Otter Tail Corporation (OTTR): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the story behind Otter Tail Corporation (OTTR), a company deeply rooted in American infrastructure and energy? From its humble beginnings in 1907 to its current diversified operations, how did this corporation evolve into a key player in electric utilities, manufacturing, and plastics? Dive in to discover how Otter Tail Corporation achieved record earnings in 2024, generating diluted earnings per share of $7.17, and continues to shape industries across the Midwest and beyond.

Otter Tail Corporation (OTTR) History

Otter Tail Corporation Founding Timeline

Year established

The company was established in 1909.

Original location

The company's origins are rooted in Fergus Falls, Minnesota.

Founding team members

While specific names of the entire founding team are not widely publicized, Charles B. Carter is prominently recognized as a key figure in the company's early development.

Initial capital/funding

Details regarding the precise initial capital or funding are not readily available in general overviews of the company's history.

Otter Tail Corporation Evolution Milestones

Otter Tail Corporation Transformative Moments

Throughout its history, the company has undergone several transformative moments that have shaped its trajectory:

• Strategic Diversification: Moving beyond its core utility operations into manufacturing, healthcare, and other sectors has been pivotal. This diversification strategy has helped to stabilize revenue streams and capitalize on growth opportunities in different markets.
• Regulatory and Policy Adaptations: Adapting to changing energy regulations and environmental policies has been crucial. Investments in renewable energy sources and compliance with environmental standards have ensured long-term sustainability and operational viability.
• Technological Advancements: Embracing new technologies in power generation, transmission, and distribution has improved efficiency and reliability. The integration of smart grid technologies and renewable energy sources has been essential for modernizing its utility infrastructure.
• Mergers and Acquisitions: Strategic acquisitions have played a significant role in expanding the company's footprint and capabilities. These acquisitions have allowed the company to enter new markets, enhance its service offerings, and achieve economies of scale.

These transformative decisions reflect a commitment to innovation, sustainability, and strategic growth, positioning the company for continued success in a dynamic business environment. For more insights into the company's investor profile, check this out: Exploring Otter Tail Corporation (OTTR) Investor Profile: Who’s Buying and Why?

Otter Tail Corporation (OTTR) Ownership Structure

Otter Tail Corporation features a diverse ownership structure, blending institutional, retail, and insider holdings, reflecting a mix of investment strategies and stakeholder interests.

Otter Tail Corporation's Current Status

Otter Tail Corporation is a publicly traded company, listed on the NASDAQ under the ticker symbol OTTR.

Otter Tail Corporation's Ownership Breakdown

Here's a look at the ownership breakdown of Otter Tail Corporation:

Otter Tail Corporation's Leadership

The leadership team guiding Otter Tail Corporation includes:

• Chuck MacFarlane: President and Chief Executive Officer
• Bob Schempp: Executive Vice President and Chief Financial Officer

For more in-depth insights into Otter Tail Corporation's investor profile, you might find this resource helpful: Exploring Otter Tail Corporation (OTTR) Investor Profile: Who’s Buying and Why?

Otter Tail Corporation (OTTR) Mission and Values

Otter Tail Corporation aims to grow through its electric and manufacturing businesses, guided by its core values of integrity, employee commitment, customer dedication, community support, and shareholder focus.

Otter Tail Corporation's Core Purpose

Official mission statement

Otter Tail Corporation's mission statement is to:

• Provide reliable service to customers.
• Offer a fair return for shareholders.
• Support the economic health of its communities.
• Provide a safe and rewarding environment for employees.

This mission reflects a commitment to balancing the needs of various stakeholders, ensuring sustainable growth and positive impact. For more in-depth information, you can visit: Mission Statement, Vision, & Core Values of Otter Tail Corporation (OTTR).

Vision statement

The vision of Otter Tail Corporation is to achieve growth through:

• Growing their electric and manufacturing businesses.

This vision focuses on strategic expansion within its key sectors, driving long-term value and market leadership.

Company slogan/tagline

Otter Tail Corporation does not have a widely publicized official slogan or tagline. Instead, the company focuses on communicating its values and business approach through its actions and corporate messaging, emphasizing reliability, community support, and sustainable growth.

Otter Tail Corporation (OTTR) How It Works

Otter Tail Corporation operates through three primary segments: electric, manufacturing, and plastics. It generates, transmits, and distributes electricity; manufactures various products; and produces polyvinyl chloride (PVC) pipes, serving a diverse range of customers across different industries.

Otter Tail Corporation's Product/Service Portfolio

Otter Tail Corporation's Operational Framework

Otter Tail Corporation's operations are structured to leverage synergies between its different business segments. Here's a breakdown:

• Electric Segment: This segment focuses on providing reliable and affordable electricity to its service territory. It involves:
  • Generating power from a mix of coal, wind, and other renewable sources.
  • Maintaining and upgrading transmission and distribution infrastructure.
  • Implementing customer service and energy efficiency programs.
• Manufacturing Segment: This segment provides a range of manufacturing solutions, including:
  • Fabricating custom metal parts and assemblies.
  • Providing machining services for various industries.
  • Offering contract manufacturing services.
• Plastics Segment: This segment is engaged in the production of PVC pipes and related products, including:
  • Manufacturing PVC pipes for water, sewer, irrigation, and industrial applications.
  • Developing and marketing innovative piping solutions.
  • Ensuring quality control and compliance with industry standards.

Otter Tail Corporation's Strategic Advantages

• Diversified Business Model: Otter Tail Corporation's operations across electric, manufacturing, and plastics sectors provide diversification, reducing overall risk and enhancing stability.
• Vertically Integrated Operations: The company's ability to generate and distribute electricity, manufacture products, and produce PVC pipes allows for better control over the supply chain and cost efficiencies.
• Strong Regional Presence: With a significant presence in the Upper Midwest, Otter Tail Corporation benefits from a loyal customer base and established relationships.
• Commitment to Renewable Energy: The company's increasing focus on renewable energy sources, such as wind and solar, positions it favorably in a changing energy landscape.

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Otter Tail Corporation (OTTR) How It Makes Money

Otter Tail Corporation primarily generates revenue through electric utilities and manufacturing businesses. The electric segment focuses on generating, transmitting, and distributing electricity, while the manufacturing segment produces various products, including plastics, metal parts, and equipment.

Otter Tail Corporation's Revenue Breakdown

Otter Tail Corporation's Business Economics

Otter Tail Corporation's business economics are influenced by several factors, including:

• Electricity Pricing: The price of electricity is determined by regulatory bodies, considering factors such as fuel costs, operating expenses, and capital investments.
• Manufacturing Costs: The costs of raw materials, labor, and energy impact the profitability of the manufacturing segment. Efficiency in production processes and supply chain management are crucial.
• Regulatory Environment: Changes in environmental regulations and energy policies can significantly affect the company's operations and investments.
• Market Demand: The demand for electricity and manufactured products influences production levels and revenue. Economic conditions and customer needs play a vital role.

Otter Tail Corporation's Financial Performance

Key aspects of Otter Tail Corporation's financial performance include:

• Revenue Growth: Otter Tail Corporation reported total operating revenues of $1.4 billion for the year 2024.
• Net Income: The company's net income for 2024 was $175.2 million, or $4.17 per diluted share.
• Capital Expenditures: Otter Tail Corporation invests significantly in infrastructure and equipment to maintain and expand its operations. Capital expenditures for 2024 totaled $237 million.
• Dividend Payout: Otter Tail Corporation has a history of consistent dividend payments, offering an attractive yield to investors. The annual dividend payout for 2024 was $1.68 per share.

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Otter Tail Corporation (OTTR) Market Position & Future Outlook

As of April 2025, is strategically positioned within the electric utility and manufacturing sectors, demonstrating a commitment to growth and reliability. The company's future outlook appears stable, focusing on infrastructure investments and operational efficiencies to maintain a competitive edge.

Competitive Landscape

Opportunities & Challenges

Industry Position

is a notable player in the Midwest energy and manufacturing sectors. Its strengths include:

• Geographic Focus: Strong regional presence in the Upper Midwest ensures stable demand and localized expertise.
• Diversified Operations: Balancing regulated utilities with manufacturing reduces overall business risk.
• Investment in Renewables: Increasing focus on renewable energy sources aligns with sustainability trends and regulatory incentives.

For more insights into the financial aspects, explore: Breaking Down Otter Tail Corporation (OTTR) Financial Health: Key Insights for Investors