Otter Tail Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 EPS rose 7% year-over-year to $1.73, led by strong Electric and Manufacturing segments, while Plastics earnings declined due to lower PVC prices. Guidance for 2026 EPS and long-term growth targets were reaffirmed, with no external equity needs anticipated through 2030.
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Strong 2025 results included record shareholder returns, a 10% dividend increase, and robust capital investment plans. All board proposals passed, new directors were appointed, and strategic growth in solar, battery, and manufacturing was highlighted.
Fiscal Year 2025
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2025 results exceeded expectations, with strong utility growth offsetting normalization in plastics. 2026 guidance anticipates higher electric and manufacturing earnings but continued plastics headwinds. Capital plan remains robust, with no external equity needs through 2030.
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Q3 2025 results exceeded expectations despite lower plastics pricing, prompting a raised 2025 EPS guidance and a new five-year capital plan. Electric and manufacturing segments showed resilience, while plastics faced ongoing price declines. Long-term EPS growth and shareholder return targets were increased.
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Q2 2025 EPS declined year-over-year but exceeded expectations, prompting an increase in full-year guidance. Electric segment growth, strong plastics performance, and robust cash position support a $1.4B capital plan, with risks from regulatory and market changes.
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Q1 2025 EPS declined 8% year-over-year but met expectations, with electric segment growth offsetting declines in manufacturing and plastics. 2025 EPS guidance is reaffirmed, capital investments remain robust, and no external equity is needed for five years.
Fiscal Year 2024
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Record 2024 earnings driven by electric and plastics segments, with EPS at $7.17 and ROE at 19%. Five-year capital plan increased to $1.4B, supporting 9% rate base CAGR. 2025 EPS guidance is $5.68-$6.08, with plastics and manufacturing segments expected to decline.
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Q3 2024 EPS fell 7% year-over-year, but YTD earnings are up 4% and annual guidance was raised. Electric segment earnings rose 16%, while manufacturing and plastics saw declines but outperformed expectations. Strong liquidity, no equity needs, and major capital projects support long-term growth.
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Second-quarter EPS rose 6% to $2.07, led by strong Plastics and Manufacturing results, while Electric earnings declined due to weather. 2024 EPS guidance was raised to $6.77-$7.07, with continued strength in Plastics and a robust balance sheet supporting growth.