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Dec 31, 2025
Otter Tail Q4 2025 Earnings Report
Otter Tail reported lower fourth quarter 2025 net income compared to the prior year, with modest revenue growth and higher other expenses.
Key Takeaways
Otter Tail generated Q4 2025 revenue of $308.1 million and net income of $51.8 million, as stronger Electric and Manufacturing performance was offset by lower Plastics earnings and higher other expenses.
Total operating revenues increased 1.6% year-over-year to $308.1 million.
Net income declined to $51.8 million, with diluted EPS of $1.23.
Electric segment net income rose to $26.4 million driven by higher sales volumes and favorable weather.
Plastics segment net income decreased to $30.4 million due to lower sales prices.
Revenue by Segment
Forward Guidance
For 2026, the company expects diluted EPS in the range of $5.22 to $5.62, with earnings mix shifting toward Manufacturing and Plastics compared to its long-term target.
Positive Outlook
- Electric segment earnings expected to increase 14% in 2026.
- Interim revenues from Minnesota rate case beginning January 1, 2026.
- Increased sales volumes at Phoenix facility in Plastics segment.
- Flat raw material costs expected in 2026.
- Continued capital investment supporting rate base growth.
Challenges Ahead
- Plastics segment earnings expected to decline 36% in 2026.
- Continued decline in average product sales prices.
- Higher labor and outage-related operating expenses.
- Increased depreciation and interest expense from capital investments.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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