NiSource Inc - Units

Strong Q3 results + tighter 2026 EPS outlook; new 2027 guidance - Q3 consolidated adjusted EPS: $0.27 vs $0.19 YoY; YTD adjusted EPS: $1.49. - Management is on track for the full-year growth commitment and has narrowed 2026 guidance to the upper half of the prior $2.02–$2.07 range. - Initiated 2027 adjusted EPS guidance: $2.22–$2.30 (midpoint implies double-digit YoY growth). - Expect 10–11% consolidated adjusted EPS CAGR through 2033 (new extended plan foundation).

Major “good surprise”: Microsoft Genco agreement expands savings to customers - Genco now has signed agreements with 3 major technology customers (Microsoft as the latest) and 5 agreements across those signings. - Microsoft agreement expected to deliver ~$1.75B in savings to existing NIPSCO electric customers (up from ~$1.4B last quarter), equating to ~$140/year for an average residential customer at full ramp. - Bill credits potentially begin as early as January 2027 (subject to IURC approval). - Microsoft take-rate: 20-year electric term starting in 2028; Genco pool increased by ~1.1 GW (about 500 MW combustion turbines + 600 MW battery storage). Special contract filing targeted by year-end; IURC order expected in H1 2027.

Big operational challenge: severe Indiana storms; focus on safety + independent review - A major derecho (Aug 11) with wind speeds up to ~110 mph caused severe system damage; restoration largely completed by Aug 25. - 1,700+ external personnel mobilized within 24 hours; restoration completed without injury. - Company is conducting a full internal after-action review (expected late November) plus hiring a third-party independent expert; also participating in IURC reviews. - Investor takeaway: execution competence demonstrated, but regulatory and resilience lessons could influence future capex and standards.