Otter Tail ( (OTTR) ) has released its Q4 earnings. Here is a breakdown of the information Otter Tail presented to its investors.
Otter Tail Corporation, a diversified company operating in the electric utility and manufacturing sectors, has reported its financial results for the year ending December 31, 2024, showcasing record annual earnings.
In 2024, Otter Tail Corporation achieved impressive milestones, including a record diluted earnings per share of $7.17 and a consolidated return on equity of 19.3%. The company also updated its electric utility’s five-year rate base growth rate and increased its long-term earnings per share growth target, reflecting strong financial performance and strategic advancements.
The electric segment saw an income increase due to interim rate increases and regulatory achievements, while the manufacturing segment faced challenges from softened market demand, resulting in decreased revenues. On the other hand, the plastics segment reported strong financial results with record earnings, driven by increased sales volumes and market demand. Overall, Otter Tail’s consolidated net income rose by $7.5 million compared to the previous year.
Looking forward, Otter Tail Corporation remains optimistic about its growth trajectory, with a five-year capital spending plan of $1.4 billion and revised long-term financial targets. The company anticipates a positive outlook in its electric segment with expected earnings growth, although it foresees challenges in the manufacturing and plastics segments due to market conditions. With a strong balance sheet and a clear strategic direction, Otter Tail is well-positioned to meet its revised financial targets.