Financial Performance - Otter Tail Corporation achieved record annual diluted earnings per share of 7.17in2024,upfrom6.88 in 2023[2] - The Electric segment generated net income of 90.96million,a7.784.42 million in 2023, despite a 0.7% decrease in operating revenues[11] - The Plastics segment reported record earnings of 201million,drivenbya27342.59 million, with net income dropping 36.2% to 13.68millionduetoa151.331 billion, a slight decrease from 1.349billionin2023[33]−NetincomeforthetwelvemonthsendedDecember2024is301.662 million, compared to 294.191millionin2023,indicatingayear−over−yearincrease[33]−OperatingincomeforthethreemonthsendedDecember2024is66.824 million, down from 70.080millioninthesameperiodof2023[33]−TotaloperatingrevenuesforthetwelvemonthsendedDecember2024were1,330,548, a decrease of 1.3% from 1,349,166in2023[36]−NetincomeforthetwelvemonthsendedDecember2024was301,662, an increase of 2.5% compared to 294,191in2023[36]CashFlowandLiquidity−Consolidatedcashprovidedbyoperatingactivitiesreachedarecord452.7 million in 2024, up from 404.5millionin2023[8]−ThetotalavailableliquidityasofDecember31,2024,was606.3 million, comprising 311.6millionincreditfacilitiesand294.7 million in cash[9] - Cash and cash equivalents were reported at 294,651,000in2024,upfrom230,373,000 in 2023, indicating an increase of about 27.9%[34] - Net cash provided by operating activities for the twelve months ended December 2024 was 452,731,comparedto404,499 in 2023[35] - The company reported a net change in cash and cash equivalents of 64,278forthetwelvemonthsendedDecember2024[35]CapitalExpendituresandInvestments−Capitalexpendituresfor2024totaled358.7 million, primarily focused on the Electric segment, with a revised 5-year capital spending plan of 1.4billion[8]−Totalcapitalexpendituresfor2024areprojectedat359 million, with a five-year total of 1.555billionfrom2025to2029[27]−TheElectricsegment′scapitalexpendituresfor2024are301 million, contributing to a total of 1.426billionoverthenextfiveyears[27]−TheManufacturingandPlasticssegments′capitalexpendituresareprojectedat129 million over the next five years, focusing on equipment upgrades and capacity expansion[27] Assets and Liabilities - Total current assets increased to 630,041,000in2024from570,170,000 in 2023, representing an increase of approximately 10.5%[34] - Total noncurrent assets rose to 3,022,041,000in2024,upfrom2,672,398,000 in 2023, indicating a growth of about 13.1%[34] - Total assets reached 3,652,082,000in2024,comparedto3,242,568,000 in 2023, marking an increase of approximately 12.6%[34] - Current liabilities totaled 309,790,000in2024,adecreasefrom309,975,000 in 2023, reflecting a slight reduction[34] - Long-term debt stood at 943,734,000in2024,comparedto824,059,000 in 2023, showing an increase of about 14.5%[34] - Shareholders' equity increased to 2,091,402,000in2024from1,855,553,000 in 2023, representing a growth of approximately 12.7%[34] - Regulatory assets decreased to 9,962,000in2024from16,127,000 in 2023, a decline of approximately 38.5%[34] - Inventories slightly decreased to 148,885,000in2024from149,701,000 in 2023, reflecting a minor reduction[34] - Other noncurrent assets increased to 66,416,000in2024from51,377,000 in 2023, indicating a growth of approximately 29.3%[34] Future Outlook - Otter Tail Corporation updated its long-term earnings per share growth rate target to 6-8%, up from 5-7%[6] - The company anticipates 2025 diluted earnings per share to range between 5.68and6.08, reflecting a 7% expected growth in the Electric segment[25] - The Electric segment's return on equity was 19.3% for 2024, with a target of 13.8% to 14.6% for 2025[26] - The Electric segment's average rate base is expected to grow from 1.892billionin2024to2.909 billion by 2029, reflecting an annual growth rate of 9.0%[27] - The average rate base is anticipated to increase by 12% in 2025 compared to 2024, enhancing returns[28] - A planned maintenance outage at Coyote Station is scheduled for 2025, which may impact operational performance[28] - The company expects continued declines in product sales prices throughout 2025, following a retreat from 2022 highs[28] Segment Performance - Electric segment operating revenues for the three months ended December 2024 were 139,818,up5.5132,362 in 2023[36] - Manufacturing segment net income for the twelve months ended December 2024 was 13,681,down36.621,454 in 2023[36] - Plastics segment operating revenues for the three months ended December 2024 were 96,661,anincreaseof8.789,105 in 2023[36]
Otter Tail (OTTR)2025-02-18 13:34