Loading...
01/11 03:34
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong growth prospects, including a 12% rate base growth and a 5.4% dividend increase. The Q&A reveals confidence in additional load negotiations and regulatory support, despite some uncertainty in timing. The reaffirmed earnings guidance and capital investments indicate positive market sentiment. These factors, alongside the positive net temperature impact and better-than-expected sales, suggest a positive stock price movement.
Third Quarter Ongoing Earnings $1.12 per share, over 80% of the midpoint of 2025 earnings guidance. Year-over-year change was primarily due to higher revenue requirements from capital investments at Iowa and Wisconsin utilities and the positive impacts of temperatures on electric and gas sales. Partially offset by higher operations and maintenance expenses, higher generation development costs, and higher depreciation and financing expenses.
2025 Ongoing Earnings Guidance Narrowed to $3.17 to $3.23 per share, trending towards the upper half of this range. Solid earnings through September and projected fourth quarter results assuming normal weather contributed to this guidance.
2026 Earnings Guidance $3.36 to $3.46 per share, representing a 6.6% increase over the 2025 midpoint. Growth driven by planned growth in rate base and expected data center revenues.
2026 Annual Common Stock Dividend Target $2.14 per share, a 5.4% increase from the 2025 target of $2.03 per share. Moderated pace of dividend growth to efficiently fund increased capital expenditure plan.
Four-Year Capital Expenditure Plan Increased by 17% to $13.4 billion, translating to a projected rate base and investment compound annual growth rate of 12% from 2025 to 2029. Growth driven by planned investments in new and existing generation, electric gas, and technology enhancements.
Net Temperature Impact on Margins (2025 vs. 2024) Through September 2025, net temperatures positively impacted electric and gas margins by approximately $0.02 per share. In comparison, net temperatures negatively impacted margins by $0.10 per share for the first three quarters of 2024.
Electric Margin Comparisons (2025 vs. 2024) Higher-than-expected sales to commercial and industrial customers in both states contributed to better-than-planned temperature-normalized electric sales. Timing differences due to new seasonal rates implemented in Iowa in Q4 2024 resulted in quarterly timing differences but no material impact on full-year results.
Grant and Wood County energy storage projects: Completed construction totaling 175 megawatts.
Neenah and Sheboygan Falls Unit 1 advanced gas path projects: Completed projects to increase efficiency and capability of Wisconsin facilities.
Data center agreements: Signed a fourth electric service agreement with QTS Madison and a new agreement with Google in Cedar Rapids, accelerating load ramp and projecting 50% peak demand growth by 2030.
Data center construction: Construction underway on 3 of 4 data centers under agreement, with contracted demand totaling 3 gigawatts.
Capital expenditure plan: Increased 4-year capital expenditure plan by 17% to $13.4 billion, with a projected rate base and investment CAGR of 12% from 2025 to 2029.
Regulatory approvals: Iowa Utilities Commission approved individual customer rates for 2 data centers in Cedar Rapids; Public Service Commission of Wisconsin approved retail electric and gas rate review settlement for 2026 and 2027.
Plug-in-ready sites: Prioritized to minimize transmission investments and accelerate ability to serve new customers.
Fiber connectivity agreement: Executed agreement to lease underground conduit for data center customer, providing financial benefits to existing customers.
Regulatory Risks: The company is dependent on regulatory approvals for various projects, including customer rate filings and investments in renewable energy and natural gas facilities. Delays or unfavorable decisions from regulatory bodies in Iowa and Wisconsin could impact project timelines and financial outcomes.
Capital Expenditure and Financing Risks: The company plans to invest $13.4 billion in capital expenditures through 2029, requiring $2.4 billion in new common equity and significant debt financing. This exposes the company to risks related to market conditions, interest rate fluctuations, and the ability to raise equity and debt on favorable terms.
Operational Risks: Higher operations and maintenance expenses, driven by increased generation costs, planned maintenance activities, and the addition of new energy resources, could impact profitability. Additionally, the company faces risks related to the execution of large-scale projects, such as data centers and energy storage facilities.
Economic and Market Risks: The company’s growth strategy is heavily reliant on large load opportunities from data centers and other commercial customers. Economic downturns or changes in market demand could reduce energy consumption and impact revenue projections.
Supply Chain and Resource Risks: The company is investing in renewable energy and natural gas projects, which may face supply chain disruptions, cost overruns, or delays in obtaining necessary materials and equipment.
2025 Earnings Guidance: Narrowed to a range of $3.17 to $3.23 per share, trending towards the upper half of this range.
2026 Earnings Guidance: Initiated at $3.36 to $3.46 per share, representing a 6.6% increase over the 2025 midpoint.
2026 Dividend Target: Set at $2.14 per share, a 5.4% increase from the 2025 target of $2.03 per share.
Capital Expenditure Plan: Increased by 17% to $13.4 billion for the 4-year period, with a projected rate base and investment compound annual growth rate of 12% from 2025 to 2029.
Long-term Growth Rate: Expected compound annual growth rate across 2027 to 2029 is 7% plus, driven by planned growth in rate base and expected data center revenues.
Data Center Agreements: Construction underway on 3 of 4 data centers, with contracted demand totaling 3 gigawatts, translating to 50% peak demand growth by 2030.
Future Investments: $9 billion allocated to new and existing generation, complemented by investments in electric gas and technology enhancements.
Regulatory Approvals: Support from regulators includes approvals for individual customer rates for data centers and a retail electric and gas rate review settlement for 2026 and 2027 in Wisconsin.
Financing Plans: $2.4 billion of new common equity planned for 2026-2029, with $1.6 billion remaining to be raised over the next 4 years.
2026 annual common stock dividend target: $2.14 per share, a 5.4% increase from the 2025 target of $2.03 per share.
Dividend payout range: Targeting a range of 60% to 70%, but expect to be in the lower end of the range during the period of the plan with higher investment opportunities.
Shareowner Direct Plan: Equity expected to be raised under this plan is part of the financing strategy.
New common equity: $2.4 billion of new common equity included in the financing plan for 2026 through 2029, primarily for investing in resources to meet growing energy needs.
The earnings call highlights strong growth prospects, including a 12% rate base growth and a 5.4% dividend increase. The Q&A reveals confidence in additional load negotiations and regulatory support, despite some uncertainty in timing. The reaffirmed earnings guidance and capital investments indicate positive market sentiment. These factors, alongside the positive net temperature impact and better-than-expected sales, suggest a positive stock price movement.
The earnings call summary presents a mixed picture with positive elements such as exceeding first-quarter earnings expectations and strong investor interest in debt issuances. However, concerns arise from the need for significant equity financing, potential impacts of tariff exposure, and management's vague responses in the Q&A. The reaffirmed earnings guidance and proactive planning for future growth provide some optimism, but the lack of specifics and potential financial uncertainties balance out the positive aspects, resulting in a neutral sentiment.
The earnings call presented mixed signals. Positive aspects include a significant EPS increase, reaffirmed earnings guidance, and strategic growth alignment. However, concerns arise from increased CapEx and potential margin impacts due to warm weather. The Q&A session highlighted uncertainties, such as unclear capacity additions and tariff impacts. Shareholder return plans involve equity issuances, which can dilute value. The lack of a new partnership or strong guidance adjustments tempers enthusiasm. Overall, these factors suggest a neutral stock price movement, with the potential for slight fluctuations as the market digests mixed elements.
The earnings call summary indicates a strong financial performance with a 33.9% EPS increase, robust cash flow, and sustainable growth strategies. The Q&A section reveals confidence in mature opportunities and consistent EPS growth. Despite some management vagueness, the overall sentiment is positive, supported by high EPS growth and strategic capital investment. The shareholder return plan and debt financing are well-managed, with new equity issuance planned to support growth. The market is likely to respond positively, with a potential stock price increase of 2% to 8% over the next two weeks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
