Alliant Energy Exceeds Earnings Expectations with Strong Growth and Investment Plans

Alliant Energy reported Q2 2025 ongoing earnings of $0.68 per share, a significant increase from $0.57 per share in Q2 2024. The company reaffirmed its 2025 earnings guidance range of $3.15 to $3.25 per share and successfully issued $575 million of convertible senior notes and $600 million of senior debentures. Alliant Energy also highlighted its commitment to growth, particularly through partnerships and renewable energy projects, with a planned $10 billion investment in Cedar Rapids and progress in its renewable energy portfolio.

Alliant Energy Corporation (NASDAQ: LNT) reported a significant earnings boost in the second quarter of 2025, with GAAP earnings per share (EPS) climbing to $0.68, up from $0.57 in the same period last year. The company reaffirmed its full-year 2025 EPS guidance range of $3.15 to $3.25, underpinned by continued capital investment and regulatory support across its Iowa and Wisconsin utility operations [1].

The earnings surge was primarily fueled by increased revenue requirements from capital investments, notably in solar generation and energy storage projects. Alliant’s Iowa utility, Interstate Power and Light (IPL), contributed $0.13 to EPS growth following a $185 million electric base rate increase approved last year by the Iowa Utilities Board. Similarly, Wisconsin Power and Light (WPL) contributed $0.06 from a $60 million base rate hike. Combined, Alliant’s Utilities and Corporate Services segment posted $0.74 EPS, more than double the $0.33 EPS recorded in Q2 2024 [1].

The performance was also supported by warmer-than-normal temperatures, which lifted electric and gas sales, adding an estimated $0.04 per share compared to last year’s temperature-driven losses. However, higher depreciation and financing expenses, reflecting the cost of bringing new capital projects online, offset some of the gains. The company’s Non-utility and Parent segment reported a loss of ($0.10) EPS, down from ($0.03) a year earlier, largely due to lower equity income from venture investments and higher interest costs [1].

Alliant continues to invest heavily in clean energy infrastructure. The rate base increases in both Iowa and Wisconsin are closely tied to renewable energy investments, particularly utility-scale solar, aligning with the company’s long-term decarbonization strategy. In Q2 2024, the company had taken a $60 million non-cash charge related to the early retirement of its Lansing Generating Station, along with $20 million in asset retirement obligation charges due to the EPA’s revised Coal Combustion Residuals Rule. The absence of such charges in Q2 2025 helped boost year-over-year performance by $0.23 EPS [1].

Alliant Energy has outlined a significant partnership with QTS Centers, a Blackstone portfolio company, involving a planned $10 billion investment in data centers. The company has begun construction on three large-scale data centers in Iowa and Wisconsin, with physical construction underway in both states. CEO Lisa M. Barton highlighted the progress made on these projects, stating, "Physical construction has now started in both Iowa and Wisconsin on 3 large-scale data centers. Our progress to date reflects a deliberate focus on creating solutions that benefit both new and existing customers as well as our investors" [2].

Alliant Energy reaffirmed its 2025 earnings guidance range of $3.15 to $3.25 per share and maintained its long-term annual earnings growth target of 5% to 7%. The company's management expressed confidence in its ability to deliver on these targets, with CEO Barton stating, "We could not be more excited about the direction of this company" [2].

The stock price of Alliant Energy showed mixed performance in the short term. During the latest trading day, the stock declined by 1.59%, but it ended the most recent full trading week up 0.26%. Over the past month, the stock has gained 6.35%, indicating a relatively strong month-to-date performance. Post-earnings price action for LNT revealed a moderate return of 15.42% for the 30-day holding period, though it underperformed the benchmark’s 86.19%. With a Sharpe ratio of 0.14 and a maximum drawdown of 0%, the strategy exhibited a low-risk profile with modest returns. The strategy’s volatility of 20.46% suggests limited exposure to market fluctuations, appealing to investors prioritizing stability [2].

References:
[1] https://finance.yahoo.com/news/alliant-energy-doubles-q2-profit-050000546.html
[2] https://www.ainvest.com/news/alliant-energy-2025-q2-earnings-net-income-surges-100-2508/