Alliant Energy Corp. Q3 FY2026 earnings call

• Strategic Growth & Large Load: Alliant Energy is experiencing strong momentum from rising customer demand, particularly from data centers and manufacturing. Google’s expansion in Cedar Rapids, Iowa, has met planning thresholds and is included in the refreshed resource plan. Mesabi Metallics expects to locate its plant in Lee County, Wisconsin, with initial capacity needs reflected in the plan.
• Capital Expenditure Plan: The refreshed capital investment plan for 2027–2030 totals $15.9 billion, a 19% increase over the prior plan. This supports a 13% compounded annual growth rate in rate base plus construction work in progress.
• Financing Strategy: A $5.1 billion guaranteed loan program from the U.S. Department of Energy was secured, estimated to generate up to $1.2 billion in cumulative customer savings. Equity funding represents ~40% of incremental CapEx, with ~$1.1 billion of the required $2.7 billion already secured via forward equity agreements.
• Regulatory & Affordability Initiatives: In Iowa, the retail electric base rate stability plan was extended through 2030, ensuring bill certainty while maintaining authorized returns. In Wisconsin, a new large-load tariff was filed to establish a transparent framework for future customers.
• Operational Discipline: Management raised the bar for including projects in the financial outlook, requiring signed service agreements, land control, transmission visibility, and local permitting. This ensures 'dependable growth' with high executability confidence.

The transcript does not provide a breakdown of financial performance by specific product segments (e.g., utility vs. non-utility) or their respective revenue contribution percentages. The company reports consolidated GAAP and ongoing earnings per share (EPS), with Q3 2026 ongoing EPS at $1.52.

• 2026 Full-Year Guidance: Narrowed to the top half of the original range: $3.41 to $3.46 per share (ongoing earnings).
• 2027 Guidance: Established at $3.63 to $3.73 per share, representing ~8% growth over the midpoint of the original 2026 guidance.
• Dividend Target: 2027 annual common stock dividend target set at $2.25 per share, a 5% increase over 2026.
• Long-Term Growth: Long-term annual earnings growth target raised to 6%–8%+. Specifically, growth is expected to be 8%+ from 2027 through 2030.
• Capital Plan Upside: Management expects approximately one additional gigawatt of contracted large load within the next six months, which would trigger an update to the CapEx plan.

• Execution Risk on New Projects: While management raises the inclusion bar, there is inherent risk in executing large-scale infrastructure projects involving land acquisition, transmission studies, and permitting.
• Cost Overruns/O&M: Higher other operations and maintenance expenses are expected due to the expanded generation fleet and business growth, though management notes no significant pull-forward costs currently.
• Financing Dilution: The plan involves significant equity issuance (~$2.7 billion from 2027–2030 plus ~$700 million in 2026), which introduces dilution risk, although mitigated by tax credit monetization and DOE loans.
• Regulatory Uncertainty: Although jurisdictions are constructive, outcomes depend on regulatory approvals for tariffs, rate reviews, and specific project filings (e.g., QTS Clinton Data Center).

Q: Analyst asked if the 8%+ long-term growth rate applies to 2027 onwards and how it frames against dilution. / A: CFO clarified that the 8%+ growth is a minimum floor for each year from 2027 through 2030, with potential for higher growth in years with elevated CapEx. The calculation can be based off either the original 2026 midpoint ($3.41) or the new 2027 midpoint ($3.68), yielding consistent results.

Q: Analyst asked about the size and nature of the 10 sites in active discussion versus the 2.4 GW already committed, and if Masabi is included. / A: CEO stated that the 3.4 GW includes three committed data center sites with potential for more within those sites, plus seven additional distinct sites. Each site is several hundred MW to GW scale. Masabi is NOT included in the 2.4 GW or the expected 1 GW upside; it is a separate opportunity with curtailable load.

Q: Analyst asked if the Iowa rate freeze extension through 2030 relies on tax credits or better demand trends. / A: CFO explained that the extension is supported by maximizing tax credits, particularly through energy storage projects. By locating batteries in energy communities and using domestic content, they can achieve 40-50% ITC credits, providing the financial cushion needed to maintain affordability and returns during the rate freeze.

Q: Analyst asked about the timing of CapEx for the expected next 1 GW of load and whether equity content will remain at 40%. / A: CFO noted that the ramp for the next 1 GW will largely occur in the 2029-2031 timeframe, mixing CapEx across the current and future plans. He also indicated that future incremental CapEx may require less than 40% new common equity as cash flows improve and financing structures evolve.

Q: Analyst asked if O&M cost increases are structural or due to weather pull-forwards. / A: CFO stated that O&M increases are structural, driven by the need to maintain a larger and more diverse generation fleet to meet capacity requirements. There were no significant pull-forward costs due to neutral temperatures in the first nine months.