Loading...
•
Jun 30
Otter Tail Q2 2025 Earnings Report
Otter Tail Corporation reported its second quarter 2025 financial results, showing a decrease in overall revenue and net income compared to the previous year, primarily due to declines in the Manufacturing and Plastics segments, despite growth in the Electric segment.
Key Takeaways
Otter Tail Corporation experienced a mixed second quarter in 2025. While the Electric segment saw increased revenues and net income, the Manufacturing and Plastics segments faced headwinds, leading to an overall decrease in consolidated operating revenues and net income. The company is optimistic about its future, raising its full-year diluted EPS guidance.
Consolidated operating revenues decreased by 2.7% to $333.043 million in Q2 2025 compared to $342.336 million in Q2 2024.
Net income for Q2 2025 was $77.728 million, a decrease from $86.995 million in Q2 2024.
Diluted EPS for Q2 2025 was $1.85, down from $2.07 in Q2 2024.
The company increased its 2025 diluted earnings per share guidance to a range of $6.06 to $6.46, up from the previous range of $5.68 to $6.08.
Otter Tail
Otter Tail
Otter Tail Revenue by Segment
Revenue by Segment
Electric Revenue
CapyFin.comManufacturing Revenue
CapyFin.comPlastics Revenue
CapyFin.com Forward Guidance
Otter Tail Corporation has increased its 2025 diluted earnings per share guidance to a range of $6.06 to $6.46, reflecting confidence in the Plastics segment's continued strong performance.
Positive Outlook
- Increased 2025 diluted earnings per share guidance to $6.06-$6.46.
- Plastics segment earnings guidance increased due to strong product demand and higher sales volumes.
- Anticipated earnings mix for 2025 deviates from long-term expectations, with a higher contribution from non-electric segments.
- Strategic diversification continues to generate incremental cash for reinvestment into utility rate base growth.
- Confident in delivering 6 to 8 percent earnings per share growth on investment targets.
Challenges Ahead
- Manufacturing segment continues to navigate soft end market demand.
- Plastics segment earnings are expected to return to more normalized levels in the long term.
- Earnings mix in 2025 is expected to be approximately 37% from Electric and 63% from Manufacturing and Plastics, deviating from the long-term expected mix of 65% Electric / 35% Non-Electric.
- No specific negative forward guidance points were explicitly stated beyond the general market conditions affecting the Manufacturing segment.
- The report does not explicitly state five negative forward guidance points.