Nasdaq:LNT
ALLIANT ENERGY CORP
A financially stable Midwestern electric utility offering reliable grid services and expanding its renewable energy portfolio to meet growing sustainability demands.
Key Metrics
Investment Thesis
Bull Case
Investors may favor Alliant Energy for its defensive characteristics as a regulated utility with high barriers to entry and predictable dividend coverage from operating cash flows. The company's heavy investment in renewable generation assets aligns with long-term decarbonization trends while maintaining the stability of traditional utility models.
Bear Case
Bearish concerns stem from the company's significant long-term debt load of $10.95 billion which becomes more costly in a high-interest rate environment and limits financial flexibility. Additionally, the slight revenue decline over 2023-2024 suggests potential saturation in core markets before the recent recovery, raising questions about sustainable growth rates.
About ALLIANT ENERGY CORP
Alliant Energy Corp (LNT) is a leading American investor-owned electric utility based in Kansas City, Missouri, serving residential, commercial, and industrial customers across the Midwest. The company operates through regulated transmission and distribution networks alongside competitive energy services, managing approximately $25 billion in total assets with a robust portfolio of renewable generation investments. Its financial strength is highlighted by consistent revenue growth and a solid operational cash flow profile typical of mature utility infrastructure.
Analysis
Management Discussion
Recent financial performance demonstrates resilience with revenue climbing to $4.36 billion in 2025 compared to $3.98 billion in 2024, driven by rate recovery mechanisms and volume growth. Operating cash flow of $1.17 billion significantly exceeds the net income of $810 million, indicating strong quality of earnings supported by substantial depreciation and amortization of $846 million.
Industry Overview
The electric utility industry is characterized by capital-intensive infrastructure investments with long asset lifecycles and regulated returns on equity that provide stability but limit explosive growth. Competition has intensified as traditional utilities diversify into competitive retail markets to offset regulatory constraints while integrating variable renewable energy sources.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $4.21B | $4.03B | $3.98B | $4.36B |
| Cost of Revenue | $573.0M | $583.0M | $613.0M | $625.0M |
| Gross Profit | $3.63B | $3.44B | $3.37B | $3.74B |
| Operating Expenses | $2.70B | $2.50B | $2.48B | $2.71B |
| Operating Income | $928.0M | $943.0M | $886.0M | $1.02B |
| Stock-Based Comp | $13.0M | $12.0M | $12.0M | $22.0M |
| D&A | $671.0M | $676.0M | $772.0M | $846.0M |
| Non-Operating Income | $-220.0M | $-236.0M | $-310.0M | $-364.0M |
| Interest Expense | $325.0M | $394.0M | $449.0M | $512.0M |
| Pre-Tax Income | $708.0M | $707.0M | $576.0M | $661.0M |
| Income Tax | $22.0M | $4.0M | $-114.0M | $-149.0M |
| Continuing Ops | $686.0M | $703.0M | $690.0M | $810.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $686.0M | $703.0M | $690.0M | $810.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $686.0M | $703.0M | $690.0M | $810.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.25B | $1.27B | $1.18B | $1.70B |
| Cash & Equivalents | $20.0M | $62.0M | $81.0M | $556.0M |
| Accounts Receivable | $516.0M | $475.0M | $427.0M | $476.0M |
| Other Current Assets | $714.0M | $735.0M | $676.0M | $665.0M |
| Long-Term Assets | $18.91B | $19.96B | $21.53B | $23.29B |
| PP&E (Net) | $16.25B | $17.16B | $18.70B | $20.34B |
| Operating Leases | $16.0M | $23.0M | $22.0M | $21.0M |
| LT Investments | $559.0M | $602.0M | $639.0M | $694.0M |
| Other LT Assets | $1.55B | $1.60B | $1.54B | $1.56B |
| Total Assets | $20.16B | $21.24B | $22.71B | $24.99B |
| Current Liabilities | $2.36B | $2.30B | $2.71B | $2.12B |
| Accounts Payable | $756.0M | $611.0M | $532.0M | $498.0M |
| Current Debt | $408.0M | $809.0M | $1.17B | $1.07B |
| Current Leases | $3.0M | $2.0M | $2.0M | $2.0M |
| Other Current Liab | $1.20B | $882.0M | $1.01B | $549.0M |
| Long-Term Liabilities | $11.52B | $12.16B | $12.99B | $15.53B |
| Long-Term Debt | $7.67B | $8.22B | $8.68B | $10.95B |
| LT Operating Leases | $13.0M | $21.0M | $20.0M | $19.0M |
| Other LT Liab | $3.20B | $3.44B | $3.74B | $4.47B |
| Total Liabilities | $13.89B | $14.46B | $15.71B | $17.66B |
| Shareholders' Equity | $6.28B | $6.78B | $7.00B | $7.33B |
| Retained Earnings | $3.51B | $3.76B | $3.95B | $4.24B |
| AOCI | — | $1.0M | $1.0M | $1.0M |
| Total L&E | $20.16B | $21.24B | $22.71B | $24.99B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $686.0M | $703.0M | $690.0M | $810.0M |
| Non-Cash Adjustments | $-1.21B | $163.0M | $325.0M | $-305.0M |
| Working Capital Changes | $1.01B | $1.0M | $152.0M | $664.0M |
| Cash from Operations | $486.0M | $867.0M | $1.17B | $1.17B |
| Capital Expenditures | $1.48B | — | — | — |
| Cash from Investing | $-933.0M | $-1.40B | $-1.55B | $-1.90B |
| Debt Issuances | $1.34B | $1.46B | $1.61B | $2.47B |
| Debt Repayments | $633.0M | $508.0M | $809.0M | $300.0M |
| Dividends Paid | $428.0M | $456.0M | $492.0M | $521.0M |
| Cash from Financing | $431.0M | $573.0M | $398.0M | $1.20B |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-16.0M | $39.0M | $18.0M | $475.0M |
| Beginning Cash | $40.0M | $24.0M | $63.0M | $81.0M |
| Ending Cash | $24.0M | $63.0M | $81.0M | $556.0M |
Frequently Asked Questions
How does ALLIANT ENERGY CORP make money?
The company's revenue streams are primarily derived from regulated transmission and distribution utilities serving the Midwest, competitive retail electricity sales providing a hedge against regulatory rates, and wholesale power generation including significant investments in wind and solar assets.
What are the main risks for LNT?
Regulatory changes regarding rate structures and stranded asset accounting could impact future earnings, exposure to extreme weather events threatening critical grid infrastructure, rising interest rates increasing the cost of debt for capital-intensive projects, and potential supply chain disruptions affecting equipment procurement.
What is LNT's competitive advantage?
Alliant Energy benefits from its strategic location in a high-growth Midwestern market with strong demand for electrification, a diversified renewable energy portfolio that mitigates fuel price volatility, and long-term regulated rate structures that provide predictable cash flows to shareholders.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.