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Otter Tail
🇺🇸 NASDAQ:OTTR
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Mar 31

Otter Tail Q1 2025 Earnings Report

Otter Tail Corporation reported financial results for the quarter ended March 31, 2025.

Key Takeaways

Otter Tail Corporation delivered first quarter earnings of $68.1 million, or $1.62 per diluted share, in line with expectations. The Electric segment saw increased revenues due to favorable weather and customer demand, while the Manufacturing segment experienced decreased revenues and net income due to softening end market demand. The Plastics segment maintained strong product demand and increased sales volumes despite declining prices.

Consolidated earnings for the first quarter were $68.1 million, or $1.62 per diluted share.

The Electric segment's net income increased by 10.0% compared to the prior year, driven by higher revenues.

Manufacturing segment revenues decreased by 17.8% due to lower sales volumes in key end markets.

Plastics segment net income decreased by 7.1%, primarily due to lower sales prices, despite a 13% increase in sales volumes.

Total Revenue
$337M
Previous year: $347M
-2.8%
EPS
$1.62
Previous year: $1.77
-8.5%
Heating Degree Days
3.45K
Previous year: 2.91K
+18.5%
Retail MWh Sales
1.67M
Previous year: 1.58M
+5.8%
HDD % of Normal
100.9%
Previous year: 84.4%
+19.5%
Cash and Equivalents
$285M
Previous year: $238M
+19.6%
Free Cash Flow
-$21.4M
Previous year: -$2.13M
+906.2%
Total Assets
$3.7B
Previous year: $3.33B
+11.1%

Otter Tail

Otter Tail

Otter Tail Revenue by Segment

Forward Guidance

Otter Tail Corporation maintained its consolidated 2025 diluted earnings-per-share guidance range of $5.68 to $6.08, expecting a consolidated return on equity between 13.8% and 14.6%.

Positive Outlook

  • Maintaining consolidated 2025 diluted earnings-per-share guidance range of $5.68 to $6.08.
  • Expected consolidated return on equity in the range of 13.8% to 14.6%.
  • Long-term strategy of investing in rate base growth opportunities at Otter Tail Power.
  • Expected compounded annual growth rate in rate base of 9 percent from 2025 to 2029.
  • Expected long-term earnings-per-share growth of 6 to 8 percent.

Challenges Ahead

  • Uncertainty regarding the extent and duration of economic impacts from the evolving tariff landscape.
  • Manufacturing segment continues to navigate softening end market demand.
  • Domestic steel suppliers have announced price increases following the implementation of tariffs on imported steel.
  • Plastics segment product prices continue to decline.
  • Anticipated 2025 earnings mix deviates from long-term expected mix due to elevated Plastics segment earnings.

Company Overview

Full financial data and analysis

View Otter Tail