Otter Tail (US:OTTR) Businesswire·2025-11-03 23:00Core Insights - Otter Tail Corporation reported strong third-quarter financial results, leading to an increase in annual earnings guidance for 2025, with diluted earnings per share now expected to be between $6.32 and $6.62, up from a previous range of $6.06 to $6.46 [2][23]. Financial Performance - The company achieved diluted earnings per share of $1.86 for the third quarter of 2025, reflecting a positive trend in financial performance [7]. - Operating revenues for the Electric segment increased by $8.2 million, or 6.3%, compared to the same period last year, driven by higher fuel recovery revenue and increased sales volumes [13][15]. - Net income for the Electric segment decreased by $1.2 million, or 4.3%, primarily due to lower pension-related income and unfavorable weather conditions [13][16]. Segment Analysis - The Manufacturing segment experienced a revenue decline of $2.9 million, or 3.7%, attributed to an 8% decrease in sales volumes across various end markets [17][18]. - The Plastics segment's operating revenues decreased by $17.7 million, or 13.9%, due to a 17% drop in sales prices, although sales volumes increased by 4% [19][20]. Capital Expenditures and Investment Plans - Otter Tail Corporation introduced a new five-year capital spending plan totaling $1.9 billion, aiming for a compounded annual growth rate of 10% in the rate base [6]. - The capital expenditure plan includes investments in electric utility infrastructure and manufacturing capacity, supporting long-term growth [29]. Dividend Declaration - The Board of Directors declared a quarterly common stock dividend of $0.525 per share, payable on December 10, 2025 [8]. Cash Flow and Liquidity - Consolidated cash provided by operating activities for the nine months ended September 30, 2025, was $288.9 million, down from $322.8 million in the same period of 2024 [9]. - As of September 30, 2025, total available liquidity was $705.3 million, including $325.8 million in cash and cash equivalents [12].