Otter Tail Corporation Reports Strong Q1 Earnings

Otter Tail ( (OTTR) ) has released its Q1 earnings. Here is a breakdown of the information Otter Tail presented to its investors.

Otter Tail Corporation, a diversified company with interests in electric utility and manufacturing sectors, has released its first-quarter earnings report for 2025. The company operates primarily in the energy sector, with a focus on electric power generation and distribution, alongside its manufacturing and plastics segments.

In the first quarter of 2025, Otter Tail Corporation reported diluted earnings per share of $1.62, aligning with its expectations and setting a positive tone for the year. The company reaffirmed its annual earnings guidance, projecting a range between $5.68 and $6.08 per share. Additionally, Otter Tail increased its quarterly dividend by 12% to $0.525 per share, reflecting its commitment to returning value to shareholders.

Key financial highlights include a total net income of $68.1 million for the quarter, supported by strong performance in the electric segment, which saw a 10% increase in net income due to higher operating revenues. The manufacturing segment faced challenges with a 17.8% decline in operating revenues, attributed to decreased sales volumes in key markets. Meanwhile, the plastics segment experienced a slight decrease in operating revenues, offset by increased sales volumes due to strong market demand.

Looking ahead, Otter Tail Corporation maintains a positive outlook for 2025, expecting a return on equity between 13.8% and 14.6%. The company plans to continue investing in its electric segment and capitalize on growth opportunities, aiming for a compounded annual growth rate of 9% in its rate base from 2025 to 2029. Otter Tail remains confident in its diversified business model to generate sustainable earnings and cash flows to support its capital investment plans.