Group 1: Constellation Energy (CEG) - Constellation Energy is trading over 30% below its October records, despite being up 220% over the past three years, significantly outperforming the benchmark [1][4] - The company is positioned as a leader in the nuclear energy sector, with a strong outlook supported by a $27 billion acquisition of Calpine, enhancing its role in the AI energy landscape [8] - CEG's adjusted EPS is projected to grow by approximately 8% in 2025 and 22% in 2026, with a consistent dividend increase plan, raising dividends by 10% in 2025 after a 25% increase in 2024 [11][12] Group 2: Quanta Services (PWR) - Quanta Services has experienced a 75% increase in stock price over the past year, with a 24% year-to-date rise, driven by its involvement in the AI energy boom and grid expansion [3][16] - The company has doubled its revenue from $11.20 billion in 2020 to $23.67 billion in 2024, with a record backlog of $32.64 billion as of Q3 [22][23] - PWR is projected to grow its revenue by 18% in FY25 and 10% in 2026, reaching $30.84 billion, while also expanding its adjusted earnings by 18% and 17% respectively [24][27]

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Financial Data and Key Metrics Changes - For Q4 2025, the company reported adjusted earnings of $0.51 per share, an increase from $0.49 in the same period last year [14] - Full-year adjusted EPS for 2025 was $1.90, up from $1.75 in 2024, reflecting strong regulatory execution and cost management [14][15] - The FFO to debt ratio improved to 16.1%, exceeding the targeted range of 14%-16% [21] Business Line Data and Key Metrics Changes - The base utility investment plan includes $21 billion over the next five years, focusing on grid modernization and safety [15] - The Amazon project at GenCo represents a capital investment of $6-$7 billion through 2032, with most falling within the five-year planning window [15] Market Data and Key Metrics Changes - The company is actively engaged in approximately 24 data center projects, reflecting strong demand in Virginia, the data center capital of the world [10] - In Indiana, the Economic Development Team managed over 140 active projects, indicating robust economic development across the service territory [10] Company Strategy and Development Direction - The company aims to deliver safe, reliable, and competitive energy while focusing on disciplined capital deployment and operational excellence [4] - A commitment to customer affordability is highlighted through regulatory and rate design tools that mitigate bill impacts [6] - The company is advancing its data center initiative, with key milestones achieved in zoning approvals and ongoing negotiations for new capacity [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and highlighted the potential for significant upside in developing projects supporting data center growth [8][22] - The company anticipates continued growth in adjusted EPS, reaffirming guidance for 2026 at $2.02-$2.07 per share, representing an 8% year-over-year growth [18][22] Other Important Information - The company has maintained ISO 55001 and API 1173 certifications, emphasizing its commitment to safety management [8] - A 7.1% increase in dividends for 2026 was approved, reflecting alignment with earnings growth [20] Q&A Session Summary Question: Update on strategic negotiations for GenCo - Management indicated that the organization is focused on executing data center opportunities, expecting faster execution compared to previous deals like Amazon [26][27] Question: Pennsylvania strategy and rate case considerations - Management confirmed no current plans for a rate case in Pennsylvania, following a recent successful rate case that increased revenue [29] Question: Timing for NIPSCO gas rate case filing - Management stated that no determination has been made regarding a rate case filing for NIPSCO at this time [32] Question: Scale of future GenCo opportunities - Management noted that they are in strategic negotiations for 1-3 GW, with various sizes and shapes of contracts being considered [33] Question: Impact of Senate Bill 103 on large load customer opportunities in Ohio - Management is working on optimizing regulatory strategies based on recent legislative changes, but no upside from economic development has been incorporated into current forecasts [35] Question: Update on Schahfer coal plant operations - Management confirmed that they will comply with federal orders regarding the Schahfer plant and are prepared to operate it reliably [39] Question: Coordination between electric and gas operations - Management highlighted ongoing efforts to improve coordination between gas and electric operations across the U.S. for better reliability [41] Question: Future reporting for GenCo - Management anticipates breaking out GenCo as its own segment in future financial reports, likely starting in 2026 [43]

Financial Data and Key Metrics Changes - For the fourth quarter of 2025, the company reported adjusted earnings of $0.51 per share, compared to $0.49 for the same period last year, bringing the full-year adjusted EPS to $1.90, up from $1.75 in 2024 [15][19] - The company achieved a full-year FFO to debt ratio of 16.1%, an increase of 150 basis points, exceeding the targeted guidance range [22] Business Line Data and Key Metrics Changes - The base business continues to deliver strong results, with adjusted EPS surpassing guidance and a focus on disciplined capital deployment and operational excellence [6][15] - The capital plan includes $21 billion of base utility investment over the next five years, focusing on grid modernization and gas infrastructure replacement [16] Market Data and Key Metrics Changes - The company is actively engaged in supporting over 140 active projects across its service territory in Indiana, reflecting strong economic development [12] - In Virginia, the company has fielded more than 40 data center inquiries in 2025, with approximately 24 active data center projects [12] Company Strategy and Development Direction - The company aims to deliver safe, reliable, and competitive energy while focusing on customer affordability and stakeholder value [5][7] - A significant agreement with Amazon is expected to return approximately $1 billion in value to Indiana customers over 15 years, demonstrating the company's commitment to affordability [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic direction and highlighted the importance of regulatory support in achieving financial goals [21][23] - The company anticipates continued growth in adjusted EPS, with a guidance range of $2.02-$2.07 for 2026, representing approximately 8% year-over-year growth [19][20] Other Important Information - The company has maintained ISO 55001 and API 1173 certifications, underscoring its commitment to safety management [10] - The company is focused on keeping O&M costs flat over the planned horizon to support sustainable operations [20] Q&A Session Summary Question: What should investors look for regarding the strategic negotiator for GenCo? - Management indicated that the organization focused on executing data center opportunities is now better structured, which should lead to faster execution of future transactions [29][30] Question: Can you provide an update on Pennsylvania's strategy? - Management confirmed that there are currently no plans for a new rate case in Pennsylvania, following a recent successful rate case [32] Question: What is the timing for the NIPSCO gas rate case filing this year? - Management stated that no determination has been made regarding a rate case filing at this time [40] Question: Can you discuss the scale of opportunities for future contracts? - Management noted that they are in strategic negotiations for 1-3 GW of new capacity, which could involve multiple sizes and shapes of contracts [44] Question: What is the significance of Senate Bill 103 for large load customer opportunities in Ohio? - Management explained that they are currently optimizing their regulatory strategy based on the new law, but no upside from economic development has been incorporated into the current forecasts [48]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported adjusted earnings of $0.51 per share, an increase from $0.49 in the same period last year [14] - Full-year adjusted earnings were $1.90 per share compared to $1.75 in 2024, reflecting strong financial management and regulatory execution [14] - The company achieved a Funds From Operations (FFO) to Debt ratio of 16.1%, exceeding the targeted guidance range and up 150 basis points from the previous year [21] Business Line Data and Key Metrics Changes - The base business continues to perform well, with a full-year adjusted EPS of $1.90 and FFO to debt of 16.1%, both surpassing guidance [5][14] - The capital plan includes $21 billion of base utility investment over the next five years, focusing on grid modernization and safety [15] - The Amazon project at GenCo represents a significant capital investment of $6-$7 billion through 2032, aligning cash inflows with customer ramp rates [15] Market Data and Key Metrics Changes - The company is actively engaged in approximately 24 data center projects, reflecting strong demand in Virginia, which is noted as the data center capital of the world [10] - In Indiana, the Economic Development Team managed over 140 active projects, indicating robust economic development across the service territory [10] Company Strategy and Development Direction - The company aims to deliver safe, reliable, and competitive energy while focusing on disciplined capital deployment and operational excellence [4] - A commitment to customer affordability is highlighted through regulatory and rate design tools that mitigate bill impacts [6] - The company is advancing its data center initiative, with key milestones achieved, including zoning approvals for the Amazon project [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and highlighted the importance of regulatory support in achieving financial commitments [20] - The company anticipates continued growth in adjusted EPS, reaffirming guidance for 2026 at $2.02-$2.07 per share, representing approximately 8% year-over-year growth [18] - Management noted that significant upside remains in developing projects supporting data center growth and economic development [8] Other Important Information - The company has maintained ISO 55001 and API 1173 certifications, underscoring its commitment to safety management [8] - A 7.1% increase in dividends for 2026 was approved, reflecting the company's commitment to aligning dividend growth with earnings growth [20] Q&A Session Summary Question: What should investors look for regarding GenCo's progress? - Management indicated that a dedicated team is focused on executing data center opportunities, suggesting faster execution for future transactions compared to the Amazon deal [25][27] Question: How is the Pennsylvania strategy being considered? - Management stated that there are no current plans for a rate case in Pennsylvania, following a recent successful rate case that increased revenue [29] Question: What is the status of the NIPSCO gas rate case filing? - Management confirmed that no determination has been made to file for a rate case at this time, considering various factors [32] Question: What is the significance of Senate Bill 103 for large load customer opportunities in Ohio? - Management noted that they are working on optimizing regulatory strategies based on recent legislative changes, but no upside from economic development has been incorporated into the current forecasts [36] Question: What is the plan for the Schahfer coal plant? - Management confirmed that they will comply with federal orders to operate the Schahfer plant beyond its planned retirement, with flexibility in the capital plan to accommodate this [40]

SUPPLEMENTAL SLIDES YEAR END 2025 RESULTS February 11, 2026 LEGAL DISCLAIMER Forward-Looking Statements This presentation contains "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements include, but are not limited to, statements concerning our financial guidance, plans, strategies, objectives, expected performanc ...

Core Insights - NiSource narrowly beat Wall Street expectations for fourth-quarter profit while reaffirming its 2026 earnings forecast and a robust capital spending roadmap to meet rising commercial power demand [1] Financial Performance - The company reported a fourth-quarter profit that exceeded Wall Street expectations, indicating strong financial performance [1] Future Outlook - NiSource reaffirmed its earnings forecast for 2026, suggesting confidence in future profitability and growth [1] - The company outlined a robust capital spending roadmap aimed at addressing increasing commercial power demand, indicating a proactive approach to future challenges [1]

Customer Operations - NiSource serves approximately 3.8 million customers across six states, primarily through regulated natural gas and electric utility operations[22]. - Columbia Operations provides natural gas to about 2.4 million customers, operating approximately 37,300 miles of distribution pipeline[28]. - NIPSCO Operations distributes natural gas to approximately 0.9 million customers and generates electricity for around 0.5 million customers in northern Indiana[32][38]. Generation Capacity and Resources - NIPSCO has a total generating capacity of 3,967 MW, including eight renewable generation facilities, three of which were placed into service in 2025[40]. - NIPSCO's generating units met 55.4% of its overall system load during 2025, with the remainder procured through Power Purchase Agreements (PPAs) and the MISO market[42]. - NIPSCO's 2024 Integrated Resource Plan anticipates additional generation resources through 2029 to support capacity requirements driven by data center load[41]. Regulatory Compliance and Financials - Regulatory compliance is a priority, with management actively monitoring changes to laws and regulations that may impact operations and financial results[45]. - Columbia of Pennsylvania has an approved rate of return on equity (ROE) of 10.00% with a requested incremental revenue of $110.4 million, effective January 2026[47]. - Columbia of Maryland has an approved ROE of 9.80% with a requested incremental revenue of $10.7 million, effective April 2025[47]. - Columbia of Ohio has an approved ROE of 9.60% with a requested incremental revenue of $221.4 million, effective March 2023[47]. - NIPSCO - Gas has an approved ROE of 9.75% with a requested incremental revenue of $161.9 million, effective August 2024[47]. - NIPSCO - Electric has an approved ROE of 9.75% with a requested incremental revenue of $368.7 million, effective July 2025[47]. Environmental Goals - The company aims for net zero greenhouse gas (GHG) emissions by 2040, having reduced Scope 1 GHG emissions by approximately 72% from 2005 levels as of the end of 2024[65]. - The Maryland Department of the Environment has adopted a plan to achieve a 60% reduction in GHG emissions by 2031 from 2006 levels, with a net zero goal by 2045[64]. - NIPSCO continues to execute its electric generation transition consistent with its Integrated Resource Plans from 2018, 2021, and 2024[67]. Workforce and Employee Programs - The company has 7,668 full-time and 70 part-time active employees as of December 31, 2025, with 32% subject to collective bargaining agreements[70]. - NiSource reported a commitment to equal employment opportunities, enhancing corporate culture and operational strategies to increase revenue[71]. - The company emphasizes talent attraction through partnerships with local colleges and job fairs to recruit diverse candidates[72]. - NiSource offers leadership development programs with participation from employees at all levels, aiming to enhance skills and succession readiness[73]. - The company has formal succession plans for its CEO and key officers, reviewed annually to ensure a strong talent pipeline[75]. - Employee well-being programs include competitive medical, dental, and vision benefits, along with paid time off for wellness and family needs[76]. - NiSource invests in internal communications and employee engagement surveys to monitor organizational health and culture[78]. - The company has a robust ethics and compliance training program, ensuring employees understand ethical violations and reporting mechanisms[79]. Operational and Financial Risks - NiSource faces operational risks including aging infrastructure, technology dependency, and potential public safety risks[87]. - Financial risks include substantial indebtedness and exposure to regulatory rate reviews that could impact earnings and liquidity[91]. - The company is focused on data center growth in northern Indiana, which presents both opportunities and significant operational and regulatory risks[91]. - The company plans to retire two coal units at R.M. Schahfer Generating Station and a coal unit at Michigan City Generating Station by the end of 2028, with previous plans set for 2025[105]. - The company expects to construct 400 MW of new battery storage and two 1,300 MW combined cycle gas turbine (CCGT) facilities, anticipated to reach commercial operation between 2028 and 2032[109]. - The company faces risks associated with aging infrastructure, which may lead to increased capital expenditures and maintenance costs[102]. - Supply chain issues related to materials, labor, and transportation logistics may cause delays in maintenance and replacement of aging infrastructure, potentially impacting revenues[103]. - The company may require significant future capital expenditures to meet MISO obligations, which could negatively impact its financial position and cash flows[107]. - The company anticipates that renewable generation, battery energy storage, and natural gas generation will be primary sources for meeting electric generation capacity and reliability obligations[106]. - The company may experience operational impasses or litigation due to joint venture arrangements with third-party investors, which could lead to business delays[96]. - The company is subject to regulatory oversight for capital projects, which may include requirements for permits and approvals from governmental agencies[109]. - The company may face challenges in obtaining insurance on acceptable terms, which could adversely affect its financial results if significant losses occur[104]. - The company is facing risks related to increasing delivery lead times and material shortages, which may impact the completion of major capital projects[111]. - Regulatory approvals for capital projects are critical, and delays in obtaining these approvals could lead to increased costs and project alterations[112]. - A significant portion of energy sales is sensitive to weather fluctuations and commodity costs, which can materially impact financial results[115]. - The company relies on coal and natural gas for electricity generation, and price fluctuations in these commodities may affect customer demand and financial performance[116]. - Disruptions in transportation and supply chains could hinder the ability to deliver gas and electric services, potentially leading to increased costs[117]. - The company faces challenges in attracting and retaining qualified personnel, which could adversely affect operational efficiency and service reliability[118]. - Cybersecurity risks are increasing, with potential breaches impacting operational technology and customer data security, which could lead to significant liabilities[128]. - Compliance with evolving cybersecurity regulations may require substantial resources and could adversely affect financial condition if not met[133]. - The company has experienced an increase in cybersecurity attack attempts, highlighting vulnerabilities in its information systems[129]. - The operational impact of labor negotiations and potential disruptions could materially affect business operations and financial results[121]. Financial Performance - Total consolidated indebtedness was $16,213.5 million as of December 31, 2025, indicating significant reliance on long-term debt for capital expenditures[143]. - The company aims to achieve net zero Scope 1 and 2 greenhouse gas emissions by 2040, which will require supportive regulatory policies and technological advancements[141]. - Increased frequency of extreme weather events due to climate change is expected to raise costs for safely delivering products and services[137]. - The company faces reputational risks related to environmental practices and the ability to meet carbon emission reduction goals, which could adversely affect financial performance[135]. - Supply chain constraints may impact the timely restoration of services, potentially leading to negative public perception and financial repercussions[135]. - Adverse economic conditions, including inflation and interest rate increases, could materially affect revenue growth and operational costs[150]. - The company may incur significant additional indebtedness to construct generation and transmission assets for future data center customers[145]. - A drop in credit ratings could lead to increased financing costs and limit access to capital markets, adversely impacting liquidity and operational flexibility[146]. - The company is subject to operational risks associated with the transition to a lower-carbon economy, which may affect demand for its services[138]. - Regulatory changes related to climate change could materially impact the company's business and financial position[140]. - Revenues are subject to regulatory reviews, impacting the rates charged to customers and overall financial results[153]. - Electric and natural gas companies are entitled to charge rates sufficient to recover operating and capital costs, but these rates are subject to regulatory approval[155]. - Regulatory proceedings can be lengthy and contentious, potentially affecting the ability to recover costs and earn adequate returns[156]. - Changes in rates may not align with when costs are incurred, leading to financial uncertainty[157]. - Regulatory bodies may impose downward adjustments in allowed return on equity (ROE), adversely affecting financial position and cash flows[158]. - Compliance with environmental laws and regulations may require significant expenditures that are not always recoverable[171]. - The company faces risks related to potential changes in greenhouse gas (GHG) emission laws, which could impact financial results and cash flows[173]. - The company has a pending application with the EPA regarding the operation of a CCR impoundment, which could affect future operations[175]. - Significant goodwill exists, and any future impairments could negatively impact earnings and compliance with financing agreements[166]. - The company is dependent on cash generated by subsidiaries to meet debt obligations and pay dividends, making it vulnerable to subsidiary performance[164]. - The IRA imposes a 15% minimum tax rate on corporations with annual income exceeding $1 billion, along with a 1% excise tax on stock repurchases[177]. - The construction of Contract Assets and generation or transmission assets involves significant risks, including potential construction delays and cost overruns, which could negatively impact returns under the ADS Contract[180]. - The ADS Contract requires significant capital investment before returns are realized, with potential liquidated damages for late delivery or performance shortfalls[181]. - Financing for the construction of Contract Assets may require significant additional long-term debt and equity, which could impact credit ratings and overall cost of capital[182]. - ADS has the right to terminate the ADS Contract or reduce committed capacity, which could adversely affect future earnings and financial condition[191]. - The expected generating capacity of the Contract Assets is approximately equivalent to all of NIPSCO's existing generating assets, highlighting customer concentration risk[190]. - Future data center contracts may contain similar termination and capacity reduction provisions, exposing the company to comparable risks[193]. - External factors such as inflation and market conditions could impact borrowing costs and the ability to secure financing for future projects[183]. - The partnership with ADS may limit strategic flexibility and increase reliance on equity financing for future investments[185]. - The return structure under the ADS Contract differs from traditional utility operations, potentially resulting in lower overall returns[187]. Revenue Growth - Total operating revenues for 2025 reached $6,642.2 million, a 21.7% increase from $5,455.1 million in 2024[352]. - Customer revenues increased to $6,522.8 million in 2025, up from $5,282.9 million in 2024, reflecting a growth of 23.5%[352]. - Operating income for 2025 was $1,835.3 million, representing a 26.1% increase compared to $1,455.5 million in 2024[352]. - Net income attributable to NiSource for 2025 was $929.5 million, a 22.2% increase from $760.4 million in 2024[352]. - Basic earnings per share for 2025 were $1.96, up from $1.63 in 2024, indicating a growth of 20.2%[352]. - The cost of energy in 2025 was $1,584.4 million, which is a significant increase from $1,132.2 million in 2024, reflecting a rise of 40%[352]. - Total operating expenses for 2025 amounted to $4,806.9 million, a 20.2% increase from $3,999.6 million in 2024[352]. - Interest expense for 2025 was $639.0 million, an increase from $517.2 million in 2024, marking a rise of 23.5%[352]. - Net income for 2025 reached $1,012.6 million, a 19.9% increase from $844.7 million in 2024[354]. - Total comprehensive income for 2025 was $1,036.8 million, up from $847.9 million in 2024, reflecting a significant growth of 22.3%[354]. - Net property, plant, and equipment increased to $28,688.2 million in 2025, compared to $25,453.9 million in 2024, representing a growth of 8.8%[357]. - Total assets rose to $35,858.7 million in 2025, an increase of 12.9% from $31,788.1 million in 2024[357]. - Accounts receivable increased to $1,238.1 million in 2025, up from $987.9 million in 2024, marking a growth of 25.3%[357]. - Total current assets amounted to $2,377.2 million in 2025, a rise of 14.3% from $2,080.2 million in 2024[357]. - Regulatory assets increased to $2,225.2 million in 2025, compared to $2,157.4 million in 2024, showing a growth of 3.1%[357]. - The company reported a net unrealized gain on available-for-sale securities of $4.1 million in 2025, up from $3.3 million in 2024[354]. - Goodwill remained stable at $1,485.9 million for both 2025 and 2024, indicating no change in this asset category[357]. - The company’s accumulated depreciation and amortization increased to $9,370.6 million in 2025 from $8,699.0 million in 2024, reflecting a growth of 7.7%[357].

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Financial Performance - NiSource reported a net income of $929.5 million for the year ended December 31, 2025, translating to $1.95 per diluted share, an increase from $739.7 million or $1.62 per diluted share in 2024[2]. - The non-GAAP adjusted net income for 2025 was $905.2 million, or $1.90 per adjusted EPS, compared to $798.6 million or $1.75 per adjusted EPS in 2024[3]. - NiSource achieved 2025 non-GAAP adjusted EPS above the guidance range and exceeded the non-GAAP FFO/Debt guidance[5]. Future Guidance - NiSource reaffirmed its 2026 non-GAAP consolidated adjusted EPS guidance of $2.02–$2.07, with an expected compound annual growth rate (CAGR) of 8%-9% for adjusted EPS from 2026 to 2033[3][5]. - The company plans to invest approximately $28.0 billion from 2026 to 2030, including nearly $7.0 billion in strategic data center infrastructure investments[3]. - NiSource's capital investment plan is expected to support a consolidated rate base growth of 9%-11% from 2026 through 2033[3]. Strategic Initiatives - The company highlighted a landmark data center agreement with Amazon, contributing to its diversified portfolio across natural gas, electric, renewables, and data center projects[4]. - The company emphasized its commitment to affordability and efficiency through disciplined operations and technology leverage[4]. Customer Base and Sustainability - NiSource serves approximately 3.3 million natural gas customers and 500,000 electric customers across six states[8]. - The company is a member of the Dow Jones Sustainability - North America Index and recognized for its commitment to diversity and sustainability[8].