Release Date: July 31, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Alliant Energy Corp LNT delivered strong second quarter results and is trending in the upper half of its 2026 earnings guidance range despite milder weather.
- The company is executing well on its growth strategy, with five executed electric service agreements expected to drive a 60% increase in demand by 2031, including projects with Google, QTS, and Meta that are already under construction.
- Alliant Energy Corp (LNT) has proactively addressed its equity needs, raising approximately $1.8 billion of the $2.4 billion announced through 2029 via forward equity agreements, providing significant financial flexibility.
- The company received approximately $50 million in Department of Energy grants for its Columbia Energy Center and Energy Dome projects, supporting its investment plans.
- Alliant Energy Corp (LNT) is seeing strong core business growth, with temperature-normalized electric sales up 3% year-over-year, driven by Wisconsin commercial and industrial customers, and is benefiting from the initial ramp of data center loads in Iowa.
- The company is advancing its regulatory agenda, receiving approvals for the Meta data center agreement in Wisconsin and filing for new generation projects in Iowa, positioning it well for future growth.
- Alliant Energy Corp (LNT) expects compound annual earnings growth of 7% plus from 2027 through 2029 and plans to provide more specific long-term earnings growth targets on its third quarter call.
- The company's disciplined approach to large load customers ensures they pay their own way, which helps keep rates flat in Iowa and could potentially extend the rate freeze beyond 2029.
Negative Points
- Milder than normal temperatures negatively impacted second quarter electric and gas margins by approximately $0.03 per share, offsetting some of the positive drivers.
- Higher operations and maintenance expenses related to business growth, along with higher financing and depreciation costs, partially offset earnings growth in the quarter.
- The company faces political and regulatory noise in both Iowa and Wisconsin regarding data center development, with some candidates calling for moratoriums, which could create uncertainty for future growth.
- Alliant Energy Corp (LNT) has a remaining $500 million of common equity to raise through 2029, which could lead to potential dilution for shareholders.
- The company's ability to extend its rate freeze in Iowa beyond 2029 is dependent on signing up additional data centers, which is not guaranteed and could be impacted by political or regulatory changes.
- There is potential lumpiness in annual earnings growth due to the timing of capital expenditures and load ramps, which could lead to variability in year-over-year results.
- The company is awaiting a FERC decision on self-funded network upgrades, and while it sees potential benefits, the outcome is uncertain and could impact its capital expenditure plans.
Q & A Highlights
Q: Can you provide your latest thoughts on the political backdrop in Iowa regarding data center development, given recent guarded comments from political candidates?
A: Lisa Barton, President and CEO, stated that while some PJM narratives are being repeated, the math is self-explanatory: by growing, Alliant is able to keep rates flat in Iowa, and the more they grow, the longer they can do that. She emphasized that current ordinances or moratoriums are not impacting their projects or pipeline, and that data centers are focusing on transparency with communities. She noted that Iowa remains open for business, citing communities calling to ask how to get a data center in their backyard.
Q: Are you married to the "plus" in your 7%+ CAGR guidance, or could you get back into a range, albeit higher, when you revisit the plan in the third quarter?
A: Robert Durian, CFO, said they are looking forward to sharing more information on the third quarter call, where they will update their four-to-five-year capital expenditure plan. This will drive their confidence level in potentially changing the EPS CAGR. He indicated they are evaluating providing more transparency and specificity, possibly moving from the "plus" to a range or more specific targets for each year, acknowledging some lumpiness in annual capital expenditures.
Q: Can you speak to the QTS amendments and the accelerated load ramp, and how that changes the financial plan?
A: Lisa Barton highlighted that accommodating an accelerated load ramp with QTS ensures communities see benefits sooner from a property tax standpoint, benefiting other customers and shareholders. Robert Durian added that the CapEx plan is aligned with the ramp rates, so no major change is expected there. However, they expect higher revenues specifically in 2027 and 2028, which helps existing customers by allowing them to not use as many tax credits through the growth phase, potentially helping them stay out of rate cases over a longer period.
Q: Can you talk about the status of the Linn County data center moratorium and how it works with your projects in Cedar Rapids?
A: Lisa Barton clarified that the moratorium applies to the unincorporated area of Linn County and has no impact on their data center growth opportunities. She praised Mayor Tiffany O'Donnell of Cedar Rapids as a strong advocate who continues to highlight the real-time benefits the city is seeing from the data centers.
Q: The load growth forecast for 2026 was taken up to 2%-3% from 1%. Is that a function of data centers ramping faster or better growth from the rest of the customer base? Also, the O&M number went up by a percentage point—is that one-time expenses?
A: Robert Durian explained that sales are higher than expected, driven by data centers going faster than originally expected and the core business performing better. He attributed some of this to the economic benefits from data center development, citing over 10,000 construction workers in Cedar Rapids driving ancillary benefits like hotel and restaurant usage. Regarding O&M, he noted that higher temperature-normalized sales allow them to continue investing in the business for reliability. The first half of the year was as expected, with the second half expected to be lighter, though they may continue investing if retail sales remain high.
Q: Within the 2 to 4 gigawatts of potential future load, is there any way to understand what you have visibility to realistically? Is it more about increasing load ramps or larger deals?
A: Lisa Barton said it's a "wait-and-see" situation that will be announced with the resource plan. She emphasized that discussions with large load customers require them to have load ramps in place, land control, and time invested with communities. She noted continued inbound interest in the state and expressed confidence in their economic development efforts, with clarity to come when the resource plan is finalized.
Q: Can you talk about the state of the supply chain and whether you have better visibility than in the first quarter?
A: Lisa Barton stated that these discussions are not new. They work with transmission partners to determine the timing of necessary transmission upgrades and what's needed on the generation side. They issue RFPs to ensure access to generation and feel very confident in their ability to meet the needs of customers and communities as they expand.
Q: Your peer in Wisconsin has heightened credit requirements circulating in the state. Does that impact how you view potential new sites in Wisconsin, and is it causing discussions to pivot towards Iowa?
A: Lisa Barton noted that they will be filing a tariff in Wisconsin later this year, aligned with Xcel's slice-of-system approach. She believes it's appropriate for the commission to take a measured approach to credit requirements, as it applies to all large loads. She emphasized that Alliant has a track record of high-quality counterparties and is not seeing this adversely impact their growth trajectory.
Q: Can you help size the potential benefits of FERC's policy decision on self-funded network upgrades?
A: Robert Durian said it's an item they continue to monitor, awaiting a decision before knowing the full implications. There are several generation projects requiring transmission upgrades that could provide an opportunity to invest in those themselves. This could result in additional CapEx and provide customer benefits, as their cost of capital is slightly lower than the transmission company's, making it a win-win for investors and customers.
Q: Can you summarize the views of the Wisconsin governor candidates on data center development, and is the likelihood of new data center development in Wisconsin much lower than in Iowa?
A: Lisa Barton acknowledged the active political landscape in Wisconsin but noted the state has always enjoyed a practical approach. She said the math is self-explanatory and that The Brattle Group reinforced their approach. She expressed a desire to educate candidates on the details of what they're doing. Regarding the likelihood of new development, she said no, moratoriums and ordinances are not impacting their projects or pipeline, though Iowa has more land mass and is a larger service territory.
Q: How much additional runway does the QTS ramp-up provide you with in terms of extending your stay-out from rate reviews in Iowa?
A: Robert Durian reminded that they have a commitment to stay out of rate reviews in Iowa for retail electric through 2029. They are focused on adding more data centers and accelerating load, which could give them an opportunity to stay out even longer. He noted it will largely depend on how many additional data centers they sign up, and if they can add several hundred megawatts more, they could potentially go beyond
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
