Alliant Energy Corporation Q4 2025 Earnings Call February 20, 2026 2025 Q4 Earnings Call 2 ALLIANT ENERGY 2025 Highlights 6.3% 10-year earnings CAGR | Financial Results | 2025 | 2024 | | --- | --- | --- | | GAAP net income (in millions) | $810 | $690 | | GAAP earnings per share (EPS) | $3.14 | $2.69 | | Ongoing EPS | $3.22 | $3.04 | Cautionary Statements Forward-looking Statements The information regarding earnings per share guidance, dividend target, earnings per share growth, load growth, capital expendit ...

Idacorp (NYSE:IDA) Q4 2025 Earnings call February 19, 2026 04:30 PM ET Company ParticipantsAdam Richins - SVP and COOAmy Shaw - VP of Finance, Compliance, and RiskBrian Buckham - SVP, CFO, and TreasurerDavid Arcaro - Executive Director of Equity ResearchJohn Wonderlich - Investor Relations ManagerLisa Grow - President and CEOTim Tatum - VP of Regulatory AffairsWhitney Mutalemwa - VP of Equity ResearchConference Call ParticipantsBrian Russo - Managing Director and Senior Equity Research AnalystChris Ellingha ...

Financial Data and Key Metrics Changes - IDACORP's diluted earnings per share (EPS) increased to $5.90 in 2025 from $5.50 in 2024, marking the 18th consecutive year of EPS growth [4] - The company ended 15 cents per share above the midpoint of its original EPS guidance for 2025, which included approximately $40 million in additional tax credit amortization [4] - The full-year 2026 earnings guidance is estimated to be in the range of $6.25-$6.45, reflecting an expected EPS growth rate of 8% over 2025 [34][35] Business Line Data and Key Metrics Changes - Idaho Power's customer base grew by 2.3% in 2025, with residential customers increasing by 2.5%, totaling over 660,000 metered customers [8] - The company achieved record energy sales to retail customers and maintained high reliability scores [6][8] - Operating income was positively impacted by a January rate increase and customer growth, contributing approximately $75 million [20] Market Data and Key Metrics Changes - The company is experiencing robust growth across its service area, outperforming national trends, driven by significant industrial projects such as Micron's semiconductor facility and Meta's data center [8][9] - The inquiries from prospective large customers are diverse, including data centers and manufacturing, indicating strong demand in the region [41] Company Strategy and Development Direction - IDACORP is focused on maintaining affordability for customers while managing significant capital expenditures, with a forecast of $1.4 billion in average annual CapEx from 2026 to 2030 [24][26] - The company is actively working on major infrastructure projects, including the B2H transmission project and the Swift North Transmission Project, to support future growth [13][15] - A definitive agreement has been made to sell its Oregon distribution assets, allowing the company to concentrate on rapidly growing Idaho communities [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong cash flows and the potential for large load revenues to support growth without necessitating immediate rate cases [32][35] - The company is monitoring hydropower conditions closely, with current forecasts indicating normal levels, which is crucial for operational planning [78] Other Important Information - The company plans to file requests for Certificates of Public Convenience and Necessity (CPCNs) for new resources in the near term, including a natural gas plant [17] - The anticipated completion of the Oregon asset sale is subject to regulatory approvals, which could take up to 10 months [19] Q&A Session Summary Question: Update on customer and load pipeline - Management noted strong inquiries from diverse industries, including data centers and manufacturing, with many customers moving beyond initial inquiries to construction studies [40][41][42] Question: Equity needs and funding split for incremental CapEx - The company indicated that incremental CapEx would likely be financed on a 50/50 debt-equity basis, with large load customers potentially impacting cash flow needs [44][46][47] Question: Size of investment opportunity for Micron Fab 2 - Management is currently working with Micron to determine the size of the investment opportunity and will provide updates as more information becomes available [52][53] Question: FFO to debt ratio and credit rating outlook - The company reported an FFO to debt ratio of approximately 14.3% at the end of 2025, with expectations for improvement due to large load revenues and a strong balance sheet [55][57] Question: Standardized large load tariff - Management stated that there are no current plans for a standardized large load tariff, as each customer has unique needs that are addressed through tailored contracts [66][67] Question: Hydropower conditions and drought impact - Management expressed optimism about hydropower generation, noting that while there have been fluctuations, current conditions are normal and supportive of operational needs [78][79]

Core Viewpoint - The company is increasing its investment in Alphabet by purchasing 50 shares at approximately $301 each, raising its total holdings to 200 shares, which will increase its portfolio weighting in Alphabet from 1.15% to 1.55% [1] Financial Performance - Alphabet's shares have declined about 9% since its earnings report, despite strong revenue and earnings-per-share results driven by growth in Search and Google Cloud [1] - The company reported free cash flow of approximately $70 billion for both 2024 and 2025, but this is projected to decrease to about $33 billion in 2026 [1] Capital Expenditure Plans - Alphabet plans to spend between $175 billion and $185 billion on capital expenditures in 2026, significantly higher than the Street's estimate of $115 billion and the $91 billion spent in the previous year [1] - This ambitious spending plan has raised concerns about the company's free cash flow, which is impacting investor sentiment across major tech stocks [1] Competitive Position - Google Cloud is experiencing significant growth, with a 55% year-over-year increase in its backlog, which reached $240 billion [1] - The company is perceived to have a clearer path to success compared to its peers, making it a preferred investment choice during the current tech market downturn [1]

Group 1: Apple’s Capital Expenditure Strategy - Apple Inc. is significantly reducing its capital expenditure, cutting it by 19% year-over-year to $2.37 billion, while other major tech companies are collectively committing around $700 billion in capex over the next year [1][2] - Apple's full-year capital expenditure was $12.72 billion, which is less than what Amazon plans to spend in a single quarter [2] - CEO Tim Cook emphasized a prudent and deliberate approach to expenditure, relying on on-device processing and "private cloud compute" to avoid the massive server costs that burden its rivals [4] Group 2: Market Reactions and Predictions - The market is beginning to question the aggressive spending strategies of other tech giants, as seen with Amazon's $200 billion capex guidance leading to an 8% stock drop, and Alphabet's plans causing a 6% decline [3] - Prediction markets indicate skepticism regarding Apple's restrained spending strategy, with Apple valued at just 14 cents in a market predicting the largest company by the end of December 2026, compared to Nvidia at 44 cents and Alphabet at 33 cents [5] - Despite speculation about a leadership change, traders give Tim Cook a 69% chance of remaining CEO through 2027, suggesting that a reversal in strategy is unlikely [6]

Photographer: Michael Nagle/Bloomberg A record number of investors say companies are spending far too much, according to Bank of America Corp.’s latest fund manager survey. While investors participating in the survey are the most bullish they’ve been since June 2021, about 35% warned that corporations are overinvesting, the highest proportion seen in data going back two decades, strategist Michael Hartnett wrote in a note. They’re also cutting their exposure to tech stocks. Most Read from Bloomberg Re ...

Core Viewpoint - Meta's stock fell 3.28% this week, closing at $639.77, despite a significant endorsement from Bill Ackman and bullish analyst targets, indicating market skepticism about the company's future capital expenditures and AI investments [1]. Group 1: Stock Performance - Meta's stock is down 11.91% over the past year and 13% from its post-earnings close, reflecting ongoing market concerns [1]. - Year-to-date, Meta is down 3.08%, trading below its December 31 close, and further from its 52-week high of $795.06 [1]. - The S&P 500 and Nasdaq 100 also experienced declines of 1.29% and 1.27% respectively during the same period [1]. Group 2: Bill Ackman's Endorsement - Bill Ackman disclosed a significant stake in Meta on February 11, calling it "one of the world's greatest businesses" with strong long-term potential due to AI integration [1]. - Ackman sold stakes in Chipotle, Nike, and Hilton to invest in Meta, Amazon, and Alphabet, indicating a strategic shift towards tech investments [1]. - Retail trader sentiment spiked to 80 on February 11, the highest reading of the week, following Ackman's announcement [1]. Group 3: Capital Expenditure Guidance - Meta guided for capital expenditures of $115 billion to $135 billion for 2026, a substantial increase from $21.4 billion in Q4 2025, which was already a 48% year-over-year increase [1]. - Operating margin declined to 41% from 48% as total costs rose 40% year-over-year, raising questions about the justification of such high expenditures [1]. - Corning announced a $6 billion multiyear fiber optic supply deal with Meta, and Vistra secured a 20-year power purchase agreement for zero-carbon nuclear energy to support Meta's AI data centers [1]. Group 4: Analyst Sentiment - Wall Street analysts maintain an average target price of $860.08 for Meta, suggesting a 34% upside from current levels, with 11 Strong Buy ratings, 51 Buy ratings, and no Sell recommendations [1]. - Despite the stock's decline, analysts have increased their earnings estimates for 2027 from $33.33 to $34.33 in adjusted EPS, indicating confidence in revenue acceleration outpacing margin erosion [1]. - The disconnect between analyst optimism and market performance suggests uncertainty about the timing of returns on Meta's significant capital investments [1].

Core Insights - Amazon and Microsoft have entered bear market territory, with declines of 23% and 27% from recent peaks, respectively [1] - Both companies met or exceeded earnings expectations, yet their stocks sold off due to concerns over capital expenditure and AI spending returns [1] Company Performance - Amazon's stock closed at $199.60, down 13.5% year-to-date and 17.7% over the past month, having peaked at $258.60 within the last 52 weeks [1] - Microsoft's stock closed at $401.84, down 16.9% year-to-date and 14.6% over the past month, with a 52-week high of $553.50 [1] - Amazon's capital expenditure for 2026 is projected at $200 billion, while Microsoft's capex rose 66% year-over-year to $37.5 billion [1] Market Sentiment - Investors are questioning the return on nearly $700 billion projected capital expenditure by Big Tech on AI-driven infrastructure [1] - Analysts have turned cautious, with Zacks rating Amazon as Hold due to premium valuation and aggressive spending outpacing AWS growth, while Microsoft received a Somewhat-Bearish rating due to high capex guidance [1] Broader Market Context - The overall market is feeling the impact of the declines in major tech stocks, with the Nasdaq-100 down 2.2% year-to-date and 4.1% over the past month [1] - Other companies in the Magnificent 7, such as Alphabet and Tesla, have also seen declines, while only Nvidia and Meta have remained relatively flat year-to-date [1]

Core Viewpoint - Mexican telecom giant America Movil is planning a capital expenditure target of 14%-15% of revenues for 2026 and the following years, as stated by finance chief Carlos Garcia [1] Group 1 - America Movil's capital expenditure strategy indicates a focus on maintaining a significant investment level relative to its revenues [1] - The targeted capital expenditure percentage reflects the company's commitment to growth and infrastructure development in the telecom sector [1]

Group 1 - NVIDIA Corporation (NASDAQ:NVDA) is expected to benefit significantly from increased capital expenditures by mega-cap tech companies, which are allocating substantial budgets for AI and computing technologies [1][3] - The stock has seen a notable increase of nearly 8%, marking its best performance since April of the previous year, indicating renewed investor interest [1] - Currently, NVIDIA's stock trades at 24 times earnings, reflecting a strong position with a year-over-year increase of over 55%, outperforming the S&P 500 [3] Group 2 - Jim Cramer describes NVIDIA as a "coiled spring," suggesting that the stock is poised for a significant upward movement despite recent performance challenges [3] - The company develops a range of technologies including GPUs for gaming, AI platforms, cloud services, and automotive technologies, positioning it well within the tech industry [3]