Alliant Energy (AY1) AI Stock Analysis

Company Guidance

Alliant Energy narrowed 2026 full year ongoing earnings guidance to the top half of its original guidance range, which is $3.41 to $3.46 per share; 2027 full year ongoing earnings guidance is $3.63 to $3.73 per share, representing 8% growth over the midpoint of its original 2026 earnings guidance, with a 2027 annual common stock dividend target of $2.25 per share, a 5% increase over its 2026 annual dividend target, and a target payout ratio of 60% to 70%, expected to operate near the lower end of that range. Projected total shareholder return is greater than 11% per year over the 2027 to 2030 planning period; the long-term annual earnings growth target is 6% to 8% plus, with earnings growth of 8% plus from 2027 through 2030, representing earnings growth of at least 8% each year over the 2027 through 2030 planning period. The 2027 through 2030 capital investment plan totals $15.9 billion, a 19% increase above the prior 4-year plan, supporting a 13% compounded annual growth rate in rate base plus construction work in progress, including 1.2 gigawatts of additional natural gas combustion turbines and an additional 200 megawatts of energy storage; approximately 375 basis points of estimated dilution is expected from equity issuances and approximately 50 basis points from refinancing maturing nonutility and parent debt. Equity funding represents approximately 40% of incremental capital expenditures versus the previously stated range of 40% to 50%, with $2.7 billion of common equity in the updated 4-year financing plan, including approximately $1.1 billion secured through forward equity agreements; up to $200 million of additional long-term debt at IPL and up to $300 million at WPL is expected for the remainder of 2026, and up to $2.8 billion of long-term debt is expected in 2027. Alliant expects approximately 1 additional gigawatt of contracted large load within the next 6 months, with approximately $2 billion to $3 billion of additional CapEx for every gigawatt of additional load.