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Introduction & Market Context
Alliant Energy Corporation (NASDAQ:LNT) reported strong first-quarter 2025 results and outlined an ambitious growth strategy during its earnings presentation on May 9, 2025. The utility company, which serves customers in Iowa and Wisconsin, highlighted its positioning to capitalize on accelerating data center demand in its service territories while maintaining its commitment to renewable energy investments.
In after-hours trading following the presentation, Alliant Energy’s stock rose 3.09% to $63.00, reflecting positive investor sentiment toward the company’s growth plans and financial performance.
Quarterly Performance Highlights
Alliant Energy reported Q1 2025 earnings per share of $0.83, a substantial 33.9% increase from $0.62 in the same period last year. The company attributed this growth primarily to revenue requirements from capital investments at its Iowa Power and Light (IPL) and Wisconsin Power and Light (WPL) subsidiaries, which contributed $0.21 to the year-over-year EPS increase.
As shown in the following financial breakdown from the company’s presentation:
Additional factors contributing to the earnings growth included favorable temperature impacts on retail electric and gas sales ($0.05) and timing of income tax expense ($0.04), partially offset by higher depreciation expense (-$0.06) and higher financing expense (-$0.04).
The company reaffirmed its full-year 2025 earnings guidance range of $3.15 to $3.25 per share, maintaining confidence in its ability to deliver on financial targets despite quarterly variations in tax benefit timing.
Capital Expenditure & Growth Strategy
A centerpiece of Alliant’s presentation was its updated capital expenditure plan, which represents a significant 26% increase over previous projections. The company now plans to invest $11.5 billion from 2025 through 2028, supporting an 11% compound annual growth rate in its rate base plus construction work in progress.
The capital plan breakdown reveals Alliant’s strategic priorities, with substantial investments in renewables, battery storage, and electric distribution:
This investment strategy is expected to drive the company’s rate base plus construction work in progress from $15.3 billion in 2024 to $22.9 billion by 2028, providing a clear path for sustained earnings growth.
Load Growth & Data Center Opportunity (SO:FTCE11B)
Alliant Energy positioned itself as a key beneficiary of the ongoing data center expansion trend, highlighting contracted peak demand of 2.1 gigawatts and projecting 9-10% electric sales growth CAGR from 2025 to 2030. The company expects its total demand to increase by more than 30% by 2030 from its 2024 base.
The following chart illustrates Alliant’s projected demand growth, showing acceleration in 2026 and 2027:
To meet this growing demand, Alliant outlined plans for significant generation investments, including approximately 1,500 MW of natural gas capacity, 800 MW of energy storage, and 1,200 MW of new wind generation. The company emphasized that it has safe harbored 100% of its capital expenditures through 2028, protecting its investments from potential tax law changes.
Funding Strategy & Financial Outlook
Alliant presented a balanced approach to funding its ambitious capital program, with 35% coming from cash from operations, 40% from new debt, 13% from tax credit monetization, and 12% from equity. The company plans to launch an at-the-market (ATM) equity program in Q2 2025 and expects to raise approximately $1.4 billion in equity from 2025 through 2028.
The funding strategy is designed to maintain Alliant’s investment-grade credit ratings while supporting its growth initiatives:
The company also detailed its 2025 debt financing plans, which include supporting both growth investments and refinancing upcoming maturities. Alliant emphasized its commitment to maintaining FFO/Debt ratios of 13-14% (S&P) and 14-15% (Moody’s) through 2028.
Regulatory Environment & Strategic Positioning
Alliant highlighted the business-friendly regulatory environments in Iowa and Wisconsin as key advantages in its growth strategy. The company emphasized the non-litigated resource planning process in these states, which provides greater flexibility compared to more contentious regulatory environments elsewhere.
In Wisconsin, Alliant has filed for rate increases for 2026 and 2027, requesting $120 million in additional electric revenue requirements for 2026 and $82 million for 2027, with a proposed 9.9% return on equity:
The company also outlined several pending regulatory proceedings in both states, including approvals for battery storage projects and individual customer rate filings, which are expected to support its growth initiatives.
Forward-Looking Statements
Alliant Energy’s presentation emphasized its strategic advantages in capitalizing on economic development opportunities, particularly in the data center space. The company highlighted its ability to protect customers and investors through minimal tariff exposure, tax credit safe harboring, and prudent balance sheet management.
As illustrated in the company’s strategic overview:
With a diverse mix of energy resources, a flexible resource plan, and strong positioning in business-friendly states, Alliant Energy appears well-positioned to execute on its growth strategy while maintaining financial discipline. The company’s focus on balancing reliability, affordability, and sustainability through its generation investments reflects its commitment to serving both customer and shareholder interests in the evolving energy landscape.
Full presentation:
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