Core Insights - Alliant Energy Corporation (LNT) reported third-quarter 2025 operating earnings of $1.12 per share, missing the Zacks Consensus Estimate of $1.17 by 4.27% and decreasing 2.61% from the previous year's figure of $1.15 [1][7] - Revenues for the quarter totaled $1.21 billion, exceeding the Zacks Consensus Estimate of $1.10 billion by 10% and increasing 12.04% from $1.08 billion in the year-ago quarter [2][7] - The company raised its four-year capital expenditure forecast by 17% to $13.4 billion to meet growing demand, particularly for powering data centers [5][7] Financial Performance - Total operating expenses were $861 million, up 12.1% from $768 million in the year-ago period, driven by increased costs in electric production fuel, purchased power, and maintenance expenses [3] - Operating income reached $349 million, reflecting an 11.5% increase from the previous year [3] - Cash and cash equivalents as of September 30, 2025, amounted to $503 million, a significant increase from $81 million as of December 31, 2024 [6] Customer and Sales Metrics - The number of retail electric and gas customers increased by 0.7% year over year [4] - Total utility electric sales were 9,197 thousand megawatt-hours, up 3.85% from the year-ago quarter [4] - Total utility gas sold and transported was 430,464 thousand dekatherms, reflecting a year-over-year increase of 0.68% [4] Guidance and Future Outlook - Alliant Energy narrowed its 2025 earnings guidance to a range of $3.17-$3.23 per share, with the Zacks Consensus Estimate at $3.22 per share [8] - The company provided a 2026 earnings projection of $3.36-$3.46 per share, indicating a 6.6% increase over 2025 [9] - The annual common stock dividend target for 2026 is set at $2.14 per share, representing a 5.4% increase over 2025 [9]

Financial Data and Key Metrics Changes - The company reported third quarter ongoing earnings of $1.12 per share, achieving over 80% of the midpoint of the 2025 earnings guidance [14] - The 2025 ongoing earnings guidance range has been narrowed to $3.17-$3.23 per share, trending towards the upper half of this range [16] - The 2026 earnings guidance is projected at $3.36-$3.46 per share, representing a 6.6% increase over the 2025 midpoint [8][16] - The annual common stock dividend target for 2026 is set at $2.14 per share, a 5.4% increase from the 2025 target of $2.03 per share [8][16] Business Line Data and Key Metrics Changes - The company completed construction of energy storage projects totaling 175 megawatts and advanced gas path projects to enhance efficiency [7] - The contracted demand from four data centers totals 3 gigawatts, leading to a projected 50% peak demand growth by 2030 [9] - The capital expenditure plan has been increased by 17% to $13.4 billion, with a projected compound annual growth rate of 12% from 2025 to 2029 [8][17] Market Data and Key Metrics Changes - The company is focusing on plug-and-ready sites to minimize transmission investments and accelerate customer service [6] - The Iowa retail construct stabilizes electric-based rates for customers through the end of the decade, benefiting existing customers [10] - The company has received regulatory support for its plans, including approvals for rate reviews and investments in renewable energy projects [11][22] Company Strategy and Development Direction - The company aims to unlock the potential of customers and communities by focusing on near-term growth opportunities and maintaining affordability [10][25] - The strategy includes proactive community engagement and investments in renewable energy and energy storage to meet growing customer demand [12][18] - The company is committed to maintaining competitive rates for both new and existing customers through economic development success and cost controls [12] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a compound annual growth rate of 12% in rate base and construction work in progress, reinforcing long-term growth objectives [18] - The company is optimistic about future growth opportunities, particularly in data centers, and is focused on minimizing regulatory lag [56][58] - Management highlighted the importance of timing in load growth and the potential for earnings to exceed current guidance based on new contracts [29][39] Other Important Information - The company has successfully refinanced $300 million of debt and issued $725 million in junior subordinated notes to support its financing plans [18][20] - The company plans to finance capital expenditures through a combination of cash from operations and new debt, hybrid, and common equity issuances [19][20] - Future regulatory filings are expected to enhance reliability and diversify energy resources to meet growing customer needs [24] Q&A Session Summary Question: Can you provide color on the ramp in demand and its impact on earnings trajectory? - Management indicated that the 7-8% growth is conservative and that timing is crucial for realizing load growth [29] Question: What are the assumptions regarding earned returns in Iowa? - Management confirmed that Iowa's new regulatory construct provides certainty for earning authorized returns, with potential upside for exceeding those returns [32] Question: Can you elaborate on the 2-4 gigawatts of additional load negotiations? - Management stated that these negotiations involve both expansions of existing facilities and new customers, with updates expected in the next 12 months [36][66] Question: What is the expected FFO to debt ratio by the end of 2025? - Management aims for a cushion of 50-100 basis points in the FFO to debt metrics to support growth [41] Question: How will the timing of rate cases affect future growth rates? - Management noted that Wisconsin's forward-looking test years minimize regulatory lag, while Iowa's structure allows for annual earnings growth [56][58]

Financial Data and Key Metrics Changes - The company reported third quarter ongoing earnings of $1.12 per share, achieving over 80% of the midpoint of the 2025 earnings guidance [14] - The 2025 ongoing earnings guidance range has been narrowed to $3.17-$3.23 per share, trending towards the upper half of this range [16] - The 2026 earnings guidance is projected at $3.36-$3.46 per share, representing a 6.6% increase over the 2025 midpoint [8][16] - The annual common stock dividend target for 2026 is set at $2.14 per share, a 5.4% increase from the 2025 target of $2.03 per share [8][16] Business Line Data and Key Metrics Changes - The company completed construction of energy storage projects totaling 175 MW and advanced gas path projects to enhance efficiency [7] - The contracted demand from four data centers totals 3 GW, leading to a projected 50% peak demand growth by 2030 [9] - The capital expenditure plan has been increased by 17% to $13.4 billion, with a projected compound annual growth rate of 12% from 2025-2029 [8][17] Market Data and Key Metrics Changes - The company is experiencing significant load growth opportunities, particularly from data centers, which are expected to drive earnings growth [4][5] - The Iowa retail construct stabilizes electric-based rates for customers, providing a win-win outcome for existing customers [10] - The company has received regulatory support for its plans, including approvals for rate reviews and investments in renewable energy projects [11][22] Company Strategy and Development Direction - The company is focused on customer-centric investments and maintaining affordability and reliable service [4] - The strategy includes proactive community engagement and unlocking potential for customers and communities [10][12] - The company aims to provide competitive rates for both new and existing customers through economic development success and cost controls [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving earnings growth driven by data center expansions and load growth plans [9][25] - The company is committed to maintaining a strong balance sheet to support future growth opportunities [41] - Management highlighted the importance of timing in load growth and the potential for upside beyond current guidance [29][39] Other Important Information - The company has successfully refinanced $300 million of debt and issued $725 million in junior subordinated notes to support its financing plans [18][19] - The company is actively pursuing regulatory approvals for various projects, including wind and natural gas facilities [22][23] Q&A Session Summary Question: Demand ramp and earnings trajectory - Management indicated that the 7%-8% growth is conservative and could be higher with additional load growth [29] Question: Equity dilution impact on earnings growth - Management confirmed that equity dilution is a significant factor affecting the earnings growth forecast [30] Question: Regulatory framework in Iowa and earned returns - Management explained that Iowa's new regulatory construct provides certainty for earning authorized returns, with potential upside for outperformance [32] Question: Incremental load opportunities and updates - Management stated that they are in active negotiations for additional load and will provide updates regularly [36][67] Question: Tax credits and cash flow replacement - Management confirmed confidence in generating tax credits and maintaining cash flow through 2030 [40][42] Question: Load growth starting point for 2026 - Management indicated that the starting point for load growth in 2026 is modest, with significant ramp-up expected in subsequent years [43] Question: Probability of conversion for remaining pipeline - Management expressed high confidence in the conversion of remaining pipeline opportunities, emphasizing the company's strong position in Iowa and Wisconsin [48][52]

Financial Data and Key Metrics Changes - The company narrowed its 2025 ongoing earnings guidance range to $3.17-$3.23 per share, trending towards the upper half of this range [7][16] - The ongoing earnings for Q3 were reported at $1.12 per share, achieving over 80% of the midpoint of the 2025 earnings guidance [13] - The 2026 earnings guidance is set at $3.36-$3.46 per share, representing a 6.6% increase over the 2025 midpoint [7][16] - The annual common stock dividend target for 2026 is $2.14 per share, a 5.4% increase from the 2025 target of $2.03 per share [8][16] Business Line Data and Key Metrics Changes - The company completed construction of energy storage projects totaling 175 megawatts and advanced gas path projects to enhance efficiency [6] - The projected peak demand growth by 2030 has increased to 50% due to new agreements with data centers, including a significant contract with Google [5][9] Market Data and Key Metrics Changes - The company is focusing on plug-and-ready sites to minimize transmission investments and accelerate customer service [5] - The Iowa retail construct stabilizes electric-based rates for customers through the end of the decade, benefiting existing customers [10] Company Strategy and Development Direction - The company is committed to customer-focused investments and maintaining affordability while driving growth [4][12] - The capital expenditure plan has been increased by 17% to $13.4 billion, with a projected compound annual growth rate of 12% from 2025 to 2029 [8][17] - The strategy includes proactive community engagement and a focus on renewable energy and energy storage projects [10][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term growth objectives and highlighted the importance of regulatory support for future projects [11][12] - The company anticipates continued earnings growth driven by data center expansions and load growth plans [9][12] Other Important Information - The company has updated its financing plans through 2029, with a focus on maintaining a balanced capital structure [19][20] - Regulatory initiatives are in progress, including requests for investments in renewable energy and natural gas facilities [22][23] Q&A Session Summary Question: Can you provide color on the ramp in demand and its impact on earnings trajectory? - Management indicated that the 7-8% growth is conservative and that timing is crucial for realizing load growth [27][28] Question: What are the assumptions regarding earned returns in Iowa? - The company confirmed that it expects to earn its authorized return, with potential upside for exceeding it [30] Question: Can you elaborate on the 2-4 gigawatts of additional load negotiations? - Management stated that these negotiations involve both expansions of existing facilities and new customers, with updates expected in the next 12 months [32][56] Question: What is the expected FFO to debt ratio by the end of 2025? - The company aims for a cushion of 50-100 basis points in its FFO to debt metrics to support growth [36] Question: How will the load growth impact the 2026 guidance? - The starting point for 2026 is modest, with data centers expected to ramp up load in the second half of 2026 [38] Question: What is the probability of conversion for the remaining gigawatts in the pipeline? - Management expressed high confidence in the pipeline, emphasizing the strategic advantages of their locations in Iowa and Wisconsin [42][44]

Financial Performance & Growth - Alliant Energy achieved a total shareholder return of approximately 10% with a 10-year compound annual EPS growth of 6.5%[6] - The company is initiating 2026 EPS guidance, projecting a 6.6% increase over the 2025 EPS guidance midpoint[6] - The long-term annual EPS growth target is set at 5-7%+, with projections at or above the high end for 2027-2029[6] - Updated 2025 ongoing EPS guidance is between $3.17 and $3.23[9] - 2026 EPS guidance is projected to be between $3.36 and $3.46[10] - The 2026 dividend target is $2.14 per share, representing a 5.4% increase over the 2025 target[11, 13] Load Growth & Capital Expenditure - Data center demand is expected to drive a 50% increase in projected demand by 2030, compared to 2024 levels[6, 20] - The company has a $13.4 billion 4-year capital expenditure plan, which is a 17% increase over the prior plan[6] - Approximately 3 GW of peak obligation to serve is included in the capital expenditure plan[18] Investments & Funding - The company plans to invest $4.7 billion in natural gas generation, $4.4 billion in energy storage and renewables, and $4.3 billion in electric & gas distribution, technology & other from 2026-2029[25, 26] - The capital expenditure program will be funded through cash from operations (34%), tax credit monetization (12%), new debt (36%), and equity (18%)[28] Regulatory & Customer Focus - Wisconsin electric revenue requirement increase of $79 million in 2026 and $73 million in 2027[44] - Wisconsin gas revenue requirement increase of $7 million in 2026 and $5 million in 2027[44]

Earnings Performance - Alliant Energy reported GAAP EPS of $1.09 for Q3 2025, down from $1.15 in Q3 2024, while ongoing EPS was $1.12, also down from $1.15 year-over-year[1][5] - For the first nine months of 2025, EPS increased by 23.3% to $2.59 from $2.10 in the same period of 2024, with ongoing EPS rising 12.4% to $2.62 from $2.33[2][6] - Alliant Energy's consolidated GAAP EPS for Q3 2025 was $1.09, down from $1.15 in Q3 2024, while non-GAAP EPS remained at $1.12 compared to $1.15 in the previous year[33] - For the nine months ended September 30, 2025, Alliant Energy reported a consolidated GAAP income of $668 million, an increase from $540 million in the same period of 2024, with non-GAAP income rising to $676 million from $599 million[33] - The adjusted non-GAAP EPS for the nine months ended September 30, 2025, was $2.62, compared to $2.33 in 2024, reflecting a significant increase in operational performance[33] - Net income attributable to Alliant Energy common shareowners for Q3 2025 was $281 million, a decrease of 4.8% from $295 million in Q3 2024[37] Revenue and Expenses - The primary drivers for the Q3 results included higher revenue from authorized base rate increases, offset by increased operational and maintenance expenses[5][7] - Total revenues for Q3 2025 increased to $1,210 million, up 11.9% from $1,081 million in Q3 2024[37] - Operating income for the nine months ended September 30, 2025, rose to $828 million, a 24.5% increase compared to $665 million in the same period of 2024[37] - The income from IPL for Q3 2025 was $165 million, compared to $190 million in Q3 2024, while WPL's income increased to $123 million from $114 million[33] Guidance and Future Outlook - The company narrowed its 2025 ongoing EPS guidance to $3.17 - $3.23 per share, with 2026 guidance set at $3.36 - $3.46, representing a 6.6% increase over 2025[4][11] - The expected annual common stock dividend target for 2026 has been raised to $2.14 per share, a 5.4% increase from 2025[4][12] - The forecasted capital expenditures for 2026-2029 have been increased to $13.4 billion, a 17% rise to meet growing energy demand[3][6] - Alliant Energy's capital expenditures guidance for 2025-2029 was highlighted, indicating a focus on future growth and infrastructure development[25] Customer and Market Information - Alliant Energy serves approximately 1,010,000 electric and 430,000 natural gas customers, focusing on regulated electricity and natural gas services in the Midwest[21] - Total utility retail electric customers reached 1,006,524 as of September 30, 2025, an increase from 999,893 in the same period of 2024[43] - Utility electric sales for residential customers in Q3 2025 were 2,154,000 megawatt-hours, an increase of 4.0% from 2,071,000 megawatt-hours in Q3 2024[43] Financial Position - Cash and cash equivalents increased significantly to $503 million as of September 30, 2025, compared to $81 million at the end of 2024[39] - Total assets grew to $24,627 million as of September 30, 2025, up from $22,714 million at the end of 2024[39] - Long-term debt, net (excluding current portion) increased to $10,655 million as of September 30, 2025, compared to $8,677 million at the end of 2024[39] Challenges and Considerations - Alliant Energy is facing challenges related to inflation and higher interest rates, which may impact operational costs and capital expenditures[25] - The company reported a state income tax apportionment charge of $8 million for Q3 2025, which was not present in the previous year, affecting non-GAAP earnings[34] - The company emphasized the importance of achieving expected tax benefits for renewable generation projects, which are crucial for maintaining authorized rates of return[25] - The company is actively monitoring regulatory changes that could impact renewable tax credits and overall operational compliance[25] Dividend Information - The quarterly common dividend rate per share increased to $0.5075 in Q3 2025, up from $0.48 in Q3 2024[43] - Alliant Energy's ability to sustain its dividend payout ratio goal remains a priority, with ongoing assessments of market conditions and financial performance[31] Data Center Demand - Alliant Energy's contracted demand from data centers has reached 3 gigawatts, anticipating a 50% increase in peak load demand by 2030[3][6] - The company has secured four data center agreements and is positioned for further growth opportunities in energy demand[5][6]

Core Viewpoint - Alliant Energy (LNT) is expected to report its third-quarter 2025 results on November 6, with a prior earnings surprise of 9.68% in the last quarter [1] Factors Impacting Q3 Earnings - Strategic investments in electric distribution are anticipated to enhance service reliability and customer service, positively impacting the bottom line [2] - A strong customer base, robust economic development, and increasing demand from data centers are expected to contribute to earnings, although higher financing costs may offset some benefits [3] Q3 Expectations - The Zacks Consensus Estimate for earnings is $1.17 per share, reflecting a year-over-year increase of 1.7% [4] - Revenue is estimated at $1.10 billion, indicating a year-over-year rise of 2% [4] - Total electricity delivered is projected at 8,901 megawatt-hours (MWh), up 0.5% year over year [4] Earnings Prediction - The company's Earnings ESP is +0.43%, suggesting a likelihood of an earnings beat [5] - Alliant Energy currently holds a Zacks Rank of 3 (Hold) [6] Other Stocks to Consider - Atmos Energy Corporation (ATO) is expected to report on November 5, with an Earnings ESP of +4.85% and a Zacks Rank of 2 [7] - Duke Energy (DUK) is set to report on November 7, with an Earnings ESP of +1.63% and a Zacks Rank of 2 [10] - New Jersey Resources Corporation (NJR) will report on November 19, with an Earnings ESP of +8.51% and a Zacks Rank of 3 [11]

Financial Services Sector - Financial Services sector shows strong buy ratings for Mastercard (MA), Visa (V), Global Payments (GPN), Fidelity National Information Services (FIS), and Truist Financial (TFC) in recent days [1] - Average target price upside across these companies suggests continued positive momentum in the Financial Services sector [1] Utilities Sector - Utilities sector also demonstrates strength with upgrades for Alliant Energy (LNT), PPL Corporation (PPL), and Entergy (ETR) on October 24 and October 22 [1] - The upgrades indicate a favorable outlook for these utility companies [1] Payroll Services and Insurance - Payroll services sector experiences a notable strong sell for Paychex (PAYX), indicating caution in this area [1] - Insurance giant W.R. Berkley (WRB) also received a strong sell rating, further signaling caution in the insurance sector [1]

Core Insights - The article compiles significant research calls from Wall Street that are influencing market movements and investor decisions [1] Upgrades Summary - Citizens JMP upgraded eBay (EBAY) to Outperform from Market Perform with a price target of $115, citing improved consumer experience and projected mid-single-digit merchandise volume growth by 2026 [2] - JPMorgan upgraded Coinbase (COIN) to Overweight from Neutral with a new price target of $404, increased from $342, highlighting attractive valuation and monetization opportunities in the cryptocurrency sector [2] - Morgan Stanley upgraded Tractor Supply (TSCO) to Equal Weight from Underweight with a price target of $60, up from $50, noting the company is moving past its investment cycle and returning to normalized levels [2] - Keefe Bruyette upgraded AppFolio (APPF) to Outperform from Market Perform with a price target of $311, emphasizing the stock's underperformance and potential revenue growth acceleration above 20% due to new AI and resident services products [2] - UBS upgraded Alliant Energy (LNT) to Buy from Neutral with a price target of $79, increased from $74, driven by load growth, capital expenditure increases, and regulatory alignment [2]

Core Insights - Alliant Energy (LNT) is positioned to continue its earnings-beat streak, having a strong track record in the Zacks Utility - Electric Power industry [1] - The company has an average surprise of 27.65% over the past two quarters, indicating consistent performance above earnings estimates [1] Earnings Performance - In the last reported quarter, Alliant Energy achieved earnings of $0.68 per share, exceeding the Zacks Consensus Estimate of $0.62 per share by 9.68% [2] - In the previous quarter, the company reported earnings of $0.83 per share against an expectation of $0.57 per share, resulting in a surprise of 45.61% [2] Earnings Estimates - Recent estimates for Alliant Energy have been trending upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating potential for another earnings beat [5][8] - The current Earnings ESP for Alliant Energy is +0.43%, suggesting analysts are optimistic about the company's earnings prospects [8] Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7]