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

Financial Data and Key Metrics Changes - Alliant Energy reported ongoing earnings per share (EPS) growth of $0.18 for 2025 compared to 2024, driven by increased revenue requirements from rate-based increases and favorable temperature impacts on electric and gas sales [13][14] - The company achieved a 10-year compound annual EPS growth of 6.3%, with ongoing EPS growth of 6% in 2025, exceeding the midpoint of guidance [5][14] - A total shareholder return of over 13% was delivered for the year, marking the 22nd consecutive year of dividend increases [5] Business Line Data and Key Metrics Changes - In Wisconsin, Alliant Energy completed 275 MW of energy storage investments and turbine upgrades, contributing to regulatory execution strength [6] - Electric sales increased by nearly 1% in 2025 compared to 2024, primarily driven by higher commercial and industrial sales [14] - The company closed the year with four executed electric service agreements (ESAs) totaling 3 GW of peak load, indicating a 50% future growth in demand [9] Market Data and Key Metrics Changes - The company is actively engaged with customers and pursuing 2-4 gigawatts of additional large load growth opportunities beyond current projections [10] - The approval of individual customer rate contracts in Iowa supports economic development while maintaining flat retail electric base rates for existing customers [8] Company Strategy and Development Direction - Alliant Energy's strategy focuses on unlocking customer and community potential, with significant capital investments in data centers that strengthen local tax bases [6][7] - The company aims to be a partner of choice, aligning capital and regulatory solutions to enable growth while meeting customer and shareholder expectations [9] - A proactive approach to safe harboring renewable and energy storage investments is emphasized to maintain reliability and cost-effectiveness [11] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of navigating public policy shifts and the acceleration of electric demand as key factors influencing performance [5] - The company expects a compound annual earnings growth rate of 7%+ from 2027 to 2029, based on current projections for capital expenditure plans and data center load [18] - Management expressed confidence in executing projects within the updated capital expenditure plan, with a focus on maintaining stable base rates for customers [19][21] Other Important Information - The company has a four-year capital plan of approximately $13.4 billion, with a balanced mix of funding sources including cash from operations and new financings [20] - Regulatory decisions in Iowa and Wisconsin are aligned with capital investment plans, reducing regulatory uncertainty for 2026 [21][23] Q&A Session Summary Question: On the 3 GW of data centers, what are the minimum take agreements? - Management confirmed that any additional demand from hyperscalers would be accretive to current planning assumptions [30] Question: How are conversations with hyperscalers evolving, especially regarding stricter safeguards? - Management noted that Iowa has strategic advantages for data center growth, and they are committed to ensuring Wisconsin remains open for business [32] Question: What is the path to construction for the relocated QTS project? - Management clarified that they are using individual customer rate constructs for both states and are pleased with their ability to pivot quickly [42] Question: What are the goals for timing on bringing in another deal for the 2-4 GW of growth? - Management indicated that they have three buckets of opportunities and are focused on high-quality electric service agreements [44] Question: Is the 1% retail sales growth assumption conservative? - Management stated that most data center load is expected to come in 2027 and beyond, making the 1% growth assumption consistent with current expectations [53] Question: How does the shift in renewables in CapEx relate to QTS? - Management explained that the shift is part of a consistent investment plan and reflects a proactive approach to meet customer needs [57]