Alliant Energy(LNT) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Earnings Release Consolidated Earnings Performance Alliant Energy Corporation achieved significant financial growth in Q2 2025, with both GAAP and Non-GAAP consolidated EPS reaching $0.68, a substantial increase from Q2 2024, highlighting the resilience of its regulated utility model and strategic execution Q2 2025 and 2024 Consolidated EPS | | 2025 EPS | 2024 EPS | | :--- | :--- | :--- | | GAAP EPS | $0.68 | $0.34 | | Non-GAAP EPS | $0.68 | $0.57 | - Alliant Energy President and CEO Lisa Barton stated that the company's robust financial performance this quarter underscores the resilience of its regulated utility model and its ability to advance key operational and strategic initiatives, laying the foundation for long-term success[1] Segment Earnings Analysis Q2 2025 saw significant GAAP EPS growth in Utilities and Corporate Services, driven by 2024 non-recurring adjustments and capital investments, while Non-utility and Parent EPS declined due to reduced venture equity earnings and higher financing costs Utilities and Corporate Services Q2 2025 and 2024 Utilities and Corporate Services GAAP EPS | | 2025 GAAP EPS | 2024 GAAP EPS | Change in EPS | | :--- | :--- | :--- | :--- | | Utilities and Corporate Services | $0.74 | $0.33 | +$0.41 | - Key drivers included 2024 non-recurring adjustments, higher revenue requirements from capital investments, and estimated temperature impacts on retail electric and natural gas sales, partially offset by increased depreciation and financing costs[2] Non-utility and Parent Q2 2025 and 2024 Non-utility and Parent GAAP EPS | | 2025 GAAP EPS | 2024 GAAP EPS | Change in EPS | | :--- | :--- | :--- | :--- | | Non-utility and Parent | ($0.10) | ($0.03) | -$0.07 | - The primary reasons for the EPS decrease were reduced equity earnings from corporate venture investments, increased financing costs, and income tax timing[3] Drivers of GAAP EPS Variance (Q2 2025 vs. Q2 2024) Q2 2025 GAAP EPS increased by $0.34 from Q2 2024, primarily driven by 2024 non-GAAP adjustments and higher revenue requirements from capital investments, partially offset by increased depreciation and financing costs GAAP EPS Variance Factors | Factor | Change (per share) | | :--- | :--- | | 2024 Non-GAAP Adjustments | $0.23 | | Revenue Requirements from Capital Investments | $0.19 | | Higher Depreciation Expense | ($0.06) | | Higher Financing Costs | ($0.05) | | Estimated Temperature Impacts on Retail Electric and Natural Gas Sales | $0.04 | | Other | ($0.01) | | Total | $0.34 | 2024 Non-GAAP Adjustments - In Q2 2024, IPL recorded a $60 million (or $0.17 per share) pre-tax non-cash charge related to the recoverability of the remaining book value of the Lansing Generating Station[4] - In Q2 2024, the company recorded a $20 million (or $0.06 per share) pre-tax non-cash charge for additional asset retirement obligations due to expanded scope under the EPA's revised Coal Combustion Residuals Rule[6] Revenue Requirements from Capital Investments - IPL saw a $0.13 per share revenue increase in Q2 2025 from an increased rate base, including solar generation investments, due to annual retail electric and natural gas rate adjustments approved by the IUC[7] - WPL experienced a $0.06 per share revenue increase in Q2 2025 from an increased rate base, including solar generation and storage investments, due to annual retail electric rate adjustments approved by the PSC[8] Estimated Temperature Impacts - In Q2 2025, temperature impacts on customer demand resulted in a $0.02 per share increase in retail electric sales and a $0.02 per share decrease in natural gas sales[9] 2025 Earnings Guidance 2025 Earnings Guidance Alliant Energy reaffirms its 2025 consolidated ongoing EPS guidance of $3.15 to $3.25, excluding non-cash valuation adjustments, regulatory charges, restructuring, legal changes, deferred tax adjustments, and other non-recurring factors - Alliant Energy reaffirms its 2025 consolidated ongoing Earnings Per Share (EPS) guidance of $3.15 to $3.25[5][11] - The 2025 earnings guidance excludes significant non-cash valuation adjustments, regulatory charges or credits, restructuring, future legal, regulatory or public policy changes, deferred tax asset and liability adjustments, changes in credit loss liabilities, pending litigation and disputes, settlement charges related to pension and other postretirement benefit plans, federal and state income tax audits, changes in ATC LLC authorized return on equity, or changes in GAAP and tax accounting methods that could impact Alliant Energy's reported results[11] Company Overview and Investor Information About Alliant Energy Corporation Alliant Energy is an energy services provider offering regulated electric and natural gas services to approximately 1 million electric and 430,000 natural gas customers in the Midwest through its utility subsidiaries, headquartered in Madison, Wisconsin, and listed on Nasdaq - Alliant Energy is the parent company of Interstate Power and Light Company and Wisconsin Power and Light Company, two utility companies, and Alliant Energy Finance, LLC[15] - The company primarily provides regulated electric and natural gas services to approximately 1,000,000 electric customers and 430,000 natural gas customers in the Midwest[15] - Alliant Energy is headquartered in Madison, Wisconsin, is a component of the S&P 500 Index, and is listed on the Nasdaq Global Select Market under the ticker symbol LNT[15] Earnings Conference Call Details Alliant Energy will host an earnings conference call on August 8, 2025, to discuss Q2 results, led by President and CEO Lisa Barton and EVP and CFO Robert Durian, with public access via phone or webcast - The Q2 2025 earnings conference call is scheduled for Friday, August 8, 2025, at 9:00 a.m. Central Time[13] - The call will be hosted by Lisa Barton, Alliant Energy President and CEO, and Robert Durian, Executive Vice President and CFO[13] - The public can access the call by dialing 800-549-8228 (toll-free) or 646-564-2877 (international), conference ID 78071, or via webcast at www.alliantenergy.com/investors[13](index=13&type=chunk) Forward-Looking Statements General Disclaimer and Identification This press release contains forward-looking statements, identifiable by words like 'forecast,' 'expect,' or 'guidance,' which involve future financial performance, plans, or strategies, subject to risks and uncertainties that could cause actual results to differ materially - This press release contains forward-looking statements, identifiable by words such as 'forecast,' 'expect,' and 'guidance'[17] - These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements[17] Key Risk Factors The company faces risks including utility subsidiaries' ability to earn authorized returns, economic stability, capital expenditure execution, cost control, regulatory approvals, project delays, cybersecurity, energy price volatility, tax policy changes, supply chain disruptions, inflation, interest rates, labor factors, natural disasters, and environmental compliance - The ability of IPL and WPL to earn their authorized returns[18] - The execution of capital expenditure plans, including achieving targeted in-service dates[18] - The ability of IPL and WPL to obtain timely and adequate rate relief to recover costs and earn a return[20] - The ability to complete generation and storage projects on schedule and within cost targets set by regulators, potentially impacted by increased material, equipment, and commodity costs, labor issues, or supply shortages[20] - The direct or indirect impacts of cybersecurity incidents or attacks on Alliant Energy, IPL, WPL, or their suppliers, contractors, and partners[20] - The impacts of federal and state regulatory or governmental actions, including legislation, Treasury regulations, executive orders, interpretations and guidance, and changes in public policy, including those affecting renewable energy tax credits[20] - Inflation and higher interest rates[20] - Environmental remediation and environmental compliance issues, including compliance with all current environmental and emission laws, regulations, and permits, and changes in future environmental laws and regulations, including the Coal Combustion Residuals Rule[22] Use of Non-GAAP Financial Measures Rationale for Non-GAAP Measures Alliant Energy provides non-GAAP financial measures, such as income and EPS excluding Lansing Generating Station asset valuation charges and steam asset retirement obligations, to offer investors a clearer view of operational performance by excluding items deemed irrelevant to ongoing operations and aligning with management's performance assessment metrics - Non-GAAP financial measures, including income and EPS excluding IPL Lansing Generating Station asset valuation charges and steam asset retirement obligation charges, aim to provide investors with additional information to better understand and compare the company's operating performance across periods, excluding items management deems irrelevant to ongoing operations[24] - The company also provides EPS for IPL, WPL, Corporate Services, Utilities and Corporate Services, ATC Holdings, and Non-utility and Parent to facilitate understanding of segment performance and trends[25] Reconciliation of Non-GAAP Financial Measures The company provides detailed reconciliations of GAAP to Non-GAAP EPS and net income for Q2 and six months of 2025 and 2024, with Non-GAAP adjustments primarily comprising 2024 IPL Lansing Generating Station asset valuation charges and steam asset retirement obligations Q2 2025 and 2024 EPS Reconciliation | EPS: | GAAP EPS | Adjustments | Non-GAAP EPS | | :--- | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | | IPL | $0.38 | $0.07 | $— | $0.23 | $0.38 | $0.30 | | WPL | 0.34 | 0.25 | — | — | 0.34 | 0.25 | | Corporate Services | 0.02 | 0.01 | — | — | 0.02 | 0.01 | | Subtotal for Utilities and Corporate Services | 0.74 | 0.33 | — | 0.23 | 0.74 | 0.56 | | ATC Holdings | 0.04 | 0.04 | — | — | 0.04 | 0.04 | | Non-utility and Parent | (0.10) | (0.03) | — | — | (0.10) | (0.03) | | Alliant Energy Consolidated | $0.68 | $0.34 | $— | $0.23 | $0.68 | $0.57 | Q2 2025 and 2024 Earnings Reconciliation (Millions of USD) | Earnings (in millions): | GAAP Income (Loss) | Adjustments | Non-GAAP Income (Loss) | | :--- | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | | IPL | $98 | $18 | $— | $59 | $98 | $77 | | WPL | 87 | 64 | — | — | 87 | 64 | | Corporate Services | 5 | 3 | — | — | 5 | 3 | | Subtotal for Utilities and Corporate Services | 190 | 85 | — | 59 | 190 | 144 | | ATC Holdings | 10 | 9 | — | — | 10 | 9 | | Non-utility and Parent | (26) | (7) | — | — | (26) | (7) | | Alliant Energy Consolidated | $174 | $87 | $— | $59 | $174 | $146 | Non-GAAP Adjustments (Millions of USD) | | Non-GAAP Income Adjustments (in millions) | Non-GAAP EPS Adjustments | | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Utilities and Corporate Services: | | | | | | Asset valuation charge related to IPL's Lansing Generating Station, net of tax impacts of ($16) million | $— | $44 | $— | $0.17 | | Asset retirement obligation charge for steam assets at IPL, net of tax impacts of ($5) million | — | 15 | — | 0.06 | | Total Alliant Energy Consolidated | $— | $59 | $— | $0.23 | Unaudited Financial Statements Condensed Consolidated Statements of Income In Q2 2025, total revenue reached $961 million, with net income of $174 million and diluted EPS of $0.68, reflecting significant growth from Q2 2024, primarily due to increased electric and natural gas utility revenues and the elimination of 2024 non-recurring charges Condensed Consolidated Statements of Income (Unaudited) | | Three Months Ended June 30 | Six Months Ended June 30 | | :--- | :--- | :--- | | | 2025 (Millions of USD) | 2024 (Millions of USD) | 2025 (Millions of USD) | 2024 (Millions of USD) | | Revenue: | | | | | | Electric utility | $851 | $789 | $1,703 | $1,580 | | Natural gas utility | 76 | 69 | 316 | 273 | | Other utility | 11 | 10 | 25 | 24 | | Non-utility | 23 | 26 | 44 | 48 | | Total Revenue | 961 | 894 | 2,088 | 1,925 | | Operating Income | 223 | 130 | 479 | 352 | | Income Tax Benefit | (43) | (33) | (91) | (43) | | Net Income Attributable to Alliant Energy Common Shareowners | $174 | $87 | $387 | $245 | | Diluted Earnings Per Share | $0.68 | $0.34 | $1.50 | $0.95 | Condensed Consolidated Balance Sheets As of June 30, 2025, Alliant Energy's total assets were $23.75 billion, up from $22.714 billion on December 31, 2024, driven by increases in cash and cash equivalents and net property, plant, and equipment, while net long-term debt rose and commercial paper decreased Condensed Consolidated Balance Sheets (Unaudited) | | June 30, 2025 (Millions of USD) | December 31, 2024 (Millions of USD) | | :--- | :--- | :--- | | Assets: | | | | Cash and cash equivalents | $329 | $81 | | Property, plant and equipment, net | 19,376 | 18,701 | | Total Assets | $23,750 | $22,714 | | Liabilities and Equity: | | | | Long-term debt, net (excluding current portion) | 9,642 | 8,677 | | Commercial paper | 292 | 558 | | Alliant Energy Corporation common shareowners' equity | 7,145 | 7,004 | | Total Liabilities and Equity | $23,750 | $22,714 | Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash from operating activities was $492 million, net cash used in investing activities was $894 million, and net cash from financing activities was $650 million, resulting in a significant increase in period-end cash and restricted cash to $329 million Condensed Consolidated Statements of Cash Flows (Unaudited) | | Six Months Ended June 30 | | :--- | :--- | | | 2025 (Millions of USD) | 2024 (Millions of USD) | | Net Cash from Operating Activities | $492 | $562 | | Net Cash from Investing Activities | ($894) | ($533) | | Net Cash from Financing Activities | $650 | $1 | | Net Increase in Cash, Cash Equivalents, and Restricted Cash | $248 | $30 | | Cash, Cash Equivalents, and Restricted Cash at End of Period | $329 | $93 | Key Financial and Operating Statistics Key Financial and Operating Statistics As of June 30, 2025, common stock shares outstanding were 256,969 thousand, book value per share was $27.80, and quarterly common stock dividend rate was $0.5075 per share, with over 1 million retail electric and 430,000 natural gas customers, showing varied sales volumes across customer categories Key Financial Statistics | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Common Stock Shares Outstanding (Thousands) | 256,969 | 256,500 | | Book Value Per Share | $27.80 | $26.48 | | Quarterly Common Stock Dividend Rate (Per Share) | $0.5075 | $0.48 | Utility Retail Customer Count (As of June 30) | Customer Type | Electric Customers | Natural Gas Customers | | :--- | :--- | :--- | | Residential | 855,362 | 385,395 | | Commercial | 146,521 | 45,150 | | Industrial | 2,359 | 314 | | Total | 1,004,242 | 430,859 | Utility Electric Sales (Gigawatt-hours) | Customer Type | Q2 2025 (GWh) | Q2 2024 (GWh) | H1 2025 (GWh) | H1 2024 (GWh) | | :--- | :--- | :--- | :--- | :--- | | Residential | 1,632 | 1,629 | 3,502 | 3,384 | | Commercial | 1,514 | 1,496 | 3,115 | 3,020 | | Industrial | 2,565 | 2,635 | 5,084 | 5,167 | | Retail Subtotal | 5,926 | 5,948 | 12,100 | 11,937 | Estimated Temperature Impacts (Millions of USD) | | Three Months Ended June 30 | Six Months Ended June 30 | | :--- | :--- | :--- | | | 2025 (Millions of USD) | 2024 (Millions of USD) | 2025 (Millions of USD) | 2024 (Millions of USD) | | Electric | $7 | ($1) | $— | ($20) | | Natural Gas | (1) | (3) | (4) | (14) | | Total Temperature Impacts | $6 | ($4) | ($4) | ($34) |