Financial Data and Key Metrics Changes - The company generated $1.86 of diluted earnings per share in Q3, an 8% decrease from the same time last year, primarily due to declining sales prices in the plastics segment [5][18] - The midpoint of the 2025 earnings guidance was increased to $6.47 from $6.26 per share, driven by better-than-expected financial results in the plastics segment [6][22] Business Line Data and Key Metrics Changes - Electric segment earnings decreased by $0.03 per share in Q3, impacted by unfavorable weather and seasonal rate differences [18] - Manufacturing segment earnings increased by $0.04 per share, attributed to a lower cost structure and enhanced production efficiencies [19] - Plastic segment earnings decreased by $0.26 per share, driven by a 17% decline in average sales prices, partially offset by lower input material costs and a 4% increase in sales volumes [20] Market Data and Key Metrics Changes - The lawn and garden and agricultural end markets continue to face demand-related headwinds, while recreational vehicle and construction markets showed signs of improvement [14] - The cost of PVC resin decreased due to global supply and demand dynamics, benefiting the company's cost structure [16] Company Strategy and Development Direction - The updated five-year capital spending plan totals $1.9 billion, with a targeted long-term earnings per share growth rate increased to 7% to 9% [5][27] - The company aims to convert its rate-based growth into earnings per share growth at an approximate one-to-one ratio [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage costs and maintain low electric rates despite ongoing economic challenges [12][13] - The company anticipates the current low-demand environment in the manufacturing segment to persist through most of 2026 [15] Other Important Information - The company filed a request for a net revenue increase of $44.8 million with the Minnesota Public Utilities Commission, driven by infrastructure investments and inflation impacts [7][8] - The company is closely monitoring developments related to a complaint filed at FERC against MISO's Tranche 2.1 projects, which may cause potential delays [11] Q&A Session Summary Question: Inquiry about the updated EPS long-term growth rate - Management expects utility earnings to grow in line with the rate base, with year-to-year fluctuations anticipated [31] Question: Update on the antitrust case and DOJ involvement - Management provided an update on ongoing civil litigation and the DOJ's intervention, indicating no specific deadline for court decisions but anticipating developments in 2026 [33] Question: Discussion on cash usage and long-term strategy - Management emphasized prioritizing investments in utility growth and potential opportunistic M&A, while maintaining a focus on shareholder returns through dividends [38][39]

Financial Data and Key Metrics Changes - The company generated $1.86 of diluted earnings per share in Q3, an 8% decrease from the same time last year, primarily due to declining sales prices in the plastics segment [5][18] - The midpoint of the 2025 earnings guidance was increased to $6.47 from $6.26 per share, driven by better-than-expected financial results in the plastics segment [6][23] - The balance sheet remains strong with $325 million in cash on hand and a leading return on equity of 16% [21][22] Business Line Data and Key Metrics Changes - Electric segment earnings decreased by $0.03 per share due to unfavorable weather and seasonal rate differences, although higher sales volumes partially offset this [18] - Manufacturing segment earnings increased by $0.04 per share, driven by a lower cost structure and enhanced production efficiencies [19] - Plastic segment earnings decreased by $0.26 per share, with a 17% decline in average sales prices of PVC pipe, partially offset by lower input material costs and a 4% increase in sales volumes [20] Market Data and Key Metrics Changes - The lawn and garden and agricultural end markets continue to face demand-related headwinds, while recreational vehicle and construction markets show signs of improvement [14] - The company expects the current low-demand environment to persist through most of 2026 [15] Company Strategy and Development Direction - The updated five-year capital spending plan totals $1.9 billion, with a targeted long-term earnings per share growth rate increased to 7%-9% [5][27] - The company aims to convert rate-based growth into earnings per share growth at an approximate one-to-one ratio [28] - The long-term earnings mix target has been updated to expect 70% of earnings from the electric platform and 30% from the manufacturing platform by 2028 [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth plan despite dynamic market conditions and emphasized the importance of affordability for customers [4][12] - The company is focused on identifying cost-effective investment projects and managing costs prudently [13] - Management anticipates that plastic segment earnings will normalize by 2028, contributing positively to the overall strategy [26] Other Important Information - The company filed a request for a net revenue increase of $44.8 million with the Minnesota Public Utilities Commission, driven by infrastructure investments and inflation impacts [7][8] - The South Dakota rate case is progressing, with interim rates expected to commence on December 1, 2025 [9] Q&A Session Summary Question: Inquiry about the updated EPS long-term growth rate - Management expects utility earnings to grow in line with the rate base, with year-to-year fluctuations anticipated [31] Question: Update on the antitrust case - Management provided an update on ongoing civil litigation and the involvement of the Department of Justice, indicating a timeline for potential decisions in 2026 [33] Question: Discussion on cash usage and M&A opportunities - Management indicated that cash will primarily be used for utility growth and dividends, with potential for opportunistic M&A in the future [38][39]

Financial Data and Key Metrics Changes - The company generated $1.86 of diluted earnings per share in Q3 2025, an 8% decrease from the same time last year, primarily due to declining plastics segment sales prices and earnings [5][19] - The midpoint of the 2025 earnings guidance was increased to $6.47 from $6.26 per share, driven by better-than-expected plastics segment financial results [6][20] - The balance sheet remains strong with $325 million in cash on hand and a leading return on equity of 16% [20] Business Line Data and Key Metrics Changes - Electric segment earnings decreased by $0.03 per share in Q3, primarily due to unfavorable weather and seasonal rate differences [17] - Manufacturing segment earnings increased by $0.04 per share, driven by a lower cost structure and enhanced production efficiencies [18] - Plastics segment earnings decreased by $0.26 per share, with average sales prices of PVC pipe declining 17% compared to the previous year [19] Market Data and Key Metrics Changes - The lawn and garden and agricultural end markets continue to face demand-related headwinds, while recreational vehicle and construction markets show signs of improvement [13][14] - The plastics segment's sales prices have steadily declined, but sales volumes increased by 4% due to capacity added to VinylTech [16] Company Strategy and Development Direction - The updated five-year capital spending plan totals $1.9 billion, targeting a rate base compounded annual growth rate of 10% [5][23] - The company aims to increase its long-term earnings per share growth rate to 7% to 9% from 6% to 8% [5][26] - The company is focused on customer-oriented growth, with plans to attract large loads to its electric utility [12][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage costs and maintain low electric rates despite economic challenges [13][12] - The company anticipates that the current low-demand environment will continue through most of 2026, with expectations for a rebound in the manufacturing segment thereafter [14][25] - Management noted that the plastics segment remains crucial for overall strategy, providing enhanced returns and cash flow to support utility growth [25][27] Other Important Information - The company filed a request for a net revenue increase of $44.8 million with the Minnesota Public Utilities Commission [6][7] - The South Dakota rate case is progressing, with interim rates expected to commence on December 1, 2025 [9] Q&A Session Summary Question: Long-term EPS growth rate expectations - Management expects utility earnings to grow in line with the rate base, with fluctuations year-to-year but a long-term target of 7%-9% growth post-2028 [28][30] Question: Update on antitrust case - There are ongoing civil litigation and investigations, with no specific deadline for court decisions anticipated until 2026 [31] Question: Long-term cash usage strategy - The primary focus is on investing in utility growth and returning capital to shareholders through dividends, with no external equity needs [32][33] Question: Structure of the large load customer agreement - The 155-megawatt customer is an interruptible load with minimal capacity needs, expected to reduce fixed costs without significant investment [35]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $1.62 in Q1, an 8% decline from the same period last year, but in line with expectations [31][6][7] - The Electric segment saw a 10% increase in earnings due to favorable weather conditions and increased sales volumes, while the Manufacturing segment's earnings decreased due to lower sales volumes and increased production costs [31][32] - The Plastics segment produced diluted earnings per share of $1.03, a 7% decrease compared to the previous year, driven by an 11% decline in PVC pipe prices [33][27] Business Line Data and Key Metrics Changes - The Electric segment's earnings growth was attributed to increased rider revenues from capital investments and favorable weather, while the Manufacturing segment faced challenges from soft end market demand, particularly in recreational vehicles and agriculture [31][32][23] - The Plastics segment experienced a 13% increase in sales volumes, benefiting from strong distributor demand and the new large diameter pipe capacity [33][27] Market Data and Key Metrics Changes - The company noted stabilization in the construction and lawn and garden markets, but challenges remain in the recreational vehicle and agriculture markets due to high inventory levels and softening commodity prices [23][25] - The horticulture market served by T.O. Plastics has stabilized, but the timing of sales volume recovery remains uncertain [23] Company Strategy and Development Direction - The company is focused on a customer-centric capital investment plan, projecting a compounded annual growth rate of 9% in rate base through 2029, aiming to convert this growth into earnings per share growth at a one-to-one ratio [15][37] - The company is actively monitoring trade and tax policy changes, particularly regarding the Inflation Reduction Act, which could impact renewable energy investments [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainty, affirming the 2025 earnings guidance with a midpoint of $5.88 per share [7][35] - The company anticipates potential challenges in the second half of the year due to housing starts and builder sentiment, but expects to remain within the guidance range [47] Other Important Information - The company completed the expansion of its BTD Georgia facility, which is expected to increase production capacity and annual sales significantly [29][30] - The company maintains a strong balance sheet with a consolidated equity layer of 62% and over $600 million in available liquidity [34][35] Q&A Session Summary Question: Inquiry about Plastics segment volumes and pricing dynamics - Management indicated a lower single-digit increase in volume for the year, with strong Q1 performance but potential downturn in the second half due to housing market risks [47] - The expectation of continued product price declines despite inflationary input costs was explained as a return to pre-2021 gross margin percentages [48] Question: Impact of competitors expanding capacity in core regions - Management noted that while they do not have complete visibility, they anticipate competitors are likely adding capacity similar to their own efforts [50]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $1.62 in Q1, an 8% decline from the same period last year, but in line with expectations [31][6][7] - The Electric segment saw a 10% increase in earnings due to favorable weather conditions and increased sales volumes, while the Manufacturing segment earnings decreased due to lower sales volumes and increased production costs [31][32] - The Plastics segment produced diluted earnings per share of $1.03, a 7% decrease compared to the previous year, driven by an 11% decline in PVC pipe prices [33][27] Business Line Data and Key Metrics Changes - The Electric segment's earnings growth was attributed to increased rider revenues from capital investments and favorable weather, while the Manufacturing segment faced challenges from soft end market demand, particularly in recreational vehicles and agriculture [31][32][23] - The Plastics segment experienced a 13% increase in sales volumes, benefiting from strong distributor demand and the new large diameter line's output [33][27] Market Data and Key Metrics Changes - The company noted stabilization in the construction and lawn and garden markets, but challenges remain in the recreational vehicle and agriculture markets due to high inventory levels and softening commodity prices [23][25] - The horticulture market served by T.O. Plastics has stabilized, but the timing of sales volume recovery remains uncertain [24] Company Strategy and Development Direction - The company is focused on a customer-centric capital investment plan, projecting a compounded annual growth rate of 9% in rate base through 2029, aiming to convert this into earnings per share growth at a one-to-one ratio [15][37] - The company is actively monitoring trade and tax policy changes, particularly regarding the Inflation Reduction Act, to mitigate risks and seize opportunities [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainty, affirming the 2025 earnings guidance with a midpoint of $5.88 per share [7][35] - The company anticipates potential challenges in the second half of the year due to housing starts and builder sentiment, but expects to remain within the guidance range [47] Other Important Information - The company completed the expansion of its BTD Georgia facility, which is expected to increase production capacity and annual sales significantly [29][30] - The company maintains a strong balance sheet with a consolidated equity layer of 62% and over $600 million in available liquidity [34][35] Q&A Session Summary Question: Inquiry about Plastics segment volumes and pricing dynamics - Management indicated a lower single-digit increase in volume for the year, with strong Q1 performance but potential downturn in the second half due to housing market risks [46][47] - The expectation of continued product price declines despite inflationary input cost increases was explained as a return to pre-2021 gross margin percentages [48] Question: Impact of competitors expanding capacity in core regions - Management noted that while they do not have complete visibility, they anticipate competitors are likely adding capacity similar to their own efforts [50]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $1.62 in Q1 2025, an 8% decline from the same period last year, but in line with expectations [31] - The Electric segment saw a 10% increase in earnings due to favorable weather conditions and increased sales volumes, while the Manufacturing segment's earnings decreased due to lower sales volumes and increased production costs [31][32] - The Plastics segment produced diluted earnings per share of $1.03, a decrease of 7% compared to the first quarter last year, driven by an 11% decline in average sales prices of PVC pipe [33] Business Line Data and Key Metrics Changes - The Electric segment's earnings growth was attributed to favorable weather and increased rider revenues from capital investments [31] - The Manufacturing segment faced challenges with soft end market demand, particularly in recreational vehicles and agriculture, leading to decreased earnings [32][23] - The Plastics segment experienced a 13% increase in sales volumes, offsetting some of the decline in pricing [33][26] Market Data and Key Metrics Changes - The company noted heightened uncertainty in the operating environment due to U.S. trade policy and macroeconomic conditions, impacting its businesses [7][8] - Domestic steel prices have increased due to tariffs, which are expected to impact raw material costs in the second half of 2025, but the company anticipates being able to pass these costs onto customers [11] - The company is monitoring end market conditions, particularly in housing starts and builder sentiment, which could affect sales volumes in the second half of the year [49] Company Strategy and Development Direction - The company is affirming its 2025 earnings guidance with a midpoint of $5.88 per share, focusing on capital investments in the Electric segment to drive growth [7][35] - Otter Tail Power aims to attract large loads, with over 1,000 megawatts of potential new loads in the pipeline, which could benefit existing customers by spreading fixed costs [20][22] - The company is committed to maintaining affordable electric service rates, with rates 30% below the national average [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current economic uncertainty, citing a strong balance sheet and ample liquidity [7][35] - The company is closely monitoring potential changes in tax policy that could impact renewable energy investments, particularly under the Inflation Reduction Act [11][12] - Management remains optimistic about the long-term fundamentals of the Manufacturing segment despite current challenges [25] Other Important Information - The company completed the expansion of its BTD Georgia facility, which is expected to increase production capacity and annual sales [29] - The Electric segment's capital investment plan is projected to produce a compounded annual growth rate of 9% through 2029 [15] - The company has a strong balance sheet with a consolidated equity layer of 62% and over $600 million in available liquidity [34] Q&A Session Summary Question: What kind of volumes are assumed in the guidance for the Plastics segment this year? - The company expects a lower single-digit increase in volume for the year, factoring in potential downturns in the second half due to housing starts and builder sentiment [48] Question: Why expect continued product price declines despite inflationary increases in input costs? - The company anticipates reverting to pre-2021 gross margin percentages, expecting a convergence of costs and prices by the end of 2027 [49] Question: Are there any impacts from competitors expanding capacity in core regions? - The company does not have complete visibility but anticipates competitors are likely adding incremental line capacity similar to its own efforts [51]

Core Viewpoint - Atkore Inc. is facing a class action lawsuit due to allegations of participating in an anticompetitive price-fixing scheme that inflated PVC pipe prices, leading to significant financial losses for investors [3]. Group 1: Class Action Details - The class action represents investors who purchased Atkore Inc. securities between February 1, 2024, and February 3, 2025, with a deadline of April 23, 2025, to file a lead plaintiff motion [1]. - Investors are encouraged to contact the Portnoy Law Firm for legal rights discussions and case evaluations [2]. Group 2: Allegations Against Atkore Inc. - The complaint alleges that Atkore engaged in a price-fixing scheme that artificially inflated PVC pipe prices [3]. - It is claimed that Atkore gained significant but unsustainable financial benefits from this scheme [3]. - Following the exposure of the price-fixing scheme, Atkore and its co-conspirators could no longer manipulate prices, resulting in a substantial decline in business operations [3]. - The lawsuit asserts that the defendants' positive statements regarding Atkore's business and prospects were materially false and misleading [3].

Financial Data and Key Metrics Changes - For Q4 2024, the company reported sales of $2.8 billion and EBITDA of $416 million, representing a 7% increase in EBITDA compared to Q4 2023's EBITDA of $390 million [17][24] - Full year 2024 net income was $677 million, with EBITDA totaling $2.3 billion, while total sales for 2024 declined by 3% to $12.1 billion due to a 10% decline in average sales prices [25][26] - The company achieved total cost reductions of $170 million in 2024, exceeding the target of $125 million to $150 million [16][32] Business Segment Data and Key Metrics Changes - The Housing and Infrastructure Products (HIP) segment achieved record income from operations of $807 million and an EBITDA margin of 24%, driven by an 8% sales volume growth [20][28] - The Performance and Essential Materials (PEM) segment saw a 1% increase in sales volume, primarily due to export market demand, although average sales prices were impacted by industry capacity increases [18][30] - HIP's EBITDA margin improved to 19% in Q4 2024, while PEM's EBITDA margin increased to 12% from 11% in the same period of 2023 [27][31] Market Data and Key Metrics Changes - North America showed strong demand across both segments, supported by a broad product portfolio and a strong feedstock position [19] - The company expects housing starts for 2025 to remain similar to 2024 at 1.3 million [33] Company Strategy and Development Direction - The company is focused on sustainability and has initiated several key projects, including a pilot program for post-consumer recycled PVC and investments in carbon waste transformation technology [36][37] - The company plans to continue optimizing its business to drive operational performance and reduce costs, with a target of $125 million to $150 million in cost reductions for 2025 [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the HIP segment, citing strong brand offerings and geographical reach [39][41] - The company acknowledges uncertainties in the global macroeconomic environment but remains focused on actions within its control to improve business performance [41] Other Important Information - The company returned approximately $325 million to shareholders through dividends and share repurchases in 2024 [21][32] - As of December 31, 2024, the company had $2.9 billion in cash and cash equivalents, with total debt of $4.6 billion [31] Q&A Session Summary Question: Insights on HIP margins and expected degradation - Management indicated that margin guidance reflects a product mix shift rather than a decline in overall demand [49] Question: Cost cuts distribution across divisions - Cost reduction efforts will be significant in both HIP and PEM segments, particularly in logistics and procurement [52] Question: Concerns about homebuilder outlook affecting volumes - Management remains confident in growth, expecting market penetration to increase despite broader economic concerns [59] Question: Impact of tariffs on PVC trade flows - Management is monitoring potential impacts of tariffs on trade patterns and will adapt as necessary [62] Question: Volume and price changes for the year - Year-over-year volume improvements were 6% for PEM and 8% for HIP, with price declines of 12% for PEM and 6% for HIP [81][84] Question: Free cash flow outlook for 2025 - Management expects stronger free cash flow generation in 2025 due to continued strength in the HIP business [90] Question: Recent demand experience in major product lines - Demand for polyethylene remains strong, with price initiatives reflecting good market conditions [118] Question: Expectations for EBITDA margins in 2025 - Management views the 20% to 22% EBITDA margin guidance as conservative, with potential for improvement if housing starts increase [132]