OTTR Otter Tail Corporation

Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter and year ended December 31, 2024.

SUMMARY

• Produced record earnings, with annual diluted earnings per share of $7.17.
• Achieved a consolidated return on equity of 19.3% on an equity ratio of 62.2%.
• Updated our electric utility’s five-year rate base compounded annual growth rate to 9.0% from 7.7%.
• Increased our long-term earnings per share growth rate target to 6 to 8%.

CEO OVERVIEW

“Otter Tail Corporation produced record earnings in 2024, generating diluted earnings per share of $7.17,” said President and CEO Chuck MacFarlane. “Executing on our strategy coupled with the hard work and dedication of our team members made this level of success possible and I am grateful for their contributions.

“Otter Tail Power continues to perform well, converting our 2024 rate base growth into earnings growth at approximately a 1:1 ratio. We continue to execute on our regulatory priorities and obtained approval for our fully settled North Dakota general rate case in the fourth quarter. The outcome of the case provides for a net annual revenue requirement increase of $13.1 million premised on a return on equity of 10.1 percent and an equity layer of 53.5 percent.

“Our Manufacturing segment continues to navigate softened end market demand, and we have taken action to mitigate the impact of lower sales volumes on earnings. Despite the down-cycle, this segment continues to produce incremental cash to fund future growth opportunities, and the long-term fundamentals remain intact.

“Our Plastics segment produced strong financial results, generating record earnings of $201 million. We continue to benefit from improved end market demand and customers’ sales volume growth. We completed the first phase of the Vinyltech expansion project in the fourth quarter, adding large diameter PVC pipe production capability to better serve customers in the southwest market.

“We have updated our 5-year capital spending plan and revised our long-term financial targets. Otter Tail Power’s updated 5-year capital spending plan totals $1.4 billion and is expected to produce a rate base compounded annual growth rate of 9 percent. We also increased our consolidated long-term earnings per share growth rate target to 6 to 8 percent from 5 to 7 percent, increasing our total shareholder return target to 9 to 11 percent.

“With the strength of our balance sheet and the talent excellence we have and continue to cultivate, we feel well positioned to deliver on our revised financial targets over the long-term. We are initiating our 2025 diluted earnings per share guidance range of $5.68 to $6.08. Our guidance reflects Electric segment earnings growth of approximately 7 percent and as expected, a decline in Plastics segment earnings driven by a continued reduction in product sales prices due to changing market conditions. We also expect a decline in Manufacturing segment earnings as end market demand conditions remain challenging.”

CASH FLOWS AND LIQUIDITY

Our consolidated cash provided by operating activities was a record $452.7 million in 2024, compared to $404.5 million in 2023, with the increase primarily due to a decrease in working capital and a $7.5 million increase in net income. Investing activities during the year included capital expenditures of $358.7 million and a $50.1 million long-term investment in U.S. treasuries. Capital expenditures during the year were largely within our Electric segment, including investments in our wind repowering and advanced metering projects, but also included investments in our facility expansion projects within our Manufacturing and Plastics segments. Financing activities in 2024 included the issuance of $120.0 million of long-term debt at Otter Tail Power, the proceeds of which were primarily used to fund capital investments. Other financing activities during the year included dividend payments of $78.3 million.

As of December 31, 2024, we had $311.6 million of available liquidity under our credit facilities and $294.7 million of available cash and cash equivalents, for total available liquidity of $606.3 million.

ANNUAL SEGMENT OPERATING RESULTS

Electric Segment

($ in thousands)

 

2024

 

 

 

2023

 

 

$ Change

 

% Change

Operating Revenues

$

524,515

 

$

528,359

 

$

(3,844

)

 

(0.7

)%

Net Income

 

90,963

 

 

 

84,424

 

 

 

6,539

 

 

7.7

 

 

 

 

 

 

 

 

 

Retail MWh Sales

 

5,681,268

 

 

 

5,772,215

 

 

 

(90,947

)

 

(1.6

)%

Heating Degree Days

 

5,313

 

 

 

6,259

 

 

 

(946

)

 

(15.1

)

Cooling Degree Days

 

440

 

 

 

590

 

 

 

(150

)

 

(25.4

)

The following table shows heating and cooling degree days as a percent of normal.

 

2024

 

 

2023

 

Heating Degree Days

83.7

%

 

98.4

%

Cooling Degree Days

93.8

%

 

127.2

%

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 in 2024 and 2023.

 

2024 vs Normal

 

2024 vs

2023

 

2023 vs Normal

Effect on Diluted Earnings Per Share

$

(0.13

)

 

$

(0.15

)

 

$

0.02

Operating Revenues decreased $3.8 million primarily due to decreases in retail and wholesale revenues. The decrease in retail revenue was driven by decreased fuel recovery revenue due to lower market energy costs and the impact of unfavorable weather. These decreases were partially offset by retail revenue increases due to an interim rate increase in North Dakota in connection with our most recent rate case, increased commercial and industrial sales volumes, and increased rider revenue as we recover the cost of and return on our rate base investments.

Net Income increased $6.5 million primarily due to increased revenue resulting from the interim rate increase in North Dakota and increased rider revenue, partially offset by unfavorable weather, as discussed above. The revenue increases were partially offset by increased depreciation and interest expense related to capital investments and financing costs associated with our rate base investments.

Manufacturing Segment

(in thousands)

 

2024

 

 

 

2023

 

 

$ Change

 

% Change

Operating Revenues

$

342,592

 

$

402,781

 

$

(60,189

)

 

(14.9

)%

Net Income

 

13,681

 

 

 

21,454

 

 

 

(7,773

)

 

(36.2

)

Operating Revenues decreased $60.2 million primarily due to a 15% decrease in sales volumes, with declines experienced in the recreational vehicle, agriculture, construction, lawn and garden, and horticulture end markets. Sales volumes decreased due to lower end market demand and inventory management efforts by manufacturers, distributors, and dealers. A 28% decline in scrap metal revenues, largely driven by lower production volumes, also contributed to the decrease in operating revenues.

Net Income decreased $7.8 million primarily due to lower sales volumes, as described above, and a decrease in gross profit margins in our plastics thermoforming business, partially offset by reduced general and administrative expenses. Decreased profit margins were primarily due to a reduced leveraging of fixed manufacturing costs resulting from decreased production and sales volumes. Decreased scrap metal sales, as described above, also contributed to the decrease in net income.

Plastics Segment

(in thousands)

 

2024

 

 

 

2023

 

 

$ Change

 

% Change

Operating Revenues

$

463,441

 

$

418,026

 

$

45,415

 

10.9

%

Net Income

 

200,747

 

 

 

187,748

 

 

 

12,999

 

 

6.9

 

Operating Revenues increased $45.4 million primarily due to a 27% increase in sales volumes driven by customer sales volume growth and strong distributor and end market demand. Sales volumes in 2023 were negatively impacted by distributors and contractors reducing purchase volumes in response to uncertain and competitive market conditions. Although market conditions remain somewhat uncertain, infrastructure investment and active construction across our sales territories contributed to increased distributor and end market demand in 2024. The impact of increased sales volumes was partially offset by decreased sales prices. Our sales prices have steadily declined after peaking in late 2022 and decreased 12% in 2024 compared to the prior year due to continuing changes in market conditions.

Net Income increased $13.0 million primarily due to the impact of increased sales volumes, as described above. Increased operating revenues, driven by increased sales volumes, were partially offset by a decrease in gross profit margins. Gross profit margins decreased primarily due to decreases in sales prices, as described above.

Corporate

(in thousands)

 

2024

 

 

 

2023

 

 

$ Change

 

% Change

Net Income (Loss)

$

(3,729

)

 

$

565

 

$

(4,294

)

 

n/m

Net Income (Loss) at our corporate cost center decreased $4.3 million from $0.6 million of net income in the prior year, primarily due to increased insurance expenses driven by higher claims costs associated with our self-funded insurance programs, as well as increased variable compensation based on the current year financial performance. The increase in expenses was partially offset by increased investment income earned on our short- and long-term investments.

FOURTH QUARTER OPERATING RESULTS

Consolidated Results

(in thousands, except per share amounts)

 

2024

 

 

 

2023

 

 

$ Change

 

% Change

Operating Revenues

$

303,111

 

$

314,313

 

$

(11,202

)

 

(3.6

)%

Operating Expenses

 

236,287

 

 

 

244,233

 

 

 

(7,946

)

 

(3.3

)

Operating Income

 

66,824

 

 

 

70,080

 

 

 

(3,256

)

 

(4.6

)

Other Expense

 

3,821

 

 

 

1,109

 

 

 

2,712

 

 

244.5

 

Income Before Income Taxes

 

63,003

 

 

 

68,971

 

 

 

(5,968

)

 

(8.7

)

Income Tax Expense

 

8,153

 

 

 

11,205

 

 

 

(3,052

)

 

(27.2

)

Net Income

 

54,850

 

 

 

57,766

 

 

 

(2,916

)

 

(5.0

)

Diluted Earnings Per Share

$

1.30

 

 

$

1.37

 

 

$

(0.07

)

 

(5.1

)%

Electric Segment

Electric segment net income was $21.5 million, a $4.5 million increase from the fourth quarter of 2023. The increase was primarily due to increased retail revenue driven by an interim rate increase in North Dakota in connection with our most recent rate case, as well as increased rider revenue, combined with a decrease in operating and maintenance expenses. The revenue increases and operating expense decreases were partially offset by increased depreciation and interest expense related to capital investment and financing costs associated with our rate base investments.

Manufacturing Segment

Manufacturing segment net loss was $0.6 million, a $1.8 million decrease from net income of $1.2 million in the fourth quarter of 2023. The decrease was primarily due to a 25% decrease in sales volumes compared to the same period in the prior year, driven by soft end market demand, and a decrease in gross profit margins in both our contract metal fabrication and our plastics thermoforming business. Sales volume decreases were primarily in the recreational vehicle, agriculture, construction, lawn and garden, and horticulture end markets. Decreased profit margins were primarily due to a reduced leveraging of fixed manufacturing costs resulting from decreased production and sales volumes. The impacts of lower sales volumes were partially offset by reduced general and administrative expenses.

Plastics Segment

Plastics segment net income was $38.9 million, a $0.6 million decrease from the fourth quarter of 2023. The decrease was primarily due to decreased sales prices and increased general and administrative costs. Sales prices steadily declined throughout the year and decreased 11% compared to the same period last year. The impact of decreased sales prices and increased general and administrative costs was largely offset by the impact of increased sales volumes. Sales volumes increased 23% compared to the same period in the prior year driven by customer sales volume growth and strong distributor and end market demand.

Corporate

Corporate net loss was $5.0 million, a $5.1 million decrease from $0.1 million of net income in the fourth quarter of 2023, primarily due to increased insurance expense driven by higher claims costs associated with our self-funded insurance programs, as well as increased variable compensation based on the current year financial performance.

2025 OUTLOOK

We 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:

 

 

 

2024 EPS

by Segment

 

2025 EPS Guidance

 

 

 

Low

 

High

Electric

 

 

$

2.16

 

 

$

2.29

 

 

$

2.35

 

Manufacturing

 

 

 

0.33

 

 

 

0.21

 

 

 

0.27

 

Plastics

 

 

 

4.77

 

 

 

3.26

 

 

 

3.50

 

Corporate

 

 

 

(0.09

)

 

 

(0.08

)

 

 

(0.04

)

Total

 

 

$

7.17

 

 

$

5.68

 

 

$

6.08

 

Return on Equity

 

 

 

19.3

%

 

 

13.8

%

 

 

14.6

%

The following items contribute to our 2025 earnings guidance:

Electric Segment - We expect segment earnings to increase 7% in 2025 based on the following assumptions:

• Normal weather conditions in 2025.
• Returns generated from an increase in average rate base of 12% in 2025 compared to 2024.
• A planned maintenance outage at Coyote Station in 2025 (there were no planned outages in 2024).
• Increased depreciation and interest expense from capital expenditures and associated financing.

Manufacturing Segment - We expect segment earnings to decline 27% in 2025 based on the following assumptions:

• Lower sales volumes in our contract metal fabrication business as soft end market demand continues, partially offset by some volume recovery in our horticulture plastic products business.
• Sales mix and product pricing pressure in the current sales volume environment, and lower scrap revenues within our metal fabrication business from lower production volumes.
• Compressed operating margins from the deleveraging of manufacturing costs due to lower production and sales volumes.

Plastics Segment - We expect segment earnings to decline 29% in 2025 based on the following assumptions:

• Continued decline in product sales prices throughout 2025 as pricing continues to retreat from the 2022 high point.
• Modest increase in sales volumes driven by new capacity at our Phoenix facility, partially offset by macroeconomic uncertainty.

Corporate Costs - We expect our corporate costs to decrease primarily from lower incentive compensation costs compared to 2024.

CAPITAL EXPENDITURES

The following provides a summary of actual capital expenditures for the year ended December 31, 2024, and anticipated annual capital expenditures for the next five years, along with average rate base and annual rate base growth of our Electric segment:

(in millions)

 

 

2024

 

 

 

 

2025

 

 

 

2026

 

 

 

2027

 

 

 

2028

 

 

 

2029

 

 

Total

2025 - 2029

Electric Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Generation

 

$

134

 

 

 

$

101

 

 

$

127

 

 

$

118

 

 

$

179

 

 

$

4

 

 

$

529

Transmission

 

 

60

 

 

 

 

59

 

 

 

93

 

 

 

162

 

 

 

114

 

 

 

100

 

 

 

528

 

Distribution

 

 

46

 

 

 

 

37

 

 

 

37

 

 

 

36

 

 

 

37

 

 

 

34

 

 

 

181

 

Other

 

 

61

 

 

 

 

54

 

 

 

51

 

 

 

31

 

 

 

27

 

 

 

25

 

 

 

188

 

Total Electric Segment

 

 

301

 

 

 

 

251

 

 

 

308

 

 

 

347

 

 

 

357

 

 

 

163

 

 

 

1,426

 

Manufacturing and Plastics Segments

 

 

58

 

 

 

 

27

 

 

 

27

 

 

 

27

 

 

 

25

 

 

 

23

 

 

 

129

 

Total Capital Expenditures

 

$

359

 

 

 

$

278

 

 

$

335

 

 

$

374

 

 

$

382

 

 

$

186

 

 

$

1,555

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Electric Utility Average Rate Base

 

$

1,892

 

 

 

$

2,118

 

 

$

2,303

 

 

$

2,524

 

 

$

2,762

 

 

$

2,909

 

 

 

Annual Rate Base Growth

 

 

8.6

%

 

 

 

11.9

%

 

 

8.7

%

 

 

9.6

%

 

 

9.4

%

 

 

5.3

%

 

 

Our updated five-year capital expenditure plan includes Electric segment investments in wind and solar resources, transmission and distribution assets, and investments in system reliability and technology. Our Electric segment capital expenditure plan produces a compounded annual growth rate on average rate base of 9.0% over the next five years and will serve as a key driver in increasing Electric segment earnings over this timeframe. Our capital expenditure plan in our Manufacturing and Plastics segments includes a mix of investments to replace and upgrade existing equipment and investments to add additional capacity or productivity to our operations.

CONFERENCE CALL AND WEBCAST

The corporation will host a live webcast on Tuesday, February 18, 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 www.ottertail.com/presentations 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 www.ottertail.com. Corporate offices are in Fergus Falls, Minnesota, and Fargo, North Dakota.

 

OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

(in thousands, except per-share amounts)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Operating Revenues

 

 

 

 

 

 

 

Electric

$

139,818

 

 

$

132,362

 

 

$

524,515

 

 

$

528,359

 

Product Sales

 

163,293

 

 

 

181,951

 

 

 

806,033

 

 

 

820,807

 

Total Operating Revenues

 

303,111

 

 

 

314,313

 

 

 

1,330,548

 

 

 

1,349,166

 

Operating Expenses

 

 

 

 

 

 

 

Electric Production Fuel

 

15,936

 

 

 

14,410

 

 

 

60,945

 

 

 

60,339

 

Electric Purchased Power

 

19,055

 

 

 

20,360

 

 

 

61,561

 

 

 

78,292

 

Electric Operating and Maintenance Expense

 

54,055

 

 

 

56,659

 

 

 

190,422

 

 

 

191,263

 

Cost of Products Sold (excluding depreciation)

 

91,560

 

 

 

102,793

 

 

 

434,522

 

 

 

454,122

 

Nonelectric Selling, General, and Administrative Expenses

 

24,169

 

 

 

21,230

 

 

 

80,065

 

 

 

72,663

 

Depreciation and Amortization

 

27,541

 

 

 

25,319

 

 

 

107,121

 

 

 

97,954

 

Electric Property Taxes

 

3,971

 

 

 

3,462

 

 

 

15,662

 

 

 

16,614

 

Total Operating Expenses

 

236,287

 

 

 

244,233

 

 

 

950,298

 

 

 

971,247

 

Operating Income

 

66,824

 

 

 

70,080

 

 

 

380,250

 

 

 

377,919

 

Other Income and (Expense)

 

 

 

 

 

 

 

Interest Expense

 

(10,591

)

 

 

(9,392

)

 

 

(41,815

)

 

 

(37,677

)

Nonservice Components of Postretirement Benefits

 

2,412

 

 

 

3,475

 

 

 

9,609

 

 

 

10,597

 

Other Income (Expense), net

 

4,358

 

 

 

4,808

 

 

 

18,848

 

 

 

12,650

 

Income Before Income Taxes

 

63,003

 

 

 

68,971

 

 

 

366,892

 

 

 

363,489

 

Income Tax Expense

 

8,153

 

 

 

11,205

 

 

 

65,230

 

 

 

69,298

 

Net Income

$

54,850

 

 

$

57,766

 

 

$

301,662

 

 

$

294,191

 

 

 

 

 

 

 

 

 

Weighted-Average Common Shares Outstanding:

 

 

 

 

 

 

 

Basic

 

41,801

 

 

 

41,680

 

 

 

41,778

 

 

 

41,668

 

Diluted

 

42,088

 

 

 

42,065

 

 

 

42,072

 

 

 

42,039

 

Earnings Per Share:

 

 

 

 

 

 

 

Basic

$

1.31

 

 

$

1.39

 

 

$

7.22

 

 

$

7.06

 

Diluted

$

1.30

 

 

$

1.37

 

 

$

7.17

 

 

$

7.00

 

 

OTTER TAIL CORPORATION

CONSOLIDATED BALANCE SHEETS (unaudited)

 

 

December 31,

(in thousands)

 

2024

 

 

 

2023

 

Assets

 

 

 

Current Assets

 

 

 

Cash and Cash Equivalents

$

294,651

 

$

230,373

Receivables, net of allowance for credit losses

 

145,964

 

 

 

157,143

 

Inventories

 

148,885

 

 

 

149,701

 

Regulatory Assets

 

9,962

 

 

 

16,127

 

Other Current Assets

 

30,579

 

 

 

16,826

 

Total Current Assets

 

630,041

 

 

 

570,170

 

Noncurrent Assets

 

 

 

Investments

 

121,177

 

 

 

62,516

 

Property, Plant and Equipment, net of accumulated depreciation

 

2,692,460

 

 

 

2,418,375

 

Regulatory Assets

 

98,673

 

 

 

95,715

 

Intangible Assets, net of accumulated amortization

 

5,743

 

 

 

6,843

 

Goodwill

 

37,572

 

 

 

37,572

 

Other Noncurrent Assets

 

66,416

 

 

 

51,377

 

Total Noncurrent Assets

 

3,022,041

 

 

 

2,672,398

 

Total Assets

$

3,652,082

 

 

$

3,242,568

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

Current Liabilities

 

 

 

Short-Term Debt

$

69,615

 

 

$

81,422

 

Accounts Payable

 

113,574

 

 

 

94,428

 

Accrued Salaries and Wages

 

34,398

 

 

 

38,134

 

Accrued Taxes

 

17,314

 

 

 

26,590

 

Regulatory Liabilities

 

29,307

 

 

 

25,408

 

Other Current Liabilities

 

45,582

 

 

 

43,775

 

Total Current Liabilities

 

309,790

 

 

 

309,757

 

Noncurrent Liabilities and Deferred Credits

 

 

 

Pensions Benefit Liability

 

32,614

 

 

 

33,101

 

Other Postretirement Benefits Liability

 

27,385

 

 

 

27,676

 

Regulatory Liabilities

 

288,928

 

 

 

276,547

 

Deferred Income Taxes

 

267,745

 

 

 

237,273

 

Deferred Tax Credits

 

14,990

 

 

 

15,172

 

Other Noncurrent Liabilities

 

98,397

 

 

 

75,977

 

Total Noncurrent Liabilities and Deferred Credits

 

730,059

 

 

 

665,746

 

Commitments and Contingencies

 

 

 

Capitalization

 

 

 

Long-Term Debt

 

943,734

 

 

 

824,059

 

Shareholders’ Equity

 

 

 

Common Shares

 

209,140

 

 

 

208,553

 

Additional Paid-In Capital

 

429,089

 

 

 

426,963

 

Retained Earnings

 

1,029,738

 

 

 

806,342

 

Accumulated Other Comprehensive Income

 

532

 

 

 

1,148

 

Total Shareholders' Equity

 

1,668,499

 

 

 

1,443,006

 

Total Capitalization

 

2,612,233

 

 

 

2,267,065

 

Total Liabilities and Shareholders' Equity

$

3,652,082

 

 

$

3,242,568

 

 

OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

 

 

Twelve Months Ended December 31,

(in thousands)

 

2024

 

 

 

2023

 

Operating Activities

 

 

 

Net Income

$

301,662

 

 

$

294,191

 

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

 

 

 

Depreciation and Amortization

 

107,121

 

 

 

97,954

 

Deferred Tax Credits

 

(182

)

 

 

(744

)

Deferred Income Taxes

 

23,057

 

 

 

13,508

 

Investment (Gains) Losses

 

(5,482

)

 

 

(7,222

)

Stock Compensation Expense

 

9,529

 

 

 

7,753

 

Other, net

 

(3,111

)

 

 

(423

)

Change in Operating Assets and Liabilities:

 

 

 

Receivables

 

11,179

 

 

 

(12,750

)

Inventories

 

3,691

 

 

 

(2,450

)

Regulatory Assets

 

5,194

 

 

 

12,479

 

Other Assets

 

(11,640

)

 

 

2,817

 

Accounts Payable

 

14,826

 

 

 

(9,988

)

Accrued and Other Liabilities

 

(10,371

)

 

 

6

 

Regulatory Liabilities

 

16,821

 

 

 

20,973

 

Pension and Other Postretirement Benefits

 

(9,563

)

 

 

(11,605

)

Net Cash Provided by Operating Activities

 

452,731

 

 

 

404,499

 

Investing Activities

 

 

 

Capital Expenditures

 

(358,650

)

 

 

(287,134

)

Proceeds from Disposal of Noncurrent Assets

 

8,849

 

 

 

6,225

 

Purchases of Investments and Other Assets

 

(61,573

)

 

 

(8,378

)

Net Cash Used in Investing Activities

 

(411,374

)

 

 

(289,287

)

Financing Activities

 

 

 

Net (Repayments) Borrowings on Short-Term Debt

 

(11,807

)

 

 

73,218

 

Proceeds from Issuance of Long-Term Debt

 

120,000

 

 

 

—

 

Dividends Paid

 

(78,266

)

 

 

(73,061

)

Payments for Shares Withheld for Employee Tax Obligations

 

(6,457

)

 

 

(3,088

)

Other, net

 

(549

)

 

 

(904

)

Net Cash Provided by (Used in) Financing Activities

 

22,921

 

 

 

(3,835

)

Net Change in Cash and Cash Equivalents

 

64,278

 

 

 

111,377

 

Cash and Cash Equivalents at Beginning of Period

 

230,373

 

 

 

118,996

 

Cash and Cash Equivalents at End of Period

$

294,651

 

 

$

230,373

 

 

OTTER TAIL CORPORATION

SEGMENT RESULTS (unaudited)

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

(in thousands)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Operating Revenues

 

 

 

 

 

 

 

Electric

$

139,818

 

 

$

132,362

 

$

524,515

 

 

$

528,359

Manufacturing

 

66,632

 

 

 

92,846

 

 

 

342,592

 

 

 

402,781

 

Plastics

 

96,661

 

 

 

89,105

 

 

 

463,441

 

 

 

418,026

 

Total Operating Revenues

$

303,111

 

 

$

314,313

 

 

$

1,330,548

 

 

$

1,349,166

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 

 

 

 

 

 

Electric

$

21,478

 

 

$

17,005

 

 

$

90,963

 

 

$

84,424

 

Manufacturing

 

(590

)

 

 

1,177

 

 

 

13,681

 

 

 

21,454

 

Plastics

 

38,919

 

 

 

39,508

 

 

 

200,747

 

 

 

187,748

 

Corporate

 

(4,957

)

 

 

76

 

 

 

(3,729

)

 

 

565

 

Total Net Income

$

54,850

 

 

$

57,766

 

 

$

301,662

 

 

$

294,191

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250217244540/en/

Media Contact: Stephanie Hoff, Director of Corporate Communications, (218) 739-8535

Investor Contacts: Beth Eiken, Manager of Investor Relations, (701) 451-3571 Tyler Nelson, VP of Finance and Treasurer, (701) 451-3576