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Dunns Bridge II Solar Launch Might Change the Case for Investing in NiSource (NI)

Simply Wall St · 08/05/2025 16:42
  • NiSource is set to report its second-quarter 2025 results on August 6, with expectations buoyed by new electric and gas rates as well as the completed Dunns Bridge II solar and storage project.
  • An important insight is that while investments in infrastructure and capital programs are expected to support performance, higher depreciation and amortization expenses might temper some of these gains.
  • We'll explore how the completion of the Dunns Bridge II solar and storage project impacts NiSource's investment narrative and growth outlook.

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NiSource Investment Narrative Recap

To be a shareholder in NiSource, you need to believe in the company’s ability to deliver steady growth through large-scale infrastructure investments, despite the impact of regulatory costs and fluctuating capital recovery timelines. The upcoming results, influenced by new electric and gas rates and the addition of the Dunns Bridge II project, could support near-term performance, but higher depreciation and amortization expenses may limit the benefit, leaving the regulatory environment as the biggest current risk for NiSource’s outlook. The completion of Dunns Bridge II, a major solar and storage expansion, stands out as the most relevant recent announcement given its expected contribution to NiSource’s growth strategy. This project not only supports energy transition goals but also creates potential for new revenue streams tied to large load customers, an area where execution remains critical for realizing projected earnings. However, despite the appeal of these growth projects, it’s worth noting that regulatory shifts affecting capital recovery could pose risks investors should be aware of…

Read the full narrative on NiSource (it's free!)

NiSource's outlook forecasts $6.8 billion in revenue and $1.1 billion in earnings by 2028. This scenario is based on 4.5% annual revenue growth and a $231.9 million increase in earnings from the current $868.1 million.

Uncover how NiSource's forecasts yield a $43.70 fair value, in line with its current price.

Exploring Other Perspectives

NI Community Fair Values as at Aug 2025
NI Community Fair Values as at Aug 2025

Simply Wall St Community members provided three fair value estimates for NiSource stock ranging from US$36.00 to US$43.70. Against this backdrop, ongoing regulatory uncertainty remains a significant factor that could influence future outcomes, making it essential to compare differing outlooks before making decisions.

Explore 3 other fair value estimates on NiSource - why the stock might be worth 17% less than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.