Latest news with #OtterTailCorporation
Business Wire
04-08-2025
- Business
- Business Wire
Otter Tail Corporation Announces Second Quarter Earnings and Increases Annual Earnings Guidance
FERGUS FALLS, Minn.--(BUSINESS WIRE)--Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended June 30, 2025. SUMMARY Produced diluted earnings per share of $1.85 in the second quarter of 2025. Increased midpoint of 2025 earnings per share guidance by $0.38 to $6.26 per share. Return on equity of 17% over the trailing twelve months. CEO OVERVIEW 'We are pleased with our second quarter financial results,' said President and CEO Chuck MacFarlane. 'Across our businesses, our team members remain committed to our mission - delivering value through building strong electric and manufacturing platforms - amidst dynamic market conditions. "During the second quarter, severe weather moved through Otter Tail Power's service territory, resulting in significant property and infrastructure damage, as well as tree loss. Approximately 30 percent of our customers experienced an interruption in electric service due to the storms. Our employees worked tirelessly to restore power to our customers as quickly and safely as possible. 'Beyond our storm response, Otter Tail Power continues to perform well, executing on our significant capital investment plan and regulatory priorities. We secured approval to directly assign and recover the capital investment for our two solar development projects from the Minnesota and South Dakota Commissions. We look forward to adding 345 MW of cost-effective solar generation to our portfolio to better serve our customers. Additionally, for the first time since 2018, we filed a request with the South Dakota Public Utilities Commission for permission to increase our electric rates by approximately $5.7 million. 'Our Manufacturing segment continues to navigate soft end market demand but remains well positioned to respond when market conditions improve. Our recently completed BTD Georgia facility is ramping up to full production capability and we look forward to being able to better serve our growing customers in the southeast. 'Plastics segment results outpaced our expectations for the second quarter. We continue to benefit from strong product demand and higher sales volumes as the sales prices of PVC pipe continue to recede. 'We are uplifting our 2025 diluted earnings per share guidance for the Plastics segment, increasing our consolidated guidance to a range of $6.06 to $6.46 from our previous range of $5.68 to $6.08. 'Our strategic diversification continues to serve us and our stakeholders well even as we return to more normalized levels of Plastics segment earnings, generating incremental cash for us to reinvest into our significant utility rate base growth plan. We remain confident in our ability to deliver on our investment targets, producing an earnings per share growth of 6 to 8 percent.' QUARTERLY DIVIDEND On August 4, 2025, the corporation's Board of Directors declared a quarterly common stock dividend of $0.525 per share. This dividend is payable September 10, 2025 to shareholders of record on August 15, 2025. CASH FLOWS AND LIQUIDITY Our consolidated cash provided by operating activities for the six months ended June 30, 2025 was $159.4 million compared to $223.5 million for the six months ended June 30, 2024, with the decrease primarily due to the timing of fuel cost and rider recoveries from our utility customers and the timing of payments for operating costs, as well as a decrease in earnings. Investing activities for the six months ended June 30, 2025 included capital expenditures of $124.2 million. Capital expenditures during the period were largely within our Electric segment, including investments in wind repowering, advanced metering infrastructure, and transmission line projects. Financing activities for the six months ended June 30, 2025 included the issuance of $100.0 million of long-term debt at Otter Tail Power; the proceeds of which were used to repay short-term borrowings, fund capital investments, and support operating activities. Financing activities for the six months ended June 30, 2025 also included net repayments of short-term borrowings totaling $69.6 million and dividend payments of $44.0 million. As of June 30, 2025, we had $170.0 million and $211.0 million of available liquidity under our Otter Tail Corporation and Otter Tail Power credit facilities, respectively, along with $307.2 million of available cash and cash equivalents, for total available liquidity of $688.2 million. Electric Segment The following table shows heating and cooling degree days as a percent of normal. Three Months Ended June 30, 2025 2024 Heating Degree Days 86.5% 68.8% Cooling Degree Days 114.2% 48.8% Expand The following table summarizes the estimated effect on diluted earnings per share of the difference in retail kilowatt-hour (kwh) sales under actual weather conditions and expected retail kwh sales under normal weather conditions for the three months ended June 30, 2025 and 2024. Operating Revenues increased $15.9 million primarily due to increases in fuel recovery and rider revenues, and the impact of favorable weather compared to the same period last year. Increased fuel recovery revenue was primarily driven by an increase in the price of natural gas and the cost of market energy. Increased rider revenue was largely from the recovery of our investments in our wind repowering projects. Net Income increased $0.7 million primarily due to the increase in revenues, as described above, partially offset by increased operating and maintenance expenses, including planned outage costs at Coyote Station, and increased depreciation and interest expense associated with our rate base investments. Manufacturing Segment Operating Revenues decreased $18.0 million primarily due to a 9% decrease in sales volumes, with declines experienced across several end markets, including agriculture, recreational vehicles, lawn and garden, and construction. Sales volumes were down at our metal fabrication business due to soft end market demand and inventory management efforts by manufacturers and dealers. A 7% decrease in steel costs, which are passed through to customers, also contributed to the decrease in operating revenues. Net Income decreased $3.4 million primarily due to lower sales volumes and enhanced profit margins in the second quarter of 2024, which benefited from the positive impact of the timing of pass-through steel cost fluctuations and the selling of lower cost inventory. The impacts of decreased operating revenues and profit margins were partially offset by a decrease in general and administrative costs. Plastics Segment Operating Revenues decreased $7.2 million primarily due to a 15% decrease in sales prices compared to the same period last year, continuing the steady decline in product pricing from peak market conditions in late 2022. The impact of decreased sales prices was partially offset by an 11% increase in sales volumes, driven by strong distributor and end-market demand for our products, coupled with increased production capacity following the completion of our expansion project at Vinyltech in late 2024. Active infrastructure investment and construction activity across our sales territories continue to contribute to strong demand for our products. Net Income decreased $7.5 million primarily due to decreased sales prices, as described above, partially offset by the 11% increase in sales volumes and a 15% decrease in PVC resin cost driven by global supply and demand dynamics which continues to result in elevated supply. Corporate Net Income increased $0.9 million primarily due to increased market-based gains on our corporate-owned life insurance policy investments. 2025 OUTLOOK We are increasing our 2025 diluted earnings per share guidance to a range of $6.06 to $6.46. We expect our earnings mix in 2025 to be approximately 37% from our Electric segment and 63% from our Manufacturing and Plastics segments, net of corporate costs. Our anticipated earnings mix in 2025 deviates from our long-term expected earnings mix of 65% Electric / 35% Non-Electric as we expect Plastics segment earnings to remain elevated in 2025 compared to our long-term view of normal earnings for this segment. The segment components of our 2025 diluted earnings per share guidance compared with actual earnings for 2024 are as follows: We are maintaining our earnings guidance for our Electric and Manufacturing segments and maintaining our Corporate cost outlook. We are increasing our Plastics segment earnings guidance based on: Better than expected financial results in the second quarter of 2025, Lower material costs anticipated for the remainder of the year, as the forecasted price of PVC resin has declined, and Revised expectations for PVC pipe pricing for the second half of the year. CONFERENCE CALL AND WEBCAST The corporation will host a live webcast on Tuesday, August 5, 2025, at 10:00 a.m. CT to discuss its financial and operating performance. The presentation will be posted on our website before the webcast. To access the live webcast, go to and select 'Webcast.' Please allow time prior to the call to visit the site and download any software needed to listen in. An archived copy of the webcast will be available on our website shortly after the call. If you are interested in asking a question during the live webcast, visit and follow the link provided in the press release announcing the upcoming conference call. FORWARD-LOOKING STATEMENTS Except for historical information contained here, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words 'anticipate,' 'believe,' 'can,' 'could,' 'estimate,' 'expect,' 'future,' 'goal,' 'intend,' 'likely,' 'may,' 'opportunity,' 'outlook,' 'plan,' 'possible,' 'potential,' 'predict,' 'probable,' 'projected,' 'should,' 'target,' 'will,' 'would' and similar words and expressions are intended to identify forward-looking statements. Such statements are based upon the current beliefs and expectations of management. Forward-looking statements made herein, which may include statements regarding 2025 earnings and earnings per share, long-term earnings, earnings per share growth and earnings mix, anticipated levels of energy generation from renewable resources, anticipated reductions in carbon dioxide emissions, future investments and capital expenditures, rate base levels and rate base growth, future raw materials costs, future raw materials availability and supply constraints, future operating revenues and operating results, and expectations regarding regulatory proceedings, as well as other assumptions and statements, involve known and unknown risks and uncertainties that may cause our actual results in current or future periods to differ materially from the forecasted assumptions and expected results. The Company's risks and uncertainties include, among other things, uncertainty of future investments and capital expenditures; rate base levels and rate base growth; risks associated with energy markets; the availability and pricing of resource materials; inflationary cost pressures; attracting and maintaining a qualified and stable workforce; changing macroeconomic and industry conditions that impact the demand for our products, pricing and margin; long-term investment risk; seasonal weather patterns and extreme weather events; future business volumes with key customers; reductions in our credit ratings; our ability to access capital markets on favorable terms; assumptions and costs relating to funding our employee benefit plans; our subsidiaries' ability to make dividend payments; cybersecurity threats or data breaches; the impact of government legislation and regulation including foreign trade policy and environmental; health and safety laws and regulations; changes in tax laws and regulations; the impact of climate change including compliance with legislative and regulatory changes to address climate change; expectations regarding regulatory proceedings, assigned service areas, the construction of major facilities, capital structure, and allowed customer rates; actual and threatened claims or litigation; and operational and economic risks associated with our electric generating and manufacturing facilities. These and other risks are more fully described in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. Category: Earnings About the Corporation: Otter Tail Corporation, a member of the S&P SmallCap 600 Index, has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the Nasdaq Global Select Market under the symbol OTTR. The latest investor and corporate information is available at Corporate offices are in Fergus Falls, Minnesota, and Fargo, North Dakota. OTTER TAIL CORPORATION CONSOLIDATED BALANCE SHEETS (unaudited) June 30, December 31, (in thousands) 2025 2024 Assets Current Assets Cash and Cash Equivalents $ 307,241 $ 294,651 Receivables, net of allowance for credit losses 180,823 145,964 Inventories 151,558 148,885 Regulatory Assets 8,946 9,962 Other Current Assets 25,842 30,579 Total Current Assets 674,410 630,041 Noncurrent Assets Investments 128,289 121,177 Property, Plant and Equipment, net of accumulated depreciation 2,754,068 2,692,460 Regulatory Assets 99,010 98,673 Intangible Assets, net of accumulated amortization 5,192 5,743 Goodwill 37,572 37,572 Other Noncurrent Assets 66,747 66,416 Total Noncurrent Assets 3,090,878 3,022,041 Total Assets $ 3,765,288 $ 3,652,082 Liabilities and Shareholders' Equity Current Liabilities Short-Term Debt $ — $ 69,615 Accounts Payable 98,234 113,574 Accrued Salaries and Wages 25,039 34,398 Accrued Taxes 16,465 17,314 Regulatory Liabilities 24,580 29,307 Other Current Liabilities 39,162 45,582 Total Current Liabilities 203,480 309,790 Noncurrent Liabilities and Deferred Credits Pension Benefit Liability 32,204 32,614 Other Postretirement Benefits Liability 26,494 27,385 Regulatory Liabilities 289,546 288,928 Deferred Income Taxes 278,091 267,745 Deferred Tax Credits 14,705 14,990 Other Noncurrent Liabilities 102,932 98,397 Total Noncurrent Liabilities and Deferred Credits 743,972 730,059 Commitments and Contingencies Capitalization Long-Term Debt 1,043,374 943,734 Shareholders' Equity Common Shares 209,522 209,140 Additional Paid-In Capital 432,664 429,089 Retained Earnings 1,131,542 1,029,738 Accumulated Other Comprehensive Income 734 532 Total Shareholders' Equity 1,774,462 1,668,499 Total Capitalization 2,817,836 2,612,233 Total Liabilities and Shareholders' Equity $ 3,765,288 $ 3,652,082 Expand OTTER TAIL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Six Months Ended June 30, (in thousands) 2025 2024 Operating Activities Net Income $ 145,827 $ 161,333 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation and Amortization 58,822 52,528 Deferred Tax Credits (285 ) (372 ) Deferred Income Taxes 6,149 9,492 Investment Gains (2,741 ) (3,111 ) Stock Compensation Expense 7,396 6,824 Other, net (1,745 ) (1,251 ) Change in Operating Assets and Liabilities: Receivables (34,859 ) (34,803 ) Inventories (131 ) (11,551 ) Regulatory Assets (643 ) 7,361 Other Assets 4,756 (3,951 ) Accounts Payable (6,477 ) 41,239 Accrued and Other Liabilities (13,447 ) (19,312 ) Regulatory Liabilities 198 23,863 Pension and Other Postretirement Benefits (3,441 ) (4,828 ) Net Cash Provided by Operating Activities 159,379 223,461 Investing Activities Capital Expenditures (124,239 ) (175,528 ) Proceeds from Disposal of Noncurrent Assets 2,792 5,124 Purchases of Investments and Other Assets (5,579 ) (57,661 ) Net Cash Used in Investing Activities (127,026 ) (228,065 ) Financing Activities Net Repayments of Short-Term Debt (69,615 ) (68,612 ) Proceeds from Issuance of Long-Term Debt 100,000 120,000 Dividends Paid (44,023 ) (39,122 ) Payments for Shares Withheld for Employee Tax Obligations (3,134 ) (5,753 ) Other, net (2,991 ) (1,610 ) Net Cash (Used in) Provided by Financing Activities (19,763 ) 4,903 Net Change in Cash and Cash Equivalents 12,590 299 Cash and Cash Equivalents at Beginning of Period 294,651 230,373 Cash and Cash Equivalents at End of Period $ 307,241 $ 230,672 Expand OTTER TAIL CORPORATION Three Months Ended June 30, Six Months Ended June 30, Operating Revenues Electric $ 128,731 $ 112,828 $ 278,451 $ 254,317 Manufacturing 78,726 96,684 160,412 196,065 Plastics 125,586 132,824 231,533 239,022 Total Operating Revenues $ 333,043 $ 342,336 $ 670,396 $ 689,404 Operating Income (Loss) Electric $ 23,633 $ 22,597 $ 52,676 $ 51,639 Manufacturing 5,065 9,600 7,492 17,014 Plastics 72,034 82,089 130,909 145,392 Corporate (3,274 ) (3,375 ) (9,620 ) (8,159 ) Total Operating Income $ 97,458 $ 110,911 $ 181,457 $ 205,886 Net Income Electric $ 19,195 $ 18,485 $ 43,903 $ 40,956 Manufacturing 3,481 6,835 5,013 12,096 Plastics 53,104 60,612 96,543 107,350 Corporate 1,948 1,063 368 931 Total Net Income $ 77,728 $ 86,995 $ 145,827 $ 161,333 Expand
Yahoo
15-07-2025
- Business
- Yahoo
Otter Tail Corporation Will Host Conference Call on Second Quarter 2025 Financial Results
FERGUS FALLS, Minn., July 15, 2025--(BUSINESS WIRE)--Otter Tail Corporation (Nasdaq: OTTR) will issue a news release announcing second quarter 2025 financial results after the stock market closes on Monday, August 4, 2025 and will host a live conference call and webcast on Tuesday, August 5, 2025 at 10:00 a.m. CT to discuss the corporation's financial and operating performance. Accompanying slides will be posted on the corporation's website before the webcast begins. To access the live webcast, go to Please allow time prior to the call to visit the site and download any software required to listen. A copy of the webcast will be available on the corporation's website shortly after the call. Please click here to pre-register for the conference call and obtain your dial in number and passcode. Contact Beth Eiken at 701-451-3571 or beiken@ with any questions on how to participate. About Otter Tail Corporation: Otter Tail Corporation has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the NASDAQ Global Select Market under the symbol OTTR. The latest investor and corporate information is available at Corporate offices are located in Fergus Falls, Minnesota, and Fargo, North Dakota. View source version on Contacts Investor Contact: Beth Eiken, Manager of Investor Relations, (701) 451-3571Media Contact: Stephanie Hoff, Director of Corporate Communications, (218) 739-8535 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
15-07-2025
- Business
- Business Wire
Otter Tail Corporation Will Host Conference Call on Second Quarter 2025 Financial Results
FERGUS FALLS, Minn.--(BUSINESS WIRE)--Otter Tail Corporation (Nasdaq: OTTR) will issue a news release announcing second quarter 2025 financial results after the stock market closes on Monday, August 4, 2025 and will host a live conference call and webcast on Tuesday, August 5, 2025 at 10:00 a.m. CT to discuss the corporation's financial and operating performance. Accompanying slides will be posted on the corporation's website before the webcast begins. To access the live webcast, go to Please allow time prior to the call to visit the site and download any software required to listen. A copy of the webcast will be available on the corporation's website shortly after the call. Please click here to pre-register for the conference call and obtain your dial in number and passcode. Contact Beth Eiken at 701-451-3571 or beiken@ with any questions on how to participate. About Otter Tail Corporation: Otter Tail Corporation has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the NASDAQ Global Select Market under the symbol OTTR. The latest investor and corporate information is available at Corporate offices are located in Fergus Falls, Minnesota, and Fargo, North Dakota.
Business Wire
05-05-2025
- Business
- Business Wire
Otter Tail Corporation Announces First Quarter Earnings and Affirms Annual Earnings Guidance
FERGUS FALLS, Minn.--(BUSINESS WIRE)--Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended March 31, 2025. SUMMARY Produced diluted earnings per share of $1.62 in the first quarter of 2025. Affirming consolidated 2025 earnings guidance range of $5.68 to $6.08. Paid quarterly dividend of $0.525 per share, a 12% increase from last year. Available liquidity of $607 million as of March 31, 2025. CEO OVERVIEW 'Overall, we are pleased with our first quarter financial results,' said President and CEO Chuck MacFarlane. 'Each of our businesses are responding to the dynamic market conditions while remaining focused on serving our customers and effectively executing on our near-term strategies. Collectively, we produced earnings of $68.1 million, or $1.62 per diluted share, in line with our expectations and a good start to the year. 'We are actively monitoring the evolving tariff landscape and resulting impact on our business. While there is uncertainty regarding the extent and duration of the economic impacts, with the strength of our balance sheet, including ample liquidity, and an experienced management team, we are well positioned to weather this period of economic turbulence. 'Otter Tail Power finalized its fully settled North Dakota general rate case with a final compliance filing and implementation of new base rates in the first quarter. Overall, we view the outcome of the case to be constructive. In addition, we continue to execute on our investment and regulatory priorities, including development work on our renewable generation and large transmission projects. Finally, we achieved an important milestone in adding a new large customer to our system, reaching an agreement to provide service to a developer locating next to our Big Stone Plant. We are now working to receive regulatory approval for this load along with other steps necessary to commence service. 'Our Manufacturing segment continues to navigate softening end market demand in our served markets. In addition, domestic steel suppliers have announced price increases following the implementation of tariffs on imported steel. While our business has not been significantly impacted by metal price changes to date, we are monitoring for potential future impacts as higher priced metal enters the market. We completed the expansion of our BTD manufacturing facility in Georgia. The project was completed on time and on budget and we are currently ramping up to full production. 'Our Plastics segment continues to benefit from strong product demand and increased sales volumes while product prices continue to decline in line with our expectations. We are pleased with the first quarter performance of our new large diameter production line at Vinyltech, providing us the capability to better serve customers in our southwest market. 'We are maintaining our consolidated 2025 diluted earnings-per-share guidance range of $5.68 to $6.08, which we expect to produce a consolidated return on equity in the range of 13.8% to 14.6%. 'While our businesses are facing uncertainty in the current environment, we remain confident in our long-term strategy of investing in rate base growth opportunities at Otter Tail Power, which we expect to produce a compounded annual growth rate in rate base of 9 percent from 2025 to 2029, and the benefits of a diversified business model to generate incremental earnings and cash flows to fund our capital investment plan without any external equity needs. Over the long term, we expect this strategy to produce earnings-per-share growth of 6 to 8 percent and a total shareholder return of 9 to 11 percent.' QUARTERLY DIVIDEND On May 5, 2025, the corporation's Board of Directors declared a quarterly common stock dividend of $0.525 per share. This dividend is payable June 10, 2025 to shareholders of record on May 15, 2025. CASH FLOWS AND LIQUIDITY Our consolidated cash provided by operating activities for the three months ended March 31, 2025 was $39.5 million compared to $71.9 million for the three months ended March 31, 2024, with the decrease primarily due to the timing of fuel cost and rider recoveries from our utility customers, the timing of payments of operating costs in our Electric segment, and a decrease in earnings. Investing activities for the three months ended March 31, 2025 included capital expenditures of $58.0 million. Capital expenditures during the period were largely within our Electric segment, including investments in our wind repowering, advanced metering infrastructure, and transmission line projects. Financing activities for the three months ended March 31, 2025 included the issuance of $50.0 million of long-term debt at Otter Tail Power; the proceeds of which were used to repay short-term borrowings, fund capital investments, and support operating activities. Financing activities for the three months ended March 31, 2025 also included net repayments of short-term borrowings totaling $10.8 million and dividend payments of $22.0 million. As of March 31, 2025, we had $170.0 million and $152.4 million of available liquidity under our Otter Tail Corporation and Otter Tail Power credit facilities, respectively, along with $284.8 million of available cash and cash equivalents, for total available liquidity of $607.2 million. The following table shows heating degree days as a percent of normal. Three Months Ended March 31, 2025 2024 Heating Degree Days 100.9 % 84.4 % Expand The following table summarizes the estimated effect on diluted earnings per share of the difference in retail kilowatt-hour (kwh) sales under actual weather conditions and expected retail kwh sales under normal weather conditions for the three months ended March 31, 2025 and 2024. Operating Revenues increased $8.2 million primarily due to an increase in fuel recovery revenues from an increase in the volume and price of market energy purchases and the impact of favorable weather compared to the same period last year, as the first quarter in 2024 was unseasonably warm in our service territory. Interim revenues in North Dakota increased compared to the same period last year driven by increased customer demand and consumption. These increases in operating revenues were partially offset by a net decrease in rider revenues primarily due to increased production tax credits from our wind generation, which are passed on to customers in the form of lower rates, partially offset by additional recovery of costs associated with our wind repowering projects. Net Income increased $2.2 million primarily due to the increase in revenues, as described above, partially offset by increased depreciation and interest expense related to capital investments and financing costs associated with our rate base investments. Operating Revenues decreased $17.7 million primarily due to a 13% decrease in sales volumes, with the most significant declines experienced in the recreational vehicle, agriculture, and construction end markets. Sales volumes have continued to soften due to lower end market demand and inventory management efforts by manufacturers and dealers. A 3% decrease in steel costs, which are passed through to customers, as well as a 1% decrease in scrap revenue also contributed to the decrease in operating revenues. Net Income decreased $3.7 million primarily due to lower sales volumes and lower scrap metal sales, as described above, as well as a decrease in margins. Decreased profit margins were primarily due to reduced leveraging of fixed manufacturing costs resulting from decreased production and sales volumes. The impacts of decreased operating revenues and profit margins were partially offset by a decrease in general and administrative costs. Operating Revenues decreased $0.3 million due to an 11% decrease in sales prices compared to the same period last year, continuing the steady decline in product pricing due to continuing changes from peak market conditions in late 2022. The impact of decreased sales prices was largely offset by a 13% increase in sales volumes driven by strong distributor and end market demand coupled with increased production capacity after the completion of our expansion project at Vinyltech in late 2024. Active infrastructure investment and construction across our sales territories have continued to contribute to strong distributor and end market demand. Net Income decreased $3.3 million primarily due to decreased sales prices, as described above, as well as increased general and administrative expenses, partially offset by decreased PVC resin cost, driven by elevated domestic resin supply. Net Loss increased $1.4 million primarily due to increased employee benefit expenses, including increases in our employee health insurance claim costs. 2025 OUTLOOK We continue to anticipate 2025 diluted earnings per share to be in the range of $5.68 to $6.08. We expect our earnings mix in 2025 to be approximately 39% from our Electric segment and 61% from our Manufacturing and Plastics segments, net of corporate costs. Our anticipated earnings mix in 2025 deviates from our long-term expected earnings mix of 65% Electric / 35% Non-Electric as we expect Plastics segment earnings to remain elevated in 2025 compared to our long-term view of normal earnings for this segment. The segment components of our 2025 diluted earnings per share guidance compared with actual earnings for 2024 are as follows: CONFERENCE CALL AND WEBCAST The corporation will host a live webcast on Tuesday, May 6, 2025, at 10:00 a.m. CT to discuss its financial and operating performance. The presentation will be posted on our website before the webcast. To access the live webcast, go to and select 'Webcast.' Please allow time prior to the call to visit the site and download any software needed to listen in. An archived copy of the webcast will be available on our website shortly after the call. If you are interested in asking a question during the live webcast, visit and follow the link provided in the press release announcing the upcoming conference call. FORWARD-LOOKING STATEMENTS Except for historical information contained here, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words 'anticipate,' 'believe,' 'can,' 'could,' 'estimate,' 'expect,' 'future,' 'goal,' 'intend,' 'likely,' 'may,' 'opportunity,' 'outlook,' 'plan,' 'possible,' 'potential,' 'predict,' 'probable,' 'projected,' 'should,' 'target,' 'will,' 'would' and similar words and expressions are intended to identify forward-looking statements. Such statements are based upon the current beliefs and expectations of management. Forward-looking statements made herein, which may include statements regarding 2025 earnings and earnings per share, long-term earnings, earnings per share growth and earnings mix, anticipated levels of energy generation from renewable resources, anticipated reductions in carbon dioxide emissions, future investments and capital expenditures, rate base levels and rate base growth, future raw materials costs, future raw materials availability and supply constraints, future operating revenues and operating results, and expectations regarding regulatory proceedings, as well as other assumptions and statements, involve known and unknown risks and uncertainties that may cause our actual results in current or future periods to differ materially from the forecasted assumptions and expected results. The Company's risks and uncertainties include, among other things, uncertainty of future investments and capital expenditures; rate base levels and rate base growth; risks associated with energy markets; the availability and pricing of resource materials; inflationary cost pressures; attracting and maintaining a qualified and stable workforce; changing macroeconomic and industry conditions that impact the demand for our products, pricing and margin; long-term investment risk; seasonal weather patterns and extreme weather events; future business volumes with key customers; reductions in our credit ratings; our ability to access capital markets on favorable terms; assumptions and costs relating to funding our employee benefit plans; our subsidiaries' ability to make dividend payments; cybersecurity threats or data breaches; the impact of government legislation and regulation including foreign trade policy and environmental; health and safety laws and regulations; changes in tax laws and regulations; the impact of climate change including compliance with legislative and regulatory changes to address climate change; expectations regarding regulatory proceedings, assigned service areas, the construction of major facilities, capital structure, and allowed customer rates; actual and threatened claims or litigation; and operational and economic risks associated with our electric generating and manufacturing facilities. These and other risks are more fully described in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. About the Corporation: Otter Tail Corporation, a member of the S&P SmallCap 600 Index, has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the Nasdaq Global Select Market under the symbol OTTR. The latest investor and corporate information is available at Corporate offices are in Fergus Falls, Minnesota, and Fargo, North Dakota. OTTER TAIL CORPORATION March 31, December 31, (in thousands) 2025 2024 Assets Current Assets Cash and Cash Equivalents $ 284,814 $ 294,651 Receivables, net of allowance for credit losses 184,051 145,964 Inventories 147,695 148,885 Regulatory Assets 11,539 9,962 Other Current Assets 23,175 30,579 Total Current Assets 651,274 630,041 Noncurrent Assets Investments 125,113 121,177 Property, Plant and Equipment, net of accumulated depreciation 2,709,311 2,692,460 Regulatory Assets 99,424 98,673 Intangible Assets, net of accumulated amortization 5,467 5,743 Goodwill 37,572 37,572 Other Noncurrent Assets 68,633 66,416 Total Noncurrent Assets 3,045,520 3,022,041 Total Assets $ 3,696,794 $ 3,652,082 Liabilities and Shareholders' Equity Current Liabilities Short-Term Debt $ 58,853 $ 69,615 Accounts Payable 80,763 113,574 Accrued Salaries and Wages 23,502 34,398 Accrued Taxes 19,804 17,314 Regulatory Liabilities 27,028 29,307 Other Current Liabilities 38,470 45,582 Total Current Liabilities 248,420 309,790 Noncurrent Liabilities and Deferred Credits Pension Benefit Liability 32,406 32,614 Other Postretirement Benefits Liability 26,957 27,385 Regulatory Liabilities 290,678 288,928 Deferred Income Taxes 271,605 267,745 Deferred Tax Credits 14,798 14,990 Other Noncurrent Liabilities 101,056 98,397 Total Noncurrent Liabilities and Deferred Credits 737,500 730,059 Commitments and Contingencies Capitalization Long-Term Debt 993,513 943,734 Shareholders' Equity Common Shares 209,370 209,140 Additional Paid-In Capital 431,423 429,089 Retained Earnings 1,075,834 1,029,738 Accumulated Other Comprehensive Income 734 532 Total Shareholders' Equity 1,717,361 1,668,499 Total Capitalization 2,710,874 2,612,233 Total Liabilities and Shareholders' Equity $ 3,696,794 $ 3,652,082 Expand OTTER TAIL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Three Months Ended March 31, (in thousands) 2025 2024 Operating Activities Net Income $ 68,099 $ 74,338 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation and Amortization 29,375 25,897 Deferred Tax Credits (192 ) (187 ) Deferred Income Taxes 1,797 7,859 Investment Gains 37 (2,385 ) Stock Compensation Expense 5,758 5,514 Other, net (969 ) (874 ) Change in Operating Assets and Liabilities: Receivables (38,087 ) (38,531 ) Inventories 1,526 1,920 Regulatory Assets (3,091 ) 7,338 Other Assets 5,732 537 Accounts Payable (16,360 ) 8,195 Accrued and Other Liabilities (13,888 ) (24,372 ) Regulatory Liabilities 1,652 9,365 Pension and Other Postretirement Benefits (1,920 ) (2,701 ) Net Cash Provided by Operating Activities 39,469 71,913 Investing Activities Capital Expenditures (58,012 ) (74,044 ) Proceeds from Disposal of Noncurrent Assets 1,276 2,499 Purchases of Investments and Other Assets (4,175 ) (4,331 ) Net Cash Used in Investing Activities (60,911 ) (75,876 ) Financing Activities Net Repayments of Short-Term Debt (10,762 ) (81,422 ) Proceeds from Issuance of Long-Term Debt 50,000 120,000 Dividends Paid (22,003 ) (19,553 ) Payments for Shares Withheld for Employee Tax Obligations (3,134 ) (5,754 ) Other, net (2,496 ) (1,523 ) Net Cash Provided by Financing Activities 11,605 11,748 Net Change in Cash and Cash Equivalents (9,837 ) 7,785 Cash and Cash Equivalents at Beginning of Period 294,651 230,373 Cash and Cash Equivalents at End of Period $ 284,814 $ 238,158 Expand SEGMENT RESULTS (unaudited) Three Months Ended March 31, (in thousands) 2025 2024 Operating Revenues Electric $ 149,720 $ 141,488 Manufacturing 81,685 99,380 Plastics 105,948 106,200 Total Operating Revenues $ 337,353 $ 347,068 Operating Income (Loss) Electric $ 29,043 $ 29,042 Manufacturing 2,426 7,413 Plastics 58,876 63,305 Corporate (6,346 ) (4,785 ) Total Operating Income $ 83,999 $ 94,975 Net Income Electric $ 24,708 $ 22,470 Manufacturing 1,532 5,261 Plastics 43,439 46,740 Corporate (1,580 ) (133 ) Total Net Income $ 68,099 $ 74,338 Expand
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15-04-2025
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Otter Tail Corporation Will Host Conference Call on First Quarter 2025 Financial Results
FERGUS FALLS, Minn., April 15, 2025--(BUSINESS WIRE)--Otter Tail Corporation (Nasdaq: OTTR) will issue a news release announcing first quarter 2025 financial results after the stock market closes on Monday, May 5, 2025 and will host a live conference call and webcast on Tuesday, May 6, 2025 at 10:00 a.m. CT to discuss the corporation's financial and operating performance. Accompanying slides will be posted on the corporation's website before the webcast begins. To access the live webcast, go to Please allow time prior to the call to visit the site and download any software required to listen. A copy of the webcast will be available on the corporation's website shortly after the call. Please click here to pre-register for the conference call and obtain your dial in number and passcode. Contact Tyler Nelson at 701-451-3576 or tnelson@ with any questions on how to participate. About Otter Tail Corporation: Otter Tail Corporation has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the NASDAQ Global Select Market under the symbol OTTR. The latest investor and corporate information is available at Corporate offices are located in Fergus Falls, Minnesota, and Fargo, North Dakota. View source version on Contacts Investor Contact: Tyler Nelson, Vice President of Finance, (701) 451-3576Media Contact: Stephanie Hoff, Director of Corporate Communications, (218) 739-8535 Sign in to access your portfolio
