NiSource raises 2025 earnings forecast on higher power demand (updated)

NiSource

12/02/2025 17:50

(Adds quote from conference call and segment details in
paragraphs 3 and 7 respectively)
    By Pooja  Menon
       Feb 12 (Reuters) - U.S. electric and gas utility company
NiSource  NI.N  on Wednesday raised its adjusted earnings
forecast for 2025 and beat fourth-quarter profit estimates,
benefiting from higher industrial electricity demand.
    Power companies are set to benefit from rising electricity
usage — expected to reach record highs in 2025, according to the
U.S. Energy Information Administration — mainly from
energy-guzzling data centers needing to scale Big Tech's
artificial intelligence ambitions.
    "A mix of incremental generation resources of approximately
900 megawatts of capacity is likely required by 2028 to meet
energy and capacity needs in all scenarios, before considering
potential data center growth," the company said in a conference
call.
    NiSource said its capital expenditure plan has increased to
$19.4 billion, compared with $19.3 billion previously, which is
expected to result in an 8% to 10% rate base growth for the 2025
to 2029 period.
    U.S. electric utilities have been pushing to hike customer
electricity bills, as the grid faces extreme weather besides the
rising demand.
    Across six states, the utility company serves natural gas to
around 3.3 million customers through its Columbia Gas unit and
electricity to 500,000 customers through its NIPSCO unit.
    Adjusted operating profit from its NIPSCO operations segment
rose 44% to $193 million in the fourth quarter compared to a
year earlier.
    Merrillville, Indiana-based NiSource raised its 2025
adjusted profit forecast to between $1.85 per share and $1.89
per share, from its prior expectation of $1.84 to $1.88 each.
    On an adjusted basis, NiSource reported a quarterly profit
of 49 cents per share, just above the analysts' average estimate
of 48 cents per share, according to data compiled by LSEG.

 (Reporting by Pooja Menon in Bengaluru; Editing by Sahal
Muhammed and Alan Barona)
 ((Pooja.Menon@thomsonreuters.com))