Alliant Energy Q3 Earnings Call Highlights

Key Points

• Alliant Energy reported solid third-quarter results with $1.52 in GAAP earnings per share and narrowed its 2026 ongoing EPS guidance to $3.41–$3.46, supported by higher utility revenue requirements, capital spending, strong commercial and industrial demand, and early data-center load growth.
• The company introduced 2027 guidance of $3.63–$3.73 in ongoing EPS and a $2.25 dividend target, while expanding its 2027–2030 capital plan by 19% to $15.9 billion. Alliant now targets at least 8% annual earnings growth through 2030, with investments spanning gas generation, renewables, storage, and distribution infrastructure.
• Data centers are becoming a major growth driver: five projects underpin expected contracted demand growth of more than 60% by 2031, while three sites represent 3.4 gigawatts of committed load. Management expects to contract roughly another gigawatt within six months, potentially adding to the capital plan.

Alliant Energy NASDAQ: LNT reported third-quarter 2026 GAAP earnings of $1.52 per share and narrowed its full-year ongoing earnings guidance to the top half of its prior range, citing capital investment, commercial and industrial sales growth, and initial contributions from ramping data center demand.

The utility also introduced 2027 earnings and dividend targets, raised its capital investment plan through 2030, and said it expects annual earnings growth of at least 8% from 2027 through 2030 as it pursues large-load opportunities across Iowa and Wisconsin.

Third-quarter results and 2026 outlook

Robert Durian, Alliant Energy's executive vice president and chief financial officer, said third-quarter earnings benefited primarily from higher revenue requirements and allowance for funds used during construction associated with capital spending at the company's Iowa and Wisconsin utilities. Other contributors included the timing of income tax expense, higher equity earnings from corporate venture fund investments, and weather-related electric margins.

Above-normal summer temperatures added $0.05 per share to electric margins during the quarter, compared with a $0.03-per-share impact in the same period a year earlier, Durian said. Temperature-normalized retail electricity sales also rose, led by commercial and industrial demand in Wisconsin and early contributions from data center loads in Iowa.

Those benefits were partly offset by higher operations and maintenance expense, financing costs, and depreciation expense associated with the company's expanding generation fleet and rate base.

Alliant narrowed its 2026 ongoing earnings guidance to $3.41 to $3.46 per share, representing the upper half of its previous range. Durian said the timing-related income-tax benefit recorded in the third quarter is expected to reverse in the fourth quarter and is not expected to affect full-year results.

2027 guidance and expanded capital plan

For 2027, Alliant issued ongoing earnings guidance of $3.63 to $3.73 per share and set an annual common-stock dividend target of $2.25 per share. The dividend target represents a 5% increase from the company's 2026 annual target.

Durian said the company is moderating its dividend growth rate to help finance a larger investment program while targeting a dividend payout ratio of 60% to 70%. Alliant expects to operate near the lower end of that range during the period of elevated investment.

The company's updated capital investment plan totals $15.9 billion for 2027 through 2030, a 19% increase from its prior four-year plan. The plan is expected to support a 13% compounded annual growth rate in rate base plus construction work in progress, compared with 12% in the prior plan.

Incremental investments include 1.2 gigawatts of additional natural-gas combustion turbines and 200 megawatts of added energy storage. The broader plan includes natural-gas generation, renewable energy, storage, and electric and gas distribution investments.

Alliant raised its longer-term annual earnings growth target to 6% to 8% or more, while specifically targeting growth of at least 8% annually from 2027 through 2030. Durian said the company views the 6% to 8% range as a longer-term outlook beyond the current planning period, while it has greater visibility into the 8%-plus target through 2030.

Data centers and additional load opportunities

President and Chief Executive Officer Lisa Barton said five data centers support Alliant's expectation for contracted demand growth of more than 60% by 2031. Three of those projects are under construction.

Google is taking transmission service under a load ramp that is consistent with an accelerated schedule filed with the Iowa Utilities Commission, Barton said. QTS Cedar Rapids expects to complete commissioning of its first two buildings later in the quarter, while Meta in Wisconsin is taking distribution service and is expected to begin taking transmission service in the first quarter of 2027.

Alliant said an executed service agreement supporting Google's expansion at its Cedar Rapids site has met the company's planning threshold and is included in its refreshed resource plan. The company said it applies a higher bar before incorporating projects into its financial outlook, requiring visibility into land, transmission, generation, and local permitting in addition to an executed electric service agreement.

Barton said three sites currently represent 3.4 gigawatts of committed data center load, with additional growth potential at those locations and seven more prospective sites. The company expects to contract about one additional gigawatt of large load over the next six months, which it said could create upside to the current capital plan.

Durian said each additional gigawatt of load could require roughly $2 billion to $3 billion of capital spending, largely for capacity resources. He said the next expected gigawatt of load would begin ramping around 2029 and 2030, with related gas-generation spending occurring largely around 2030 and 2031.

Alliant is also evaluating manufacturing demand. Barton said Mesabi Metallics expects to locate its plant in the company's service territory in Lee County. The company has included Mesabi's initial non-curtailable capacity requirements in its refreshed plan, while future phases would require additional resources. Management said Mesabi is not included in the company's stated 2-gigawatt to 4-gigawatt data center opportunity pipeline or its expectation for an additional gigawatt of contracted load within six months.

Financing, regulatory initiatives and customer affordability

Alliant plans to finance its expanded capital program through operating cash flow, tax-credit monetization, Department of Energy-backed financing, hybrid securities, and common equity issuances. The company expects approximately $2 billion of tax credits over the planning period and said it has secured about $1.1 billion of its planned $2.7 billion in common equity through forward equity agreements.

Durian said the company expects equity funding to represent about 40% of incremental capital expenditures, at the low end of its previously stated 40% to 50% range. As data center loads ramp and operating cash flow rises, he said future incremental investments could require a lower proportion of new common equity.

The company also cited a recently closed $5.1 billion Department of Energy guaranteed loan program. Barton said Alliant estimates the 30-year loans, when fully funded, could generate up to $1.2 billion in cumulative customer savings compared with traditional debt financing.

In Iowa, Alliant extended its retail electric base-rate stability plan by one year through the end of 2030. The company said it expects to continue investing and earning authorized returns during that period. In Wisconsin, it recently filed a large-load tariff and expects a decision in the first half of 2027. Alliant also filed an individual customer rate application for a second Google project in Cedar Rapids and plans to file an individual customer rate application for the QTS Clinton data center in the first half of 2027.

About Alliant Energy (NASDAQ:LNT)

Alliant Energy Corporation is a public utility holding company headquartered in Madison, Wisconsin. Through its regulated utility subsidiaries, Interstate Power and Light Company and Wisconsin Power and Light Company, the company provides electric and natural gas service to residential, commercial, and industrial customers in Iowa and Wisconsin.

Alliant Energy's operations include the generation, transmission, distribution, and sale of electricity, as well as the distribution and sale of natural gas.

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