Exchange: LSE | Sector: Utilities | Industry: General Utilities
Q4 2024
Published: Feb 21, 2025
Earnings Highlights
Revenue of $976.00M up 1.6% year-over-year
EPS of $0.58 increased by 23.4% from previous year
Gross margin of 46.5%
Net income of 150.00M
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Alliant Energy Corporation (0HCT.L) QQ4 2024 Results Analysis – Utilities Leader with Stable Regulated Cash Flows but Elevated Leverage
Executive Summary
Alliant Energy reported a solid Q4 2024 with revenue of $976 million and net income of $150 million, translating to an EPS of $0.58. The quarter delivered a gross margin of 46.5% and an EBITDA of $461 million, with an operating margin of 22.6%. Year-over-year, net income rose ~24% driven by numerator improvements in earnings despite a sequential revenue contraction in Q4 relative to Q3. Free cash flow generation remained positive on an annual basis, with operating cash flow of $254 million contributing to a net cash use from financing and investing activities that resulted in a negative net cash change of $749 million for the quarter and ending cash of $81 million.
Looking at the balance sheet, Alliant maintains a sizable asset base ($22.7 billion) and a heavily leveraged capital structure, with total debt of $10.406 billion and debt to capitalization around 60%. Liquidity appears stretched on a near-term basis, as shown by a current ratio of 0.44 and a cash ratio of 0.03, though regulated utilities typically carry predictable, rate-regulated cash flows that support ongoing capitalization and dividend commitments.
From an investment perspective, the company sits in a defensible niche within the Utilities sector due to its regulated electric and natural gas franchises (IPL and WPL). However, elevated leverage and a reliance on acquisitions and financing activity to fund growth have contributed to a notable net cash outflow from investing and financing in the period. Management commentary for QQ4 2024 was not provided in the available transcript data, limiting direct quotes and forward-looking guidance. Investors should weigh the stable, regulated earnings base against near-term balance sheet compression and higher interest-rate sensitivity when assessing risk-adjusted returns.
Key Performance Indicators
Revenue
976.00M
QoQ: -9.71% | YoY:1.56%
Gross Profit
454.00M
46.52% margin
QoQ: -15.46% | YoY:18.23%
Operating Income
221.00M
QoQ: -29.39% | YoY:20.77%
Net Income
150.00M
QoQ: -49.15% | YoY:23.97%
EPS
0.58
QoQ: -49.57% | YoY:23.40%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $976.0 million in Q4 2024, up 1.56% YoY and down 9.71% QoQ.
Gross Profit: $454.0 million, gross margin 46.52%, YoY gross profit up ~18.23% and QoQ down ~15.46%.
Net Income: $150.0 million, net margin 15.37%, YoY +23.97%, QoQ -49.15%. EPS: $0.58, YoY +23.40%, QoQ -49.57%.
EBITDA: $461.0 million, EBITDA margin 47.23% (approximate from EBITDA/Revenue), consistent with utility operations.
Cash flow and liquidity:
Financial Highlights
Revenue and profitability:
- Revenue: $976.0 million in Q4 2024, up 1.56% YoY and down 9.71% QoQ.
- Gross Profit: $454.0 million, gross margin 46.52%, YoY gross profit up ~18.23% and QoQ down ~15.46%.
- Operating Income: $221.0 million, operating margin 22.64%, YoY +20.77%, QoQ -29.39%.
- Net Income: $150.0 million, net margin 15.37%, YoY +23.97%, QoQ -49.15%. EPS: $0.58, YoY +23.40%, QoQ -49.57%.
- EBITDA: $461.0 million, EBITDA margin 47.23% (approximate from EBITDA/Revenue), consistent with utility operations.
Cash flow and liquidity:
- Operating cash flow: $254.0 million; free cash flow (as reported): $254.0 million (note: capex data not provided for the quarter in the dataset).
- Net cash from investing activities: $(607.0) million; Acquisitions net: $(815.0) million for the four-quarter period; net cash used in investing activities: $(607.0) million for the four-quarter window.
- Net cash from financing activities: $(396.0) million; Dividends paid: $(123.0) million; Net change in cash: $(749.0) million; Cash at end of period: $81.0 million; Cash at beginning of period: $830.0 million.
Balance sheet health:
- Total assets: $22.714 billion; Total liabilities: $15.710 billion; Total stockholders' equity: $7.004 billion.
- Total debt: $10.406 billion; Net debt: $10.325 billion; Long-term debt: $8.678 billion; Short-term debt: $1.729 billion.
- Liquidity/solvency: Current ratio 0.436; Quick ratio 0.327; Cash ratio 0.0298; Interest coverage 2.08x; Debt to capitalization ~60.3%; Debt to equity ~1.52x.
Valuation and investor metrics:
- Price to book: 2.18x; Price to sales: 15.67x; Price to earnings: 25.49x; Enterprise value multiple: 56.03x.
- Dividend yield: 0.80%; Dividend payout ratio: 82.0%; Operating cash flow per share: $0.99; Free cash flow per share: $(2.19) (noting reporting conventions); Price to cash flow: 60.21x; Price to FCF negative signals.
- ROE: 2.14%; ROCE: 1.20%; Asset turnover: 0.0416; Receivables turnover: 2.29; Payables turnover: 1.31.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
976.00M
1.56%
-9.71%
Gross Profit
454.00M
18.23%
-15.46%
Operating Income
221.00M
20.77%
-29.39%
Net Income
150.00M
23.97%
-49.15%
EPS
0.58
23.40%
-49.57%
Key Financial Ratios
currentRatio
0.44
grossProfitMargin
28.7%
operatingProfitMargin
25.5%
netProfitMargin
15.4%
returnOnAssets
0.64%
returnOnEquity
2.14%
debtEquityRatio
1.52
operatingCashFlowPerShare
$0.99
freeCashFlowPerShare
$-2.19
dividendPayoutRatio
82%
priceToBookRatio
2.18
priceEarningsRatio
25.49
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Earnings transcript data is not available in the provided dataset. Consequently, no management quotes or thematic quotes can be extracted or grouped by theme. Analysts should rely on the published press release and 10-K filings for any direct guidance or color from Alliant Energy’s executive leadership.
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Forward Guidance
No explicit forward guidance was provided in QQ4 2024 transcript data. Given the utility sector context, potential catalysts include regulated rate base growth through capital investments, weather-normalized demand, and approved rate adjustments in regional jurisdictions. Risks include regulatory lag or denial of rate increases, higher-than-expected capex needs, and rising interest costs. If management reaffirmed or guided to a moderate-capex ramp and stable utilization, the long-run trajectory supports earnings resilience; however, near-term earnings may be pressured by higher debt service and acquisition funding. Investors should monitor regulatory cycle timing, interest rate trends, and the company’s ability to translate rate base growth into net income and cash flow.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0HCT.L Focus
46.52%
25.50%
2.14%
25.49%
0ILW.L
37.60%
25.70%
1.94%
35.55%
0ICP.L
39.20%
17.00%
20.60%
4.45%
0H6G.L
14.20%
11.10%
12.20%
4.08%
0HW4.L
63.60%
24.80%
9.41%
8.28%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Alliant Energy offers a defensible, regulated earnings profile typical of mid-to-large US utility operators. The Q4 2024 results show solid profitability and a positive trend in operating performance, but the quarter also underscores the capital-intensive nature of the business and the leverage required to fund growth, as evidenced by acquisitions and financing activity that reduced cash balance and increased debt. With a regulated cash-flow backbone, the stock could appeal to yield-oriented and risk-conscious investors seeking stable income and visibility into rate-base growth, provided leverage and liquidity concerns are managed. Relative valuation appears stretched on earnings and cash-flow metrics (high P/E, high P/B, rich EV multiples) compared with some peers, suggesting a balanced view is warranted: capture the defensive earnings while monitoring the sensitivity to interest rates and regulatory decisions. Neutral-to-constructive stance pending more explicit guidance on 2025–2026 capex plans, rate-case resolutions, and debt-management strategy.
Key Investment Factors
Growth Potential
Regulated rate-base expansion and ongoing investments in grid modernization, reliability, and energy transition initiatives support predictable, inflation-protected earnings. Growth potential also rests on optimization of capital structure and the ability to finance acquisitions with favorable terms.
Profitability Risk
Regulatory risk from rate case outcomes and potential capex deferrals; interest-rate sensitivity given elevated debt; weather-driven demand variability; reliance on acquisitions and capital markets to fund growth; competition from distributed generation and evolving energy policies.
Financial Position
High leverage with debt-to-capitalization around 60% and interest coverage near 2.1x. Positive operating cash flow of $254m supports ongoing capex, but investing activities were negative for the period due to acquisitions (net $(815)m). Liquidity appears tight at quarter-end (cash balance $81m, current ratio 0.44). Dividends are sizable (payout ~82% of net income) with a modest dividend yield (~0.8%).