Alliant Energy's 2024 Results: A Mixed Bag of Earnings Trends and Capital Expenditure Plans

Alliant Energy Corporation (NASDAQ: LNT) has released its 2024 results, providing insights into the company's financial performance and strategic direction. The year has seen a mix of earnings trends, with both increases and decreases compared to previous years, driven by various factors. This article will delve into the key aspects of Alliant Energy's 2024 results, including earnings per share (EPS) trends, earnings guidance, and capital expenditure (CapEx) plans for the coming years.



Earnings Per Share (EPS) Trends in 2024

Alliant Energy's EPS trends in 2024 have shown both increases and decreases compared to previous years, with various factors contributing to these changes. Here's a breakdown of the EPS trends and the contributing factors:

1. First Quarter 2024 vs. First Quarter 2023:
- EPS in 2024: $0.62
- EPS in 2023: $0.65
- Variance: ($0.03)
- Factors contributing to the decrease:
- Lower retail electric and gas sales due to warmer temperatures: ($0.04)
- Higher financing and depreciation expenses: ($0.04)
- Factors partially offsetting the decrease:
- Higher revenue requirements from capital investments at WPL: $0.11

2. Second Quarter 2024 vs. Second Quarter 2023:
- EPS in 2024: $0.33
- EPS in 2023: $0.65
- Variance: ($0.32)
- Factors contributing to the decrease:
- Asset impairment charge for IPL's Lansing Generating Station: ($0.17)
- Asset retirement obligation charge for steam assets at IPL: ($0.06)
- Timing of income taxes: ($0.06)
- Higher financing and depreciation expenses: ($0.04)
- Estimated temperature impacts on retail electric and gas sales: ($0.02)
- WPL electric fuel-related costs, net of recoveries: ($0.02)
- Factors partially offsetting the decrease:
- Revenue requirements from capital investments at WPL: $0.12

3. Third Quarter 2024 vs. Third Quarter 2023:
- EPS in 2024: $1.15
- EPS in 2023: $1.02
- Variance: $0.13
- Factors contributing to the increase:
- Higher revenue requirements from capital investments at WPL: $0.17
- Timing of income taxes: $0.02
- Factors partially offsetting the increase:
- Higher financing and depreciation expenses: ($0.04)
- Estimated temperature impacts on retail electric and gas sales (2023): ($0.02)

Earnings Guidance and Capital Expenditure Plans

Alliant Energy's earnings guidance for 2024 was initially set at $2.99 - $3.13 per share and was later narrowed to $2.99 - $3.06 per share, reflecting the company's confidence in its ability to deliver consistent financial performance despite external factors such as weather conditions. The company's capital expenditure (CapEx) plans for 2025-2028 align with its long-term growth strategy, with forecasted aggregate capital expenditures of $11 billion for the period.



These investments are expected to have a positive impact on future earnings through several channels, including revenue growth, load growth, regulatory progress, and energy mix diversification. Alliant Energy's strategic priorities, such as regulatory progress and data center opportunities, are expected to contribute to its positive outlook and long-term growth.

In conclusion, Alliant Energy's 2024 results have shown a mix of earnings trends, driven by various factors such as weather conditions, regulatory changes, and capital investments. The company's reaffirmed and narrowed earnings guidance for 2024 reflects its confidence in its ability to deliver consistent financial performance, while its capital expenditure plans for 2025-2028 align with its long-term growth strategy. Alliant Energy's strategic priorities and investments are expected to contribute to its positive outlook and long-term growth.