• Ongoing Earnings Per Share (EPS): $3.04 in 2024, compared to $2.82 in 2023.
• Dividend Increase: 2024 marked the 21st consecutive year of dividend increases.
• Solar Energy Investments: Commissioned 1.5 gigawatts, adding to a 1.8-gigawatt wind generation fleet.
• O&M Expenses: Approximately $30 million less in 2024 compared to 2023, excluding non-GAAP adjustments.
• Impact of Mild Temperatures: Decreased earnings by approximately $0.15 per share in 2024.
• Revenue Per Kilowatt Hour: Average retail electric rates increased by approximately 2% for IPL and 1% for WPL.
• Natural Gas Rates: Average retail natural gas rates declined by approximately 10% compared to 2023.
• Cash Flows from Operations: Increased by approximately $300 million or 35% compared to 2023.
• 2025 Earnings Guidance: Affirmed at $3.15 to $3.25 per share.

• Warning! GuruFocus has detected 8 Warning Signs with LNT.

Release Date: February 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Alliant Energy Corp (NASDAQ:LNT) reported a strong financial performance for 2024, with ongoing earnings of $3.04 per share, up from $2.82 per share in 2023.
• The company successfully commissioned 1.5 gigawatts of solar energy investments, adding to its 1.8-gigawatt wind generation fleet, reinforcing its leadership in regulated owned renewables.
• Alliant Energy Corp (NASDAQ:LNT) increased its dividend for the 21st consecutive year, aligning with its long-term EPS growth target of 5% to 7%.
• The company secured commitments for up to 1.9 gigawatts of data center load at its Big Cedar site in Cedar Rapids, demonstrating significant progress in economic development efforts.
• Alliant Energy Corp (NASDAQ:LNT) improved cash flows from operations by approximately 35% in 2024, primarily due to successful monetization of tax credits and improved recoveries of infrastructure investments.

Negative Points

• The company faced negative impacts from milder temperatures, which decreased earnings by approximately $0.15 per share in 2024.
• Higher depreciation and financing expenses partially offset the positive earnings drivers from capital investments.
• Alliant Energy Corp (NASDAQ:LNT) completed restructuring activities in the fourth quarter of 2024, resulting in a 5% reduction in its workforce.
• The company experienced lower sales to its lower-margin IPL industrial customers due to less demand from customers who operate their own generation.
• Despite implementing base rate increases in 2024, the average retail electric rates increased only modestly, which may impact revenue growth.

Q & A Highlights

Q: Can you provide more details on the new data center in Wisconsin and the CapEx update? Are you expecting to reach the top end of the 5% to 7% growth range? A: Lisa Barton, President and CEO, stated that more details will be available in Q1. The update will include 1.9 gigawatts associated with the Cedar Rapids build-out and the new Wisconsin facility. It's too early to project future growth rates.

Q: How will the incremental CapEx be financed, and what is the current status of your FFO to debt ratio? A: Robert Durian, CFO, explained that 45% to 50% of new capital additions are expected to be financed through equity, with the remainder through debt. Cash flows improved significantly in 2024, with a 35% increase due to tax credit monetization and infrastructure recoveries.

Q: What are the key differences in the upcoming Wisconsin rate review compared to previous cases? A: The key drivers are rate base additions from solar and battery storage projects, as well as advanced gas projects. The focus will be on recovering these investments, with typical discussions on return on equity and capital structure.

Q: How are you ensuring access to tax credits for your renewable projects, and are there any concerns with permitting? A: Robert Durian confirmed that they have safe-harbored a significant majority of renewables and battery storage projects. There are no current concerns with permitting, as they avoid public lands and have secured MISO queue positions.

Q: Is Big Cedar fully booked, and how confident are you in serving future data center customers? A: Lisa Barton clarified that there is still some room at Big Cedar. They are focused on attracting economic development and have a flexible resource planning process to adapt to customer needs.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.