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Alliant Energy Corporation powers millions of homes and businesses across the Midwest, playing a vital role in daily life through its regulated electricity and natural gas services. As a prominent utility holding company, Alliant combines steady operational performance with a growing portfolio of renewable energy assets, underscoring its commitment to innovation and sustainability. With a solid market presence and a reputation for reliability, the key question remains: does Alliant Energy’s current financial health and strategic direction continue to justify its valuation and growth prospects for investors in 2026?
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 industry. Its integrated ecosystem delivers electricity and natural gas to over a million retail customers across Iowa and Wisconsin through subsidiaries like Interstate Power and Light Company and Wisconsin Power and Light Company. The company’s mission blends energy generation, distribution, and freight services, supporting diverse sectors including agriculture, manufacturing, and chemical industries.
The company’s revenue engine balances regulated utility operations with strategic assets such as a 347 MW natural gas plant and a 225 MW wind farm, complemented by freight and logistics services. Serving both retail and wholesale markets across the Americas, Alliant Energy’s mix of regulated electricity and natural gas sales secures stable cash flows. Its economic moat lies in the critical infrastructure and regulated market presence that shape the future of regional energy delivery.
Financial Performance & Fundamental Metrics
I will analyze Alliant Energy Corporation’s income statement, key financial ratios, and dividend payout policy to provide a clear view of its financial health.
Income Statement
The table below presents Alliant Energy Corporation’s key income statement figures for fiscal years 2020 through 2024, reflecting revenue, expenses, profitability, and earnings per share.
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Revenue | 3.42B | 3.67B | 4.21B | 4.03B | 3.98B |
| Cost of Revenue | 1.95B | 2.11B | 2.50B | 2.29B | 2.20B |
| Operating Expenses | 723M | 761M | 781M | 791M | 894M |
| Gross Profit | 1.46B | 1.56B | 1.71B | 1.73B | 1.78B |
| EBITDA | 1.44B | 1.54B | 1.69B | 1.78B | 1.80B |
| EBIT | 826M | 884M | 1.02B | 1.10B | 1.03B |
| Interest Expense | 291M | 284M | 325M | 394M | 449M |
| Net Income | 614M | 659M | 686M | 703M | 690M |
| EPS | 2.47 | 2.63 | 2.73 | 2.78 | 2.69 |
| Filing Date | 2021-02-19 | 2022-02-18 | 2023-02-24 | 2024-02-16 | 2025-02-21 |
Income Statement Evolution
Between 2020 and 2024, Alliant Energy Corporation’s revenue increased by 16.54% overall but declined 1.14% in the most recent year. Net income showed a 10.58% growth over the period, with a slight 0.72% decrease last year. Gross margin remained favorable at 44.71%, while EBIT margin held steady at 25.75%. However, net margin contracted by 5.12%, indicating some margin pressure.
Is the Income Statement Favorable?
In 2024, Alliant Energy reported $3.98B revenue and $690M net income, resulting in a net margin of 17.33%, considered favorable. EBIT margin was strong at 25.75%, but interest expense at 11.28% of revenue was unfavorable. Year-on-year declines in revenue, EBIT (-6.9%), and EPS (-3.24%) weigh on the fundamentals, leading to an overall unfavorable income statement assessment despite solid margins.
Financial Ratios
The following table presents key financial ratios for Alliant Energy Corporation (LNT) over the last five fiscal years, illustrating profitability, valuation, liquidity, leverage, efficiency, and dividend metrics:
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 18% | 18% | 16% | 17% | 17% |
| ROE | 11.0% | 11.3% | 10.9% | 10.4% | 9.9% |
| ROIC | 4.4% | 4.5% | 4.8% | 4.6% | 4.1% |
| P/E | 20.5 | 22.8 | 20.2 | 18.5 | 22.0 |
| P/B | 2.25 | 2.57 | 2.21 | 1.92 | 2.17 |
| Current Ratio | 0.68 | 0.52 | 0.53 | 0.55 | 0.44 |
| Quick Ratio | 0.52 | 0.40 | 0.39 | 0.40 | 0.33 |
| D/E | 1.26 | 1.32 | 1.39 | 1.40 | 1.49 |
| Debt-to-Assets | 40% | 42% | 43% | 45% | 46% |
| Interest Coverage | 2.54 | 2.80 | 2.86 | 2.39 | 1.97 |
| Asset Turnover | 0.19 | 0.20 | 0.21 | 0.19 | 0.18 |
| Fixed Asset Turnover | 0.24 | 0.24 | 0.26 | 0.23 | 0.21 |
| Dividend Yield | 2.9% | 2.6% | 3.1% | 3.5% | 3.2% |
Evolution of Financial Ratios
From 2020 to 2024, Alliant Energy’s Return on Equity (ROE) exhibited a declining trend, falling from approximately 11.0% to 9.85%, indicating a slowdown in profitability. The Current Ratio steadily decreased from about 0.68 in 2020 to 0.44 in 2024, suggesting weakening liquidity. Meanwhile, the Debt-to-Equity Ratio increased from roughly 1.26 to 1.49, signaling a rise in leverage and financial risk over the period.
Are the Financial Ratios Favorable?
In 2024, profitability ratios such as net margin (17.33%) and dividend yield (3.24%) are favorable, reflecting solid earnings and shareholder returns. However, key efficiency and liquidity metrics, including asset turnover (0.18), fixed asset turnover (0.21), current ratio (0.44), and quick ratio (0.33), are unfavorable, pointing to operational and short-term financial constraints. Leverage is high with a debt-to-equity ratio of 1.49, considered unfavorable, while debt-to-assets (45.81%) and interest coverage (2.28) are neutral. Overall, the financial ratios suggest a slightly unfavorable profile.
Shareholder Return Policy
Alliant Energy Corporation (LNT) maintains a consistent dividend policy with a payout ratio around 60-71% and a dividend yield near 3%. The dividend per share has steadily increased over recent years, though free cash flow remains negative, raising sustainability concerns. Share buybacks are not explicitly noted.
The company’s dividend payments represent a significant portion of earnings but are not fully covered by free cash flow, implying reliance on external financing or cash reserves. This approach requires careful monitoring to ensure long-term value creation without risking financial flexibility.
Score analysis
The following radar chart presents a detailed view of the company’s fundamental financial scores:
Alliant Energy Corporation shows favorable returns on equity and assets with scores of 4 each. However, the discounted cash flow score is moderate at 3, and leverage and valuation metrics such as debt-to-equity, price-to-earnings, and price-to-book ratios all hold moderate scores of 2, indicating some caution in financial structure and market valuation.
Analysis of the company’s bankruptcy risk
The Altman Z-Score places the company in the distress zone, signaling a higher risk of financial distress and potential bankruptcy:
Is the company in good financial health?
The Piotroski diagram illustrates the company’s financial health based on its score:
With a Piotroski Score of 4, Alliant Energy Corporation is considered to have average financial strength, reflecting moderate profitability, leverage, liquidity, and operational efficiency metrics.
Competitive Landscape & Sector Positioning
This sector analysis will explore Alliant Energy Corporation’s strategic positioning, revenue by segment, key products, and main competitors. I will also assess whether the company holds a competitive advantage within the regulated electric utilities industry.
Strategic Positioning
Alliant Energy Corporation has a concentrated product portfolio focused on regulated electric and natural gas utilities, generating over $3.3B from electricity and $465M from gas in 2024. Its geographic exposure spans primarily Iowa and Wisconsin, with wholesale sales in neighboring states.
Revenue by Segment
The pie chart illustrates Alliant Energy Corporation’s revenue distribution by segment for the fiscal year 2024, highlighting contributions from Electric, Gas, and Other Utility businesses.
In 2024, the Electric segment remains the dominant revenue driver with $3.37B, showing steady growth from previous years. Gas revenue declined to $465M compared to $540M in 2023, indicating some volatility or reduced demand. Other Utility revenues are comparatively minor at $54M but stable. The business shows concentration risk in Electric, which accounts for the bulk of revenues, while Gas experiences some slowdown.
Key Products & Brands
Below is an overview of Alliant Energy Corporation’s key products and brands by category:
| Product | Description |
|---|---|
| Electric | Generation and distribution of electricity to retail and wholesale customers in Iowa, Wisconsin, Minnesota, and Illinois. |
| Gas | Distribution and transportation of natural gas to retail customers primarily in Iowa and Wisconsin. |
| Other Utility | Includes steam generation, freight services (short-line rail, barge, rail, truck terminals), and freight brokerage services. |
Alliant Energy’s business is primarily focused on electric and natural gas utility services with additional operations in freight logistics and steam generation, serving diverse retail and wholesale customers across multiple states.
Main Competitors
There are 23 competitors in the Utilities sector’s Regulated Electric industry, 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, with a market cap roughly 10.2% of the sector leader, NextEra Energy. The company sits below both the average market cap of the top 10 competitors (67.5B) and the sector median (34B). It is positioned 22.39% below its nearest competitor above, indicating a notable 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 does not present a competitive advantage, as it is shedding value with a ROIC below its WACC and a declining ROIC trend, indicating decreasing profitability. The company’s overall moat status is very unfavorable, reflecting challenges in maintaining efficient capital use and value creation.
Looking ahead, Alliant Energy operates across regulated electric and natural gas markets with assets including a 347 MW natural gas plant and a 225 MW wind farm, suggesting opportunities in renewable energy and regional utility expansion. These factors could influence its future market position and growth potential.
SWOT Analysis
This SWOT analysis highlights Alliant Energy Corporation’s key strategic factors to inform investment decisions.
Strengths
- Stable regulated utility operations
- Solid net margin of 17.33%
- Attractive dividend yield of 3.24%
Weaknesses
- Declining revenue and earnings growth in the short term
- High interest expense at 11.28%
- Weak liquidity ratios and high debt-to-equity
Opportunities
- Expansion in renewable energy assets
- Growing demand for clean energy solutions
- Potential to improve operational efficiency
Threats
- Regulatory risks in utility sector
- Rising interest rates increasing borrowing costs
- Competition from alternative energy providers
Overall, Alliant Energy benefits from a stable business model and strong profitability metrics, but faces financial and operational challenges that require careful management. Strategic focus on leveraging growth opportunities in renewables while controlling debt and improving cash flow will be critical to mitigate risks and enhance shareholder value.
Stock Price Action Analysis
The weekly stock chart highlights Alliant Energy Corporation’s price movements and key levels over the past 12 months:
Trend Analysis
Over the past 12 months, LNT’s stock price increased by 40.02%, indicating a bullish trend with deceleration in momentum. The price ranged from a low of 47.73 to a high of 69.47, with volatility reflected by a 5.77 standard deviation. However, the recent 2.5-month period shows a slight 0.76% decline, signaling a neutral short-term trend.
Volume Analysis
Trading volume for LNT has been increasing overall, with buyers accounting for 57.9% of activity, suggesting buyer-driven momentum. In the last 2.5 months, volume shifted to seller dominance at 53.44%, indicating a slight pullback in investor enthusiasm and cautious market participation.
Target Prices
The consensus target prices for Alliant Energy Corporation indicate moderate upside potential.
| Target High | Target Low | Consensus |
|---|---|---|
| 78 | 67 | 73 |
Analysts expect the stock to trade between 67 and 78, with a consensus target price around 73, suggesting steady growth prospects.
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Analyst & Consumer Opinions
This section examines recent analyst ratings and consumer feedback regarding Alliant Energy Corporation (LNT) to provide insight.
Stock Grades
Here is a summary of recent verified analyst grades for Alliant Energy Corporation (LNT) from recognized financial institutions:
| 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 |
| B of A Securities | Maintain | Buy | 2025-10-17 |
| BMO Capital | Maintain | Market Perform | 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 recent grades illustrate a mixed but generally positive outlook on Alliant Energy, with multiple upgrades and a prevailing consensus leaning toward a “Buy” stance. Notably, Barclays and BMO Capital have upgraded their ratings recently, while Argus Research has issued a downgrade, reflecting some divergence in analyst sentiment.
Consumer Opinions
Consumers generally express a mix of appreciation and concern when it comes to Alliant Energy Corporation, reflecting varied experiences with the company’s services.
| Positive Reviews | Negative Reviews |
|---|---|
| Reliable energy supply with minimal outages. | Customer service response times can be slow. |
| Competitive rates compared to other regional providers. | Occasional billing errors reported by some customers. |
| Proactive in investing in renewable energy projects. | Limited digital tools for account management. |
Overall, consumers praise Alliant Energy for dependable service and a commitment to sustainability but often cite customer support and billing accuracy as areas needing improvement.
Risk Analysis
Below is a table summarizing the key risks for Alliant Energy Corporation (LNT) based on financial metrics and market factors:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Financial Health | Low Altman Z-Score indicates high bankruptcy risk; currently in distress zone | High | High |
| Liquidity | Low current and quick ratios suggest potential cash flow constraints | Medium | Medium |
| Leverage | High debt-to-equity ratio (1.49) increases financial risk | Medium | High |
| Market Volatility | Beta of 0.671 implies moderate sensitivity to market fluctuations | Medium | Medium |
| Operational Efficiency | Unfavorable ROE (9.85%) and ROIC (4.08%) may limit growth and returns | Medium | Medium |
| Regulatory Risks | Utility sector subject to regulatory changes affecting revenue and costs | Medium | High |
The most critical risks are the high bankruptcy probability suggested by the low Altman Z-Score and the elevated debt levels, which could impact financial stability. Investors should monitor liquidity closely given the unfavorable current and quick ratios, despite a stable dividend yield of 3.24%. Regulatory shifts in the utility sector also remain a significant factor.
Should You Buy Alliant Energy Corporation?
Alliant Energy Corporation appears to be a profile of moderate operational efficiency with a declining and unfavorable competitive moat, suggesting value destruction. Despite substantial leverage and distress-level bankruptcy risk, the overall rating could be seen as moderately favorable with a B grade.
Strength & Efficiency Pillars
Alliant Energy Corporation displays solid profitability metrics, with a net margin of 17.33% and an EBIT margin of 25.75%, reflecting effective cost management. The company’s return on equity stands at 9.85%, which is moderate but less favorable, while return on invested capital (ROIC) is 4.08%, below the weighted average cost of capital (WACC) at 5.98%, indicating the firm is currently not a value creator. Financial health metrics are concerning, with an Altman Z-Score of 1.16 placing the company in the distress zone, though a Piotroski score of 4 suggests average operational strength.
Weaknesses and Drawbacks
Valuation multiples present moderate risk: a P/E ratio of 21.98 and P/B ratio of 2.17 imply a fair to slightly premium valuation, which may limit upside. Leverage is a clear concern; the debt-to-equity ratio stands at 1.49 with a low current ratio of 0.44, signaling liquidity stress and elevated financial risk. Recent market activity reveals seller dominance at 53.44% over the last quarter, creating short-term headwinds despite a bullish long-term price trend. Interest expense remains high at 11.28% of EBIT, further pressuring profitability.
Our Verdict about Alliant Energy Corporation
The long-term fundamental profile of Alliant Energy appears unfavorable due to value destruction and weak financial health signals. Despite a bullish overall stock trend with a 40.02% gain, recent slight seller dominance and declining profitability suggest caution. Therefore, Alliant Energy may appear attractive only for investors willing to wait for improved financial stability and a clearer market entry point.
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 Announces Fourth Quarter and Year-End 2025 Earnings Release and Conference Call – Business Wire (Jan 20, 2026)
- Alliant Energy (NASDAQ:LNT) Is Paying Out A Larger Dividend Than Last Year – Yahoo Finance (Jan 21, 2026)
- Barclays Upgrades Alliant Energy (LNT) – Nasdaq (Jan 22, 2026)
- Ag Plus, Inc. – – Ag Plus, Inc. (Jan 20, 2026)
- Alliant Energy (NASDAQ:LNT) Upgraded to “Strong-Buy” at Wells Fargo & Company – MarketBeat (Jan 21, 2026)
For more information about Alliant Energy Corporation, please visit the official website: alliantenergy.com
