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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on LNT

Alliant Energy's recent performance was driven by a string of positive developments. The company's Q1 earnings release exceeded expectations, with earnings of $0.83 per share, surpassing the Zacks Consensus Estimate of $0.57 per share. This marks the company's ability to deliver strong financial results, as evidenced by its impressive earnings surprise history. Additionally, Alliant Energy's customer base has expanded, contributing to its revenue growth. The company's plans to invest $11.5 billion through 2028 to strengthen its operations will likely have a positive impact on its future performance.

1.c. Company Highlights

2. Alliant Energy's Strong Q3 2025 Earnings Driven by Capital Investments and Load Growth

Alliant Energy reported ongoing earnings of $1.12 per share in Q3 2025, slightly missing estimates of $1.17 per share. The earnings growth was primarily driven by higher revenue requirements from capital investments at its Iowa and Wisconsin utilities, as well as positive impacts of temperatures on electric and gas sales. These positive drivers were partially offset by higher operations and maintenance expenses and higher depreciation and financing expenses. The company's revenue growth is expected to continue, with analysts estimating a 3.0% revenue growth for the next year.

Publication Date: Nov -10

📋 Highlights
  • Industry-Leading Peak Demand Growth:: Projected electric demand growth by 2030 rises to 50% due to new agreements with QTS Madison and Google.
  • 2025 Earnings Guidance Updated:: Narrowed range to $3.17–$3.23/share, with Q3 achieving 80% of midpoint ($1.12/share) driven by capital investments and weather impacts.
  • 2026 Earnings and Dividend Guidance:: Initiated $3.36–$3.46/share (6.6% YoY growth over 2025 midpoint) and a 5.4% dividend increase to $2.14/share.
  • Capital Expenditure Plan:: $13.4B, 17% higher than prior, supporting 12% CAGR rate base growth (2025–2029) and 7%+ CAGR (2027–2029).
  • 2026 Load Growth Potential:: 3 GW max contract demand by 2030, with 2–4 GW additional load in negotiations, projected to push growth above 8%.

Growth Prospects and Capital Expenditure Plan

The company has increased its projected peak demand growth by 2030 to an industry-leading 50% due to the execution of a fourth electric service agreement with QTS Madison and a new agreement with Google. The $13.4 billion, 4-year capital expenditure plan, a 17% increase, translates to a projected rate base and investment compound annual growth rate of 12% from 2025 to 2029. This growth is expected to drive earnings, with the company initiating 2026 earnings guidance of $3.36 to $3.46 per share, representing a 6.6% increase over the 2025 midpoint.

Valuation and Dividend Yield

With a P/E Ratio of 21.63 and an EV/EBITDA of 14.51, the company's valuation appears reasonable considering its growth prospects. The Dividend Yield of 3.01% is also attractive, with the company targeting a 2026 annual common stock dividend of $2.14 per share, a 5.4% increase from the 2025 target. The ROE of 15.06% and ROIC of 5.65% indicate a strong return on equity and invested capital.

Load Growth and Future Prospects

The company is in active negotiations for 2-4 gigawatts of additional load, with a high bar for sharing updates. These opportunities are less transmission-dependent and have interconnection studies done. A signed load contract is expected in 2026, which could put growth above 8%. The probability of conversion for the remaining 3-3.5 gigawatts in the pipeline is high, with constructive states and a robust transmission planning process in MISO.

Financial Planning and Credit Metrics

The company has updated its financing plan through 2029, which includes $2.4 billion of new common equity, primarily used to invest in resources needed to supply customers' growing energy needs. The FFO to debt is targeted to have 50-100 basis points of cushion throughout the planning period, indicating a strong credit metric. The company has $1.5-1.6 billion in tax credits over the next 4 years, with strong interest from counterparties.

3. NewsRoom

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Reasons to Give Alliant Energy a Spot in Your Portfolio Right Now

Nov -28

Source: zacks.com

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ERI to Offer Free E-Waste Recycling Event at Alliant Energy Center in Madison, Wisconsin

Nov -26

Source: businesswire.com

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Alliant Energy Corporation (LNT) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Alliant Energy Lags on Q3 Earnings, Beats on Sales, Narrows View

Nov -07

Source: zacks.com

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Alliant Energy (LNT) Misses Q3 Earnings Estimates

Nov -07

Source: zacks.com

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Alliant Energy Announces Third Quarter 2025 Results and 2026 Guidance

Nov -06

Source: businesswire.com

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Alliant Energy to Post Q3 Earnings: What's in the Cards for the Stock?

Nov -04

Source: zacks.com

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Alliant Energy Benefits From Investments & Clean Energy Focus

Oct -20

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.98%)

6. Segments

Utility Electric

Expected Growth: 1.0%

Alliant Energy's 1.0% growth in Utility Electric segment is driven by increasing demand for electricity in Wisconsin, fueled by population growth and economic expansion. Additionally, investments in grid modernization and renewable energy sources, such as wind and solar, contribute to the growth. Rate base growth and constructive regulatory environment also support the segment's expansion.

Utility Gas

Expected Growth: 0.9%

Alliant Energy Corporation's Utility Gas segment growth of 0.9% is driven by increasing demand for natural gas, fueled by customer additions and weather normalization. Additionally, rate base growth from infrastructure investments and cost recovery mechanisms contribute to the segment's modest growth.

ATC Holdings, Non-utility, Parent and Other

Expected Growth: 0.8%

ATC Holdings driven by regulated transmission investment and rate base growth. Non-utility segment growth fueled by investments in renewable energy and energy storage. Parent company benefits from diversified business mix and cost management initiatives. Other segment growth driven by investments in unregulated energy businesses and strategic acquisitions, all contributing to 0.8% growth.

Utility Other

Expected Growth: 1.1%

Alliant Energy Corporation's Utility Other segment growth of 1.1% is driven by increasing demand for renewable energy, favorable regulatory policies, and investments in grid modernization. Additionally, the company's focus on energy efficiency programs and customer growth also contribute to this growth.

7. Detailed Products

Electricity

Alliant Energy Corporation generates and distributes electricity to residential, commercial, and industrial customers in Iowa and Wisconsin.

Natural Gas

The company provides natural gas distribution services to customers in Iowa and Wisconsin, offering a safe and reliable supply of natural gas for heating, cooking, and other uses.

Renewable Energy

Alliant Energy Corporation invests in renewable energy sources, such as wind and solar power, to reduce carbon emissions and promote sustainability.

Energy Efficiency Services

The company offers energy efficiency programs and services to help customers reduce energy consumption and lower their energy bills.

Transmission and Distribution Services

Alliant Energy Corporation provides transmission and distribution services to ensure reliable and efficient delivery of electricity and natural gas to customers.

8. Alliant Energy Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Alliant Energy Corporation is medium due to the availability of alternative energy sources such as solar and wind power. However, the high cost of switching to these alternatives and the lack of infrastructure in some areas reduce the threat.

Bargaining Power Of Customers

The bargaining power of customers for Alliant Energy Corporation is low due to the lack of alternative energy providers in some areas and the high cost of switching to alternative energy sources.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Alliant Energy Corporation is medium due to the availability of multiple suppliers of fuel and equipment. However, the high cost of switching to alternative suppliers and the complexity of the supply chain reduce the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants for Alliant Energy Corporation is low due to the high barriers to entry in the energy industry, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry for Alliant Energy Corporation is high due to the presence of multiple competitors in the energy industry, including other utility companies and alternative energy providers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 58.39%
Debt Cost 4.08%
Equity Weight 41.61%
Equity Cost 6.63%
WACC 5.14%
Leverage 140.34%

11. Quality Control: Alliant Energy Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Value: 5.9

Growth: 5.2

Quality: 4.1

Yield: 8.0

Momentum: 5.5

Volatility: 10.0

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CenterPoint Energy

A-Score: 6.4/10

Value: 5.7

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Yield: 5.0

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A-Score: 6.4/10

Value: 5.3

Growth: 4.8

Quality: 4.5

Yield: 6.0

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PPL

A-Score: 6.3/10

Value: 4.9

Growth: 4.2

Quality: 4.1

Yield: 7.0

Momentum: 7.5

Volatility: 10.0

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Alliant Energy

A-Score: 6.1/10

Value: 4.8

Growth: 4.2

Quality: 4.9

Yield: 6.0

Momentum: 7.0

Volatility: 10.0

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CMS Energy

A-Score: 5.7/10

Value: 4.1

Growth: 4.1

Quality: 4.2

Yield: 6.0

Momentum: 6.0

Volatility: 10.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

65.5$

Current Price

65.5$

Potential

-0.00%

Expected Cash-Flows