Otter Tail Corporation (OTTR)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	366,892	363,489	357,535	212,821	116,057
Revenue	US$ in thousands	1,329,970	1,353,480	1,469,480	1,197,640	883,171
Pretax margin		27.59%	26.86%	24.33%	17.77%	13.14%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $366,892K ÷ $1,329,970K
= 27.59%

The pretax margin of Otter Tail Corporation has shown a consistent upward trend over the five-year period from December 31, 2020, to December 31, 2024. Starting at 13.14% in 2020, the pretax margin steadily increased to 17.77% in 2021, 24.33% in 2022, 26.86% in 2023, and ultimately reaching 27.59% by the end of 2024.

This positive trend indicates that Otter Tail Corporation has been able to effectively manage its operating expenses and generate higher levels of pre-tax profits relative to its total revenue. The company's ability to continually improve its pretax margin suggests efficient cost control measures, effective pricing strategies, or potentially higher sales volumes contributing to improved profitability over the period analyzed. Overall, the increasing pretax margin demonstrates Otter Tail Corporation's enhanced operational efficiency and financial performance during the specified timeframe.