Back to top

Image: Bigstock

Expanding Customer Base and Investments Support LNT's Growth

Read MoreHide Full Article

Key Takeaways

  • Alliant Energy benefits from a regulated structure and rising electricity load growth from data centers.
  • LNT secured a 370-MW Iowa service agreement, lifting contracted data center load to about 3.4 GW.
  • Alliant Energy plans $13.4B in 2026-2029 investments, with 72% aimed at clean energy and storage.

Alliant Energy (LNT - Free Report) benefits from a regulated structure and ongoing economic development in its service areas, boosting its customer base and demand. Its disciplined capital investment strategy improves operational efficiency, expands renewable assets and supports long-term growth.

LNT’s Tailwinds

Alliant Energy benefits from a regulated structure and rising electricity load growth from data centers. The company secured a new 370-megawatt electric service agreement in Iowa, lifting its total contracted data center load to approximately 3.4 gigawatts. This expanding load pipeline enhances revenue visibility and supports sustained growth opportunities.

The company’s diversified customer base provides earnings stability by reducing reliance on any single customer segment for revenue generation. LNT is also benefiting from ongoing economic development in its service territory. This expands the customer base, raises demand for utility services and creates favorable conditions for strong financial performance.

Alliant Energy’s disciplined capital investments in renewable energy expansion and grid infrastructure enhance system reliability, advance cleaner power generation and support sustainable long-term earnings and rate base growth. The company aims to invest $13.4 billion during 2026-2029 to support 12% rate-based growth, with roughly 72% of capital spending directed toward clean energy generation and storage projects.

LNT’s Headwinds

Alliant Energy operates under stringent federal and state environmental regulations, and there is no guarantee that higher compliance costs can be fully recovered from customers. Noncompliance with laws, regulatory changes or adverse court rulings could adversely affect the company’s financial performance and operating results.

The company’s utility subsidiaries, Interstate Power and Light Company and Wisconsin Power and Light Company, rely on an interstate electric transmission network that is owned and operated by third parties rather than under their direct ownership or control. Any deterioration in the performance or reliability of third-party transmission networks could disrupt service quality and adversely affect customer service.

LNT’s Zacks Rank 

Alliant Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price Performance of LNT

In the past six months, Alliant Energy's shares have rallied 12.2% compared with the industry’s 7.3% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks in the same industry are Consolidated Edison (ED - Free Report) , PG&E (PCG - Free Report) and NextEra Energy (NEE - Free Report) . All stocks currently carry a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for Consolidated Edison, PG&E and NextEra Energy’s 2026 EPS are pegged at $6.09, $1.65 and $4.01, suggesting year-over-year growth of 6.84%, 10% and 8.09%, respectively.

ED, PCG and NEE are projected to deliver long-term (three to five years) earnings growth of 6.47%,15.89% and 8.51%, respectively.

 

Published in