Nisource Inc. Maintains Stable Outlook Amid Infrastructure Investment and Regulatory Momentum

Nisource Inc. (NIS) has maintained its 2024–2026 financial outlook, projecting adjusted earnings per share (EPS) growth of 4% to 6% annually, supported by rate case approvals and capital expenditures totaling $1.4 billion over the next three years. The company's regulated utility subsidiaries—Indiana Michigan Power, Northern Indiana Public Service Company, and Columbia Gas of Pennsylvania—collectively serve over 1.8 million customers across six states, with a focus on modernizing aging infrastructure. Capital investments are being directed toward grid resilience, natural gas pipeline upgrades, and environmental compliance initiatives. NIS reported adjusted EPS of $2.81 for the 2023 fiscal year, exceeding initial guidance by 3%, driven by strong operational performance and disciplined cost management. The company's dividend policy remains intact, with a current yield of 4.1% based on the latest quarterly payout of $0.66 per share. NIS maintains a long-term debt-to-total-capital ratio of 57%, consistent with its investment-grade credit profile. Regulatory proceedings in multiple jurisdictions are progressing, with recent approvals in Indiana and Pennsylvania enabling rate base increases totaling $1.2 billion over the next two years. These rate adjustments are expected to support a projected 5.2% compound annual growth rate in customer rates through 2027. Market participants are monitoring NIS’s execution on its capital plan, particularly in light of inflationary pressures on materials and labor. While near-term margins remain stable, the company has introduced a hedging strategy for 60% of its forecasted 2025 energy procurement costs to mitigate volatility. Analysts note that NIS’s diversified utility footprint and consistent cash flow generation position it as a defensive holding in a high-interest-rate environment.