Investment Thesis
NiSource demonstrates solid operational performance with strong revenue growth (+23.5% YoY) and healthy operating margins (28.1%), supported by 7.5x interest coverage. However, negative free cash flow (-$420M) and elevated leverage (1.64x debt-to-equity) raise concerns about capital intensity and financial flexibility despite modest net income growth.
NI Strengths
- Strong revenue growth of 23.5% year-over-year indicating market expansion
- Healthy operating margin of 28.1% reflecting operational efficiency in utility operations
- Solid interest coverage ratio of 7.5x demonstrating ability to service debt obligations
- Substantial operating cash flow of $2.4B supporting infrastructure investments
NI Risks
- Negative free cash flow of -$420M indicating capital expenditures exceed operating cash generation
- High leverage with debt-to-equity ratio of 1.64x limiting financial flexibility
- Weak liquidity position with current ratio of 0.69x below healthy threshold of 1.0x
- Flat net income growth (0.0% YoY) despite strong revenue growth suggesting margin compression or non-operating headwinds
Key Metrics to Watch
- Free cash flow trend and capex efficiency relative to rate base growth
- Debt-to-equity ratio and refinancing ability in rising rate environment
- Operating cash flow sustainability and working capital management
- Net margin trajectory and ability to pass costs through regulatory mechanisms
NI Financial Metrics
NI Profitability Ratios
NI Balance Sheet & Liquidity
NI 5-Year Financial Trend
5-Year Trend Summary: NISOURCE INC.'s revenue has grown significantly by 29% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.48 reflects profitable operations.
NI Growth Metrics (YoY)
NI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.0B | $85.7M | $0.19 |
| Q2 2025 | $1.1B | $85.8M | $0.19 |
| Q1 2025 | $1.6B | $365.0M | $0.77 |
| Q3 2024 | $1.0B | $85.1M | $0.17 |
| Q2 2024 | $1.1B | $58.8M | $0.09 |
| Q1 2024 | $1.6B | $333.0M | $0.71 |
| Q3 2023 | $1.0B | $65.8M | $0.12 |
| Q2 2023 | $1.1B | $58.8M | $0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NI Capital Allocation
NI SEC Filings
Access official SEC EDGAR filings for NISOURCE INC. (CIK: 0001111711)