Otter Tail beats 2025 estimates, signals 2026 earnings cool-off

Otter Tail (NASDAQ:OTTR) capped off a year of resilient growth with annual earnings that outperformed the company’s own raised expectations, though it forecast a decline in profitability for the year ahead as manufacturing headwinds persist.

The Fergus Falls, Minnesota-based company reported full-year 2025 net income of $275.9 million, or $6.55 per diluted share—up 6.6% from the previous year.

Total revenue for the period reached $1.3 billion.

The results were bolstered by a standout performance in its Electric segment, where higher sales volumes and fuel recovery revenues offset a contraction in the company's manufacturing and plastics operations.

Looking toward the next fiscal year, Otter Tail initiated 2026 diluted EPS guidance in the range of $5.22 to $5.62.

This projected decline reflects an expected normalization in the Plastics segment, which has enjoyed historically high margins that are now beginning to revert to long-term averages.

Despite the softer earnings forecast, the company is doubling down on its utility infrastructure.

It announced an updated 2026–2030 capital expenditure plan of $2.05 billion—an increase from its previous $1.9 billion target—focused heavily on renewable energy and regional transmission projects.

The board also recently signaled confidence in its cash position by increasing the quarterly dividend by 10% to $0.5775 per share.