Otter Tail raises annual EPS guidance

Overview

• Otter Tail Corp Q2 2025 EPS at $1.85, down from last year's $2.07

• Co, which has operations in electric utilities, manufacturing, and plastics, raises 2025 EPS guidance to $6.06-$6.46

• Severe weather affected Electric segment, but recovery efforts were successful

Outlook

• Otter Tail raises 2025 EPS guidance to $6.06-$6.46

• Company expects 2025 earnings mix: 37% Electric, 63% Non-Electric

• Otter Tail increases Plastics segment earnings guidance for 2025

• Company anticipates elevated Plastics earnings due to lower material costs

Result Drivers

• ELECTRIC SEGMENT - Revenue increase driven by favorable weather and fuel recovery, despite severe weather disruptions

• MANUFACTURING SEGMENT - Revenue decline due to decreased sales volumes and lower steel costs

• PLASTICS SEGMENT - Better than expected performance due to strong demand and increased sales volumes, despite declining sales prices

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy"

• Wall Street's median 12-month price target for Otter Tail Corp is $83.00, about 9.3% above its August 1 closing price of $75.29

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw112S81a