Alliant Energy(LNT) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In 2025, Alliant Energy achieved ongoing earnings per share (EPS) growth of $0.18 compared to 2024, driven by increased revenue from rate-based increases and favorable temperature impacts on electric and gas sales [11][12] - The company reported a 10-year compound annual EPS growth of 6.3%, with ongoing EPS growth of 6% in 2025, exceeding the midpoint of guidance [4][11] - A total shareholder return of over 13% was delivered for the year, and the dividend was increased for the 22nd consecutive year [4] Business Line Data and Key Metrics Changes - Electric sales increased by nearly 1% in 2025 compared to 2024, primarily due to higher commercial and industrial sales across both IPL and WPL [12] - The company completed 275 MW of energy storage investments and turbine upgrades in Wisconsin, contributing to operational performance [5] Market Data and Key Metrics Changes - In Iowa, the approval of individual customer rate contracts supports economic development while maintaining flat retail electric base rates for existing customers through the end of the decade [6] - The company closed the year with four executed Electric Service Agreements (EFAs) totaling 3 GW of peak load, indicating a 50% future growth in demand [7] Company Strategy and Development Direction - Alliant Energy's strategy focuses on unlocking customer and community potential, with significant capital investments in data centers that enhance local tax bases and support public services [5] - The company aims to attract large load customers by ensuring regulatory solutions align with customer needs, emphasizing a customer-centric approach [6][7] - A proactive approach to renewable and energy storage investments is central to the company's strategy, with plans to maximize existing resources and extend asset life [9] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of agility and disciplined decision-making in navigating the evolving energy landscape, with a focus on long-term value [7][9] - The company expects to pursue industry-leading demand growth and successful project execution, with a compound annual earnings growth rate of 7%+ projected for 2027-2029 [16] Other Important Information - The company has a four-year capital expenditure plan of approximately $13.4 billion, with funding through a mix of cash from operations and new financings [18] - Regulatory decisions in Iowa and Wisconsin are aligned with capital investment plans, reducing regulatory uncertainty for 2026 [19][20] Q&A Session Summary Question: Minimum take agreements for the 3 GW of data centers - Management confirmed that any additional demand from hyperscalers would be accretive to current planning assumptions [26] Question: Conversations with hyperscalers and data center developments - Management noted that Iowa has strategic advantages over Wisconsin for data center growth, and they are committed to ensuring Wisconsin remains open for business [29] Question: Path to construction for the relocated QTS project - Management clarified that they are pleased with their ability to pivot quickly and have a robust plan for the new site [39] Question: Timing for additional deals in the 2-4 GW range - Management indicated that they are in active discussions and have structured their approach to ensure high-quality Electric Service Agreements [41] Question: Land control and zoning for new projects - Management confirmed that they own considerable land zoned for industrial use, which supports their economic development strategy [48] Question: Retail sales growth assumptions for 2026 - Management expects retail sales growth of approximately 1%, consistent with 2025, with significant data center load anticipated in 2027 and beyond [50] Question: Shift in capital expenditures related to QTS - Management explained that the shift in capital expenditures is primarily a refinement of their planning process rather than a significant change [64] Question: Regulatory continuity amid gubernatorial races - Management emphasized their commitment to reliability and affordability, ensuring that customers benefit from data center growth [72] Question: Local concerns regarding data center developments in Wisconsin - Management indicated that challenges are primarily at the township level, with local support for data centers being crucial [75]