Alliant Energy Corp (LNT) Q3 2025 Earnings Call Highlights: Strong Growth Projections Amid ...

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Ongoing Earnings Per Share (Q3 2025): $1.12 per share. 2025 Earnings Guidance Range: Narrowed to $3.17 to $3.23 per share. 2026 Earnings Guidance Range: $3.36 to $3.46 per share, a 6.6% increase over 2025 midpoint. 2026 Annual Common Stock Dividend Target: $2.14 per share, a 5.4% increase from 2025. Capital Expenditure Plan (2025-2029): Increased by 17% to $13.4 billion. Projected Rate Base and Investment CAGR (2025-2029): 12%. Compound Annual Growth Rate (2027-2029): 7% plus. Net Temperature Impact (2025): Positively impacted electric and gas margins by approximately $0.02 per share. Net Temperature Impact (2024): Negatively impacted electric and gas margins by $0.10 per share. 2026 Debt Financing Plans: Up to $1.1 billion of long-term debt issuances. New Common Equity (2026-2029): $2.4 billion planned, with $1.6 billion remaining to be raised.

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Release Date: November 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Alliant Energy Corp (NASDAQ:LNT) delivered strong financial and operational performance in Q3 2025, maintaining its earnings guidance and trending towards the upper half of the range. The company has signed new agreements with major clients like Google, which accelerates load ramp and supports future growth. Alliant Energy Corp (NASDAQ:LNT) completed significant energy storage and gas path projects, enhancing efficiency and capacity. The company is projecting a 50% peak demand growth by 2030, driven by new electric service agreements and data center expansions. Alliant Energy Corp (NASDAQ:LNT) has increased its four-year capital expenditure plan by 17% to $13.4 billion, indicating strong future growth potential.

Negative Points

Higher operations and maintenance expenses, driven by increased generation costs and new energy resources, have partially offset earnings. The company faces higher depreciation and financing expenses, contributing to earnings fluctuations. Equity dilution is a concern, impacting the translation of rate base growth to earnings growth. There is potential regulatory lag, although it is described as modest. The company is moderating the pace of expected dividend growth to efficiently fund its increased capital expenditure plan.

Q & A Highlights

Q: Can you provide more details on the demand ramp and its impact on earnings growth above 7%? A: Lisa Barton, President and CEO, explained that the 7% to 8% growth is based on known projects and timing is crucial due to the significant 50% load growth. The growth could be at least 7% to 8%, with potential upside depending on project timing.

Story Continues

Q: How does the 12% rate base growth translate to earnings growth, considering equity dilution? A: Robert Durian, CFO, stated that the 12% growth includes both rate base and QIP growth. The primary factors affecting the transition to earnings growth are equity dilution and conservative financial assumptions, particularly regarding interest rates.

Q: What are the assumptions for earned returns in Iowa's regulatory framework? A: Robert Durian confirmed that the new regulatory construct in Iowa provides certainty for earning authorized returns with some upside potential. The company assumes earning the authorized return, with future rate cases planned to minimize regulatory lag.

Q: Can you elaborate on the 2 to 4 gigawatts of additional load opportunities and their potential impact on growth rates? A: Lisa Barton highlighted that these opportunities are in active negotiations, with a focus on near-term, less transmission-dependent projects. The growth rate could exceed 8% if these opportunities materialize, providing significant upside to the plan.

Q: What is the expected FFO to debt ratio, and how do tax credits factor into future cash flow? A: Robert Durian mentioned targeting a 50 to 100 basis points cushion in FFO to debt metrics to support growth. The company plans to monetize approximately $1.5 billion to $1.6 billion in tax credits over the next four years, with strong interest from counterparties.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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