Nisource 2025 Q1 Earnings Strong Performance as Net Income Climbs 31.6%

NiSource (NI) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The company's results exceeded expectations, with earnings per share (EPS) at $1.01, surpassing analysts' estimates of $0.90. NiSource reaffirmed its 2025 non-GAAP adjusted EPS guidance at $1.85-$1.89, anticipating a growth rate of 6%-8% annually from 2025 to 2029. This guidance suggests confidence in their future financial performance, as they also foresee a rate base growth of 8%-10% over the same period.

Revenue
The total revenue of NiSource increased by 30.8% to $2.15 billion in 2025 Q1, up from $1.64 billion in 2024 Q1.

Earnings/Net Income
NiSource's EPS rose 31.2% to $1.01 in 2025 Q1 from $0.77 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $526.70 million in 2025 Q1, marking 31.6% growth from $400.30 million in 2024 Q1. Remarkably, the company has sustained profitability for more than 20 years over the corresponding fiscal quarter, underscoring strong operational resilience. This EPS performance reflects the company's robust financial health.

Price Action
The stock price of NiSource has climbed 4.60% during the latest trading day, has climbed 3.50% during the most recent full trading week, and has jumped 8.76% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing NiSource (NI) shares following a quarter with increased revenue and holding for 30 days has performed poorly over the past five years. This strategy yielded a return of -3.56%, significantly underperforming the benchmark return of 84.08%, resulting in an excess return of -87.65%. The compound annual growth rate (CAGR) was -0.73%, with a Sharpe ratio of -0.13, indicating unsatisfactory risk-adjusted returns. In addition, the strategy experienced a maximum drawdown of -10.46% and exhibited a volatility of 5.55%. These figures highlight the challenges faced by investors using this approach in recent years.

CEO Commentary
Lloyd Yates, President and CEO of NiSource, emphasized the company's solid business fundamentals in the first quarter of 2025, reporting a net income of $474.8 million, or $1.00 per diluted share, a significant increase from $344.3 million, or $0.77 per diluted share, in the same quarter of 2024. He highlighted the resilience of their investment strategy and the commitment of employees and contractors in ensuring safe and reliable energy for communities, acknowledging challenges posed by market conditions but expressing confidence in the longevity of the company’s growth plan.

Guidance
NiSource reaffirmed its 2025 non-GAAP adjusted EPS guidance at $1.85-$1.89 and expects annual non-GAAP adjusted EPS growth of 6%-8% from 2025 to 2029. The company also anticipates a rate base growth of 8%-10% during the same period, reflecting a strong outlook for sustainable growth amidst market challenges.

Additional News
In recent developments, NiSource saw significant institutional investor activity, with hedge funds and other investors actively buying and selling shares. Notably, ANB Bank acquired a new stake in the company valued at approximately $255,000, while Cetera Investment Advisers increased its holdings by 69.6%. Machina Capital S.A.S. also expanded its ownership by 133.3%, reflecting strong confidence in NiSource's future prospects. Additionally, insider trading was observed with CAO Gunnar Gode selling 5,500 shares, although insiders still own a substantial portion of the company. This flurry of investment activity underscores the market's positive outlook for NiSource.