Nisource (NI) stock price is $45.31, up 0.55% on the day, as of Nov 10, 2026. It has a market cap of $21.54Bn and a P/E ratio of 22.83, and is classified in the Regulated Gas Utilities industry (Utilities sector).
Enterprise Value
Margins
P/FCF
Key Stats
Market Cap21.54 Bn
P/E22.83
FCF (Yr)-420.00 Mn
ROA (Yr)2.99
EV to EBIT11.16
Net Income (Yr)1.01 Bn
Enterprise Value21.23 Bn
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About
NiSource Inc. is an energy holding company that provides regulated natural gas and electric utility services to approximately 3.8 million customers across six states. Its principal subsidiaries include NiSource Gas Distribution Group Inc which owns local distribution companies in Ohio Pennsylvania Virginia Kentucky and Maryland and NIPSCO Holdings I which controls NIPSCO a gas and electric utility in northern Indiana.
NiSource generates substantially all of its revenue from…
NiSource Inc. is an energy holding company that provides regulated natural gas and electric utility services to approximately 3.8 million customers across six states. Its principal subsidiaries include NiSource Gas Distribution Group Inc which owns local distribution companies in Ohio Pennsylvania Virginia Kentucky and Maryland and NIPSCO Holdings I which controls NIPSCO a gas and electric utility in northern Indiana.
NiSource generates substantially all of its revenue from the operating results of its rate regulated natural gas and electric utility businesses. Revenue comes from the sale of natural gas to residential commercial and industrial customers and from the generation transmission and distribution of electricity to customers in its service areas. The company also earns revenue from specialized agreements such as the ADS Contract which provides electric service to a data center customer through its subsidiary GenCo.
The company operates through the following segments: Columbia Operations and NIPSCO Operations.
Columbia Operations provides natural gas to approximately 2.4 million residential commercial and industrial customers in Ohio Pennsylvania Virginia Kentucky and Maryland. It operates about 37,300 miles of distribution main pipeline 310 miles of transmission main pipeline gate stations and other support facilities and owns storage facilities including propane and propane air storage sites.
NIPSCO Operations includes NIPSCO Holdings I and its majority owned subsidiary NIPSCO which delivers regulated gas and electric service in northern Indiana. NIPSCO Gas supplies natural gas to about 0.9 million customers and operates approximately 18,100 miles of distribution main 720 miles of transmission main and storage facilities such as Royal Center Underground Storage and Rolling Prairie LNG. NIPSCO Electric generates transmits and distributes electricity to roughly 0.5 million customers using a portfolio of coal natural gas hydro wind and solar generation assets plus purchased power agreements and participates in the MISO market.
NiSource holds a strong position in the Midwest and Mid Atlantic energy markets as one of the largest regulated natural gas and electric utilities serving millions of customers. It competes with investor owned municipal and cooperative electric utilities other regulated and unregulated natural gas pipelines and alternative fuels such as propane and fuel oil. The company benefits from customer preference for natural gas a stable regulatory framework and ongoing investments in safety infrastructure and asset management which are supported by certifications such as ISO 55001 and API RP 1173. Its focus on rate case outcomes and tracker mechanisms helps align revenues with costs and supports predictable returns.
NiSource serves approximately 3.8 million customers consisting of residential commercial and industrial users across its six state service area. In addition to traditional utility customers the company has entered into a specialized agreement to provide electric service to the data center client ADS. The bulk of its revenue comes from serving homes businesses and factories that rely on its natural gas and electric delivery.
Sector:UtilitiesSector rationaleNiSource operates as a regulated energy holding company that generates substantially all of its revenue from the sale of natural gas and the generation, transmission, and distribution of electricity. Its business model is based on rate-regulated utility services provided to residential, commercial, and industrial customers across six states.Industries:Regulated Gas UtilitiesRegulated Gas UtilitiesPrimaryNiSource operates extensive regulated natural gas distribution networks through its Columbia Operations and NIPSCO Gas segments, serving approximately 3.3 million customers across six states. Its revenue is derived from the sale of natural gas to residential, commercial, and industrial customers under a regulated rate-base model.Regulated Electric UtilitiesRegulated Electric UtilitiesSecondaryThrough its NIPSCO Electric subsidiary, the company generates, transmits, and distributes electricity to roughly 0.5 million customers in northern Indiana under a regulated utility framework.Classified using BQ-MICSCIK: 0001111711
Bull & bear
Investment Thesis
▲ Bull case
NiSource Inc. is positioned to capitalize on the accelerating demand for data center power in Northern Indiana through its innovative Genco model, which allows the company to serve hyperscaler customers like Amazon and Alphabet without exposing its regulated retail customer base to the associated costs or risks. The company has already secured approximately 800 megawatts of contracted capacity for these two customers, with an additional 3 gigawatts in strategic negotiations and line of sight to another 2 gigawatts of developing opportunities, indicating a robust pipeline that could support sustained growth well beyond current guidance. Management explicitly stated that the 9% to 10% long-term EPS CAGR guidance increase only reflects signed contracts and excludes the strategic negotiations pipeline, meaning that successful conversion of even a portion of these negotiations into contracts would provide meaningful upside to earnings growth through 2033. The Genco structure’s ability to ring-fence costs and recover investments through bilateral contracts ensures that data center initiatives contribute directly to consolidated adjusted EPS without diluting returns or increasing volatility for the core regulated business, creating a scalable and accretive growth engine. Furthermore, the company’s ability to leverage pooled resources — including advanced battery solutions and market-purchased capacity — enables rapid deployment and flexibility in meeting customer timelines, which is a critical competitive advantage in the hyperscaler market where speed to power is a key differentiator. This operational agility, combined with Indiana’s strong transmission infrastructure and proximity to major load centers like Chicago, positions NiSource to capture a disproportionate share of regional data center expansion, especially as hyperscalers prioritize locations with reliable, scalable, and quickly deployable energy solutions. The $1.4 billion in cumulative customer savings over 15 years from these partnerships not only enhances customer affordability and regulatory goodwill but also strengthens the political and social license to operate, reducing the likelihood of regulatory pushback on future investments and supporting smoother approval processes for new contracts. Finally, the company’s commitment to maintaining a strong balance sheet through a balanced funding mix — including $400 million to $600 million of annual equity issuances — ensures it has the financial flexibility to pursue incremental capital opportunities without compromising credit metrics, thereby de-risking the execution of its aggressive data center growth strategy.
NiSource Inc. is positioned to capitalize on the accelerating demand for data center power in Northern Indiana through its innovative Genco model, which allows the company to serve hyperscaler customers like Amazon and Alphabet without exposing its regulated retail customer base to the associated costs or risks. The company has already secured approximately 800 megawatts of contracted capacity for these two customers, with an additional 3 gigawatts in strategic negotiations and line of sight to another 2 gigawatts of developing opportunities, indicating a robust pipeline that could support sustained growth well beyond current guidance. Management explicitly stated that the 9% to 10% long-term EPS CAGR guidance increase only reflects signed contracts and excludes the strategic negotiations pipeline, meaning that successful conversion of even a portion of these negotiations into contracts would provide meaningful upside to earnings growth through 2033. The Genco structure’s ability to ring-fence costs and recover investments through bilateral contracts ensures that data center initiatives contribute directly to consolidated adjusted EPS without diluting returns or increasing volatility for the core regulated business, creating a scalable and accretive growth engine. Furthermore, the company’s ability to leverage pooled resources — including advanced battery solutions and market-purchased capacity — enables rapid deployment and flexibility in meeting customer timelines, which is a critical competitive advantage in the hyperscaler market where speed to power is a key differentiator. This operational agility, combined with Indiana’s strong transmission infrastructure and proximity to major load centers like Chicago, positions NiSource to capture a disproportionate share of regional data center expansion, especially as hyperscalers prioritize locations with reliable, scalable, and quickly deployable energy solutions. The $1.4 billion in cumulative customer savings over 15 years from these partnerships not only enhances customer affordability and regulatory goodwill but also strengthens the political and social license to operate, reducing the likelihood of regulatory pushback on future investments and supporting smoother approval processes for new contracts. Finally, the company’s commitment to maintaining a strong balance sheet through a balanced funding mix — including $400 million to $600 million of annual equity issuances — ensures it has the financial flexibility to pursue incremental capital opportunities without compromising credit metrics, thereby de-risking the execution of its aggressive data center growth strategy.
NiSource Inc.’s ambitious data center growth strategy through the Genco model faces significant execution risks that the market may be underestimating, particularly regarding the company’s ability to convert its sizable pipeline of strategic negotiations into actual contracted capacity under favorable terms and timelines. While management cites strong demand and multiple counterparty discussions as confidence builders, the transcript reveals that the conversion of pipeline to signed contracts remains uncertain and subject to complex, time-consuming negotiations, with no guarantee that the 3 gigawatts in strategic negotiations or the additional 2 gigawatts of developing opportunities will materialize into binding agreements, especially given the capital-intensive nature of infrastructure development and the need for regulatory approvals at each stage. The company’s reliance on expedited IURC review processes — projected at 90 to 120 days post-settlement approval — introduces execution risk, as any delays in regulatory filings, stakeholder opposition, or unforeseen compliance issues (such as those arising from environmental reviews or grid interconnection studies) could push back commercial operation dates and delay the realization of earnings accretion from new contracts. Furthermore, the Genco model’s financial benefits are contingent on the company’s ability to secure appropriate risk-adjusted returns on capacity purchases and constructed assets, yet management admitted that earnings accretion is project-specific and not linear, meaning that early-stage projects may yield lower returns due to higher development costs, permitting delays, or suboptimal resource mixes, which could drag on overall segment profitability during the ramp-up phase. The Schahfer coal plant’s continued operation under a second federal order remains a material overhang, as the company explicitly stated it has no plans to shift its operating costs to data center customers via a PPA, meaning that the financial burden of maintaining this aging, carbon-intensive asset continues to fall on the regulated retail base, potentially undermining the affordability narrative central to the Genco model’s regulatory appeal and inviting scrutiny from consumer advocates or state commissions concerned about intergenerational cost shifting. Additionally, while NiSource emphasizes balance sheet strength through its ATM program and equity issuance plans, the sustained need for $400 million to $600 million in annual equity financing to support both base CapEx and data center investments raises concerns about long-term shareholder dilution, especially if the data center segment fails to generate sufficient returns to offset the dilutive impact of these issuances, potentially constraining EPS growth despite rising asset bases. Finally, the company’s dependence on hyperscaler customers like Amazon and Alphabet introduces concentration risk, as any decision by these counterparties to reduce committed capacity, terminate contracts early, or shift procurement strategies — driven by shifts in their own energy sourcing policies, renewable procurement goals, or macroeconomic downturns — could abruptly halt the expected revenue stream from Genco, leaving NiSource with stranded assets or underutilized capacity that was built under the assumption of long-term, take-or-pay commitments.
NiSource Inc.’s ambitious data center growth strategy through the Genco model faces significant execution risks that the market may be underestimating, particularly regarding the company’s ability to convert its sizable pipeline of strategic negotiations into actual contracted capacity under favorable terms and timelines. While management cites strong demand and multiple counterparty discussions as confidence builders, the transcript reveals that the conversion of pipeline to signed contracts remains uncertain and subject to complex, time-consuming negotiations, with no guarantee that the 3 gigawatts in strategic negotiations or the additional 2 gigawatts of developing opportunities will materialize into binding agreements, especially given the capital-intensive nature of infrastructure development and the need for regulatory approvals at each stage. The company’s reliance on expedited IURC review processes — projected at 90 to 120 days post-settlement approval — introduces execution risk, as any delays in regulatory filings, stakeholder opposition, or unforeseen compliance issues (such as those arising from environmental reviews or grid interconnection studies) could push back commercial operation dates and delay the realization of earnings accretion from new contracts. Furthermore, the Genco model’s financial benefits are contingent on the company’s ability to secure appropriate risk-adjusted returns on capacity purchases and constructed assets, yet management admitted that earnings accretion is project-specific and not linear, meaning that early-stage projects may yield lower returns due to higher development costs, permitting delays, or suboptimal resource mixes, which could drag on overall segment profitability during the ramp-up phase. The Schahfer coal plant’s continued operation under a second federal order remains a material overhang, as the company explicitly stated it has no plans to shift its operating costs to data center customers via a PPA, meaning that the financial burden of maintaining this aging, carbon-intensive asset continues to fall on the regulated retail base, potentially undermining the affordability narrative central to the Genco model’s regulatory appeal and inviting scrutiny from consumer advocates or state commissions concerned about intergenerational cost shifting. Additionally, while NiSource emphasizes balance sheet strength through its ATM program and equity issuance plans, the sustained need for $400 million to $600 million in annual equity financing to support both base CapEx and data center investments raises concerns about long-term shareholder dilution, especially if the data center segment fails to generate sufficient returns to offset the dilutive impact of these issuances, potentially constraining EPS growth despite rising asset bases. Finally, the company’s dependence on hyperscaler customers like Amazon and Alphabet introduces concentration risk, as any decision by these counterparties to reduce committed capacity, terminate contracts early, or shift procurement strategies — driven by shifts in their own energy sourcing policies, renewable procurement goals, or macroeconomic downturns — could abruptly halt the expected revenue stream from Genco, leaving NiSource with stranded assets or underutilized capacity that was built under the assumption of long-term, take-or-pay commitments.