — | — | (55.0) | (55.0) | ||||||||||||||||||||||||||||||||||||||||
| Stock Issuances: | |||||||||||||||||||||||||||||||||||||||||||||||
| Series A preferred stock redemption premium | — | — | — | 3.6 | — | — | 3.6 | ||||||||||||||||||||||||||||||||||||||||
| Employee stock purchase plan | — | — | 4.0 | — | — | — | 4.0 | ||||||||||||||||||||||||||||||||||||||||
| 401(k) and profit sharing | — | — | 4.8 | — | — | — | 4.8 | ||||||||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2026 | $ | 4.8 | $ | (99.9) | $ | 9,875.4 | $ | (196.2) | $ | (9.5) | $ | 2,319.8 | $ | 11,894.4 | |||||||||||||||||||||||||||||||||
ITEM 1. FINANCIAL STATEMENTS (continued)
| (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 March 31, 2025 | $ | 4.7 | $ | (99.9) | $ | 9,522.6 | $ | (501.4) | $ | (29.2) | $ | 2,049.2 | $ | 10,946.0 | |||||||||||||||||||||||||||||||||
| Comprehensive Income: | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | 102.2 | — | (1.7) | 100.5 | ||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income, net of tax | — | — | — | — | 1.0 | — | 1.0 | ||||||||||||||||||||||||||||||||||||||||
| Dividends: | |||||||||||||||||||||||||||||||||||||||||||||||
| Common stock ($0.28 per share) | — | — | — | (132.9) | — | — | (132.9) | ||||||||||||||||||||||||||||||||||||||||
| Noncontrolling Interests: | |||||||||||||||||||||||||||||||||||||||||||||||
| Contributions from noncontrolling interests | — | — | — | — | — | 99.5 | 99.5 | ||||||||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interest | — | — | — | — | — | (32.6) | (32.6) | ||||||||||||||||||||||||||||||||||||||||
| Stock Issuances: | |||||||||||||||||||||||||||||||||||||||||||||||
| Employee stock purchase plan | — | — | 1.9 | — | — | — | 1.9 | ||||||||||||||||||||||||||||||||||||||||
| Long-term incentive plan | — | — | 11.4 | — | — | — | 11.4 | ||||||||||||||||||||||||||||||||||||||||
| 401(k) and profit sharing | — | — | 2.1 | — | — | — | 2.1 | ||||||||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2025 | $ | 4.7 | $ | (99.9) | $ | 9,538.0 | $ | (532.1) | $ | (28.2) | $ | 2,114.4 | $ | 10,996.9 | |||||||||||||||||||||||||||||||||
| (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, 2024 | $ | 4.7 | $ | (99.9) | $ | 9,521.5 | $ | (711.7) | $ | (30.4) | $ | 1,984.1 | $ | 10,668.3 | |||||||||||||||||||||||||||||||||
| Comprehensive Income: | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | 577.0 | — | 50.2 | 627.2 | ||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income, net of tax | — | — | — | — | 2.2 | — | 2.2 | ||||||||||||||||||||||||||||||||||||||||
| Dividends: | |||||||||||||||||||||||||||||||||||||||||||||||
| Common stock ($0.84 per share) | — | — | — | (397.4) | — | — | (397.4) | ||||||||||||||||||||||||||||||||||||||||
| Noncontrolling Interests: | |||||||||||||||||||||||||||||||||||||||||||||||
| Contributions from noncontrolling interests | — | — | — | — | — | 134.3 | 134.3 | ||||||||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interest | — | — | — | — | — | (54.2) | (54.2) | ||||||||||||||||||||||||||||||||||||||||
| Stock Issuances: | |||||||||||||||||||||||||||||||||||||||||||||||
| Employee stock purchase plan | — | — | 3.6 | — | — | — | 3.6 | ||||||||||||||||||||||||||||||||||||||||
| Long-term incentive plan | — | — | 8.1 | — | — | — | 8.1 | ||||||||||||||||||||||||||||||||||||||||
| 401(k) and profit sharing | — | — | 4.8 | — | — | — | 4.8 | ||||||||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2025 | $ | 4.7 | $ | (99.9) | $ | 9,538.0 | $ | (532.1) | $ | (28.2) | $ | 2,114.4 | $ | 10,996.9 | |||||||||||||||||||||||||||||||||
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Condensed Statements of Consolidated Equity (unaudited) (continued)
| Common | |||||||||||||||||||||||
| Shares (in thousands) | Shares | Treasury | Outstanding | ||||||||||||||||||||
| Balance as of March 31, 2026 | 483,328 | (3,963) | 479,365 | ||||||||||||||||||||
| Issued: | |||||||||||||||||||||||
| Employee stock purchase plan | 45 | — | 45 | ||||||||||||||||||||
| Long-term incentive plan | 42 | — | 42 | ||||||||||||||||||||
| 401(k) and profit sharing | 46 | — | 46 | ||||||||||||||||||||
| Balance as of June 30, 2026 | 483,461 | (3,963) | 479,498 | ||||||||||||||||||||
| Common | |||||||||||||||||||||||
| Shares (in thousands) | Shares | Treasury | Outstanding | ||||||||||||||||||||
| Balance as of December 31, 2025 | 482,395 | (3,963) | 478,432 | ||||||||||||||||||||
| Issued: | |||||||||||||||||||||||
| Employee stock purchase plan | 90 | — | 90 | ||||||||||||||||||||
| Long-term incentive plan | 873 | — | 873 | ||||||||||||||||||||
| 401(k) and profit sharing | 103 | — | 103 | ||||||||||||||||||||
| Balance as of June 30, 2026 | 483,461 | (3,963) | 479,498 | ||||||||||||||||||||
| Common | |||||||||||||||||||||||
| Shares (in thousands) | Shares | Treasury | Outstanding | ||||||||||||||||||||
| Balance as of March 31, 2025 | 474,581 | (3,963) | 470,618 | ||||||||||||||||||||
| Issued: | |||||||||||||||||||||||
| Employee stock purchase plan | 48 | — | 48 | ||||||||||||||||||||
| Long-term incentive plan | 62 | — | 62 | ||||||||||||||||||||
| 401(k) and profit sharing | 56 | — | 56 | ||||||||||||||||||||
| Balance as of June 30, 2025 | 474,747 | (3,963) | 470,784 | ||||||||||||||||||||
| Common | |||||||||||||||||||||||
| Shares (in thousands) | Shares | Treasury | Outstanding | ||||||||||||||||||||
| Balance as of December 31, 2024 | 473,785 | (3,963) | 469,822 | ||||||||||||||||||||
| Issued: | |||||||||||||||||||||||
| Employee stock purchase plan | 94 | — | 94 | ||||||||||||||||||||
| Long-term incentive plan | 744 | — | 744 | ||||||||||||||||||||
| 401(k) and profit sharing | 124 | — | 124 | ||||||||||||||||||||
| Balance as of June 30, 2025 | 474,747 | (3,963) | 470,784 |
The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
1. Basis of Accounting Presentation
Our accompanying Condensed Consolidated Financial Statements (unaudited) reflect all normal recurring adjustments that are necessary, in the opinion of management, to present fairly the results of operations in accordance with GAAP in the United States of America. The accompanying financial statements include the accounts of us, our majority-owned subsidiaries, and VIEs of which we are the primary beneficiary after the elimination of all intercompany accounts and transactions.
The accompanying financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Income for interim periods may not be indicative of results for the calendar year due to weather variations and other factors.
The Condensed Consolidated Financial Statements (unaudited) have been prepared pursuant to the rules and regulations of the SEC. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although we believe that the disclosures made in this Quarterly Report on Form 10-Q are adequate to make the information herein not misleading.
2. Recent Accounting Pronouncements
Recently Issued Accounting Pronouncements
In May 2026, the FASB issued ASU 2026‑02, Environmental Credits and Environmental Credit Obligations (Topic 818), which establishes comprehensive guidance for the recognition, measurement, presentation, and disclosure of environmental credits and environmental credit obligations. The ASU requires entities to recognize environmental credit assets when it is probable that the credits will be used, transferred, or otherwise realized and to recognize liabilities for environmental credit obligations when events occur on or before the reporting date which result in an environmental credit obligation. The ASU stipulates that measurement is based on either the cost of credits held or the fair value of credits needed to settle the obligation. The amendments are effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact this amendment will have on our consolidated financial statements.
In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. We are currently evaluating the impacts this amendment will have on our internal-use software capitalization policy. See Note 2 to the Company’s Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2025, for a discussion of the impact of this ASU.
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). We are currently evaluating the impacts this amendment will have on our required disclosures. See Note 2 to the Company’s Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2025, for a discussion of the impact of this ASU.
3. Revenue Recognition
Revenue Disaggregation and Reconciliation. We disaggregate revenue from contracts with customers based upon reportable segment, as well as by customer class. The Columbia Operations segment provides regulated natural gas service and transportation for residential, commercial and industrial customers in Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. The NIPSCO Operations segment provides regulated gas and electric service in the northern part of Indiana.
The tables below reconcile revenue disaggregation by customer class to segment revenue, as well as to revenues reflected on the Condensed Statements of Consolidated Income (unaudited):
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
| Three months ended June 30, 2026 (in millions) | Columbia Operations | NIPSCO Operations | Corporate and Other | Total | |||||||||||||||||||
| Gas Distribution | |||||||||||||||||||||||
| Residential | $ | 399.9 | $ | 102.2 | $ | — | $ | 502.1 | |||||||||||||||
| Commercial | 124.6 | 41.4 | — | 166.0 | |||||||||||||||||||
| Industrial | 40.3 | 21.0 | — | 61.3 | |||||||||||||||||||
| Off-system | 11.5 | — | — | 11.5 | |||||||||||||||||||
| Miscellaneous(1) | 8.5 | 3.0 | — | 11.5 | |||||||||||||||||||
| Subtotal | $ | 584.8 | $ | 167.6 | $ | — | $ | 752.4 | |||||||||||||||
| Electric Generation and Power Delivery | |||||||||||||||||||||||
| Residential | — | 183.1 | — | 183.1 | |||||||||||||||||||
| Commercial | — | 181.7 | — | 181.7 | |||||||||||||||||||
| Industrial | — | 159.2 | — | 159.2 | |||||||||||||||||||
| Wholesale | — | 9.9 | — | 9.9 | |||||||||||||||||||
| Public Authority | — | 3.7 | — | 3.7 | |||||||||||||||||||
| Miscellaneous(1) | — | (0.5) | — | (0.5) | |||||||||||||||||||
| Subtotal | $ | — | $ | 537.1 | $ | — | $ | 537.1 | |||||||||||||||
| Total Customer Revenues**(2)** | 584.8 | 704.7 | — | 1,289.5 | |||||||||||||||||||
| Other Revenues**(3)** | 12.2 | 39.2 | 1.5 | 52.9 | |||||||||||||||||||
| Total Operating Revenues | $ | 597.0 | $ | 743.9 | $ | 1.5 | $ | 1,342.4 | |||||||||||||||
| (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 17, "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. | |||||||||||||||||||||||
| Three months ended June 30, 2025 (in millions) | Columbia Operations | NIPSCO Operations | Corporate and Other | Total | |||||||||||||||||||
| Gas Distribution | |||||||||||||||||||||||
| Residential | $ | 397.0 | $ | 114.2 | $ | — | $ | 511.2 | |||||||||||||||
| Commercial | 126.2 | 45.5 | — | 171.7 | |||||||||||||||||||
| Industrial | 37.6 | 22.6 | — | 60.2 | |||||||||||||||||||
| Off-system | 22.8 | — | — | 22.8 | |||||||||||||||||||
| Miscellaneous(1) | 8.7 | 3.3 | — | 12.0 | |||||||||||||||||||
| Subtotal | $ | 592.3 | $ | 185.6 | $ | — | $ | 777.9 | |||||||||||||||
| Electric Generation and Power Delivery | |||||||||||||||||||||||
| Residential | $ | — | $ | 163.9 | $ | — | $ | 163.9 | |||||||||||||||
| Commercial | — | 161.0 | — | 161.0 | |||||||||||||||||||
| Industrial | — | 133.5 | — | 133.5 | |||||||||||||||||||
| Wholesale | — | 11.9 | — | 11.9 | |||||||||||||||||||
| Miscellaneous(1) | — | (1.7) | — | (1.7) | |||||||||||||||||||
| Subtotal | $ | — | $ | 468.6 | $ | — | $ | 468.6 | |||||||||||||||
| Total Customer Revenues**(2)** | 592.3 | 654.2 | — | 1,246.5 | |||||||||||||||||||
| Other Revenues**(3)** | 8.9 | 26.4 | 1.2 | 36.5 | |||||||||||||||||||
| Total Operating Revenues | $ | 601.2 | $ | 680.6 | $ | 1.2 | $ | 1,283.0 | |||||||||||||||
| (1)Amounts included in Columbia Operations primarily relate to earnings share mechanisms and late fees. Amounts included in NIPSCO Operations primarily relate to late fees and property rentals. (2)Customer revenue amounts exclude intersegment revenues. See Note 17, "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. |
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
| Six months ended June 30, 2026 (in millions) | Columbia Operations | NIPSCO Operations | Corporate and Other | Total | |||||||||||||||||||
| Gas Distribution | |||||||||||||||||||||||
| Residential | $ | 1,309.1 | $ | 420.8 | $ | — | $ | 1,729.9 | |||||||||||||||
| Commercial | 455.6 | 157.0 | — | 612.6 | |||||||||||||||||||
| Industrial | 97.7 | 55.1 | — | 152.8 | |||||||||||||||||||
| Off-system | 28.3 | — | — | 28.3 | |||||||||||||||||||
| Miscellaneous(1) | 22.7 | 6.1 | — | 28.8 | |||||||||||||||||||
| Subtotal | $ | 1,913.4 | $ | 639.0 | $ | — | $ | 2,552.4 | |||||||||||||||
| Electric Generation and Power Delivery | |||||||||||||||||||||||
| Residential | $ | — | $ | 359.9 | $ | — | $ | 359.9 | |||||||||||||||
| Commercial | — | 353.8 | — | 353.8 | |||||||||||||||||||
| Industrial | — | 314.7 | — | 314.7 | |||||||||||||||||||
| Wholesale | — | 18.4 | — | 18.4 | |||||||||||||||||||
| Public Authority | — | 8.0 | — | 8.0 | |||||||||||||||||||
| Miscellaneous(1) | — | 4.6 | — | 4.6 | |||||||||||||||||||
| Subtotal | $ | — | $ | 1,059.4 | $ | — | $ | 1,059.4 | |||||||||||||||
| Total Customer Revenues**(2)** | 1,913.4 | 1,698.4 | — | 3,611.8 | |||||||||||||||||||
| Other Revenues**(3)** | 6.8 | 84.0 | 2.9 | 93.7 | |||||||||||||||||||
| Total Operating Revenues | $ | 1,920.2 | $ | 1,782.4 | $ | 2.9 | $ | 3,705.5 | |||||||||||||||
| (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 17, "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 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. | |||||||||||||||||||||||
| Six months ended June 30, 2025 (in millions) | Columbia Operations | NIPSCO Operations | Corporate and Other | Total | |||||||||||||||||||
| Gas Distribution | |||||||||||||||||||||||
| Residential | $ | 1,248.2 | $ | 405.6 | $ | — | $ | 1,653.8 | |||||||||||||||
| Commercial | 432.7 | 148.6 | — | 581.3 | |||||||||||||||||||
| Industrial | 85.5 | 54.0 | — | 139.5 | |||||||||||||||||||
| Off-system | 45.1 | — | — | 45.1 | |||||||||||||||||||
| Miscellaneous(1) | 20.7 | 8.0 | — | 28.7 | |||||||||||||||||||
| Subtotal | $ | 1,832.2 | $ | 616.2 | $ | — | $ | 2,448.4 | |||||||||||||||
| Electric Generation and Power Delivery | |||||||||||||||||||||||
| Residential | $ | — | $ | 331.8 | $ | — | $ | 331.8 | |||||||||||||||
| Commercial | — | 321.1 | — | 321.1 | |||||||||||||||||||
| Industrial | — | 276.1 | — | 276.1 | |||||||||||||||||||
| Wholesale | — | 19.5 | — | 19.5 | |||||||||||||||||||
| Miscellaneous(1) | — | (0.9) | — | (0.9) | |||||||||||||||||||
| Subtotal | $ | — | $ | 947.6 | $ | — | $ | 947.6 | |||||||||||||||
| Total Customer Revenues**(2)** | 1,832.2 | 1,563.8 | — | 3,396.0 | |||||||||||||||||||
| Other Revenues**(3)** | 9.6 | 58.2 | 2.4 | 70.2 | |||||||||||||||||||
| Total Operating Revenues | $ | 1,841.8 | $ | 1,622.0 | $ | 2.4 | $ | 3,466.2 | |||||||||||||||
| (1)Amounts included in Columbia Operations are primarily relate to earnings share mechanisms and late fees. Amounts included in NIPSCO Operations, primarily relate to revenue refunds, public repairs and property rentals. (2)Customer revenue amounts exclude intersegment revenues. See Note 17, "Business Segment Information," for discussion of intersegment revenues. (3)Amounts included in Columbia Operations primarily relate to weather normalization adjustment mechanisms. Amounts included in NIPSCO Operations primarily relate to MISO multi-value projects and revenue from FERC jurisdictional transmission assets. Amounts included in Corporate and Other primarily relate to products and services revenue. |
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
Customer Accounts Receivable. Accounts receivable on our Condensed Consolidated Balance Sheets (unaudited) includes both billed and unbilled amounts, as well as certain amounts that are not related to customer revenues. Unbilled amounts of accounts receivable relate to a portion of a customer’s consumption of gas or electricity from the date of the last cycle billing through the last day of the month (balance sheet date). Factors taken into consideration when estimating unbilled revenue include historical usage, customer rates, and weather. A significant portion of our operations are subject to seasonal fluctuations in sales. During the heating season, primarily from November through March, revenues and receivables from gas sales are more significant than in other months. The balances of customer receivables as of June 30, 2026 and December 31, 2025 are presented in the table below. Contract liability balances were $95.0 million and zero as of June 30, 2026 and December 31, 2025, respectively. The increase was primarily attributable to consideration received in advance under a customer arrangement. Additionally, we have not incurred any significant costs to obtain or fulfill contracts.
| (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 June 30, 2026 | $ | 694.5 | $ | 118.0 |
Utility revenues are billed to customers monthly on a cycle basis. We expect that substantially all customer accounts receivable will be collected following customer billing, as this revenue consists primarily of periodic, tariff-based billings for service and usage. We maintain common utility credit risk mitigation practices, including requiring deposits and actively pursuing collection of past due amounts. Our regulated operations also utilize certain regulatory mechanisms that facilitate recovery of bad debt costs within tariff-based rates, which provides further evidence of collectability. It is probable that substantially all of the consideration to which we are entitled from customers will be collected upon satisfaction of performance obligations.
Allowance for Credit Losses. To evaluate for expected credit losses, customer account receivables are pooled based on similar risk characteristics, such as customer type, geography, payment terms, and related macro-economic risks. Expected credit losses are established using a model that considers historical collections experience, current information, and reasonable and supportable forecasts. Internal and external inputs are used in our credit model including, but not limited to, revenue projections, actual charge-offs data, recoveries data, shut-offs, security deposits and final bill data. We continuously evaluate available information relevant to assessing collectability of current and future receivables. We evaluate creditworthiness of specific customers periodically or following changes in facts and circumstances. When we become aware of a specific commercial or industrial customer's inability to pay, an allowance for expected credit losses is recorded for the relevant amount. We also monitor other circumstances that could affect our overall expected credit losses including, but not limited to, creditworthiness of overall population in service territories, adverse conditions impacting an industry sector, and current economic conditions.
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
At each reporting period, we record expected credit losses to an allowance for credit losses account. When deemed to be uncollectible, customer accounts are written-off. Rollforwards of our allowance for credit losses as of June 30, 2026 and December 31, 2025 are presented in the table below:
| (in millions) | Columbia Operations | NIPSCO Operations | Total | ||||||||||||||||||||||||||
| Balance as of December 31, 2025 | $ | 15.6 | $ | 25.0 | $ | 40.6 | |||||||||||||||||||||||
| Current period provisions | 24.4 | 10.2 | 34.6 | ||||||||||||||||||||||||||
| Write-offs charged against allowance | (30.2) | (10.2) | (40.4) | ||||||||||||||||||||||||||
| Recoveries of amounts previously written off | 4.7 | 0.7 | 5.4 | ||||||||||||||||||||||||||
| Balance as of June 30, 2026 | $ | 14.5 | $ | 25.7 | $ | 40.2 |
| (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 |
4. Noncontrolling Interests
Joint Venture VIEs. A VIE is an entity in which the controlling interest is determined through means other than a majority voting interest. NIPSCO is the managing member and operator of two wind JVs, Rosewater and Indiana Crossroads Wind, which have 102 MW and 302 MW of nameplate capacity, respectively. NIPSCO is also a managing member and operator of two solar JVs, Indiana Crossroads Solar and Dunn's Bridge I, which have a nameplate capacity of 200 MW and 265 MW, respectively. We have determined that these JVs are VIEs. NIPSCO controls decisions that are significant to these entities' ongoing operations and economic results. Therefore, we have concluded that NIPSCO is the primary beneficiary and have consolidated all four entities.
Members of each respective JV include NIPSCO (who is the managing member) and a tax equity partner. Earnings, tax attributes and cash flows are allocated to both NIPSCO and the tax equity partner in varying percentages by category and over the life of the partnership. NIPSCO and each tax equity partner contributed cash to the respective JV. Once the tax equity partner has earned their negotiated rate of return and after a stated contractual date, NIPSCO has the option to purchase the remaining interest in the respective JV, at fair market value, from the tax equity partner. NIPSCO has an obligation to purchase 100% of the electricity generated by each JV.
We did not provide any financial or other support for the JVs during the quarter that was not contractually required.
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
Our Condensed Consolidated Balance Sheets (unaudited) included the following assets and liabilities associated with the JV VIEs.
| (in millions) | June 30, 2026 | December 31, 2025 | |||||||||
| Net property, plant and equipment | $ | 1,233.9 | $ | 1,273.0 | |||||||
| Current assets | 49.1 | 27.6 | |||||||||
| Total assets(1) | 1,283.0 | 1,300.6 | |||||||||
| Current liabilities | 13.1 | 16.1 | |||||||||
| Asset retirement obligations | 57.0 | 55.7 | |||||||||
| Finance lease obligations | 40.0 | 40.1 | |||||||||
| Total liabilities(1)(2) | $ | 110.1 | $ | 111.9 |
(1)The assets of each VIE represent assets of a consolidated VIE that can be used only to settle obligations of the respective consolidated VIE. The creditors of the liabilities of the VIEs do not have recourse to the general credit of the primary beneficiary. (2)In addition to the amounts disclosed above there is a de minimis amount of other noncurrent assets and liabilities at Rosewater as of June 30, 2026.
GenCo VIE. In October 2025, a 19.9% equity interest in NiSource's wholly owned subsidiary, Generation Holdings II, the sole owner of GenCo, was issued to BIP Orion Holdco L.P. and BIP Orion Holdco II L.P., (collectively, “Blackstone Investor”), in exchange for $35.2 million in cash contributions to Generation Holdings II through the Generation Holdings II LLC Agreement. Generation Holdings II is considered a VIE as it passes the variability of its operating results through to its shareholders (Generation Holdings I and Blackstone Investor) and has insufficient equity to finance its activities without additional subordinated financial support. The sole purpose of the VIE is to own and operate GenCo which will acquire and build generation assets and provide capacity and electricity to support data center customers. Generation Holdings II and its wholly owned subsidiary, GenCo, is a consolidated VIE, as we have the power to direct the significant decision-making activities that most impact the ongoing operations and economic performance of the entity (i.e., we are the primary beneficiary) including business development and operating decisions. See Note 4 to the Company’s Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2025, for additional details on the Generation Holdings II LLC Agreement.
During the three and six months ended June 30, 2026, we received $39.8 million and $47.8 million in contributions, respectively, and we made zero distributions during the three and six months ended June 30, 2026, respectively, to our Generation Holdings II minority interest holders based on their relative ownership percentages. There were no contributions received or distributions made during the three and six months ended June 30, 2025.
Our Condensed Consolidated Balance Sheets (unaudited) included the following assets and liabilities associated with the GenCo VIE:
| (in millions) | June 30, 2026 | December 31, 2025 | |||||||||
| Net Property, Plant and Equipment | $ | 530.1 | $ | 39.7 | |||||||
| Current assets | 174.3 | 62.5 | |||||||||
| Other assets | 213.9 | 305.4 | |||||||||
| Regulatory assets | 10.0 | — | |||||||||
| Total assets(1) | 928.3 | 407.6 | |||||||||
| Current liabilities | 322.5 | 40.8 | |||||||||
| Total liabilities(1) | $ | 322.5 | $ | 40.8 |
(1)The assets of each VIE represent assets of a consolidated VIE that can be used only to settle obligations of the respective consolidated VIE. The creditors of the liabilities of the VIEs do not have recourse to the general credit of the primary beneficiary.
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
Voting Interest Entities. We retain a controlling financial interest in NIPSCO Holdings II and its subsidiaries and consolidate their financial results. See Note 4 to the Company’s Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2025, for additional details on the Amended NIPSCO Holdings II LLC Agreement. The following table provides information about the contributions from and distributions to our NIPSCO minority interest holders included in our Condensed Statements of Consolidated Cash Flows (unaudited) and Condensed Statements of Consolidated Equity (unaudited).
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Contributions from NIPSCO minority interest holders | $ | 51.2 | $ | 99.5 | $ | 76.7 | $ | 134.3 | |||||||||||||||
| Distributions to NIPSCO minority interest holders | 27.1 | 26.9 | 47.0 | 44.4 |
5. Earnings Per Share
The calculations of basic and diluted EPS are based on the weighted average number of shares of common stock and potential common stock outstanding during the period. Diluted EPS includes the incremental effects of the various long-term incentive compensation plans and ATM forward sale agreements under the treasury stock method when the impact would be dilutive (See Note 6, "Equity").
We use the two-class method of computing earnings per share because we have participating securities in the form of non-vested restricted stock units with a non-forfeitable right to dividend equivalents, for which vesting is predicated solely on the passage of time. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator.
The following table presents the calculation of our basic and diluted EPS:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (in millions, except per share amounts) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Numerator: | |||||||||||||||||||||||
| Net Income Available to Common Shareholders | $ | 45.5 | $ | 102.2 | $ | 556.2 | $ | 577.0 | |||||||||||||||
| Less: Income allocated to participating securities | 0.1 | 0.3 | 1.2 | 1.1 | |||||||||||||||||||
| Net Income Available to Common Shareholders - Basic | 45.4 | 101.9 | 555.0 | 575.9 | |||||||||||||||||||
| Net Income Available to Common Shareholders - Diluted | $ | 45.4 | $ | 101.9 | $ | 555.0 | $ | 575.9 | |||||||||||||||
| Denominator: | |||||||||||||||||||||||
| Average common shares outstanding - Basic | 479.7 | 471.0 | 479.4 | 470.6 | |||||||||||||||||||
| Dilutive potential common shares: | |||||||||||||||||||||||
| Shares contingently issuable under employee stock plans | 1.1 | 1.0 | 1.3 | 1.2 | |||||||||||||||||||
| Shares restricted under employee stock plans | 0.1 | 0.1 | 0.1 | 0.5 | |||||||||||||||||||
| ATM forward sale agreements | 0.3 | — | 0.2 | ||||||||||||||||||||
| Average Common Shares - Diluted | 481.2 | 472.1 | 481.0 | 472.3 | |||||||||||||||||||
| Earnings per common share: | |||||||||||||||||||||||
| Basic | $ | 0.10 | $ | 0.22 | $ | 1.16 | $ | 1.22 | |||||||||||||||
| Diluted | $ | 0.09 | $ | 0.22 | $ | 1.15 | $ | 1.22 |
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
6. Equity
ATM Program. In October 2025, we entered into eleven separate equity distribution agreements providing for the sale up to an aggregate of $1.5 billion of our common stock.
-
In October 2025, we executed a forward sale agreement, which allows us to issue a fixed number of shares at a price to be settled in the future. The forward purchaser under our forward sale agreement borrowed 2,390,057 shares from third parties, which the forward purchaser sold, through its affiliated agent, at a weighted average price of $41.84 per share. We may settle the forward sale agreement in shares, cash or net shares by October 2026. Had we settled all of the shares under the forward sale agreement at June 30, 2026, we would have received approximately $99.7 million, based on a net price of $41.72 per share.
-
In February 2026, we executed a forward sale agreement, which allows us to issue a fixed number of shares at a price to be settled in the future. The forward purchaser under our forward sale agreement borrowed 2,200,000 shares from third parties, which the forward purchaser sold, through its affiliated agent, at a weighted average price of $45.63 per share. We may settle the forward sale agreement in shares, cash or net shares by December 2026. Had we settled all of the shares under the forward sale agreement at June 30, 2026, we would have received approximately $100.0 million, based on a net price of $45.46 per share.
-
In June 2026, we executed a forward sale agreement, which allows us to issue a fixed number of shares at a price to be settled in the future. The forward purchaser under our forward sale agreement borrowed 2,151,874 shares from third parties, which the forward purchaser sold, through its affiliated agent, at a weighted average price of $46.47 per share. We may settle the forward sale agreement in shares, cash or net shares by December 2026. Had we settled all of the shares under the forward sale agreement at June 30, 2026, we would have received approximately $99.2 million, based on a net price of $46.10 per share.
-
As of June 30, 2026, the ATM program inclusive of the outstanding forward sale agreements had approximately $1.15 billion of equity capacity available. The ATM program expires in December 2028.
Preferred Stock. During the first quarter of 2026, following the issuance of final U.S. Treasury and Internal Revenue Service regulations clarifying the scope and application of the federal excise tax on stock repurchases made after December 31, 2022, we evaluated the applicability of the excise tax to our 2023 Series A Preferred Stock redemption premium. Based on this assessment, we determined that the excise tax previously recorded does not apply to these share repurchases. Accordingly, we reversed approximately $3.6 million of excise tax expense and recognized a receivable as of June 30, 2026, for the expected refund of the amounts previously remitted.
7. Short-Term Borrowings
We generate short-term borrowings from our revolving credit facility, commercial paper program, and accounts receivable transfer programs. Each of these borrowing sources is described further below.
Revolving Credit Facility. We maintain a revolving credit facility to fund ongoing working capital requirements, including the provision of liquidity support for our commercial paper program, the issuance of letters of credit and general corporate purposes. Our revolving credit facility has a facility limit of $2.50 billion and is comprised of a syndicate of banks. We had no outstanding borrowings under this facility as of June 30, 2026 and December 31, 2025, respectively.
Commercial Paper Program. Our commercial paper program has a limit of $2.50 billion. We had $692.0 million and $736.0 million of commercial paper outstanding with weighted-average interest rates of 4.00% and 3.92% as of June 30, 2026 and December 31, 2025, respectively.
Accounts Receivable Transfer Programs. Columbia of Ohio, NIPSCO, and Columbia of Pennsylvania each maintain a receivables agreement whereby they transfer their customer accounts receivables to third-party financial institutions through consolidated special purpose entities. The three agreements expire between August 2026 and April 2027 and may be further extended if mutually agreed to by the parties thereto.
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
All receivables transferred to third parties are valued at face value, which approximates fair value due to their short-term nature. The amount of the undivided percentage ownership interest in the accounts receivables transferred is determined in part by required loss reserves under the agreements.
Transfers of accounts receivable are accounted for as secured borrowings resulting in the recognition of short-term borrowings on the Condensed Consolidated Balance Sheets (unaudited). As of June 30, 2026, the maximum amount of debt that could be borrowed related to our accounts receivable programs was $245.0 million.
We had no short-term borrowings related to the securitization transactions as of June 30, 2026 and December 31, 2025, respectively.
For the six months ended June 30, 2026 and 2025, no cash flows from financing activities were recorded related to the change in short-term borrowings due to securitization transactions. Columbia of Ohio, NIPSCO and Columbia of Pennsylvania remain responsible for collecting on the receivables securitized, and the receivables cannot be transferred to another party.
Items listed above are presented net in the Condensed Statements of Consolidated Cash Flows (unaudited) as turnover is quick, the amounts are large, and their maturities are less than 90 days.
8. Long-Term Debt
In May 2026, we completed the issuance and sale of $500.0 million of 4.75% senior unsecured notes maturing in 2031 and $750.0 million of 5.30% senior unsecured notes maturing in 2036. The issuances resulted in approximately $1.236 billion of total net proceeds after discount and debt issuance costs.
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
9. Regulatory Matters
Regulatory Assets and Liabilities. We follow the accounting and reporting requirements of ASC Topic 980, which provides that regulated entities account for and report assets and liabilities consistent with the economic effect of regulatory rate-making procedures when the rates established are designed to recover the costs of providing the regulated service and it is probable that such rates will be charged to and collected from customers. Certain expenses and credits subject to utility regulation or rate determination normally reflected in income or expense are deferred on the balance sheet and are recognized in the income statement as the related amounts are included in customer rates and recovered from or refunded to customers. We assess the probability of collection for all of our regulatory assets each period. The offset to the regulatory liability associated with our renewable investments included in regulated rates is recorded in "Depreciation and amortization" on the Condensed Statements of Consolidated Income (unaudited).
NIPSCO Electric Special Contract and GenCo PPA filing. In November 2025, NIPSCO and GenCo filed an application with the IURC seeking approval of (i) the ADS Contract, (ii) a related power purchase agreement between NIPSCO and GenCo, and (iii) an alternative regulatory plan and associated accounting treatment. An order was received in June 2026, fully approving the Stipulation and Settlement Agreement filed with the IURC by NIPSCO, GenCo, the OUCC and NIPSCO industrial resolving all issues.
In April 2026, NIPSCO submitted a compliance filing containing an amendment to the ADS Contract to accelerate the delivery of capacity to ADS. This compliance filing was acted upon at the same time as IURC's order noted above. NIPSCO and GenCo also filed an application with the IURC seeking approval of (i) a retail special contract for electric service between NIPSCO and a wholly owned subsidiary of Alphabet, (ii) a related power purchase agreement between NIPSCO and GenCo, and (iii) an alternative regulatory plan and associated accounting treatment. An order was received in July 2026 approving the application as filed, without change.
In July 2026, NIPSCO and GenCo filed an application with the IURC seeking approval of (i) an amendment to the ADS Contract for incremental service, (ii) a related power purchase agreement between NIPSCO and GenCo, and (iii) an alternative regulatory plan and associated accounting treatment. An order is expected in the fourth quarter of 2026.
In August 2026, NIPSCO and GenCo filed applications with FERC seeking authorization to engage in affiliate transactions between GenCo and NIPSCO to serve Amazon and Alphabet. FERC orders are expected in the fourth quarter of 2026.
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
202(c) Emergency Order for R.M. Schahfer coal facility. Before the planned retirement of the R.M. Schahfer coal facility at the end of December 2025, NIPSCO received the first of several successive emergency orders under section 202(c) of the Federal Power Act, to continue operating in 90-day increments, currently through September 19, 2026. The orders stated that continued operation of R.M. Schahfer is required to meet an energy emergency across MISO’s North and Central regions. Consistent with the Federal Power Act and the U.S. Department of Energy regulations, the order authorizes NIPSCO to obtain cost recovery pursuant to 16 U.S.C. § 824a(c). As directed, NIPSCO continued to make R.M. Schahfer available in the MISO market. Following receipt of the initial emergency order, NIPSCO filed a complaint with FERC seeking a modification of the MISO tariff to establish a mechanism for recovery and allocation of the cost to comply with this order. In March 2026, FERC granted NIPSCO's complaint and ordered MISO to make a compliance filing with proposed schedule 56 (NIPSCO's Cost Recovery Mechanism) within 30 days of FERC's approval of the compliance filing for Schedule 55 (Consumers Energy Company's Cost Recovery Mechanism). NIPSCO filed a petition with the IURC to recover federally mandated costs related to the U.S. Department of Energy's 202(c) emergency order in December of 2025, but the proceeding is being held in abeyance pending resolution of FERC/MISO level recovery of costs incurred while operating under the 202(c) emergency order. While we do not believe IURC-level recovery under the FMCA Statute will be required, the petition was filed to preserve the right to seek such recovery if needed. Should such recovery become necessary, NIPSCO intends to file testimony and evidence outlining and justifying its request at a later date. As of June 30, 2026, $102.2 million has been deferred to non-current regulatory assets for incremental costs incurred to comply with the 202(c) emergency order and $33.5 million of non-current regulatory liabilities have been established for net MISO revenues. At present, NIPSCO is filing quarterly status reports with the IURC to keep them informed. In August 2026, NIPSCO filed its Sections 205, 202(c), and 309 filing to recover $38.0 million of net costs incurred in the first quarter of 2026 to comply with the December Section 202(c) emergency order. NIPSCO will place rates into effect after 60 days has passed and FERC (1) approves MISO’s Compliance Tariff Mechanism for Consumers Energy Company; and (2) approves MISO’s Compliance Tariff Mechanism for NIPSCO.
IURC Investigations. In November 2025, the IURC initiated an investigation into the accuracy of NIPSCO’s gas meters. This investigation followed NIPSCO's disclosure of a latent issue with a small percentage of the meter indexes in NIPSCO's gas meters, which was discovered during roll-out of new Advanced Metering Infrastructure communications modules for gas meters. NIPSCO filed testimony in March 2026 and a hearing is scheduled for October 2026.
In July 2026, IURC initiated formal investigations related to authorized return on equity and the future use of regulatory trackers for Indiana investor-owned electric utilities. These investigations were initiated in connection with the implementation of House Enrolled Act 1002 and are intended to evaluate potential adjustments to the regulatory framework as Indiana utilities transition to multi-year rate plans. The outcome of these proceedings could affect future ratemaking mechanisms and regulatory policy applicable to the Company; however, the Company cannot currently predict the timing or outcome of these investigations.
10. Risk Management Activities
We are exposed to certain risks relating to our ongoing business operations, namely commodity price risk and interest rate risk. We recognize that the prudent and selective use of derivatives may help to limit volatility in the price of natural gas and manage interest rate exposure.
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
Risk management assets and liabilities on our derivatives are presented on the Condensed Consolidated Balance Sheets (unaudited) as shown below:
| June 30, 2026 | December 31, 2025 | ||||||||||||||||||||||
| (in millions) | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||
| Current(1) | |||||||||||||||||||||||
| Derivatives not designated as hedging instruments | $ | 2.9 | $ | 3.5 | $ | 9.7 | $ | 2.1 | |||||||||||||||
| Total | $ | 2.9 | $ | 3.5 | $ | 9.7 | $ | 2.1 | |||||||||||||||
| Noncurrent(2) | |||||||||||||||||||||||
| Derivatives not designated as hedging instruments | $ | 8.7 | $ | 10.8 | $ | 9.1 | $ | 3.8 | |||||||||||||||
| Total | $ | 8.7 | $ | 10.8 | $ | 9.1 | $ | 3.8 |
(1)Current assets and liabilities are presented in "Other current assets" and "Other accruals", respectively, on the Condensed Consolidated Balance Sheets (unaudited).
(2)Noncurrent assets and liabilities are presented in "Deferred charges and other" and "Other noncurrent liabilities", respectively, on the Condensed Consolidated Balance Sheets (unaudited).
Our derivative instruments are subject to enforceable master netting arrangements or similar agreements. No collateral was either received or posted related to our outstanding derivative positions at June 30, 2026. If the above gross asset and liability positions were presented net of amounts owed or receivable from counterparties, we would report a net liability position of $2.7 million and a net asset position of $12.9 million as of June 30, 2026 and December 31, 2025, respectively.
Derivatives Not Designated as Hedging Instruments
Commodity price risk management. We, along with our utility customers, are exposed to variability in cash flows associated with natural gas purchases and volatility in natural gas prices. We purchase natural gas for sale and delivery to our retail, commercial and industrial customers, and for most customers the variability in the market price of gas is passed through in their rates. Some of our utility subsidiaries offer programs whereby variability in the market price of gas is assumed by the respective utility. The objective of our commodity price risk programs is to mitigate the gas cost variability, for our customers, associated with natural gas purchases or sales by economically hedging the various gas cost components using a combination of futures, options, forwards or other derivative contracts. As of June 30, 2026 and December 31, 2025, we had 80.9 MMDth and 83.7 MMDth, respectively, of net energy derivative volumes outstanding related to our natural gas hedges.
NIPSCO has received IURC approval to lock in a fixed price for its natural gas customers using long-term forward purchase instruments and is limited to 20% of NIPSCO's average annual GCA purchase volume. As of June 30, 2026, the remaining terms of these instruments range from one to six years. Likewise, Columbia of Pennsylvania has received approval for a 24-month rolling hedge program that will continue in perpetuity. The program is designed to financially hedge approximately 20% of the customers' annual demand. Under both programs, all gains and losses on these derivative contracts are deferred as regulatory liabilities or assets and are remitted to or collected from customers through the relevant cost recovery mechanism.
The following table summarizes the gains and losses associated with the commodity price risk programs deferred as regulatory assets and liabilities:
| (in millions) | June 30, 2026 | December 31, 2025 | |||||||||
| Regulatory Assets | |||||||||||
| Losses on commodity price risk programs | $ | 20.3 | $ | 10.1 | |||||||
| Regulatory Liabilities | |||||||||||
| Gains on commodity price risk programs | $ | 12.2 | $ | 19.2 |
Our derivative instruments measured at fair value as of June 30, 2026 and December 31, 2025 do not contain any credit-risk-related contingent features.
Derivatives Designated as Hedging Instruments
Interest rate risk management. As of June 30, 2026 and December 31, 2025, we had no active interest rate swap positions. We
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
have recorded the overall net loss related to previously settled interest rate swaps in AOCI. The gain or loss associated with each previously settled interest rate swap is amortized in interest expense over the term of each corresponding debt issuance. These amounts were immaterial for the three and six months ended June 30, 2026 and 2025 and are recorded in "Interest expense, net" on the Condensed Statements of Consolidated Income (unaudited). Amounts expected to be reclassified to earnings during the next twelve months are immaterial. See Note 16, "Accumulated Other Comprehensive Loss," for additional information.
11. Fair Value
A. Fair Value Measurements
Recurring Fair Value Measurements
The following tables present financial assets and liabilities measured and recorded at fair value on our Condensed Consolidated Balance Sheets (unaudited) on a recurring basis and their level within the fair value hierarchy as of June 30, 2026 and December 31, 2025. As of June 30, 2026 and December 31, 2025, there were no material transfers between fair value hierarchies. Additionally, there were no changes in the method or significant assumptions used to estimate the fair value of our financial instruments.
| Recurring Fair Value Measurements June 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 June 30, 2026 | |||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Risk management assets | $ | — | $ | 11.6 | $ | — | $ | 11.6 | |||||||||||||||
| Available-for-sale debt securities | — | 163.3 | — | 163.3 | |||||||||||||||||||
| Equity securities(1)(2) | 9.4 | — | — | 9.4 | |||||||||||||||||||
| Total | $ | 9.4 | $ | 174.9 | $ | — | $ | 184.3 | |||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Risk management liabilities | $ | — | $ | 14.3 | $ | — | $ | 14.3 | |||||||||||||||
| Total | $ | — | $ | 14.3 | $ | — | $ | 14.3 |
(1)Equity securities are in a high dividend equity fund and are valued using market prices in active markets. Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Equity securities are presented in "Other Investments" on the Condensed Consolidated Balance Sheets (unaudited).
(2)As of June 30, 2026, the investment cost of equity securities measured at fair value was $7.9 million, gross unrealized gains were $1.6 million, and the fair value was $9.4 million.
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
| 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 |
(1)Equity securities are in a high dividend equity fund and are valued using market prices in active markets. Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Equity securities are presented in "Other Investments" on the Condensed Consolidated Balance Sheets (unaudited).
(2)As of December 31, 2025, the investment cost of equity securities measured at fair value was $7.9 million, gross unrealized gains were $0.7 million, and the fair value was $8.5 million.
Level 1- When utilized, exchange-traded derivative contracts are based on unadjusted quoted prices in active markets and are classified within Level 1. These financial assets and liabilities are secured with cash on deposit with the exchange; therefore, nonperformance risk has not been incorporated into these valuations. These financial assets and liabilities are deemed to be cleared and settled daily by NYMEX as the related cash collateral is posted with the exchange. As a result of this exchange rule, NYMEX derivatives are considered to have no fair value at the balance sheet date for financial reporting purposes, and are presented in Level 1 net of posted cash; however, the derivatives remain outstanding and are subject to future commodity price fluctuations until they are settled in accordance with their contractual terms.
Level 2- Certain non-exchange-traded derivatives are valued using broker or over-the-counter, on-line exchanges. In such cases, these non-exchange-traded derivatives are classified within Level 2. Non-exchange-based derivative instruments include swaps, forwards, and options. In certain instances, these instruments may utilize models to measure fair value taking into consideration credit risk. We use a similar model to value similar instruments. Valuation models utilize various inputs that include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, other observable inputs for the asset or liability and market-corroborated inputs, (i.e., inputs derived principally from or corroborated by observable market data by correlation or other means). Where observable inputs are available for substantially the full term of the asset or liability, the instrument is categorized within Level 2.
Level 3- Certain derivatives trade in less active markets with a lower availability of pricing information and models may be utilized in the valuation. When such inputs have a significant impact on the measurement of fair value, the instrument is categorized within Level 3.
Risk Management Assets and Liabilities. Risk management assets and liabilities include exchange-traded NYMEX futures and NYMEX options and non-exchange-based forward purchase contracts. NIPSCO and Columbia of Pennsylvania have entered into long-term forward natural gas purchase instruments to lock in a fixed price for natural gas customers. We value these contracts using a pricing model that incorporates market-based information when available, as these instruments trade less frequently and are classified within Level 2 of the fair value hierarchy. For additional information, see Note 10, "Risk Management Activities."
Available-for-Sale Debt Securities. Available-for-sale debt securities are investments pledged as collateral for trust accounts related to our wholly owned insurance company. We value U.S. Treasury, corporate debt and mortgage-backed securities using a matrix pricing model that incorporates market-based information. These securities trade less frequently and are classified within Level 2 of the fair value hierarchy.
Our available-for-sale debt securities impairments are recognized periodically using an allowance approach. At each reporting date, we utilize a quantitative and qualitative review process to assess the impairment of available-for-sale debt securities at the individual security level. For securities in a loss position, we evaluate our intent to sell or whether it is more-likely-than-not that we will be required to sell the security prior to the recovery of its amortized cost. If either criteria is met, the loss is recognized in earnings immediately, with the offsetting entry to the carrying value of the security. If both criteria are not met, we perform
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
an analysis to determine whether the unrealized loss is related to credit factors. The analysis focuses on a variety of factors that include, but are not limited to, downgrade on ratings of the security, defaults in the current reporting period or projected defaults in the future, the security's yield spread over treasuries, and other relevant market data. If the unrealized loss is not related to credit factors, it is included in other comprehensive income. If the unrealized loss is related to credit factors, the loss is recognized as credit loss expense in earnings during the period, with an offsetting entry to the allowance for credit losses. The amount of the credit loss recorded to the allowance account is limited by the amount at which the security's fair value is less than its amortized cost basis. If certain amounts recorded in the allowance for credit losses are deemed uncollectible, the allowance on the uncollectible portion will be charged off, with an offsetting entry to the carrying value of the security. Subsequent improvements to the estimated credit losses of available-for-sale debt securities will be recognized immediately in earnings. Continuous credit monitoring and portfolio credit balancing mitigates our risk of credit losses on our available-for-sale debt securities.
The amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value of available-for-sale securities at June 30, 2026 and December 31, 2025 were:
| June 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 | $ | 10.4 | $ | — | $ | (0.1) | $ | 10.3 | |||||||||||||||||||||
| Corporate/Other debt securities | 154.2 | 1.4 | (2.6) | 153.0 | |||||||||||||||||||||||||
| Total | $ | 164.6 | $ | 1.4 | $ | (2.7) | $ | 163.3 | |||||||||||||||||||||
| 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 |
(1)Fair value of U.S. Treasury debt securities and Corporate/Other debt securities in an unrealized loss position without an allowance for credit losses is $8.7 million and $74.2 million, respectively, at June 30, 2026.
(2)Fair value of U.S. Treasury debt securities and Corporate/Other debt securities in an unrealized loss position without an allowance for credit losses is $3.5 million and $40.2 million, respectively, at December 31, 2025.
The cost of maturities sold is based upon specific identification. Net realized gains and losses on available-for-sale securities were $0.1 million for the three and six months ended June 30, 2026 and 2025, respectively. At June 30, 2026, approximately $10.6 million and $5.8 million of Corporate/Other debt securities and U.S. Treasury debt securities, respectively, had maturities of less than a year.
Equity Investments. Investments measured at net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. These investments represent holdings in a single private investment fund that are redeemable at the election of the holder. As of June 30, 2026 and December 31, 2025, the Company holds $18.4 million and $17.9 million of equity investments measured at net asset value, respectively.
Non-recurring Fair Value Measurements
We measure the fair value of certain assets, including goodwill, on a non-recurring basis, typically when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. As of June 30, 2026, no non-recurring fair value adjustments have been made.
B. Other Fair Value Disclosures for Financial Instruments. The carrying amount of cash and cash equivalents, restricted cash, notes receivable, customer deposits and short-term borrowings is a reasonable estimate of fair value due to their liquid or short-term nature. Our long-term borrowings are recorded at historical amounts.
The following method and assumptions were used to estimate the fair value of each class of financial instruments.
Long-term Debt. The fair value of outstanding long-term debt is estimated based on the quoted market prices for the same or similar securities. Certain premium costs associated with the early settlement of long-term debt are not taken into consideration in determining fair value. These fair value measurements are classified within Level 2 of the fair value hierarchy. As of June 30, 2026, there was no change in the method or significant assumptions used to estimate the fair value of long-term debt.
The carrying amount and estimated fair values of these financial instruments were as follows:
| (in millions) | Carrying Amount as of June 30, 2026 | Estimated Fair Value as of June 30, 2026 | Carrying Amount as of Dec. 31, 2025 | Estimated Fair Value as of Dec. 31, 2025 | |||||||||||||||||||
| Long-term debt (including current portion) | $ | 16,711.0 | $ | 16,015.4 | $ | 15,477.5 | $ | 14,975.3 |
12. Goodwill
The following presents our goodwill balance allocated by segment as of June 30, 2026:
| (in millions) | Columbia Operations | NIPSCO Operations | Corporate and Other | Total | ||||||||||||||||||||||
| Goodwill | $ | 1,468.1 | $ | 17.8 | $ | — | $ | 1,485.9 |
For our annual goodwill impairment analysis performed as of May 1, 2026, we performed a qualitative "step 0" assessment and determined that it was more likely than not that the estimated fair value of the reporting units substantially exceeded their carrying values. For this test, we assessed various assumptions, events and circumstances that would have affected the estimated fair value of the reporting units as compared to their baseline May 1, 2024 "step 1" fair value measurement. There have been no impairments recorded during the periods presented.
13. Income Taxes
Our interim effective tax rates reflect the estimated annual effective tax rates for 2026 and 2025 applied to year-to-date pretax income, adjusted for tax expense associated with certain discrete items. The effective tax rates for the three months ended June 30, 2026 and 2025 were 21.7% and 19.1%, respectively. The effective tax rates for the six months ended June 30, 2026 and 2025 were 13.9% and 17.1%, respectively. These effective tax rates differ from the federal statutory tax rate of 21% primarily due to net income attributable to noncontrolling interest, amortization of excess deferred income taxes, federal investment and production tax credits net of deferred regulatory liabilities, state income taxes, and other permanent book-to-tax differences.
The increase in the three month effective tax rate of 2.6% in 2026 compared to 2025 is primarily driven by lower federal investment and production tax credits net of pass back and decreased amortization of excess deferred income taxes, partially offset by a decrease in state tax expense and higher AFUDC equity.
The decrease in the six month effective tax rate of 3.2% in 2026 compared to 2025 is primarily driven by higher federal investment and production credit pass back realized during 2026.
As of June 30, 2026, there have been no material changes to our unrecognized tax benefits or possible changes that could reasonably be expected to occur during the next twelve months. See Note 15 to the Company’s Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2025, for a discussion of these unrecognized tax benefits.
14. Pension and Other Postemployment Benefits
We provide defined contribution plans and noncontributory defined benefit retirement plans that cover certain of our employees. Benefits under the defined benefit retirement plans reflect the employees' compensation, years of service and age at retirement. Additionally, we provide health care and life insurance benefits for certain retired employees. Certain active employees may become eligible for these benefits if they reach retirement age while working for us. The expected cost of such benefits is accrued during the employees' years of service. We determined that, for certain rate-regulated subsidiaries, the future
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
recovery of postretirement benefit costs is probable, and we record regulatory assets and liabilities for amounts that would otherwise have been recorded to expense or accumulated other comprehensive loss. Current rates of rate-regulated companies include postretirement benefit costs, including amortization of the regulatory assets and liabilities that arose prior to inclusion of these costs in rates. For most plans, cash contributions are remitted to grantor trusts.
For the six months ended June 30, 2026 and 2025, we contributed $2.6 million and $1.0 million, respectively, to our pension plans and $11.1 million and $10.5 million, respectively, to our OPEB plans.
The following table provides the components of the plans' actuarially determined net periodic benefit cost for the three and six months ended June 30, 2026 and 2025:
| Pension Benefits | OPEB | ||||||||||||||||||||||
| Three Months Ended June 30, (in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Components of Net Periodic Benefit Cost**(1)** | |||||||||||||||||||||||
| Service cost | $ | 5.2 | $ | 4.9 | $ | 0.9 | $ | 1.0 | |||||||||||||||
| Interest cost | 14.1 | 16.0 | 4.6 | 5.6 | |||||||||||||||||||
| Expected return on assets | (22.5) | (23.1) | (4.2) | (4.2) | |||||||||||||||||||
| Amortization of prior service credit | — | — | (1.1) | (0.4) | |||||||||||||||||||
| Recognized actuarial loss | 5.9 | 6.4 | — | 0.4 | |||||||||||||||||||
| Total Net Periodic Benefit Cost | $ | 2.7 | $ | 4.2 | $ | 0.2 | $ | 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). | |||||||||||||||||||||||
| Pension Benefits | OPEB | ||||||||||||||||||||||
| Six Months Ended June 30, (in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Components of Net Periodic Benefit Cost**(1)** | |||||||||||||||||||||||
| Service cost | $ | 10.5 | $ | 9.8 | $ | 1.7 | $ | 2.0 | |||||||||||||||
| Interest cost | 28.2 | 32.0 | 9.2 | 11.2 | |||||||||||||||||||
| Expected return on assets | (45.0) | (46.2) | (8.3) | (8.4) | |||||||||||||||||||
| Amortization of prior service credit | — | — | (2.2) | (0.8) | |||||||||||||||||||
| Recognized actuarial loss | 11.8 | 12.8 | 0.1 | 0.8 | |||||||||||||||||||
| Total Net Periodic Benefit Cost | $ | 5.5 | $ | 8.4 | $ | 0.5 | $ | 4.8 | |||||||||||||||
| (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). | |||||||||||||||||||||||
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
15. Other Commitments and Contingencies
A. Guarantees and Indemnities. We and certain of our subsidiaries enter into various agreements providing financial or performance assurance to third parties on behalf of certain subsidiaries as a part of normal business. Such agreements include guarantees and stand-by letters of credit. These agreements are entered into primarily to support or enhance the creditworthiness otherwise attributed to a subsidiary on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish the subsidiaries' intended commercial purposes. As of June 30, 2026 and December 31, 2025, we had issued letters of credit of $119.0 million for the benefit of third parties.
We provide guarantees related to our future performance under BTAs for our renewable generation projects. At June 30, 2026 and December 31, 2025, our guarantees for multiple BTAs totaled $27.2 million. See Note 19 to the Company’s Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2025 for more information.
We provide guarantees related to some of our rail and pipeline service agreements. If we do not meet our contractual obligations under the terms of these agreements we would be required to pay up to a maximum of $52.2 million and $52.0 million as of June 30, 2026 and December 31, 2025, respectively.
B. Legal Proceedings. From time to time, various legal and regulatory claims and proceedings are pending or threatened against the Company and its subsidiaries. While the amounts claimed may be substantial, the Company is unable to predict with certainty the ultimate outcome of such claims and proceedings. The Company establishes reserves whenever it believes it to be appropriate for pending litigation matters. However, the actual results of resolving the pending litigation matters may be substantially higher than the amounts reserved. If one or more matters were decided against us, the effects could be material to our results of operations in the period in which we would be required to record or adjust the related liability and could also be material to our cash flows in the periods that we would be required to pay such liability. Due to the inherent uncertainty of litigation, there can be no assurance that the resolution of any particular claim, proceeding or investigation would not have a material adverse effect on our results of operations, financial position or liquidity.
Other Claims and Proceedings. We are also party to other claims, regulatory and legal proceedings arising in the ordinary course of business in each state in which we have operations, and based upon an investigation of these matters and discussion with legal counsel, we believe the ultimate outcome of such other legal proceedings to be individually, or in aggregate, not material at this time.
C. Environmental Matters. Our operations are subject to environmental statutes and regulations related to air quality, water quality, hazardous waste and solid waste. We believe that we are in substantial compliance with the environmental regulations currently applicable to our operations.
It is management's continued intent to address environmental issues in cooperation with regulatory authorities in such a manner as to achieve mutually acceptable compliance plans. However, there can be no assurance that fines and penalties will not be incurred. Management expects a majority of environmental assessment and remediation costs and asset retirement costs, further described below, to be recoverable through rates.
As of June 30, 2026 and December 31, 2025, we had recorded a liability of $80.2 million and $82.6 million, respectively, to cover environmental remediation at various sites. This liability is included in "Other accruals" and "Other noncurrent liabilities and deferred credits" in the Condensed Consolidated Balance Sheets (unaudited). We recognize costs associated with environmental remediation obligations when the incurrence of such costs is probable and the amounts can be reasonably estimated. The original estimates for remediation activities may differ materially from the amount ultimately expended. The actual future expenditures depend on many factors, including laws and regulations, the nature and extent of impact and the method of remediation. These expenditures are not currently estimable at some sites. We periodically adjust our liability as information is collected and estimates become more refined.
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
CERCLA. Our subsidiaries are potentially responsible parties at waste disposal sites under CERCLA and similar state laws. Under CERCLA, each potentially responsible party can be held jointly, severally and strictly liable for the remediation costs as the EPA, or state, can allow the parties to pay for remedial action or perform remedial action themselves and request reimbursement from the potentially responsible parties. Our affiliates have retained CERCLA environmental liabilities, including remediation liabilities, associated with certain current and former operations. At this time, we cannot estimate the full cost of remediating properties that have not yet been investigated, but it is possible that the future costs could be material to the Condensed Consolidated Financial Statements (unaudited).
MGP. We maintain a program to identify and investigate former MGP sites where our subsidiaries or predecessors may have liability. The program has identified 36 such sites where liability is probable. Remedial actions at many of these sites are being overseen by state or federal environmental agencies through consent agreements or voluntary remediation agreements.
We utilize a probabilistic model to estimate our future remediation costs related to MGP sites. The model was prepared with the assistance of a third party and incorporates our experience and general industry experience with remediating MGP sites. We perform an annual update of the model in the second quarter each year. No material changes to the estimated future remediation costs were identified during the update completed as of June 30, 2026. Our total estimated liability related to the facilities subject to remediation was $72.6 million and $75.5 million at June 30, 2026 and December 31, 2025, respectively. The liability represents our best estimate of the probable cost to remediate the MGP sites. Remediation costs are estimated based on the best available information, applicable remediation standards at the balance sheet date and experience with similar facilities.
CCRs. NIPSCO continues to meet the compliance requirements established by the EPA for the regulation of CCRs. The CCR rule requirements currently in effect required revisions to previously recorded legal obligations associated with the retirement of certain NIPSCO facilities. The actual asset retirement costs related to the CCR rule may vary substantially from the estimates used to record the increased asset retirement obligation due to the uncertainty about the requirements that will be established by environmental authorities, compliance strategies that will be used, and the preliminary nature of available data used to estimate costs. As allowed by the rule, NIPSCO will continue to collect data over time to determine the specific compliance solutions and associated costs and, as a result, the actual costs may vary.
In May 2024, the EPA finalized changes to the current CCR regulations ("Legacy CCR Rule"), which address inactive surface impoundments at inactive facilities, referred to as legacy impoundments, and CCR management units ("CCRMUs") at inactive and active facilities. The rule largely requires these newly regulated units to conform to existing requirements, such as groundwater monitoring, closure requirements, and post-closure care. NIPSCO continues to assess whether existing legal obligations associated with the retirement of certain facilities must be revised and to estimate probable additional required asset retirement costs. NIPSCO expects to receive recovery of any such costs through existing and future depreciation rates.
D. Other Matters.
EPC Agreements. GenCo has entered into certain EPC contracts to construct generation capacity assets to support our data center strategy, requiring payments at specified periods. In certain instances, we may terminate for convenience the EPC Contracts and pay certain incurred project costs and termination fees.
Pool Resource Asset Agreements. As of June 30, 2026, GenCo executed two fixed price ESA contracts to support the contracted customer demand, which are contingent on regulatory approval (such approval being the responsibility of the respective developers). GenCo has committed approximately $658.7 million under these ESAs over 15 years; however, GenCo has exercised an option and intends to convert one of these ESAs, which relates to a battery storage project (the “Tipton BESS Project”) with 167 MW nameplate capacity that is expected to be completed in 2028, to a BTA (the “Tipton BTA”).
GenCo also entered into a battery e-storage supply agreement of which approximately $122.7 million is considered a noncancelable commitment as of June 30, 2026. We have provided a guarantee related to this supply agreement under which the total guarantee as of June 30, 2026 is $245.4 million.
As of June 30, 2026, NIPSCO entered into market capacity purchase agreements to secure additional capacity for the period 2028 through 2030 for approximately $174.6 million to support the contracted demand load of its data center customers. In April 2026, GenCo entered into a capacity agreement for the period from 2028 through 2040 for approximately $1.1 billion, also to support the contracted demand load of its data center customers. This capacity agreement is subject to regulatory approval.
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
16. Accumulated Other Comprehensive Loss
The following tables display the components of Accumulated Other Comprehensive Loss, net of tax:
| (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 March 31, 2026 | $ | (1.1) | $ | (13.7) | $ | 5.6 | $ | (9.2) | |||||||||||||||
| Other comprehensive income (loss) before reclassifications | 0.6 | — | (1.1) | (0.5) | |||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss | 0.1 | (0.1) | 0.2 | 0.2 | |||||||||||||||||||
| Net current-period other comprehensive income (loss) | 0.7 | (0.1) | (0.9) | (0.3) | |||||||||||||||||||
| Balance as of June 30, 2026 | $ | (0.4) | $ | (13.8) | $ | 4.7 | $ | (9.5) | |||||||||||||||
| (1)All amounts are net of tax. Amounts in parentheses indicate debits. | |||||||||||||||||||||||
| (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 December 31, 2025 | $ | 0.1 | $ | (13.6) | $ | 7.3 | $ | (6.2) | |||||||||||||||
| Other comprehensive loss before reclassifications | (0.6) | — | (2.9) | (3.5) | |||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss | 0.1 | (0.2) | 0.3 | 0.2 | |||||||||||||||||||
| Net current-period other comprehensive income (loss) | (0.5) | (0.2) | (2.6) | (3.3) | |||||||||||||||||||
| Balance as of June 30, 2026 | $ | (0.4) | $ | (13.8) | $ | 4.7 | $ | (9.5) | |||||||||||||||
| (1)All amounts are net of tax. Amounts in parentheses indicate debits. | |||||||||||||||||||||||
| (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 March 31, 2025 | $ | (3.2) | $ | (13.3) | $ | (12.7) | $ | (29.2) | |||||||||||||||
| Other comprehensive income (loss) before reclassifications | 1.0 | — | (0.1) | 0.9 | |||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss | — | (0.1) | 0.2 | 0.1 | |||||||||||||||||||
| Net current-period other comprehensive income (loss) | 1.0 | (0.1) | 0.1 | 1.0 | |||||||||||||||||||
| Balance as of June 30, 2025 | $ | (2.2) | $ | (13.4) | $ | (12.6) | $ | (28.2) | |||||||||||||||
| (1)All amounts are net of tax. Amounts in parentheses indicate debits. | |||||||||||||||||||||||
| (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 December 31, 2024 | $ | (4.0) | $ | (13.2) | $ | (13.2) | $ | (30.4) | |||||||||||||||
| Other comprehensive income before reclassifications | 1.8 | — | 0.2 | 2.0 | |||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss | — | (0.2) | 0.4 | 0.2 | |||||||||||||||||||
| Net current-period other comprehensive income (loss) | 1.8 | (0.2) | 0.6 | 2.2 | |||||||||||||||||||
| Balance as of June 30, 2025 | $ | (2.2) | $ | (13.4) | $ | (12.6) | $ | (28.2) | |||||||||||||||
| (1)All amounts are net of tax. Amounts in parentheses indicate debits. | |||||||||||||||||||||||
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
17. Business Segment Information
Our reportable segments reflect the manner in which our business is managed and our resources are allocated. Our operations are divided into two primary reportable segments, the Columbia Operations and the NIPSCO Operations segments. Columbia Operations aggregates the results of the fully regulated and wholly owned subsidiaries of NiSource Gas Distribution Group, Inc. (a holding company that owns Columbia of Kentucky, Columbia of Maryland, Columbia of Ohio, Columbia of Pennsylvania, and Columbia of Virginia). Each Columbia distribution company is an operating segment which we aggregate to form the Columbia Operations reportable segment. NIPSCO Operations includes the results of NIPSCO Holdings I and its majority-owned subsidiaries, including NIPSCO, which has regulated gas and electric operations in northern Indiana.
The remainder of our operations, which are not significant enough on a stand-alone basis to warrant treatment as a reportable segment, are presented as "Corporate and Other" and primarily are comprised of interest expense on holding company debt and unallocated corporate costs and activities, as well as new business development costs associated with GenCo. Refer to Note 3, "Revenue Recognition," for additional information on our segments and their sources of revenues. The following table provides information about our reportable segments. We use operating income as the primary measurement of performance for each of the reportable segments and make decisions on financing, dividends and taxes at the corporate level on a consolidated basis. We provide this measure to our CODM, the CEO, who utilizes it to assess performance and allocation of resources at the operating segment level based on budget-to-actual and actual-to-actual variances. Segment revenues include intersegment sales to affiliated subsidiaries, which are eliminated in consolidation. Affiliated sales are recognized on the basis of prevailing market, regulated prices or at levels provided for under contractual agreements. Operating income is derived from revenues and expenses directly associated with each segment.
| Three Months Ended June 30, 2026 | |||||||||||||||||||||||||||||
| (in millions) | Columbia Operations | NIPSCO Operations | Total of Reportable Segments | ||||||||||||||||||||||||||
| Operating Revenues | |||||||||||||||||||||||||||||
| External Revenue | $ | 597.0 | $ | 743.9 | $ | 1,340.9 | |||||||||||||||||||||||
| Intersegment Revenue | 3.5 | 0.3 | 3.8 | ||||||||||||||||||||||||||
| Total Operating Revenue | $ | 600.5 | $ | 744.2 | $ | 1,344.7 | |||||||||||||||||||||||
| Cost of energy | 80.8 | 111.8 | 192.6 | ||||||||||||||||||||||||||
| O&M | 225.2 | 270.4 | 495.6 | ||||||||||||||||||||||||||
| Depreciation | 131.4 | 222.2 | 353.6 | ||||||||||||||||||||||||||
| Total other taxes | 59.8 | 19.4 | 79.2 | ||||||||||||||||||||||||||
| Operating Income | $ | 103.3 | $ | 120.4 | $ | 223.7 | |||||||||||||||||||||||
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||||||||
| (in millions) | Columbia Operations | NIPSCO Operations | Total of Reportable Segments | ||||||||||||||||||||||||||
| Operating Revenues | |||||||||||||||||||||||||||||
| External revenue | $ | 601.2 | $ | 680.6 | $ | 1,281.8 | |||||||||||||||||||||||
| Intersegment revenue | 3.5 | 0.2 | 3.7 | ||||||||||||||||||||||||||
| Total Operating Revenue | 604.7 | 680.8 | 1,285.5 | ||||||||||||||||||||||||||
| Cost of energy | 110.4 | 151.4 | 261.8 | ||||||||||||||||||||||||||
| O&M | 207.7 | 211.0 | 418.7 | ||||||||||||||||||||||||||
| Depreciation | 111.7 | 165.9 | 277.6 | ||||||||||||||||||||||||||
| Total other taxes | 52.4 | 18.1 | 70.5 | ||||||||||||||||||||||||||
| Other segment items(1) | 0.3 | 0.4 | 0.7 | ||||||||||||||||||||||||||
| Operating Income | $ | 122.2 | $ | 134.0 | $ | 256.2 | |||||||||||||||||||||||
(1)Other segment items consists of Loss on Sale or Impairment of Assets and other segment income or expenses deemed insignificant which are used to reach our measurement of segment profit or loss, Operating Income.
| Six Months Ended June 30, 2026 | |||||||||||||||||||||||||||||
| (in millions) | Columbia Operations | NIPSCO Operations | Total of Reportable Segments | ||||||||||||||||||||||||||
| Operating Revenues | |||||||||||||||||||||||||||||
| External revenue | $ | 1,920.2 | $ | 1,782.4 | $ | 3,702.6 | |||||||||||||||||||||||
| Intersegment revenue | 6.9 | 0.6 | 7.5 | ||||||||||||||||||||||||||
| Total Operating Revenue | $ | 1,927.1 | $ | 1,783.0 | $ | 3,710.1 | |||||||||||||||||||||||
| Cost of energy | 464.7 | 397.1 | 861.8 | ||||||||||||||||||||||||||
| O&M | 503.6 | 491.8 | 995.4 | ||||||||||||||||||||||||||
| Depreciation | 252.3 | 384.9 | 637.2 | ||||||||||||||||||||||||||
| Total other taxes | 130.9 | 40.3 | 171.2 | ||||||||||||||||||||||||||
| Operating Income | $ | 575.6 | $ | 468.9 | $ | 1,044.5 | |||||||||||||||||||||||
| Six Months Ended June 30, 2025 | |||||||||||||||||||||||||||||
| (in millions) | Columbia Operations | NIPSCO Operations | Total of Reportable Segments | ||||||||||||||||||||||||||
| Operating Revenues | |||||||||||||||||||||||||||||
| External revenue | $ | 1,841.8 | $ | 1,622.0 | $ | 3,463.8 | |||||||||||||||||||||||
| Intersegment revenue | 6.7 | 0.5 | 7.2 | ||||||||||||||||||||||||||
| Total Operating Revenue | 1,848.5 | 1,622.5 | 3,471.0 | ||||||||||||||||||||||||||
| Cost of energy | 490.2 | 419.1 | 909.3 | ||||||||||||||||||||||||||
| O&M | 450.7 | 413.0 | 863.7 | ||||||||||||||||||||||||||
| Depreciation | 219.9 | 307.2 | 527.1 | ||||||||||||||||||||||||||
| Total other taxes | 119.4 | 36.6 | 156.0 | ||||||||||||||||||||||||||
| Other segment items(1) | 0.3 | 0.7 | 1.0 | ||||||||||||||||||||||||||
| Operating Income | $ | 568.0 | $ | 445.9 | $ | 1,013.9 | |||||||||||||||||||||||
(1)Other segment items consists of Loss on Sale or Impairment of Assets and other segment income or expenses deemed insignificant which are used to reach our measurement of segment profit or loss, Operating Income.
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
The following table provides information about the assets of our reportable segments included in the Condensed Consolidated Balance Sheets (unaudited):
| (in millions) | June 30, 2026 | December 31, 2025 | |||||||||
| Assets | |||||||||||
| Columbia Operations | $ | 16,258.5 | $ | 15,903.7 | |||||||
| NIPSCO Operations | 19,066.4 | 18,126.7 | |||||||||
| Corporate and Other | 2,218.7 | 1,828.3 | |||||||||
| Consolidated Assets | $ | 37,543.6 | $ | 35,858.7 |
To reconcile the segment tables above to consolidated NiSource:
| Three Months Ended June 30, 2026 | |||||||||||||||||||||||
| (in millions) | Total Reportable Segments | Corporate and Other | Eliminations | Consolidated NiSource | |||||||||||||||||||
| Total Operating Revenue | $ | 1,344.7 | $ | 163.4 | $ | (165.7) | $ | 1,342.4 | |||||||||||||||
| Operating Income | 223.7 | 4.4 | — | 228.1 | |||||||||||||||||||
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||
| (in millions) | Total Reportable Segments | Corporate and Other | Eliminations | Consolidated NiSource | |||||||||||||||||||
| Total Operating Revenue | $ | 1,285.5 | $ | 144.6 | $ | (147.1) | $ | 1,283.0 | |||||||||||||||
| Operating Income | 256.2 | 6.7 | — | 262.9 | |||||||||||||||||||
| Six Months Ended June 30, 2026 | |||||||||||||||||||||||
| (in millions) | Total Reportable Segments | Corporate and Other | Eliminations | Consolidated NiSource | |||||||||||||||||||
| Total Operating Revenue | $ | 3,710.1 | $ | 310.7 | $ | (315.3) | $ | 3,705.5 | |||||||||||||||
| Operating Income | 1,044.5 | 2.8 | — | 1,047.3 | |||||||||||||||||||
| Six Months Ended June 30, 2025 | |||||||||||||||||||||||
| (in millions) | Total Reportable Segments | Corporate and Other | Eliminations | Consolidated NiSource | |||||||||||||||||||
| Total Operating Revenue | $ | 3,471.0 | $ | 290.0 | $ | (294.8) | $ | 3,466.2 | |||||||||||||||
| Operating Income | 1,013.9 | 8.4 | — | 1,022.3 | |||||||||||||||||||
ITEM 1. FINANCIAL STATEMENTS (continued)
NiSource Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) (continued)
18. Other, Net
The following table displays the components of Other, Net included on the Condensed Statements of Consolidated Income (unaudited):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Interest income | $ | 1.6 | $ | 1.5 | $ | 6.3 | $ | 3.5 | |||||||||||||||
| AFUDC equity | 14.6 | 8.6 | 24.4 | 17.8 | |||||||||||||||||||
| Pension and other postretirement non-service benefit (cost) | 2.2 | (1.6) | 4.4 | (5.4) | |||||||||||||||||||
| Tax penalty | — | (8.1) | — | (9.2) | |||||||||||||||||||
| Miscellaneous | (0.2) | 0.1 | (2.5) | (0.4) | |||||||||||||||||||
| Total Other, net | $ | 18.2 | $ | 0.5 | $ | 32.6 | $ | 6.3 |
19. Supplemental Disclosures of Cash Flow Information
The following table displays the components of Working Capital on the Condensed Statements of Consolidated Cash Flows (unaudited):
| Six Months Ended June 30, | |||||||||||||||||||||||
| (in millions) | 2026 | 2025 | |||||||||||||||||||||
| Accounts receivable | $ | 343.5 | $ | 185.6 | |||||||||||||||||||
| Income tax receivable | 11.8 | — | |||||||||||||||||||||
| Gas storage and other inventories | 60.6 | 20.9 | |||||||||||||||||||||
| Accounts payable | (238.9) | (146.9) | |||||||||||||||||||||
| Customer deposits and credits | (119.5) | (108.9) | |||||||||||||||||||||
| Taxes accrued | 21.0 | (0.7) | |||||||||||||||||||||
| Interest accrued | 35.0 | 20.5 | |||||||||||||||||||||
| Exchange gas receivable/payable | (215.6) | 73.8 | |||||||||||||||||||||
| Other accruals | (20.8) | (17.6) | |||||||||||||||||||||
| Prepayments and other current assets | (116.5) | (28.4) | |||||||||||||||||||||
| Accrued compensation and employee benefits | (32.6) | (63.1) | |||||||||||||||||||||
| Total change in working capital | $ | (272.0) | $ | (64.8) |
| Six Months Ended June 30, | |||||||||||
| (in millions) | 2026 | 2025 | |||||||||
| Non-cash transactions: | |||||||||||
| Capital expenditures included in current liabilities | $ | 678.8 | $ | 426.6 | |||||||
| Advance deposits transferred to capital expenditures | 108.6 | — | |||||||||
| Dividends declared but not paid | 148.0 | 135.1 | |||||||||
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