Alliant Energy (LNT -0.73%), a regulated utility serving roughly 1 million electricity and 430,000 natural gas customers in the Midwest, reported second quarter 2025 results on August 7, 2025. The company posted earnings per share (EPS) of $0.68 on a Non-GAAP basis, beating analysts’ non-GAAP expectations of $0.64. Revenue (GAAP) was $961 million, significantly higher than the $887.2 million GAAP consensus estimate, reflecting marked improvement. Solid execution on growth plans, favorable regulatory outcomes, and a wave of new commercial load—especially from data center contracts—drove the positive results.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $0.68 | N/A | $0.34 | 100.0% |
| EPS (Non-GAAP) | $0.68 | $0.57 | 19.3% | |
| Revenue | $961 million | $887.2 million | $894 million | 7.5% |
| Net Income | $174 million | $87 million | 100.0% | |
| Cash and Cash Equivalents | $329 million | N/A | $81 million* | — |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Strategic Focus
Alliant Energy delivers electricity and natural gas to homes, businesses, and industries in Iowa and Wisconsin through its subsidiaries, IPL and WPL. The company’s earnings and cash flows are largely regulated, meaning rates are set with approval from state commissions to allow cost recovery and capital investment returns.
The focus for Alliant Energy in recent periods has been on expanding clean energy generation, maintaining reliable service, and increasing its rate base through major investments. Key success factors include constructive regulatory approval of capital plans, safe and timely project delivery (especially renewables and storage), and continued growth in industrial and commercial demand—mainly driven now by data center development. The company operates in an environment where effective compliance with environmental, safety, and utility regulations is essential to its ability to grow and deliver value.
Quarter Highlights: Financial and Operational Progress
EPS (GAAP) doubled compared to Q2 2024, which included one-time expenses for asset revaluation and coal ash cleanup related to federal environmental rules.
Most of the upside came from the regulated utilities segment, where GAAP EPS climbed from $0.33 to $0.74, and net income (GAAP) nearly doubled. The main drivers were higher allowed revenue from new capital placed in service—such as solar generation and battery storage—and normalization of weather, which had a slightly positive impact on customer demand for both electricity and gas. Meanwhile, a small but negative swing in the non-utility and parent segment weighed somewhat on consolidated EPS, mainly from higher financing expenses and lower income from venture investments.
New energy supply agreements added 2.1 gigawatts of contracted peak demand, as disclosed by management. These new agreements represent a greater than 30% increase in the utility’s peak demand, with regulatory filings in Iowa and Wisconsin moving through approval for individualized rates on these large customers. Capital expenditures for the quarter and the coming years have been increased to support this growth, with the four-year plan for 2025–2028 now totaling $11.5 billion—an increase of $600 million. This expansion is primarily dedicated to new natural gas and renewable generation needed for data center operations.
The quarter also saw further investment in reliability and regulatory compliance. In Iowa, a September 2024 rate order allowed annual base rate increases of $185 million for electric and $10 million for gas service, covering the October 2024 through September 2025 forward-looking test period. In Wisconsin, a December 2023 order authorized an annual $60 million base rate increase for the 2025 forward-looking test period. These increases supported ongoing investments in solar power and battery storage. Additionally, Alliant Energy made progress in safe-harboring its renewables and battery investments, preserving eligibility for key federal tax credits through 2028. Exposure to tariffs on imported batteries is small, with only 1–2% of planned capital at risk for the 2025–2028 capital expenditure plan.
Costs rose as the company’s rate base expanded, with GAAP depreciation charges growing to $208 million from $188 million versus Q2 2024 and interest expense (GAAP) rising by $16 million. Nonetheless, higher top-line revenue (GAAP) supported the quarter’s profit expansion. Dividend policy remained stable, with the quarterly dividend rising to $0.5075 per share.
Products, Services, and Segment Detail
Alliant Energy's utility business covers regulated electricity and natural gas supply, serving residential, commercial, and industrial customers. The company's renewables portfolio includes wind and solar generation, with new investments in energy storage—batteries that allow for balancing supply and demand on the grid, even when sunlight or wind are not available. Likewise, dispatchable resources such as new natural gas generation facilities ensure that growing peak demand, especially from data centers, can be met at all hours.
The ATC Holdings segment, which represents investment in electric transmission (long-distance, high-voltage power lines), continued to provide a steady but small contribution to results. Non-utility operations, including parent and venture investment activity, were slightly negative for the period and remain an area where financing and investment returns are being closely watched by management.
Looking Ahead: Management Guidance and Watch Points
Alliant Energy reaffirmed its guidance for FY2025, targeting ongoing EPS (non-GAAP) in the range of $3.15–$3.25. The outlook is shaped by continued capital deployment, expected completion and integration of new data center loads, and regulatory rate structures that support recovery of recent and planned investments. Management also noted an $11.5 billion capital spending plan for 2025–2028, $1.4 billion of which will be funded by new equity—primarily raised between 2026 and 2028—to keep the balance sheet within targeted credit rating bands.
Investors should monitor the steady progress of large customer ramp-up, further regulatory approvals—especially for individualized rates for new data center customers—and potential shifts in federal policy affecting renewables tax credits. While Alliant Energy has protected its near-term strategy using federal tax credit “safe-harboring,” longer-term regulatory and legislative risks, rising depreciation, and financing costs will remain in focus. The company paid a quarterly dividend of $0.5075 per share, an increase from the prior year’s level of $0.48 per share.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
