8-K: Alliant Energy Announces 2024 Results, Affirms 2025 Earnings Guidance

Alliant Energy reports GAAP earnings per share of $2.69 for 2024 and affirms its 2025 ongoing earnings guidance range of $3.15 $3.25 per share.

Summary

• Alliant Energy announced its 2024 financial results, with GAAP earnings per share at $2.69, down from $2.78 in 2023.
• Non-GAAP earnings per share were $3.04 in 2024, compared to $2.82 in the previous year.
• The company affirmed its 2025 ongoing earnings guidance range of $3.15 to $3.25 per share.
• In 2024, Alliant Energy completed 1,500 megawatts of solar generation investments, adding to the existing 1,800 megawatts of wind resources.
• Utilities and Corporate Services generated $2.81 per share of GAAP EPS in 2024, $0.05 lower than 2023, while Non-utility and Parent operations generated $(0.28) per share, $0.06 lower than 2023.
• IPL received an order from the IUC authorizing annual base rate increases of $185 million and $10 million for its retail electric and gas rate review covering the October 2024 through September 2025 forward-looking Test Period.
• WPL received an order from the Public Service Commission of Wisconsin authorizing annual base rate increases of $49 million and $13 million for its retail electric and gas rate review covering the 2024/2025 Test Period.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. While GAAP earnings decreased slightly, non-GAAP earnings increased, and the company affirmed its 2025 guidance. The focus on renewable energy and economic development is also viewed favorably.

Positives

• Alliant Energy affirmed its 2025 ongoing EPS guidance of $3.15 $3.25.
• The company completed 1,500 megawatts of solar generation investments in 2024, enhancing its clean energy portfolio.
• IPL and WPL received approvals for rate increases, contributing to revenue requirements from capital investments.
• The company is focused on economic development, bringing benefits to communities in both Iowa and Wisconsin.

Negatives

• GAAP earnings per share decreased from $2.78 in 2023 to $2.69 in 2024.
• Utilities and Corporate Services GAAP EPS decreased by $0.05 per share compared to 2023.
• Non-utility and Parent GAAP EPS decreased by $0.06 per share compared to 2023.
• The company recorded a $0.17 per share asset valuation charge for IPL's Lansing Generating Station.
• The company recorded $0.08 per share of restructuring and voluntary separation charges.
• The company recorded $0.06 per share asset retirement obligation initial charge for steam assets at IPL due to the revised Coal Combustion Residuals Rule.

Risks

• The company's ability to obtain adequate and timely rate relief could impact its financial performance.
• Weather effects on utility sales volumes and operations could affect earnings.
• Cybersecurity incidents or attacks could disrupt operations and impact financial results.
• Economic conditions and business closures in IPL's and WPL's service territories could affect sales volumes.
• Delays in completing construction of generation and energy storage projects could impact in-service dates and costs.
• Changes in the tax code, including tax rates, minimum tax rates, adjustments made to deferred tax assets and liabilities, and changes impacting the availability of and ability to transfer renewable tax credits could impact financial results.
• Disruptions to ongoing operations and the supply of materials, services, equipment and commodities needed to continue to operate and maintain existing assets and to construct capital projects could affect the ability to meet capacity requirements and result in increased capacity expense.
• Inflation and higher interest rates could impact financial results.
• Issues associated with environmental remediation and environmental compliance could impact financial results.
• Impacts that excessive heat, excessive cold, storms, wildfires, or natural disasters may have on Alliant Energy's, IPL's and WPL's operations and construction activities, and recovery of costs associated with restoration activities, or on the operations of Alliant Energy's investments could impact financial results.

Future Outlook

Alliant Energy is affirming ongoing EPS guidance for 2025 of $3.15 $3.25. Assumptions for Alliant Energy's 2025 EPS guidance include the ability of IPL and WPL to earn their authorized rates of return, normal temperatures, a stable economy, successful execution of capital expenditure plans, and successful execution of cost controls and financing plans.

Management Comments

• In 2024, we delivered another solid year of financial and operational results.
• We're pleased to complete 1,500 megawatts of solar generation investments in 2024.
• Combined with existing 1,800 megawatts of wind resources, these zero-fuel cost, zero-emission investments strengthen the clean energy element of our balanced generation portfolio and reinforce our leadership in the energy transition, said Lisa Barton, Alliant Energy President and CEO.
• As part of our ongoing customer and community-focused strategy last week we, along with Iowa Governor Kim Reynolds and Cedar Rapids Mayor Tiffany O'Donnell, officially confirmed the largest economic development investment in the history of Cedar Rapids.
• We continue to focus on economic development, bringing benefits to communities in both Iowa and Wisconsin.

Industry Context

Alliant Energy's focus on renewable energy investments, particularly solar and wind, aligns with the broader industry trend towards decarbonization and the energy transition. The company's emphasis on economic development and community engagement also reflects a growing recognition of the importance of corporate social responsibility in the energy sector.

Comparison to Industry Standards

• Alliant Energy's investment in 1,500 MW of solar generation in 2024 is a significant commitment compared to other utilities of similar size.
• The company's affirmed 2025 EPS guidance of $3.15 $3.25 places it competitively within the utility sector, depending on specific market conditions and regulatory environments.
• Comparable companies like Xcel Energy and NextEra Energy are also heavily investing in renewable energy, setting a benchmark for Alliant Energy's progress in this area.
• The rate increases approved for IPL and WPL are typical for utilities seeking to recover capital investments and operating costs, but the specific amounts and terms vary based on regulatory jurisdictions.

Stakeholder Impact

• Shareholders can expect continued dividends and potential for growth based on the company's renewable energy investments.
• Customers will benefit from cleaner energy sources and economic development in their communities.
• Employees may experience restructuring and voluntary separation programs as the company aligns resources with evolving business needs.

Next Steps

• Alliant Energy will hold a conference call on February 21, 2025, to review the 2024 results.
• The company will continue to execute its capital expenditure plans, including renewable energy and energy storage projects.
• Alliant Energy will focus on cost controls and financing plans to achieve its 2025 earnings guidance.

Key Dates