NiSource quarterly profit falls on labor lockout, higher operating costs
NI•Quarterly profit falls on lockout and higher costs
Aug. 5 (Reuters) - NiSource posted a fall in second-quarter profit on Wednesday, pressured by a labor lockout at its NIPSCO unit, elevated storm activity and higher operating and restructuring expenses.
The results underscore how rising operational expenses and unfavorable weather are increasingly wiping out the financial gains utilities see from steady customer demand.
- Shares of the company were down 1.9% in premarket trading.
- NiSource said it incurred $21.4 million of workplace continuity costs during the quarter linked to an April 2026 lockout at NIPSCO, a major subsidiary of the company.
- These costs included spending on external contractors, security and administrative support — net of internal labor savings — that would not have been incurred absent the lockout.
- Operating expenses in the second quarter rose 9.2% from a year earlier to $1.1 billion.
- NiSource said it continues to experience rising material costs driven by tariffs and that high demand, alongside potential project delays, could hurt its financial results.
- The Merrillville, Indiana-based company's net income dropped to $45.5 million, or 9 cents per share, for the three months ended June 30, compared with $102.2 million, or 22 cents per share, a year earlier.
- NiSource serves 3.3 million natural gas customers across six states through its Columbia Gas division and 500,000 electricity customers in Indiana through its NIPSCO unit.
