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Can Alliant Energy's Expanded Capital Plan Drive Long-Term Growth?

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Key Takeaways

  • Alliant Energy raised its 2027-2030 capital plan 19% to $15.9B, targeting 13% annual rate-base growth.
  • LNT plans major investments in generation, energy storage and renewables to meet rising electricity demand.
  • LNT secured a $5.1B DOE loan program and expects $2B in tax credits to help fund infrastructure expansion.

Alliant Energy Corporation (LNT - Free Report) is expected to benefit from expanding capital investments, which should strengthen its regulated operations and support overall financial performance. The company is increasing investments in generation, energy storage and grid infrastructure to accommodate growing customer requirements, particularly from data centers and industrial customers.

LNT's updated 2027-2030 capital investment plan increases 19% to $15.9 billion, targeting 13% annual growth in rate base plus construction work in progress. The plan allocates $6.8 billion to thermal generation and LNG, $5.1 billion to energy storage and renewables and $4 billion to distribution, technology and other investments. The plan includes 2,800 megawatts (MW) of new generation, 280 MW of additional capacity at existing units, 1,200 MW of energy storage and 1,300 MW of renewable capacity.

Rising data-center demand provides additional growth opportunities. The company also expects to secure approximately 1 GW of additional contracted large-load demand within six months, potentially creating further investment opportunities.

LNT secured $5.1 billion from the Department of Energy's guaranteed loan program and expects to receive approximately $2 billion in tax credits over the planning period. These financing sources should help manage funding costs and support infrastructure development.

Overall, the expanded capital plan is expected to support 8% annual earnings growth from 2027 through 2030, strengthening LNT's long-term growth prospects and shareholder returns.

Expanded Capital Plan Supports Utility Growth

Utilities are expanding capital programs to replace aging assets, improve grid connectivity and develop additional renewable energy resources. The spending supports capacity expansion and creates opportunities for sustained growth. Apart from LNT, several other utilities have also expanded their capital investment.

American Electric Power (AEP - Free Report) raised its planned capital investment to $100 billion for 2027-2031 to address growing data-center and industrial demand. The spending will strengthen generation, transmission and distribution infrastructure.

PPL Corporation (PPL - Free Report) expanded its planned capital spending to $25 billion for 2027-2030, driven by rising data-center demand and growing electricity needs. The investments will strengthen generation, transmission and distribution infrastructure.

The Zacks Rundown on LNT

LNT’s Earnings Estimates

The Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year increase of 6.52% and 6.92%, respectively.

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Debt to Capital

LNT's debt-to-capital currently stands at 61.67%, lower than the  Zacks Utility - Electric Power industry’s 62.13%.

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LNT’s Stock Price Performance

In the past month, the company’s shares have gained 10.8% compared with the industry’s 5.8% growth.

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LNT’s Zacks Rank

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

 

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