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Alliant Energy powers millions across the Midwest, fueling homes, farms, and industries with reliable electricity and natural gas. It commands a strong position in regulated utilities, combining stable operations with strategic investments in renewable energy. Known for operational excellence and steady dividend growth, Alliant blends tradition with innovation in a sector vital to daily life. I’m keen to assess whether its fundamentals justify current valuations amid evolving energy markets and regulatory shifts.
Table of contents
Business Model & Company Overview
Alliant Energy Corporation, founded in 1981 and headquartered in Madison, Wisconsin, stands as a dominant player in the regulated electric utility sector. It operates a cohesive energy ecosystem through subsidiaries like Interstate Power and Light and Wisconsin Power and Light. These units generate and distribute electricity and natural gas to nearly 1.4M retail customers across Iowa and Wisconsin, serving diverse industries from agriculture to manufacturing.
The company’s revenue engine balances regulated electric and gas operations with strategic asset exposure, including a 347 MW natural gas plant and a 225 MW wind farm. Alliant Energy extends its footprint through wholesale electricity sales in multiple Midwest states and supports freight logistics on the Mississippi River. Its economic moat derives from regulatory protections and integrated infrastructure, positioning it as an essential energy provider shaping the region’s utility landscape.
Financial Performance & Fundamental Metrics
I analyze Alliant Energy Corporation’s income statement, key financial ratios, and dividend payout policy to assess its operational efficiency and shareholder returns.
Income Statement
Below is Alliant Energy Corporation’s income statement summary for the fiscal years 2021 through 2025, showing key profitability and expense metrics.
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Revenue | 3.67B | 4.21B | 4.03B | 3.98B | 4.36B |
| Cost of Revenue | 2.11B | 2.50B | 2.29B | 2.20B | 2.61B |
| Operating Expenses | 761M | 781M | 791M | 894M | 724M |
| Gross Profit | 1.56B | 1.71B | 1.73B | 1.78B | 1.75B |
| EBITDA | 1.54B | 1.69B | 1.78B | 1.80B | 1.87B |
| EBIT | 884M | 1.02B | 1.10B | 1.03B | 1.03B |
| Interest Expense | 284M | 325M | 394M | 449M | 512M |
| Net Income | 674M | 686M | 703M | 690M | 810M |
| EPS | 2.63 | 2.73 | 2.78 | 2.69 | 3.15 |
| Filing Date | 2022-02-18 | 2023-02-24 | 2024-02-16 | 2025-02-21 | 2026-02-20 |
Income Statement Evolution
From 2021 to 2025, Alliant Energy’s revenue rose steadily by 18.9%, reaching $4.36B in 2025. Net income grew 20.2% to $810M, supported by a stable net margin near 18.6%. Gross profit showed minor decline in the latest year, while EBIT remained flat, reflecting consistent operational efficiency despite rising costs.
Is the Income Statement Favorable?
The 2025 income statement reveals solid fundamentals with a 40.1% gross margin and 23.5% EBIT margin, both favorable against industry norms. However, interest expense at 11.7% of revenue poses a cautionary note. Strong EPS growth of 16.7% and a net margin increase underscore profitability, making the overall income profile favorable yet warranting attention to leverage.
Financial Ratios
The table below summarizes key financial ratios for Alliant Energy Corporation (LNT) over the last five fiscal years:
| Ratios | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | 18.4% | 16.3% | 17.5% | 17.3% | 18.6% |
| ROE | 11.3% | 10.9% | 10.4% | 9.9% | 11.0% |
| ROIC | 4.5% | 4.8% | 4.6% | 4.1% | 5.0% |
| P/E | 22.8 | 20.2 | 18.5 | 22.0 | 20.6 |
| P/B | 2.57 | 2.21 | 1.92 | 2.17 | 2.28 |
| Current Ratio | 0.52 | 0.53 | 0.55 | 0.44 | 0.26 |
| Quick Ratio | 0.40 | 0.39 | 0.40 | 0.33 | 0.26 |
| D/E | 1.32 | 1.39 | 1.40 | 1.49 | 1.65 |
| Debt-to-Assets | 42.5% | 43.2% | 44.8% | 45.8% | 48.5% |
| Interest Coverage | 2.80 | 2.86 | 2.39 | 1.97 | 2.00 |
| Asset Turnover | 0.20 | 0.21 | 0.19 | 0.18 | 0.17 |
| Fixed Asset Turnover | 0.24 | 0.26 | 0.23 | 0.21 | 0.47 |
| Dividend Yield | 2.62% | 3.09% | 3.51% | 3.24% | 3.12% |
Evolution of Financial Ratios
Return on Equity (ROE) showed a modest increase from 10.35% in 2024 to 11.04% in 2025, indicating stable profitability. The Current Ratio declined sharply to 0.26 in 2025 from 0.44 in 2024, signaling reduced liquidity. Debt-to-Equity Ratio rose to 1.65 in 2025, reflecting increased leverage and financial risk over the period.
Are the Financial Ratios Favorable?
Profitability ratios like net margin (18.57%) and dividend yield (3.12%) are favorable, supporting earnings quality and shareholder returns. However, liquidity ratios (current and quick at 0.26) and efficiency metrics (asset turnover 0.17, fixed asset turnover 0.47) are unfavorable, suggesting operational constraints. Leverage is elevated (debt-to-equity 1.65), and ROIC (4.97%) lags WACC (5.75%), signaling value erosion. Overall, the ratios present a slightly unfavorable profile.
Shareholder Return Policy
Alliant Energy Corporation maintains a dividend payout ratio around 60-70%, with dividends per share steadily rising from $1.61 in 2021 to $2.03 in 2025. The annual dividend yield hovers near 3%, supported by share buybacks, though free cash flow coverage remains negative, signaling reliance on external funding.
The payout ratio and steady dividend growth indicate commitment to shareholder returns, yet negative free cash flow highlights potential sustainability risks. Capital expenditures exceed operating cash flow, suggesting cautious monitoring is needed to ensure long-term value creation through this distribution strategy.
Score analysis
The radar chart below provides a visual breakdown of Alliant Energy Corporation’s key financial scores:
The company scores well on discounted cash flow (4) and return on assets (4), indicating good cash generation and asset efficiency. However, return on equity (1), debt to equity (1), and price to book (1) scores are very unfavorable, highlighting concerns about shareholder returns, leverage, and valuation. Price to earnings is also weak (2), reflecting limited market enthusiasm.
Analysis of the company’s bankruptcy risk
Alliant Energy’s Altman Z-Score places it firmly in the distress zone, signaling a high probability of financial distress or bankruptcy risk:
Is the company in good financial health?
The Piotroski Score diagram illustrates the company’s moderate financial strength based on nine key accounting criteria:
With a Piotroski Score of 5, Alliant Energy shows average financial health. This score suggests the company maintains some operational stability but lacks the robustness seen in stronger investment candidates.
Competitive Landscape & Sector Positioning
This analysis examines Alliant Energy Corporation’s sector positioning within regulated electric utilities. I will assess its revenue streams, product offerings, and main competitors. Next, I will evaluate whether Alliant Energy holds a competitive advantage over its peers.
Strategic Positioning
Alliant Energy concentrates on regulated electric and gas utilities, with 2025 revenues heavily weighted toward electricity (3.7B) and gas (525M). Its operations span Iowa and Wisconsin, serving retail and wholesale customers. The company maintains a focused geographic and product portfolio within the regulated utilities sector.
Revenue by Segment
This pie chart displays Alliant Energy Corporation’s revenue distribution by segment for the fiscal year 2025, highlighting contributions from Electric, Gas, and Other Utility businesses.
Electric dominates with $3.7B, showing steady growth since 2011. Gas revenue rises to $525M, reflecting a gradual increase over the years. Other Utility remains small at $51M but stable. The 2025 data highlights Electric’s critical role as the business’s backbone, with Gas strengthening its position. No significant concentration risk yet, but Electric’s dominance calls for monitoring regulatory and market shifts closely.
Key Products & Brands
The following table summarizes Alliant Energy Corporation’s main products and brand segments by description:
| Product | Description |
|---|---|
| Electric | Generation and distribution of electricity primarily in Iowa and Wisconsin, serving retail and wholesale customers. |
| Gas | Distribution and transportation of natural gas to retail customers in Iowa and Wisconsin. |
| Other Utility | Includes steam generation, freight services (rail, barge, truck), freight brokerage, and warehouse operations. |
Alliant Energy focuses on regulated electric and natural gas utility services. Its diversified operations include wholesale electricity sales and complementary logistics services, reflecting a broad utility footprint in the Midwest.
Main Competitors
The Utilities sector has 23 competitors, with the table below listing the top 10 leaders by market capitalization:
| Competitor | Market Cap. |
|---|---|
| NextEra Energy, Inc. | 169B |
| The Southern Company | 96B |
| Duke Energy Corporation | 91B |
| American Electric Power Company, Inc. | 62B |
| Dominion Energy, Inc. | 51B |
| Exelon Corporation | 44B |
| Xcel Energy Inc. | 44B |
| Entergy Corporation | 42B |
| Public Service Enterprise Group Incorporated | 40B |
| Consolidated Edison, Inc. | 36B |
Alliant Energy Corporation ranks 20th among 23 competitors. Its market cap stands at approximately 10.8% of the leader, NextEra Energy. The company sits below both the average market cap of the top 10 leaders (67.5B) and the sector median (34B). It is 15.2% smaller than its closest competitor above, reflecting a noticeable gap in scale.
Comparisons with competitors
Check out how we compare the company to its competitors:
Does LNT have a competitive advantage?
Alliant Energy Corporation currently shows a slightly unfavorable competitive advantage, as its ROIC falls below its WACC, indicating value destruction despite improving profitability. The utility’s regulated operations and steady net margin growth suggest operational stability but limited economic moat strength.
Looking ahead, Alliant Energy’s interests in natural gas and wind power generation offer opportunities to expand in renewable markets and diversify its energy mix. These initiatives could enhance its competitive positioning in the evolving utilities sector, supported by consistent revenue growth and margin improvements.
SWOT Analysis
This SWOT analysis highlights Alliant Energy Corporation’s strategic position by evaluating its internal capabilities and external environment.
Strengths
- strong regulated utility footprint
- steady revenue growth of 9.6% in past year
- favorable net margin of 18.6%
Weaknesses
- low current and quick ratios at 0.26 signal liquidity risk
- high interest expense at 11.7% impacts profitability
- ROIC below WACC indicates value destruction
Opportunities
- expansion in renewable energy projects like wind farms
- increasing demand for clean energy in Midwest
- potential to improve operational efficiency
Threats
- regulatory risks in utility sector
- rising debt-to-equity ratio at 1.65 raises financial leverage concerns
- competition from alternative energy providers
Overall, Alliant Energy shows solid revenue and margin strength but struggles with liquidity and capital efficiency. The company must prioritize debt management and operational improvements to capitalize on growth in renewables while mitigating regulatory and competitive risks.
Stock Price Action Analysis
The weekly stock chart for Alliant Energy Corporation (LNT) reveals price movements and volatility patterns over the past 12 months:
Trend Analysis
Over the past 12 months, LNT’s stock price increased by 40.89%, indicating a bullish trend with acceleration. The price ranged from a low of 48.0 to a high of 71.19, supported by a standard deviation of 5.55, reflecting moderate volatility in the uptrend.
Volume Analysis
Trading volume totals 1.05B shares, with buyer volume at 608M (58%) and seller volume at 436M, showing buyer-driven activity. Volume is increasing, suggesting growing market participation and sustained investor confidence. However, recent months show seller dominance with 39% buyer volume, indicating short-term selling pressure.
Target Prices
Analysts set a clear target consensus for Alliant Energy Corporation, reflecting moderate upside potential.
| Target Low | Target High | Consensus |
|---|---|---|
| 67 | 78 | 73 |
The target range of $67 to $78 signals cautious optimism. The $73 consensus suggests steady growth aligned with sector benchmarks.
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Analyst & Consumer Opinions
This section examines grades and consumer feedback related to Alliant Energy Corporation (LNT) to provide balanced insights.
Stock Grades
Here are the latest verified analyst grades for Alliant Energy Corporation from recognized firms:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Upgrade | Equal Weight | 2026-01-21 |
| BMO Capital | Upgrade | Outperform | 2026-01-13 |
| Argus Research | Downgrade | Hold | 2026-01-09 |
| UBS | Maintain | Buy | 2025-12-17 |
| UBS | Upgrade | Buy | 2025-10-24 |
| BMO Capital | Maintain | Market Perform | 2025-10-17 |
| B of A Securities | Maintain | Buy | 2025-10-17 |
| Barclays | Maintain | Underweight | 2025-10-14 |
| UBS | Maintain | Neutral | 2025-10-10 |
| B of A Securities | Maintain | Buy | 2025-08-14 |
The consensus reflects a generally positive outlook, with most upgrades and Buy or better ratings. However, some holds and an Underweight rating highlight a mixed pattern among analysts.
Consumer Opinions
Alliant Energy Corporation evokes mixed but insightful consumer sentiment, reflecting its operational strengths and areas needing attention.
| Positive Reviews | Negative Reviews |
|---|---|
| Reliable energy supply with minimal outages. | Customer service response times are slow. |
| Competitive pricing compared to regional peers. | Billing system occasionally confusing. |
| Strong commitment to renewable energy projects. | Limited options for online account management. |
Consumers praise Alliant Energy for dependable service and competitive rates, especially in renewables. However, they consistently cite customer service delays and billing clarity as key improvement areas.
Risk Analysis
The table below summarizes key risks facing Alliant Energy Corporation, highlighting their likelihood and potential impact on investors:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Financial Health | Altman Z-Score in distress zone signals high bankruptcy risk amid weak liquidity ratios. | High | High |
| Leverage | Elevated debt-to-equity ratio (1.65) raises concerns over financial flexibility. | Medium | Medium |
| Liquidity | Very low current and quick ratios (0.26) indicate potential short-term cash flow constraints. | High | High |
| Profitability | ROIC (4.97%) below WACC (5.75%) suggests value destruction on invested capital. | Medium | Medium |
| Asset Efficiency | Low asset turnover (0.17) points to underutilized assets impacting returns. | Medium | Low |
| Dividend Sustainability | Dividend yield (3.12%) is favorable but depends on stable cash flows amid operational risks. | Medium | Medium |
The most pressing risks are liquidity shortfalls and financial distress, as indicated by the Altman Z-Score below 1 and current ratio far below 1. This combination historically precedes capital access issues. Meanwhile, the company’s ROIC lagging its WACC signals inefficient capital deployment, a red flag in utilities where regulated returns matter. I advise cautious monitoring given these vulnerabilities despite stable profit margins.
Should You Buy Alliant Energy Corporation?
Alliant Energy Corporation appears to be in a challenging financial position, with modest profitability growth yet value destruction indicated by its ROIC versus WACC. Despite a manageable leverage profile, its liquidity and overall rating suggest a cautious outlook with a C+ score reflecting mixed signals.
Strength & Efficiency Pillars
Alliant Energy Corporation delivers solid operational profitability with a net margin of 18.57% and an EBIT margin of 23.5%. Its gross margin stands at a robust 40.1%, reflecting efficient cost control. However, the company’s return on invested capital (4.97%) falls short of its weighted average cost of capital (5.75%), indicating it is currently shedding value despite improving ROIC trends. Return on equity is modest at 11.04%, signaling average shareholder returns. Overall, operational margins are commendable, but value creation remains elusive.
Weaknesses and Drawbacks
The company is in financial distress, with an Altman Z-Score of 0.87, signaling a high bankruptcy risk. This solvency red flag outweighs positive profitability metrics. Leverage is a critical concern, with a debt-to-equity ratio of 1.65 and a dangerously low current ratio of 0.26, implying liquidity strain. Valuation metrics are neutral but skewed; the P/E of 20.63 and P/B of 2.28 do not reflect a bargain. Recent market sentiment shows seller dominance with just 38.92% buyer volume, adding near-term pressure.
Our Final Verdict about Alliant Energy Corporation
Despite operational strengths, Alliant Energy’s solvency risk with a distressed Altman Z-Score makes it a highly speculative investment. The company’s inability to generate returns above its cost of capital, combined with liquidity challenges and financial distress, suggests a profile too risky for conservative capital. Investors might consider waiting for clearer signs of balance sheet stabilization before increasing exposure.
Disclaimer: This content is for informational purposes only and does not constitute financial, investment, or other professional advice. Investing in financial markets involves a significant risk of loss, and past performance is not indicative of future results.
Additional Resources
- Alliant Energy Corporation (NASDAQ:LNT) Q4 2025 Earnings Call Transcript – Insider Monkey (Feb 21, 2026)
- Alliant Energy (LNT) Outperforms in Q4 Earnings and Revenue – GuruFocus (Feb 21, 2026)
- Alliant Energy (LNT) Beats Q4 Earnings and Revenue Estimates – Yahoo Finance (Feb 20, 2026)
- Alliant Energy Announces 2025 Results – Business Wire (Feb 19, 2026)
- Alliant Energy Corp Bottom Line Drops In Q4 – Nasdaq (Feb 20, 2026)
For more information about Alliant Energy Corporation, please visit the official website: alliantenergy.com
