AI Takeaway
LNT delivered solid Q1 FY2026 results with revenue up 5.0% YoY to $1.18B and net income rising 5.2% to $224M, though operating margin contracted slightly and long-term debt surged 28.3% reflecting ongoing capital investment.
Revenue
$1.18B
++4.96% YoY
EPS (Basic)
$0.87
++4.82% YoY
Operating Income
$249M
-3.11% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue increased 5.0% YoY to $1.184B in Q1 FY2026 from $1.128B in the prior-year period, reflecting continued demand growth across LNT's regulated utility service territories.
Source: Source: 10-Q Income Statement
Net income rose 5.2% YoY to $224M while operating income declined 3.1% to $249M, suggesting that below-the-line items (e.g., lower interest expense or tax benefits) contributed positively even as operating-level profitability faced headwinds.
Source: Source: 10-Q Income Statement
Operating cash flow surged 47.8% YoY to $368M from $249M, significantly outpacing net income growth and indicating improved working capital management and non-cash add-backs including $223M in D&A.
Source: Source: 10-Q Cash Flow Statement
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Upgrade to unlockLNT's long-term debt grew 28.3% YoY to $11.007B, significantly increasing the company's leverage profile. In a higher-for-longer interest rate environment, refinancing costs could pressure future earnings and reduce financial flexibility for additional capital projects.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockReported EPS of $0.87 versus the $0.81 analyst consensus — a +7.1% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.18B | $1.13B | +4.96% |
Cost of Revenue | $159M | $158M | +0.63% |
Operating Income | $249M | $257M | -3.11% |
Net Income | $224M | $213M | +5.16% |
EPS (Basic) | $0.87 | $0.83 | +4.82% |
EPS (Diluted) | $0.87 | $0.83 | +4.82% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $24.81B | $22.85B | +8.59% |
Current Assets | $1.22B | $969M | +26.32% |
Current Liabilities | $1.78B | $2.89B | -38.43% |
Stockholders' Equity | $7.42B | $7.09B | +4.64% |
Cash & Equivalents | $115M | $25M | +360.00% |
Long-Term Debt | $11.01B | $8.58B | +28.29% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $368M | $249M | +47.79% |
Investing Cash Flow | $-393M | $-404M | +2.72% |
Financing Cash Flow | $-416M | $99M | -520.20% |
D&A | $223M | $211M | +5.69% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 21.0% | 22.8% | -1.75% |
Net Margin | 18.9% | — | — |
ROE | 3.0% | — | — |
ROA | 0.9% | — | — |
Current Ratio | $0.688 | — | — |
Other companies in Electric Utilities
LNT reported Q1 FY2026 revenue of $1.184B, up 5.0% YoY, and net income of $224M, up 5.2% YoY. EPS came in at $0.87 (basic and diluted), compared to $0.83 in Q1 FY2025, reflecting steady growth in its regulated utility business.
LNT's operating income declined 3.1% YoY to $249M even as revenue grew 5.0%, because operating expenses grew faster than revenues, compressing the operating margin from 22.8% to 21.0%. This suggests cost pressures — potentially in labor, maintenance, or regulatory compliance — outpaced rate increases during the quarter.
LNT's long-term debt increased significantly by 28.3% YoY to $11.007B as of Q1 FY2026, reflecting ongoing capital investment in utility infrastructure. Total assets also grew 8.6% to $24.8B, consistent with a regulated utility in an active capital expenditure cycle.
LNT generated $368M in operating cash flow in Q1 FY2026, a robust 47.8% increase YoY from $249M, supported by $223M in depreciation and amortization. However, investing outflows of -$393M slightly exceeded operating cash flow, resulting in modestly negative free cash flow for the quarter.
The primary risks for LNT include its rapidly rising long-term debt (up 28.3% to $11.007B), which increases interest rate sensitivity, and regulatory risk as a utility dependent on rate case approvals to recover costs. Additionally, operating margin compression from 22.8% to 21.0% YoY signals potential cost pressure that could persist if not offset by favorable regulatory outcomes.