Financial Performance - In 2024, Otter Tail Corporation achieved a net income of $301.7 million, or $7.17 per diluted share, representing a 3% increase from $294.2 million, or $7.00 per diluted share, in 2023[208]. - Net income for 2024 increased to $301,662, up 2.5% from $294,191 in 2023[322]. - Basic earnings per share rose to $7.22 in 2024, compared to $7.06 in 2023, reflecting a 2.3% increase[322]. - Total operating revenues for 2024 were $1,330,548, a decrease of 1.3% from $1,349,166 in 2023[322]. - Operating income for 2024 was $380,250, a slight increase from $377,919 in 2023[322]. - Total shareholders' equity rose to $1,668,499 in 2024, an increase of 15.6% from $1,443,006 in 2023[320]. Segment Performance - The Electric segment reported an 8% earnings growth in 2024, increasing from $84.4 million in 2023 to $91.0 million, driven by higher retail revenue from an interim rate increase in North Dakota[209]. - The Manufacturing segment experienced a 36% decline in earnings, dropping from $21.5 million in 2023 to $13.7 million in 2024, primarily due to lower sales volumes and decreased gross profit margins[210]. - The Plastics segment's earnings grew by 7%, from $187.7 million in 2023 to $200.7 million in 2024, attributed to increased sales volumes despite a decrease in gross profit margins[211]. - Net income for the Electric segment in 2024 was $90,963,000, an increase of 7.3% from $84,424,000 in 2023[389]. - Net income for the Manufacturing segment in 2024 was $13,681,000, a decrease of 36.5% from $21,454,000 in 2023[391]. - Net income for the Plastics segment in 2024 was $200,747,000, an increase of 6.5% from $187,748,000 in 2023[392]. Revenue and Expenses - Operating revenues decreased by $18.6 million in 2024, with the Electric segment's revenues down by 1% and the Manufacturing segment's revenues down by 15%[222]. - Operating expenses decreased by $20.9 million in 2024, mainly due to lower purchased power costs in the Electric segment[223]. - Selling, General, and Administrative Expenses in Corporate increased by $12.4 million, or 102.9%, primarily due to increased insurance expenses[239]. - Total operating revenue for the company in 2024 was $1,330,548,000, a decrease of 8.9% from $1,349,166,000 in 2023[399]. Cash Flow and Liquidity - The company reported a net cash provided by operating activities of $452.7 million for 2024, an increase of $48.2 million compared to $404.5 million in 2023[252]. - Net cash used in investing activities rose to $411.4 million in 2024, up by $122.1 million from $289.3 million in 2023, primarily due to increased capital expenditures[255]. - The total available liquidity as of December 31, 2024, was $606.3 million, compared to $479.8 million as of December 31, 2023[251]. - The company has $311.6 million of available liquidity under credit agreements as of December 31, 2024[250]. Capital Expenditures and Investments - Capital expenditures for the Electric segment in 2024 were $301 million, with anticipated total capital expenditures of $1.426 billion from 2025 to 2029[259]. - Capital expenditures increased to $358,650,000 in 2024, compared to $287,134,000 in 2023, reflecting a 25% rise[325]. - The company made a $50.1 million investment in U.S. treasuries in April 2024, maturing in September 2026[401]. Debt and Interest - Interest expense increased by $4.1 million in 2024 due to the issuance of an additional $120.0 million of long-term debt[224]. - As of December 31, 2024, OTP had $947 million of principal outstanding under long-term debt arrangements[270]. - OTP's interest-bearing debt to total capitalization ratio was 0.47 to 1.00 as of December 31, 2024, with an interest and dividend coverage ratio of 3.34 to 1.00[272]. - The weighted-average interest rate on outstanding borrowings was 5.61% as of December 31, 2024[267]. Regulatory and Taxation - The effective tax rate improved to 17.8% in 2024 from 19.1% in 2023, resulting in a $4.1 million decrease in income tax expense[225]. - OTP requested a net increase in annual revenue of $17.4 million, or 8.4%, in its North Dakota rate case filing[242]. - The NDPSC approved a revenue requirement of $225.6 million, with a net increase of $13.1 million, or 6.18%, based on the settlement agreement[243]. Goodwill and Impairment - The company changed its annual goodwill impairment test date to October 1st in 2024 to better align with year-end financial reporting[289]. - No goodwill impairment was identified in the fourth quarter of 2024, with estimated fair values substantially exceeding carrying values[294]. Other Financial Metrics - Total assets increased to $3,652,082 in 2024, up 12.6% from $3,242,568 in 2023[320]. - Total current liabilities remained stable at $309,790 in 2024, slightly up from $309,757 in 2023[320]. - Long-term debt increased to $943,734 in 2024, up 14.5% from $824,059 in 2023[320]. - Regulatory assets decreased from $16,127 in 2023 to $9,962 in 2024, a decline of 38.5%[320]. - Regulatory liabilities increased from $276,547 in 2023 to $288,928 in 2024, reflecting a growth of 4.9%[320].

Earnings Conference Call Q4 2024 Forward Looking Statement 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 ...

Financial Data and Key Metrics Changes - Otter Tail Corporation achieved record earnings with diluted earnings per share of $7.17 in 2024, up from $7 in 2023, reflecting a year-over-year increase of approximately 2.4% [34] - The company updated its long-term earnings per share growth rate to 6% to 8%, an increase from the previous range of 5% to 7% [9][50] - The return on equity was reported at 19% on an equity layer of 62%, outperforming many utility peers [43] Business Line Data and Key Metrics Changes - The electric segment's earnings grew nearly 8% year-over-year, contributing an increase of $0.15 per share, driven by an interim rate increase and higher rider revenues [37] - The manufacturing segment's earnings decreased by $0.18 per share due to lower sales volumes and higher production costs, with sales volumes down 15% from 2023 [38][39] - The plastics segment generated record earnings per share of $4.77, an increase of $0.30 per share from 2023, primarily due to a 27% increase in sales volumes [40][41] Market Data and Key Metrics Changes - The company noted that nearly all end markets faced challenges in 2024 due to higher dealer and used inventory levels, inflationary pressures, and increased interest rates [24] - The sales prices of PVC pipe declined by 12% in 2024 compared to 2023 levels, impacting the plastics segment's earnings [26] Company Strategy and Development Direction - Otter Tail Corporation updated its five-year capital spending plan to $1.4 billion, a 9% increase over the previous plan, with a projected rate-based compounded annual growth rate of 9% [8][17] - The company plans to invest in solar generation and transmission, with estimated capital investments of $100 million for Solway Solar and $400 million for Abercrombie Solar [14][46] - The company aims to maintain affordable electric rates while executing its capital spending plan, leveraging existing low-cost assets and available tax credits [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the manufacturing segment despite current market challenges, citing reshoring and housing demand as supportive factors [25] - The company anticipates that plastics segment earnings will normalize in 2028, with a long-term earnings mix target of 65% electric and 35% manufacturing [51] Other Important Information - The company announced a 12% increase in its dividend, resulting in an annual indicated dividend of $2.10 per share for 2025 [35] - Total available liquidity as of December 31, 2024, was reported at $606 million, positioning the company well for growth initiatives [42] Q&A Session Summary Question: Did the company secure large load agreements with customers? - Management clarified that there are no signed agreements yet, but term sheets are out for 150 megawatts, with hopes to finalize agreements in the next one to three years [57][58] Question: What are the reasons for the current weakness in manufacturing demand? - Management attributed the weakness to cyclical factors, high dealer inventory levels, and corrections in agriculture, with construction being less affected [62] Question: Is the expansion of BTD Georgia related to specific end markets? - Management indicated that the expansion supports various end markets, with more construction activity noted in that segment [64]

"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 ...

A downtrend has been apparent in Otter Tail (OTTR) lately with too much selling pressure. The stock has declined 5.3% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spot ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to fin ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2024 or ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 0-53713 OTTER TAIL CORPORATION (Exact name of registrant as specified in its charter) Minnesota (State or other jurisdiction of incorporation or ...

Q3 2024 Earnings Conference Call November 5, 2024 Forward-Looking Statement 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," "outlook," "plan," "possible," "potential," "predict," "probable," "projected," "should," "target," "will," "wou ...

Otter Tail Corporation (NASDAQ:OTTR) Q3 2024 Earnings Conference Call November 5, 2024 11:00 AM ET Company Participants Beth Eiken – Manager-Investor Relations Chuck MacFarlane – President and Chief Executive Officer Todd Wahlund – Vice President and Chief Financial Officer Conference Call Participants Ida Wozniak - Siebert Williams Shank & Co Tate Sullivan - Maxim Group Operator Good morning, and welcome to the Otter Tail Corporation's Third Quarter 2024 Earnings Conference Call. [Operator Instructions]. P ...

Press Release November 4, 2024 Otter Tail Corporation Announces Third Quarter Earnings, Increases Consolidated 2024 Annual Earnings Guidance FERGUS FALLS, Minnesota - Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended September 30, 2024. SUMMARY • Midpoint of 2024 earnings guidance increased $0.15 to $7.07 per share. • Diluted earnings per share decreased 7% to $2.03 per share compared to the third quarter of 2023. • Return on equity of 20% over the trailing twelve ...