Alliant Energy Corporation (LNT) Earnings

Management highlights

### Large Load Customer Growth Strategy • The company expects a 60% demand increase by 2031 from five executed large electric service agreements for data center customers, with three already under active construction with commission-approved contracts. • Completed milestones: Google’s Cedar Rapids, Iowa transmission service is energized and on track for contracted load ramping; QTS’s 7-building Cedar Rapids data center campus is progressing, with initial 300 MW energization planned for late 2026; Meta’s Beaver Dam, Wisconsin data center is in vertical construction. • Future pipeline: QTS’s second 900 MW Clinton, Iowa project plans an ICR filing late 2026; the total potential pipeline stands at 2-4 GW of future load, including a recently announced 370 MW Iowa data center agreement. All new large loads pay their full cost of service, avoiding subsidies from existing customers while expanding local tax bases and improving affordability for incumbent customers per a third-party Brattle Group study. • The Q2 2026 amendment to the QTS Cedar Rapids agreement allows accelerated load ramping via firm and non-firm transmission. The company secured ~$50 million in Department of Energy grants for the Columbia Energy Center and Energy Dome projects. ### Capital & Generation Project Execution • Iowa is updating its long-term resource plan to support upcoming regulatory filings, with a goal of stable, predictable base rates for retail customers through the end of the 2020s. • Completed: Final two 260 MW generation enhancement projects at Neenah and Sheboygan entered service, unlocking additional capacity from existing assets; Wisconsin’s Bent Tree Wind Farm 150 MW expansion received regulatory approval and moved to construction. • In progress: Construction started on the 720 MW Bobcat Energy Center natural gas plant (Marshalltown, Iowa) and the 95 MW Rice project (Burlington, Iowa); storage, wind repowering, and other generation enhancement projects remain on schedule. • Filed for regulatory approval: 720 MW Morgan Valley natural gas project, 1.2 GW Riverhawk natural gas project, and 125 MW energy storage project in Iowa. ### Regulatory Progress • Received Wisconsin approval for the individual customer rate agreement supporting Meta’s Beaver Dam data center, with a broader large load tariff planned for filing later this quarter. • Proactive financing progress: Of ~$2.4 billion in total common equity needs through 2029, ~$1.8 billion has already been raised via forward equity agreements, covering needs through 2028 and leaving only ~$500 million to raise through 2029 (excluding the share direct plan). Remaining 2026 long-term debt financing plans include up to $300 million for WPL and up to $500 million for IPL. • Operational Recognition: Ranked #1 in power reliability and safety among Midwest large utility providers in the 2026 J.D. Power study.

Guidance

• Management reaffirms the full-year 2026 earnings guidance range, with current performance trending in the upper half of the range despite first-half mild weather impacts. • The long-term 2027–2029 compound annual earnings per share growth target remains 7%+; the company will update this guidance, along with its capital expenditure and financing plans, on the Q3 2026 earnings call after evaluating progress on data center expansion. • Iowa has a retail electric rate stability commitment through 2029 with zero base rate increases planned through that period; accelerated data center load growth could extend this rate freeze runway further.

Segment performance

Alliant Energy reports results across its two regulated utility segments (Iowa Power and Light (IPL) and Wisconsin Public Service (WPL)) and a non-utility corporate venture fund segment. Adjusted (cap) Q2 2026 earnings hit 65 cents per share. Positive performance drivers included higher revenue from capital investments across both utility segments, increased equity earnings from the corporate venture fund, and higher temperature-normalized retail sales. Milder-than-normal weather reduced Q2 2026 electric and gas margins by approximately 3 cents per share (compared to a 2 cent margin benefit in Q2 2025). Excluding weather impacts, Q2 2026 electric sales were 3% higher year-over-year, with strength from Wisconsin commercial and industrial customers (particularly food processing and manufacturing) and early data center load growth in Iowa. Offsetting positives were higher business-growth-related operating and maintenance expenses, mild temperature sales impacts, income tax expense timing, and higher financing and depreciation costs. No absolute revenue or contribution percentage breakdown per segment was provided in the transcript.

Risks & headwinds

• Growing political rhetoric around data center development in both Iowa and Wisconsin, with some candidates expressing guarded positions and one Wisconsin candidate supporting a statewide moratorium. While existing committed projects are not impacted by current local moratoriums (the Linn County moratorium only applies to unincorporated areas and does not affect Cedar Rapids projects), heightened political scrutiny creates uncertainty for future development. • Supply chain constraints for generation and transmission equipment could delay expansion to meet rapidly growing data center load demand. • A pending policy decision on self-funded transmission upgrades remains a watch item, with unclear final outcomes for potential capital expansion and customer benefits. • Unexpected cost inflation and higher-than-planned operating and maintenance expenses could pressure margins if sales growth does not meet expectations.

Analyst Q&A

• Q: Analyst asks about rising political noise around data center development in Iowa from both parties, and how management views the current political backdrop for new growth. /

  A: Lisa Barton notes that while polarizing narratives from other regional markets are being repeated more broadly in Iowa, political rhetoric does not currently reflect policy changes that would impact the company's active or planned projects. Existing local moratoriums only apply to unincorporated areas of counties, and Cedar Rapids has a strong pro-development mayor actively advocating for the economic benefits of data center investments, so no current projects are impacted. A: Management says their approach of ensuring new customers pay full cost of service and deliver benefits to existing customers is widely supported at the local level, and they are continuing to educate statewide candidates on the details of their model ahead of elections. (328 characters) ---

• Q: Analyst asks whether accelerated load ramping from the QTS amendment will change Alliant's capital expenditure plan, and what the financial impacts of faster growth are. /

  A: Robert Durian says the company's current capital expenditure plan is already aligned with the new accelerated ramp timeline, so no material change to planned CapEx is expected. The main impact is earlier revenue recognition, with higher revenues expected in 2027 and 2028 than previously forecast. A: Faster load growth will reduce the need to use accumulated tax credits in the near term, which will help the company maintain its commitment to avoid general retail rate increases in Iowa through 2029, and could potentially extend this rate freeze period even further. As of Q2 2026, QTS already has over 40 MW of active load operational in Cedar Rapids, which is on track with the new accelerated schedule. (417 characters) ---

• Q: Analyst asks how management views the impact of new heightened credit requirements for large load tariffs in Wisconsin on Alliant's growth trajectory, and whether growth is shifting more to Iowa. /

  A: Lisa Barton notes that Alliant will file its own Wisconsin large load tariff later in 2026, aligned with the structure used by peer utilities in the state, that applies the credit requirements equally to all large loads including traditional manufacturing. A: The company only works with very high-quality creditworthy counterparties for all large data center projects, so the new requirements do not adversely impact Alliant's existing pipeline or growth trajectory in Wisconsin. While Iowa has more available land for large developments, growth opportunities remain strong in both states. (345 characters) ---

• Q: Analyst asks whether the accelerated load growth from the QTS agreement adds any additional runway to Alliant's commitment to stay out of general rate reviews in Iowa beyond the current 2029 commitment. /

  A: Robert Durian confirms Alliant is already committed to no general retail electric rate increases in Iowa through 2029. Accelerated load growth and earlier revenue from new data center projects improves the company's cost position and creates the opportunity to extend the rate review stay-out even longer, which management views as a major benefit for both customers and the local economy. A: Lisa Barton adds that the zero percent rate increase commitment through 2029 is a unique selling point that drives further economic development across Iowa, attracting more new businesses to the service territory. (342 characters) Total characters (within 2000 limit): 1432