Otter Tail Corporation Reports Record Earnings for 2024 and Raises Long-Term Growth Targets

February 17, 2025 – Otter Tail Corporation (Nasdaq: OTTR) has announced record financial results for the year ended December 31, 2024, with diluted earnings per share reaching $7.17. The company also raised its long-term earnings per share growth target to 6 to 8%, up from 5 to 7%, reflecting strong financial performance and strategic investments.

President and CEO Chuck MacFarlane credited the company’s success to effective execution and the dedication of its employees. The Electric segment saw earnings growth of 7.7%, supported by regulatory approvals and capital investments. The Manufacturing segment faced challenges due to weakened demand in key industries, while the Plastics segment delivered record earnings of $201 million, benefiting from strong sales volumes despite a decline in prices.

Otter Tail Power updated its five-year capital spending plan to $1.4 billion, aiming for a compounded annual growth rate of 9% in its rate base. For 2025, the company expects diluted earnings per share to range from $5.68 to $6.08, with continued growth in the Electric segment but a decline in Plastics and Manufacturing due to changing market conditions.

Cash flow from operations reached a record $452.7 million, driven by efficient working capital management and increased net income. Capital expenditures totaled $358.7 million, primarily focused on utility infrastructure and manufacturing expansions. The company also issued $120 million in long-term debt to support growth investments.

Looking ahead, Otter Tail plans to continue investing in renewable energy, system reliability, and manufacturing capacity to drive long-term value. A webcast discussing the financial results is scheduled for February 18, 2025.