ALLIANT ENERGY CORP (LNT) Q1 2026 Earnings Call Transcript
Alliant Energy Corporation operates as a utility holding company that provides regulated electricity and natural gas services. It operates through three segments: Utility Electric Operations, Utility Gas Operations, and Utility Other. The company, through its subsidiary, Interstate Power and Light Company (IPL), primarily generates and distributes electricity, and distributes and transports natural gas to retail customers in Iowa; sells electricity to wholesale customers in Minnesota, Illinois, and Iowa; and generates and distributes steam in Cedar Rapids, Iowa. Alliant Energy Corporation, through its other subsidiary, Wisconsin Power and Light Company (WPL), generates and distributes electricity, and distributes and transports natural gas to retail customers in Wisconsin; and sells electricity to wholesale customers in Wisconsin. As of December 31, 2021, IPL supplied electric and natural gas service to approximately 500,000 and 225,000 retail customers respectively; and WPL supplied electric and natural gas service to approximately 485,000 and 200,000 retail customers, respectively. It serves retail customers in the farming, agriculture, industrial manufacturing, chemical, and packaging and food industries. In addition, the company owns and operates a short-line rail freight service in Iowa; a barge, rail, and truck freight terminal on the Mississippi River; and a rail-served warehouse in Iowa, as well as offers freight brokerage services. Further, it holds interests in a 347 megawatt (MW) natural gas-fired electric generating unit near Sheboygan Falls, Wisconsin; and a 225 MW wind farm located in Oklahoma. The company was incorporated in 1981 and is headquartered in Madison, Wisconsin.
Alliant delivered solid 2025 results with 6% ongoing EPS growth, affirmed 2026 guidance, and advancing data-center growth and capital-plan execution while expanding dividends and keeping regulatory momentum favorable.
⭐ Key Highlights
✔Positive Signals
- Ongoing EPS growth of >6% for more than a decade
- 2025 dividend increase (22nd consecutive year)
- Progress on 3 GW of energy storage investments and related projects
- QTS data-center relocation to Iowa completed with a new electric service agreement
- 4-year capital plan remains on track and capital deployment remains flexible
✖Negative Signals
- Higher operating and maintenance expenses tied to maintenance and new resources
- Non-recurring charges: $0.05 for Travero wind turbine blade recycling suspension and $0.03 for deferred tax asset remeasurement
- Regulatory risks and dependencies (e.g., decisions on Wisconsin and Iowa rate matters)
- Ongoing need to fund substantial equity and debt to support capex (~$2.4B of equity over four years remaining)
- Execution risk around achieving 2–4 GW upside load and timely interconnection studies
📊Financial Results
- 2025 ongoing EPS increased by $0.18 year over year, driven by higher rate-base revenues from investment in generation/storage and favorable weather; offset by higher O&M and depreciation/financing costs
- Temperatures contributed approximately $0.03 per share to electric and gas margins in 2025, versus a negative impact of ~($0.15) in 2024
- Excludes two non-recurring items: $0.05 charge for Travero wind turbine blade recycling suspension and $0.03 charge for remeasurement of deferred tax assets
- 2015–2024 comparables show continued growth and robust performance despite higher capex and transition costs
- Data center-related demand expectations imply retail sales growth of about 1% in 2026, with stronger upside from 2027 onward
🔮Future Guidance
- 2026 earnings guidance reaffirmed; anticipated higher earnings from growing capital investments, 1% retail sales growth, higher O&M/depreciation/financing costs, and use of energy storage ITCs to support earnings
- Longer-term outlook: 7%+ compound annual earnings growth from 2027 to 2029, consistent with prior November 2025 communications
- Debt financing plan: up to $1.2B of long-term issuances in 2026 across parent, WPL, and IPL; funding plan relies on cash from operations, tax-credit monetization, and new financings
- Regulatory/filings: expected IA and WI decisions in 2026 on various generation and rate-related matters; filings for relocated QTS data center and wind additions are anticipated through 2026
- Capital plan remains flexible to capture upside load and timing shifts, including potential expansion beyond the current base plan
💡Interesting Insights
- Alliant operates without an IRP process, enabling greater flexibility to pivot resource plans and accelerate projects to match customer load growth
Detailed Analysis
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