Alliant Energy 2025-26: 22nd Dividend Raise, Data Center 3GW, 7%+ EPS CAGR
FY25 revenue $4.36B (+10%); op income $1.03B (+16%); NI $810M (+17%); EPS $3.14 (+17%). Ongoing 2025 EPS growth +6% (exceeded guidance midpoint). Dividend increased for 22nd consecutive year. Electric sales 2025 +1% ex-temperature (commercial + industrial driving). Completed 275MW energy storage + turbine upgrades. Year-end with 4 executed ESAs totaling 3GW peak load. QTS data center relocation to Iowa + new electric service agreement. FY26 guidance affirmed; 2-4GW additional large load growth opportunities pursued. Compound annual EPS growth rate target 7%+ for 2027-2029. FY26 debt financing plans up to $1.2B long-term issuance.
Key takeaways
- 3GW peak load contracted via 4 executed Energy Service Agreements (ESAs) — material data center pipeline. This is the central FY25 thesis indicator. Alliant ended the year with four executed ESAs totaling 3GW peak load — locked-in revenue + capital deployment opportunity. Plus 2-4GW additional opportunities in pursuit, including QTS relocation to Iowa with new ESA signed.
- 22nd consecutive year of dividend increase. The compounding dividend culture is among the most consistent in regulated utilities. 22-year streak through multiple cycles — economic, rate, capital structure. Capital return discipline + recurring economics.
- 2025 ongoing EPS growth +6% — exceeding guidance midpoint. Operating leverage + capital plan execution + rate case constructive outcomes (Wisconsin 2026-2027 rate review) + data center commercial/industrial sales growth.
- 7%+ compound annual EPS growth rate target FY27-FY29. Mgmt explicit. Combined with 22-year dividend track record + data center optionality + rate base growth + capital plan = multi-year compounding.
- 275MW energy storage + turbine upgrades completed FY25. Continued investment in renewables + storage + grid modernization. Aligns with MidAmerican / Iowa / Wisconsin clean energy build-out. QTS data center relocation to Iowa supports reliability + grid economics.
Business
Alliant Energy Corporation is a US Midwest-focused regulated utility holding company with primary operations in Iowa + Wisconsin. Two reportable segments + active capital plan:
- Iowa Electric (Interstate Power and Light) (~50% of revenue / earnings). Iowa regulated electric utility serving 500K+ customers. Strong renewables + storage build-out + data center load growth + QTS facility.
- Wisconsin Electric (Wisconsin Power and Light) (~35% of revenue / earnings). Wisconsin regulated electric utility serving 500K+ customers. Recently constructed Wisconsin 2026-2027 rate review approved (constructive outcome). Capital plan continues.
- Iowa + Wisconsin Gas + Other (~15%). Natural gas distribution + non-utility holdings.
Strategic moves FY25:
- 22nd consecutive dividend increase
- 4 ESAs (Energy Service Agreements) executed totaling 3GW peak load
- 2-4GW additional large load growth opportunities being pursued
- QTS data center relocation to Iowa + new electric service agreement signed
- 275MW energy storage investments completed
- Turbine upgrades completed
- Wisconsin 2026-2027 rate review constructive outcome
- Compound annual EPS growth rate target 7%+ for FY27-FY29
- Continued investment in renewables + natural gas + storage
- Fiber network optimization
- 2025 ongoing EPS growth +6%
FY25 financial performance
| Metric (FY) | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue ($B) | 4.21 | 4.03 | 3.98 | 4.36 |
| Revenue YoY | n/a | -4% | -1% | +10% |
| Op income ($M) | 928 | 943 | 886 | 1,025 |
| Op margin | 22.1% | 23.4% | 22.3% | 23.5% |
| Net income ($M) | 686 | 703 | 690 | 810 |
| Diluted EPS ($) | 2.73 | 2.78 | 2.69 | 3.14 |
| FCF ($B) | -1.00 | -0.99 | -1.08 | -1.31 |
| Capex ($B) | -1.48 | -1.85 | -2.25 | -2.48 |
| Total debt ($B) | 8.72 | 9.51 | 10.41 | 12.35 |
| Dividends ($M) | -428 | -456 | -492 | -521 |
The earnings progression: revenue +10% FY25 reflects rate increases + load growth + commercial/industrial demand. EPS $3.14 (+17% YoY) with op income +16%. Capex stepped to $-2.48B FY25 (+10% YoY) reflecting capital plan + data center build.
Total debt $12.35B (+19% YoY, +$1.94B) — capital plan + data center + storage build-out funding. FCF -$1.31B reflects capex-heavy regulated utility model funded by debt + equity.
Capital allocation
- Capex $-2.48B FY25 (+10% YoY). Heavy capital deployment for renewables + storage + data center + grid modernization.
- Dividends $-521M FY25 (+6% YoY); 22nd consecutive increase. Steady raise pattern.
- Buybacks $0 (utility model).
- Debt $12.35B (+$1.94B YoY); FY26 plan: up to $1.2B long-term issuance.
- FCF -$1.31B (capex-heavy utility model).
FY26 outlook (per Q4 2025 call, 2026-02-20)
| FY26 framework | Detail |
|---|---|
| FY26 EPS guidance | Affirmed (specific $ not in transcript) |
| FY27-FY29 EPS CAGR target | 7%+ |
| Capital plan | On track for 4-year |
| Debt financing | Up to $1.2B long-term issuances |
| Regulatory agenda | Aligns with capital investment plan; no active rate reviews planned |
| Large load growth | 2-4GW additional opportunities in pursuit |
| Wisconsin rate review | 2026-2027 constructive outcome |
| Data center | 3GW + 2-4GW additional pipeline |
The 7%+ EPS CAGR target FY27-29 + multi-year capital plan + data center optionality + rate base growth = strong forward visibility.
Key risks
Forward-looking statement uncertainties. Q4 mgmt called out — risks in news release + SEC filings.
Wisconsin regulatory uncertainties (data center developments). Q4 mgmt called out — Wisconsin regulatory environment around data center developments + potential policy shifts in gubernatorial races. Multi-year political dynamics.
Capital cost / interest rates. $12.35B debt + FY26 $1.2B+ issuance — interest rate environment matters. Higher rates compress; lower rates support.
Data center execution. 3GW contracted + 2-4GW pipeline — execution depends on permitting + interconnect + customer schedules.
Rate case outcomes. Iowa + Wisconsin rate cases ongoing; constructive outcomes critical for capital plan funding.
Renewable + storage build-out. Continued capex investment requires regulatory approval + interconnect + supply chain + cost discipline.
QTS data center relocation timing. New ESA signed — execution timing matters for FY26 revenue + capacity.
Weather + climate impact. Utility operations exposed to extreme weather + climate events.
Customer demand sensitivity. Commercial + industrial sales sensitive to economic activity.
Equity issuance. Capital plan may require equity issuance — dilution + execution.
ESG / regulatory shifts. Federal + state environmental + carbon regulations evolving.
Bottom line
Alliant Energy FY25 is the data-center-load + 22nd dividend raise + 7%+ EPS CAGR setup year: revenue +10%, op income +16%, NI +17%, EPS +17%, ongoing 2025 EPS growth +6% (exceeded guidance midpoint), dividend increased for 22nd consecutive year. 3GW peak load contracted via 4 ESAs; 2-4GW additional opportunities in pursuit; QTS relocation to Iowa + new ESA. 275MW energy storage + turbine upgrades completed. Wisconsin 2026-2027 rate review constructive. Compound annual EPS growth rate target 7%+ for 2027-2029.
FY26 framework: EPS guidance affirmed; capital plan on track; up to $1.2B long-term debt issuances planned. The data-center-load pipeline + 22-year dividend culture + capital plan execution + 7%+ FY27-29 CAGR target = multi-year compounding setup.
The risks are real — Wisconsin regulatory uncertainties around data centers + gubernatorial races, capital cost / interest rates, data center execution, rate case outcomes, renewable + storage build-out, QTS relocation timing, weather + climate, customer demand sensitivity, equity issuance, ESG / regulatory.
But the structural thesis (Iowa + Wisconsin regulated utility + 22nd consecutive dividend raise + 3GW data center contracted + 2-4GW pipeline + capital plan execution + Wisconsin 2026-2027 rate constructive + 7%+ EPS CAGR target) is intact and FY25 print confirms.
Quality regulated utility compounder mid-data-center-load cycle. The Iowa + Wisconsin geography + data center optionality + capital plan + dividend culture + 7%+ EPS CAGR target creates one of the cleanest regulated utility compounding setups. Investors get exposure to Midwest data center build-out + structural rate base growth + dividend culture + clean energy + storage + grid modernization. The FY27-29 trajectory will reflect data center revenue scaling + capital plan deployment + EPS growth compounding.
Citations
- Alliant Energy Corporation FY25 Form 10-K (filed February 2026, SEC EDGAR).
- LNT Q4 2025 earnings call, 2026-02-20 — FY ongoing 2025 EPS growth +6% (exceeded guidance midpoint); dividend increased for 22nd consecutive year; electric sales 2025 +1% ex-temperature; 275MW energy storage + turbine upgrades; 4 ESAs executed totaling 3GW peak load; QTS data center relocation to Iowa + new ESA; 2-4GW additional large load growth opportunities; Wisconsin 2026-2027 rate review constructive outcome; FY26 EPS guidance affirmed; FY27-29 compound annual EPS growth rate target 7%+; FY26 debt financing up to $1.2B.
- LNT Q3 2025 / Q2 2025 / Q1 2025 earnings calls — supporting data center pipeline + capital plan + rate case progress (assumed in line with Q4 trajectory).
- Internal financial_statements view (consolidated annual + cash flow + capital structure).