Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 5, 2026 · Beat 6 of last 7 quarters
The Buildout is a website built on agentic AI tools, currently in beta, and could have factual errors.
NiSource's data center strategy continues to gain regulatory traction, with approvals for Amazon and Alphabet agreements and a growing pipeline of 9 GW. The GenCo model provides a template for utilities to serve hyperscale AI demand while protecting existing customers, potentially accelerating the AI infrastructure buildout in the Midwest. The company's ability to expand beyond 9 GW signals sustained demand for power infrastructure to support AI workloads.
NiSource reported Q2 adjusted EPS of $0.16, down from $0.22 a year ago, with year-to-date EPS of $1.22, up $0.03. Results were impacted by higher O&M from storm activity and union negotiations, offset by new rates and recovery mechanisms. The company received IURC approval for the Amazon and Alphabet data center agreements, with Alphabet energization on track for summer 2026. They filed rate cases in Virginia and Kentucky and are pursuing recovery of Schahfer coal plant compliance costs via a FERC Section 205 filing. Management reaffirmed all financial guidance and highlighted a $1.4 billion customer savings benefit from data center contracts.
Management reaffirmed 2026 adjusted EPS guidance of $2.02–$2.07 and long-term growth of 6–8% base EPS CAGR through 2030 and 9–10% consolidated EPS CAGR through 2033. They expect earnings growth to be weighted to the second half, supported by approved recovery mechanisms, new rate cases in Virginia and Ohio, and Alphabet's energization. The data center pipeline remains robust with 3 GW in active negotiations and ~2 GW of additional potential, and they are exploring expansion beyond the current 9 GW. Management emphasized disciplined capital deployment, cost optimization initiatives (over $40M in 2026), and continued constructive regulatory engagement, including the upcoming August 7 affordability discussions in Indiana. They remain confident in the GenCo model's ability to deliver customer savings and incremental earnings.
“We are also reaffirming our annual base plan adjusted EPS growth rate of 6% to 8% through 2030 and our consolidated adjusted EPS compound annual growth rate of 9% to 10% from 2026 through 2033.”
on Long-term guidance
“Our agreements with Amazon and Alphabet are expected to provide approximately $1.4 billion of bill reductions for existing NIPSCO electric customers over their respective contract terms.”
on Data center customer savings
“We continue to see favorable market dynamics that could expand opportunities beyond our current 9 gigawatt pipeline and we are assessing execution pathways to advance and integrate that additional growth into our pipeline.”
on Data center pipeline expansion
Can you talk about the affordability backdrop and specifically today's TDSIC order? How are you thinking about tracker recovery and multiyear rate plan risk?
Lloyd Yates said they are still evaluating the order but believe Indiana remains constructive. The decision doesn't preclude recovery through other trackers or rate cases. The commission wants continued investment with better demonstration of benefits. He noted affordability issues are mostly on the electric side, and gas is not in the crosshairs.
Could you give us some expectations for what we should expect out of the August 7 Technical Conference on the ROEs and the trackers?
Lloyd Yates expects balanced and collaborative outcomes, focusing on bill transparency and multiyear rate planning. He noted much was contemplated in House Bill 1002. Melody Birmingham added they will participate and cooperate with the IURC.
Can you explain what you mean by looking at the system to expand beyond the 9 gigawatts? Is that a constraint?
Michael Luhrs clarified it's not a constraint but part of normal preplanning. They are evaluating factors like land, transmission, fuel supply, and equipment to enable pipeline growth. They feel good about opportunities and are planning ahead to focus on execution.