Otter Tail Corporation Reports Strong Q3 Earnings

Otter Tail ( (OTTR) ) has released its Q3 earnings. Here is a breakdown of the information Otter Tail presented to its investors.

Otter Tail Corporation, a diversified company with interests in electric utilities and manufacturing, has reported its third-quarter earnings for 2025, showcasing a robust financial performance and an optimistic outlook for the future. The company has raised its annual earnings guidance and long-term financial targets, reflecting strong performance particularly in its Plastics segment.

In the third quarter of 2025, Otter Tail Corporation achieved a diluted earnings per share of $1.86 and increased its 2025 earnings guidance midpoint by $0.21 to $6.47. The company also updated its electric utility’s five-year rate base growth rate to 10% and raised its long-term earnings per share growth rate target to between 7% and 9%. These adjustments are attributed to the strong performance of the Plastics segment and strategic investments in infrastructure.

Key financial highlights include a 6.3% increase in operating revenues for the Electric segment, driven by higher sales volumes and fuel recovery revenue, despite a slight decrease in net income due to increased depreciation expenses. The Manufacturing segment faced challenges with a 3.7% decline in operating revenues, but managed to increase net income by 80.1% due to improved production efficiencies. The Plastics segment saw a significant 13.9% drop in operating revenues due to declining sales prices, although net income was supported by lower input material costs.

Looking ahead, Otter Tail Corporation remains optimistic about its growth prospects, with a new five-year capital spending plan of $1.9 billion aimed at enhancing its electric utility infrastructure and expanding its Plastics segment capacity. The company anticipates a total shareholder return of 10% to 12%, driven by strategic investments and a focus on providing reliable and affordable services to its customers.