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Otter Tail (OTTR) - 2025 Q1 - Quarterly Results
OTTROtter Tail (OTTR)2025-05-06 12:28

Financial Performance - Otter Tail Corporation reported earnings of 68.1million,or68.1 million, or 1.62 per diluted share, for Q1 2025, aligning with expectations [2]. - The company maintains its 2025 diluted earnings per share guidance range of 5.68to5.68 to 6.08, expecting a return on equity between 13.8% and 14.6% [7][25]. - Net Income for Q1 2025 was 68,099,000,down8.468,099,000, down 8.4% compared to 74,338,000 in Q1 2024 [31]. - Basic Earnings Per Share (EPS) decreased to 1.63inQ12025from1.63 in Q1 2025 from 1.78 in Q1 2024, reflecting a decline of 8.4% [31]. - Operating Income for Q1 2025 was 83,999,000,adecreaseof11.583,999,000, a decrease of 11.5% from 94,975,000 in Q1 2024 [31]. - Total Operating Revenues for Q1 2025 were 337,353,000,adecreaseof2.1337,353,000, a decrease of 2.1% from 347,068,000 in Q1 2024 [31]. Segment Performance - Operating revenues for the Electric segment increased by 8.2million,or5.88.2 million, or 5.8%, driven by higher fuel recovery revenues and favorable weather conditions [15][17]. - The Manufacturing segment experienced a revenue decline of 17.7 million, or 17.8%, primarily due to a 13% decrease in sales volumes [19]. - The Plastics segment's operating revenues decreased slightly by 0.3million,or0.20.3 million, or 0.2%, despite a 13% increase in sales volumes [21]. - Total operating revenues for the electric segment reached 149,720 thousand, an increase from 141,488thousandintheprioryear,reflectingagrowthofabout5141,488 thousand in the prior year, reflecting a growth of about 5% [34]. - The manufacturing segment reported operating revenues of 81,685 thousand, compared to 99,380thousandinthepreviousyear,indicatingadecreaseofapproximately1899,380 thousand in the previous year, indicating a decrease of approximately 18% [34]. - Net income for the electric segment was 24,708 thousand, up from 22,470thousandyear−over−year,markinganincreaseofabout1022,470 thousand year-over-year, marking an increase of about 10% [34]. Cash Flow and Liquidity - Consolidated cash provided by operating activities was 39.5 million for Q1 2025, down from 71.9millioninQ12024[10].−ForthethreemonthsendedMarch31,2025,netcashprovidedbyoperatingactivitieswas71.9 million in Q1 2024 [10]. - For the three months ended March 31, 2025, net cash provided by operating activities was 39,469 thousand, a decrease from 71,913thousandinthesameperiodof2024,representingadeclineofapproximately4571,913 thousand in the same period of 2024, representing a decline of approximately 45% [33]. - Available liquidity as of March 31, 2025, was 607 million, including cash and credit facilities [12][14]. - Cash and cash equivalents decreased to 284,814,000from284,814,000 from 294,651,000, a decline of about 3.5% [32]. - The cash and cash equivalents at the end of the period were 284,814thousand,comparedto284,814 thousand, compared to 238,158 thousand at the end of the previous year, representing an increase of approximately 19.6% [33]. - The company experienced a net change in cash and cash equivalents of (9,837)thousand,contrastingwithapositivechangeof(9,837) thousand, contrasting with a positive change of 7,785 thousand in the same period last year [33]. Expenses and Costs - Total Operating Expenses increased slightly to 253,354,000inQ12025from253,354,000 in Q1 2025 from 252,093,000 in Q1 2024, representing a 0.5% increase [31]. - Electric Production Fuel costs decreased to 14,321,000inQ12025,down19.514,321,000 in Q1 2025, down 19.5% from 17,694,000 in Q1 2024 [31]. - Electric Purchased Power costs increased significantly to 30,870,000inQ12025,up37.130,870,000 in Q1 2025, up 37.1% from 22,521,000 in Q1 2024 [31]. - Interest Expense rose to 11,553,000inQ12025,anincreaseof17.311,553,000 in Q1 2025, an increase of 17.3% compared to 9,850,000 in Q1 2024 [31]. Assets and Liabilities - Total current assets increased to 651,274,000from651,274,000 from 630,041,000, representing a growth of approximately 3.9% year-over-year [32]. - Total noncurrent assets rose to 3,045,520,000from3,045,520,000 from 3,022,041,000, reflecting an increase of approximately 0.8% [32]. - Total assets reached 3,696,794,000,upfrom3,696,794,000, up from 3,652,082,000, indicating a growth of about 1.2% [32]. - Current liabilities totaled 248,420,000,comparedto248,420,000, compared to 230,990,000, marking an increase of approximately 7.5% [32]. - Short-term debt decreased to 58,853,000from58,853,000 from 69,615,000, a reduction of about 15.5% [32]. - Total noncurrent liabilities and deferred credits amounted to 737,500,073,showingaslightincreasefromthepreviousperiod[32].−Shareholders′equityincreasedto737,500,073, showing a slight increase from the previous period [32]. - Shareholders' equity increased to 209,370,209 from 194,040,000,representinganincreaseofapproximately7.9194,040,000, representing an increase of approximately 7.9% [32]. - Regulatory assets rose to 11,539,000 from 9,962,000,anincreaseofabout15.89,962,000, an increase of about 15.8% [32]. - Goodwill remained stable at 37,572,000 with no change from the previous year [32]. Capital Expenditures - Capital expenditures for Q1 2025 totaled 58.0million,primarilyfocusedontheElectricsegment′sprojects[11].−CapitalexpendituresforthethreemonthsendedMarch31,2025,were58.0 million, primarily focused on the Electric segment's projects [11]. - Capital expenditures for the three months ended March 31, 2025, were 58,012 thousand, down from $74,044 thousand in the same period of 2024, a reduction of approximately 22% [33]. Future Outlook - Otter Tail Power expects a compounded annual growth rate in rate base of 9% from 2025 to 2029, aiming for long-term earnings-per-share growth of 6% to 8% [8]. - The company plans to focus on expanding its electric segment and enhancing operational efficiencies to improve future performance [34].