Otter Tail (OTTR) Q3 2025 earnings summary

Executive summary

• Q3 2025 diluted EPS was $1.86, exceeding expectations but down from $2.03 in Q3 2024, with net income at $78.3 million, down 8.4% year-over-year, mainly due to lower Plastics segment sales prices and Manufacturing volumes.

• Growth plan execution remains strong, with regulatory progress in Minnesota and South Dakota rate cases, ongoing expansion projects, and a five-year capital spending plan totaling $1.9 billion.

• Long-term EPS growth target increased to 7%-9%, with a 10% rate base CAGR and total shareholder return targeted at 10%-12%.

• Dividend increased by 12% to $2.10 per share, with a quarterly dividend of $0.525 declared for December 2025.

Financial highlights

• Q3 2025 net income was $78.3 million, diluted EPS was $1.86, and operating revenues were $325.6 million, all down year-over-year.

• Year-to-date 2025 net income was $224.1 million, with diluted EPS of $5.32, both lower than prior year.

• Cash and cash equivalents at September 30, 2025 were $325.8 million, with total available liquidity of $705.3 million.

• Return on equity (TTM) at 16% and 2025 guidance range of 15.1–15.7%.

Outlook and guidance

• 2025 EPS guidance midpoint raised to $6.47, with a new range of $6.32–$6.62, reflecting better-than-expected Plastics results and lower raw material costs.

• Five-year capital spending plan totals $1.9 billion, focused on electric utility investments.

• Interim rates in Minnesota expected January 2026, with a requested $44.8 million annual revenue increase.

• No external equity needed through at least 2030; growth to be funded by cash and annual debt issuance.