Alliant Energy (LNT) Q3 2025: Analyzing its $16B Investment in Grid Modernization

Alliant Energy (LNT), a public utility holding company providing services across Iowa and Wisconsin, recently released its financial results for the third quarter of 2025. In this post, we'll dive into the numbers from their latest 10-Q filing with the SEC to understand the company's performance and strategic direction.

For the third quarter, Alliant Energy reported a mixed but largely positive picture. Total revenues climbed to $1.21 billion, up from $1.08 billion in the same period last year, primarily driven by strong performance in its electric utility segment. To visualize how the company generates revenue and where the money goes, the following flow diagram breaks down the quarterly income statement.

The diagram illustrates that the bulk of Alliant's revenue comes from its two main utility segments: Interstate Power and Light (IPL) in Iowa and Wisconsin Power and Light (WPL). The "Other" revenue stream of $23 million primarily represents Alliant's non-utility businesses, such as its logistics and transportation subsidiary, Travero.

A Closer Look at Net Income

While revenues and operating income were up for the quarter, the bottom line tells a slightly different story. Net income attributable to common shareowners dipped to $281 million ($1.09 per share) from $295 million ($1.15 per share) in Q3 2024.

So, what caused the drop despite higher operating profits? The key factor lies in income taxes. In Q3 2024, the company recorded a significant income tax benefit of $62 million. In Q3 2025, that benefit was much smaller at just $18 million. This $44 million swing in tax benefits, combined with a $14 million increase in interest expense from recent financings, more than accounts for the quarterly decline in net income.

However, the nine-month, year-to-date results paint a much brighter picture. For the first nine months of 2025, Alliant Energy's net income soared to $668 million ($2.59 per share), a substantial increase from $540 million ($2.10 per share) in the same period of 2024. This strong performance was aided by the absence of a one-time, $60 million asset valuation charge related to the Lansing Generating Station that impacted the 2024 results.

Investing Heavily in the Future

One of the most significant takeaways from the filing is Alliant's ambitious capital expenditure plan. The company forecasts spending nearly $16 billion between 2025 and 2029. These investments are sharply focused on modernizing its infrastructure and generation fleet to meet growing customer demand, including from new data centers.

The spending is heavily weighted towards two key areas:

• Renewables and Energy Storage: Over $5.3 billion is earmarked for these projects, aligning with the company's goals to eliminate all coal-fired generation by 2040 and achieve net-zero GHG emissions by 2050.
• Gas Projects: Over $5.1 billion is planned for new and upgraded natural gas facilities, ensuring a dispatchable power source to support the grid as more intermittent renewables are added.

The company is already making tangible progress, having recently completed or received approval for several large-scale energy storage projects at its solar and wind farm sites in both Iowa and Wisconsin.

Looking Ahead

Alliant Energy is navigating a period of significant transition and investment. While quarterly results can be influenced by factors like tax timing, the year-to-date performance and robust capital plan suggest a clear strategy for growth. The company is betting big on a modernized, more resilient, and cleaner energy grid. For investors and customers alike, the key will be watching how efficiently Alliant executes this multi-billion-dollar plan and translates these major investments into reliable service and sustainable long-term earnings.