Alliant Energy Corp - $LNT - Earnings Analysis: Solid financial performance with ongoing EPS growth and consistent dividend increases.

Business Model

Alliant Energy generates revenue primarily through regulated electricity and natural gas service to customers in the Midwest.

Revenue Sources

• Electric utility revenues from residential, commercial, and industrial customers, as well as sales for resale (wholesale, bulk power).
• Gas utility revenues from residential, commercial, and industrial customers, and transportation/other services.
• Other utility revenues, although a smaller portion, contribute to overall revenue.
• Non-utility revenues, including Travero (non-utility services), account for a smaller portion of the total.

Income Statement Analysis

• Total revenues increased by 1.56% due to increases in electric, gas and other utility revenue.
• Operating income increased significantly by 21.31% driven by lower electric production fuel and purchased power and higher revenues.
• Net income attributable to Alliant Energy common shareowners increased by 24.79% driven by increased operating income and changes in income taxes.

Balance Sheet Analysis

• Total assets increased by 6.95%, primarily due to an increase in property, plant, and equipment, net, reflecting capital investments.
• Total stockholders equity increased by 3.35%, indicating increased shareholder value.
• Total liabilities increased by 8.63%, mainly due to increases in long-term debt and other liabilities.

Cash Flow Analysis

• Net cash flows from operating activities increased substantially due to improved recoveries of infrastructure investments and successful monetization of tax credits.
• Net cash flows used for investing activities increased, reflecting ongoing construction and acquisition expenditures for the utility business.
• Net cash flows from financing activities decreased, primarily due to changes in debt issuance and retirement activities, and common stock dividends.
• Net increase in cash, cash equivalents, and restricted cash decreased due to the combined effect of operating, investing, and financing activities.

Capital Allocation

Alliant Energy is focused on investing in renewable energy projects and infrastructure improvements. The company is allocating capital towards solar generation, wind resources, and energy storage. They aim to balance these investments with shareholder returns through dividends, having increased dividends for 21 consecutive years. They are also pursuing opportunities to attract and serve large energy users like data centers, which will drive economic development and help distribute fixed costs.

Management Commentary

2024 marked another year of solid financial and operational performance, during which we made considerable progress on our key strategic priorities.

Our ongoing 2024 EPS growth aligns with our long term target of 5% to 7%. We increased our dividend with 2024 marking the twenty first straight year of dividend increases.

Key provisions of the bill include non contested integrated resource plan filings with the IUC and the requirement to file non contested IRPs at least every five years.

The winter temperatures in 2024 were some of the warmest on record in our service territory and across The U. S.

Overall Sentiment: Positive, with a focus on sustainable growth, economic development, and delivering value to both customers and shareholders. Management acknowledges weather-related challenges but emphasizes strategic initiatives to drive future growth.

Disclaimer: This report is for informational purposes only and not investment advice. The analysis is based on limited information and subject to change. Investing in securities involves risks, including potential loss of principal. Past performance doesn't guarantee future results. Always conduct your own research, understand the risks, and consult a financial professional before making investment decisions.