Alliant Energy · 10-Q · Item 2 MD&A

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This MDA includes information relating to Alliant Energy, and IPL and WPL (collectively, the Utilities), as well as ATC Holdings, AEF and Corporate Services. Where appropriate, information relating to a specific entity has been segregated and labeled as such. The following discussion and analysis should be read in conjunction with the Financial Statements and the Notes included in this report, as well as the financial statements, notes and MDA included in the 2025 Form 10-K. Unless otherwise noted, all “per share” references in MDA refer to earnings per diluted share.

Key highlights since the filing of the 2025 Form 10-K include the following:

Customer Investments:

•T1In March 2026, the IUC approved advance rate-making principles for IPL for up to 1,000 MW of new wind generation in Iowa. The rate-making principles approved include a fixed cost cap of $3,020/kilowatt, including AFUDC and transmission costs, among other costs. IPL’s return on common equity will be the same as other assets without advance rate-making principles for the purposes of setting future rates and IPL’s blended return on common equity, which will be updated each year, will be used for IPL’s retail electric earnings sharing mechanism calculation.

•In March 2026, WPL filed a certificate of authority application with the PSCW for approval to construct, own and install equipment that will maintain and increase the capacity and efficiency of its Riverside Energy Center. A decision from the PSCW is currently expected in the second quarter of 2027.

•In April 2026, IPL filed a certificate of public convenience, use and necessity (GCU Certificate) application with the IUC for approval to construct, own and operate an approximately 720 MW simple-cycle natural gas-fired EGU in Linn County, Iowa. A decision from the IUC is currently expected in the first quarter of 2027.

•In May 2026, IPL filed an application for amendment to its GCU Certificate with the IUC for approval to construct, own and operate up to an additional 125 MW of energy storage at the site of its Whispering Willow - North wind farm. The application seeks to increase the energy storage capacity at the site from the 75 MW previously approved to approximately 200 MW. A decision from the IUC is currently expected in the fourth quarter of 2026.

•In June 2026, the Neenah Unit 2 and Sheboygan Falls Unit 2 advanced gas path projects were completed, which increased the efficiency and capacity at each of these EGUs.

•In July 2026, IPL filed a GCU Certificate application with the IUC for approval to construct, own and operate an approximately 1,200 MW simple-cycle natural gas-fired EGU near the site of its Emery Generating Station, known as the Riverhawk Energy Center. A decision from the IUC is currently expected in the second quarter of 2027.

•In July 2026, the PSCW issued an order authorizing WPL to construct, own and operate the Bent Tree North EGU, an approximately 153 MW wind farm.

Rate Matters:

Large Load Tariff – In connection with its June 2026 approval of an individual customer rate (ICR), T2the PSCW directed WPL to file a large load tariff applicable to all customers with demand requirements of 100 MW or greater. The tariff must be filed before or concurrently with any future request for approval of an electric service agreement with a customer of 100 MW or greater of demand requirements. The large load tariff must specify the rates, terms and conditions applicable to customers meeting the applicable threshold and describe the standards and protections WPL will apply when evaluating electric service agreements with large load growth customers. In addition, customers served under approved ICRs must be treated as a separate customer class for purposes of future cost-of-service studies in WPL’s next retail electric rate review. The requirement to file a large load tariff did not affect the PSCW’s June 2026 approval of the ICR. Refer to “Growing Customer Demand” for additional information regarding the approved ICR.

Growing Customer Demand:

•T3In April 2026, IPL entered into an electric service agreement with a customer, who currently expects to build a data center in IPL’s service territory. This electric service agreement includes contracted peak demand of approximately 370 MW. The actual timing and amount of increases in IPL’s load are subject to various factors, including interconnections and actual customer demand, and any executed or future agreements with customers are not expected to result in immediate increases in load.

•In June 2026, the PSCW approved an ICR for a customer who is constructing a data center in WPL’s service territory, subject to certain conditions, including the recognition of demand revenue received prior to WPL’s next retail electric rate review through WPL’s retail electric fuel cost recovery mechanism. Refer to “Rate Matters” for additional information regarding the large load tariff requirements established by the PSCW in connection with its approval of the ICR.

Environmental Matters:

Coal Combustion Residuals (CCR) Rule - In April 2026, the EPA proposed a rule that would significantly reduce the scope of the CCR Rule, which is currently anticipated to be finalized by the end of 2026. T4Alliant Energy, IPL and WPL continue to evaluate the revised CCR Rule and are unable to predict with certainty the future outcome or impact of these updates, including resolution of ongoing litigation.

Table of Contents

Effluent Limitation Guidelines and Standards (ELGs) - In May 2026, the EPA proposed changes to the 2024 ELG Rule, which are currently anticipated to be finalized by the end of 2026. The proposed rule would revise discharge limits for specific categories of wastewater from certain existing steam EGUs. If finalized, the revised limitations would be implemented in the wastewater discharge permits issued by state agencies to affected facilities. Alliant Energy, IPL and WPL continue to evaluate the revised 2024 ELG Rule and are unable to predict with certainty the future outcome or impact of these updates, including resolution of ongoing or potential litigation.

Legislative Matters:

•In April 2026, the State of Wisconsin enacted 2025 Wisconsin Act 193, which requires utilities to include their capacity costs and revenues in their annual fuel cost plans. The most significant provisions of the legislation for Alliant Energy and WPL are the requirement that fuel cost calculations in approved fuel cost plans account for both the cost of purchasing capacity and the revenue generated from selling it. The legislation applies to fuel cost plans filed on or after January 1, 2027.

RESULTS OF OPERATIONS

Financial Results Overview - The table below includes diluted EPS for Utilities and Corporate Services, ATC Holdings, and Non-utility and Parent, which are non-GAAP financial measures. Alliant Energy believes these non-GAAP financial measures are useful to investors because they facilitate an understanding of performance and trends, and provide additional information about Alliant Energy’s operations on a basis consistent with the measures that management uses to manage its operations and evaluate its performance. Alliant Energy’s net income and diluted EPS attributable to Alliant Energy common shareowners for the three months ended June 30 were as follows (dollars in millions, except per share amounts):

Income (Loss)

EPS

Income (Loss)

EPS

Utilities and Corporate Services

ATC Holdings

Non-utility and Parent

Alliant Energy Consolidated

Alliant Energy’s Utilities and Corporate Services net income decreased by $42 million for the three-month period, primarily due to T5higher other operation and maintenance, financing and depreciation expenses, the timing of income taxes and estimated temperature impacts on retail electric and gas sales. These items were partially offset by higher revenue requirements from IPL’s and WPL’s capital investments.

Alliant Energy’s Non-utility and Parent net income increased $36 million for the three-month period, primarily due to higher equity earnings from corporate venture investments and the timing of income taxes, partially offset by higher financing expense.

Table of Contents

Net Income Variances - The following items contributed to increased (decreased) net income for the three and six months ended June 30, 2026 compared to the same periods in 2025 (in millions):

Three Months

Six Months

Alliant Energy

IPL

WPL

Alliant Energy

IPL

WPL

Revenues:

Changes in electric utility (Refer to details below)

($3)

Changes in gas utility (Refer to details below)

6

3

3

8

Changes in other utility (Refer to Note 7 for details)

(9)

1

1

Changes in non-utility

3

—

—

5

—

—

Changes in total revenues

6

1

6

Operating expenses:

Changes in electric production fuel and purchased power (Refer to details below)

(5)

(3)

Changes in electric transmission service (Refer to details below)

(4)

2

(6)

(6)

5

Changes in cost of gas sold (Refer to details below)

(7)

(5)

(2)

Changes in other operation and maintenance (Refer to details below)

Changes in depreciation and amortization (Higher primarily due to energy storage placed in service in 2025)

(4)

(8)

(9)

Changes in taxes other than income taxes

(2)

(1)

(1)

(2)

(1)

(2)

Changes in total operating expenses

(9)

Changes in operating income

(8)

(5)

Other income and deductions:

Changes in interest expense (Higher primarily due to financings completed in 2025)

(5)

(6)

Changes in equity income from unconsolidated investments, net (Refer to Note 4 for details)

—

—

—

—

Changes in allowance for funds used during construction (Primarily due to changes in levels of construction work in progress balances related to energy storage and gas generation)

8

8

—

2

Changes in Other

3

(1)

4

9

1

6

Changes in total other income and deductions

2

(2)

4

(3)

Changes in income before income taxes

(8)

Changes in income taxes (Refer to Note 8 for details)

9

(4)

1

5

Changes in net income

($4)

($9)

$7

($3)

Electric and Gas Revenues and Sales Summary - Electric and gas revenues (in millions), and MWh and Dth sales (in thousands), for the three and six months ended June 30 were as follows:

Alliant Energy

Electric

Gas

Revenues

MWhs Sold

Revenues

Dths Sold

Three Months

Retail

Sales for resale:

Wholesale

N/A

N/A

N/A

N/A

Bulk power and other

N/A

N/A

N/A

N/A

Transportation/Other

Six Months

Retail

Sales for resale:

Wholesale

N/A

N/A

N/A

N/A

Bulk power and other

N/A

N/A

N/A

N/A

Transportation/Other

Table of Contents

IPL

Electric

Gas

Revenues

MWhs Sold

Revenues

Dths Sold

Three Months

Retail

Sales for resale:

Wholesale

—

2

N/A

N/A

N/A

N/A

Bulk power and other

3

1

N/A

N/A

N/A

N/A

Transportation/Other

8

8

7

8

5

7

Six Months

Retail

Sales for resale:

Wholesale

—

5

N/A

N/A

N/A

N/A

Bulk power and other

2

N/A

N/A

N/A

N/A

Transportation/Other

WPL

Electric

Gas

Revenues

MWhs Sold

Revenues

Dths Sold

Three Months

Retail

Sales for resale:

Wholesale

N/A

N/A

N/A

N/A

Bulk power and other

N/A

N/A

N/A

N/A

Transportation/Other

5

5

6

6

5

5

Six Months

Retail

Sales for resale:

Wholesale

N/A

N/A

N/A

N/A

Bulk power and other

N/A

N/A

N/A

N/A

Transportation/Other

9

5

Sales Trends and Temperatures - Alliant Energy’s retail electric sales volumes increased 1% and remained unchanged for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to higher sales to commercial and industrial customers at WPL, partially offset by changes in temperatures. Alliant Energy’s retail gas sales volumes decreased 5% and 5% for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to changes in temperatures.

T6Estimated increases (decreases) to operating income from the impacts of temperatures for the three and six months ended June 30 were as follows (in millions):

Electric

Gas

Three Months

Six Months

Three Months

Six Months

Change

Change

Change

Change

IPL

($3)

$4

($7)

($9)

$—

($9)

($1)

($1)

$—

($5)

($3)

($2)

WPL

(6)

3

(9)

(9)

—

(9)

(1)

—

(1)

(3)

(1)

(2)

Total Alliant Energy

($9)

$7

$—

($2)

($1)

($1)

($8)

($4)

($4)

Electric Sales for Resale - Alliant Energy’s and IPL’s wholesale sales volumes decreased for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to the expiration of IPL’s wholesale power agreement with Southern Minnesota Energy Cooperative in 2025.

Table of Contents

Bulk power and other volume changes were due to changes in sales in the wholesale energy markets operated by MISO. These changes are impacted by several factors, including the availability and dispatch of Alliant Energy’s EGUs and electricity demand within these wholesale energy markets. Changes in bulk power and other revenues were largely offset by changes in fuel-related costs, and therefore did not have a significant impact on operating income.

Gas Transportation/Other - Gas transportation/other sales volume changes were largely due to changes in the gas volumes supplied to Alliant Energy’s natural gas-fired EGUs caused by the availability and dispatch of such EGUs.

Electric Utility Revenue Variances - The following items contributed to increased (decreased) electric utility revenues for the three and six months ended June 30, 2026 compared to the same periods in 2025 (in millions):

Three Months

Six Months

Alliant Energy

IPL

WPL

Alliant Energy

IPL

WPL

Higher revenue requirements (a)

$—

$—

Higher revenues at IPL due to credits on customers’ bills through the tax benefit rider in 2025 (partially offset by changes in wholesale revenues and income taxes)

—

—

Higher (lower) sales for resale bulk power and other revenues (b)

2

9

5

Higher revenues at IPL related to changes in recovery amounts for energy efficiency costs through the energy efficiency rider (mostly offset by changes in energy efficiency expense)

4

4

—

—

T7Lower wholesale revenues at IPL primarily due to lower sales from the expiration of IPL’s wholesale power agreement with Southern Minnesota Energy Cooperative in 2025

—

—

Changes in WPL refunds/collections of previous over-/under-collection of retail electric fuel-related costs (offset in electric production fuel and purchased power expenses)

—

—

Estimated changes in sales volumes caused by temperatures

(7)

(9)

(9)

(9)

Higher (lower) revenues primarily due to changes in retail electric fuel-related costs (Refer to Electric Production Fuel and Purchased Power Expenses Variances below) (a)

3

4

(1)

—

Lower revenues at IPL due to credits on customers’ bills related to production tax credits through its fuel-related cost recovery mechanism (offset by changes in income taxes)

(9)

(9)

—

—

Other (primarily due to higher temperature-normalized retail sales)

7

($3)

(a)T8In December 2025, the PSCW issued an order authorizing an annual base rate increase of $69 million for WPL’s retail electric customers, covering the 2026 forward-looking Test Period, which reflects revenue requirement impacts of increasing electric rate base, including wind refurbishment projects, energy storage, existing natural gas-fired EGU improvements and electric distribution investments and lower forecasted fuel-related expenses.

(b)Sales for resale bulk power and other revenues decreased for the three months ended June 30, 2026 compared to the same period in 2025, primarily due to lower volumes and lower prices for electricity sold by WPL to MISO wholesale energy markets. Sales for resale bulk power and other revenues increased for the six months ended June 30, 2026 compared to the same period in 2025, primarily due to higher volumes and higher prices for electricity sold by IPL and WPL to MISO wholesale energy markets. These changes were largely offset by changes in fuel-related costs.

Table of Contents

Gas Utility Revenue Variances - The following items contributed to increased (decreased) gas utility revenues for the three and six months ended June 30, 2026 compared to the same periods in 2025 (in millions):

Three Months

Six Months

Alliant Energy

IPL

WPL

Alliant Energy

IPL

WPL

Higher revenues due to changes in gas costs (Refer to Cost of Gas Sold Expense Variances below)

$8

$6

$2

Higher revenue requirements (a)

1

—

1

3

—

3

Estimated changes in sales volumes caused by temperatures

(1)

—

(1)

(4)

(2)

(2)

Lower revenues at IPL related to changes in recovery amounts for energy efficiency costs through the energy efficiency rider (mostly offset by changes in energy efficiency expense)

—

—

—

(3)

(3)

—

Other

(2)

(3)

1

(2)

(2)

—

$6

$3

$3

$8

(a)In December 2025, the PSCW issued an order authorizing an annual base rate increase of $7 million for WPL’s retail gas customers, covering the 2026 forward-looking Test Period, which reflects revenue requirement impacts of increasing gas rate base.

Electric Production Fuel and Purchased Power Expenses Variances - The following items contributed to (increased) decreased electric production fuel and purchased power expenses for the three and six months ended June 30, 2026 compared to the same periods in 2025 (in millions):

Three Months

Six Months

Alliant Energy

IPL

WPL

Alliant Energy

IPL

WPL

(Higher) lower purchased power expense (a)

($4)

($1)

Changes in WPL refunds/collections of previous over-/under-collection of retail electric fuel-related costs (offset in electric utility revenue)

—

—

(Higher) lower electric production fuel costs (b)

4

9

(7)

Changes in regulatory recovery of retail electric fuel-related costs

8

(4)

Other

(1)

1

(2)

(3)

(1)

(2)

($5)

($3)

(a)Purchased power expense decreased for the three and six months ended June 30, 2026 compared to the same periods in 2025, primarily due to lower prices for electricity purchased and lower volumes purchased at IPL.

(b)Electric production fuel costs decreased for the three months ended June 30, 2026 compared to the same period in 2025, primarily due to lower natural gas volumes at IPL and WPL due to lower dispatch of natural gas-fired EGUs and lower coal volumes at WPL due to lower dispatch of coal-fired EGUs, partially offset by higher natural gas prices. Electric production fuel costs increased for the six months ended June 30, 2026 compared to the same period in 2025, primarily due to higher natural gas prices and higher natural gas volumes at WPL due to higher dispatch of natural gas-fired EGUs, partially offset by lower coal volumes at WPL due to lower dispatch of coal-fired EGUs and lower natural gas volumes at IPL due to lower dispatch of natural gas-fired EGUs.

Table of Contents

Electric Transmission Service Expense Variances - The following items contributed to (increased) decreased electric transmission service expense for the three and six months ended June 30, 2026 compared to the same periods in 2025 (in millions):

Three Months

Six Months

Alliant Energy

IPL

WPL

Alliant Energy

IPL

WPL

Changes in regulatory recovery for the difference between actual electric transmission service costs and those costs used to determine rates

$—

$—

Other (primarily due to changes in transmission service costs provided by third parties)

(9)

(6)

($4)

$2

($6)

($6)

$5

Cost of Gas Sold Expense Variances - The following items contributed to (increased) decreased cost of gas sold expense for the three and six months ended June 30, 2026 compared to the same periods in 2025 (in millions):

Three Months

Six Months

Alliant Energy

IPL

WPL

Alliant Energy

IPL

WPL

Changes in retail gas volumes and natural gas prices

$—

($1)

$1

Changes in the regulatory recovery of gas costs

(8)

(5)

(3)

3

7

(4)

Other

1

1

—

(1)

—

(1)

($7)

($5)

($2)

Other Operation and Maintenance Expenses Variances - The following items contributed to (increased) decreased other operation and maintenance expenses for the three and six months ended June 30, 2026 compared to the same periods in 2025 (in millions):

Three Months

Six Months

Alliant Energy

IPL

WPL

Alliant Energy

IPL

WPL

Higher incentive compensation expense

($9)

($7)

($9)

Higher generation and energy delivery expenses

(2)

(2)

—

(8)

Higher energy efficiency expense at IPL (mostly offset by higher revenues)

(5)

(5)

—

(9)

(9)

—

Other

(8)

(8)

2

LIQUIDITY AND CAPITAL RESOURCES

The liquidity and capital resources summary included in the 2025 Form 10-K has not changed materially, except as described below.

Liquidity Position - At June 30, 2026, Alliant Energy had $25 million of cash and cash equivalents, $542 million ($152 million at the parent company, $173 million at IPL and $217 million at WPL) of available capacity under the single revolving credit facility and no available capacity at IPL under its sales of accounts receivable program.

Capital Structure - The following table shows financial capital structures as of June 30, 2026, as well as an adjusted capitalization structure that Alliant Energy believes is consistent with how a majority of the rating agencies currently view its junior subordinated notes (in millions):

Alliant Energy

IPL

WPL

Actual

Adjusted (a)

Actual

Actual

Common equity

Long-term debt (including current maturities)

Short-term debt

Total capitalization

Total debt

Ratio of debt to total capitalization

%

%

%

%

(a)The long-term debt component of Alliant Energy’s financial capital structure includes junior subordinated notes classified as “Long-term debt, net” on Alliant Energy’s balance sheet. The adjusted presentation attributes 50% of the junior subordinated notes to common equity and 50% to long-term debt, to align with the debt-to-capital ratio used by the majority of rating agencies. The non-GAAP adjusted presentation reflecting this treatment is useful and relevant to investors in understanding how management and the rating agencies evaluate Alliant Energy’s capital structure.

Table of Contents

Cash Flows - Selected information from the cash flows statements was as follows (in millions):

Alliant Energy

IPL

WPL

Cash, cash equivalents and restricted cash, January 1

$7

Cash flows from (used for):

Operating activities

Investing activities

Financing activities

Net increase (decrease)

5

Cash, cash equivalents and restricted cash, June 30

Operating Activities - The following items contributed to increased (decreased) operating activity cash flows for the six months ended June 30, 2026 compared to the same period in 2025 (in millions):

Alliant Energy

IPL

WPL

Changes in interest payments

($9)

Timing of WPL’s fuel-related cost recoveries from retail electric customers

—

Lower wholesale revenues at IPL primarily due to lower sales from the expiration of IPL’s wholesale power agreement with Southern Minnesota Energy Cooperative in 2025

—

Decreased collections from IPL’s and WPL’s retail customers caused by temperature impacts on electric and gas sales

Timing of intercompany payments and receipts

—

2

Higher collections from WPL’s retail electric and gas base rate increases

—

Changes in the sales of accounts receivable at IPL

—

Higher collections from IPL’s retail customers due to credits on customers’ bills related to the tax benefit rider in 2025

—

Changes in income taxes paid/received (a)

5

Other (primarily due to other changes in working capital)

6

5

(a)Refer to the cash flows statements for details of renewable tax credits transferred to other corporate taxpayers during the six months ended June 30, 2026 and 2025.

Investing Activities - The following items contributed to increased (decreased) investing activity cash flows for the six months ended June 30, 2026 compared to the same period in 2025 (in millions):

Alliant Energy

IPL

WPL

Changes in the amount of cash receipts on sold receivables

$—

Lower (higher) utility construction and acquisition expenditures (a)

Higher non-utility construction and acquisition expenditures

—

—

Other

(4)

(a)Largely due to lower expenditures for IPL’s energy storage and refurbishment of existing wind farms, partially offset by higher expenditures for WPL’s refurbishment of existing wind farms.

Financing Activities - The following items contributed to increased (decreased) financing activity cash flows for the six months ended June 30, 2026 compared to the same period in 2025 (in millions):

Alliant Energy

IPL

WPL

Lower net proceeds from issuance of long-term debt

$—

Higher payments to retire long-term debt

—

—

Changes in common stock dividends

Higher capital contributions from IPL’s and WPL’s parent company, Alliant Energy

—

5

Net changes in the amount of commercial paper outstanding

Higher proceeds from issuance of other short-term borrowings

—

—

Higher net proceeds from common stock issuances

—

—

Other

(1)

3

Table of Contents

Common Stock Issuances - Refer to Note 5 for discussion of common stock issuances by Alliant Energy in 2026 and Alliant Energy’s at-the-market offering programs.

Short-term Debt - Refer to Note 6(a) for discussion of Alliant Energy’s term loan credit agreement entered into in 2026.

Long-term Debt - Refer to Note 6(b) for discussion of issuances and/or retirements of long-term debt by Alliant Energy, AEF and IPL in 2026.

Impact of Credit Ratings on Liquidity and Collateral Obligations -

Ratings Triggers - In March 2026, Standard & Poor’s Ratings Services changed certain IPL credit ratings, which are not expected to have a material impact on Alliant Energy’s and IPL’s liquidity or collateral obligations. Alliant Energy’s, IPL’s and WPL’s current credit ratings and outlooks are as follows:

Standard & Poor’s Ratings Services

Alliant Energy:

Corporate/issuer

BBB+

Commercial paper

A-2

Senior unsecured long-term debt

BBB

Outlook

Stable

IPL:

Corporate/issuer

A-

Commercial paper

A-2

Senior unsecured long-term debt

A-

Outlook

Stable

WPL:

Corporate/issuer

A-

Commercial paper

A-2

Senior unsecured long-term debt

A-

Outlook

Stable

Off-Balance Sheet Arrangements and Certain Financial Commitments - A summary of Alliant Energy’s and IPL’s off-balance sheet arrangements and Alliant Energy’s, IPL’s and WPL’s contractual obligations is included in the 2025 Form 10-K and has not changed materially from the items reported in the 2025 Form 10-K, except for the items described in Notes 3, 6 and 12.