Otter Tail Corporation (NASDAQ: OTTR) announced its annual financial results for the quarter and year ended December 31, 2025. The company reported an annual diluted earnings per share of $6.55, representing an increase from the previous period. The consolidated return on equity was 16% on an equity ratio of 63%. The company has initiated its 2026 diluted earnings per share guidance range of $5.22 to $5.62, with a return on equity projection of 12% at the midpoint.
In 2025, Otter Tail Corporation's consolidated cash provided by operating activities was $386.0 million, compared to $452.7 million in 2024. The decrease was primarily driven by higher working capital requirements, including the timing of fuel cost and rider recoveries from utility customers, and lower earnings.
The electric segment saw an increase in operating revenues from $524.5 million in 2024 to $566.8 million in 2025, representing an 8.1% change. Net income in the electric segment also increased from $90.9 million to $97.6 million, a 7.3% increase.
In the manufacturing segment, operating revenues decreased from $342.6 million to $314.5 million, an 8.2% decrease. Net income in the manufacturing segment decreased from $13.7 million to $11.5 million, a 15.8% decrease.
The plastics segment also experienced a decrease in operating revenues from $463.4 million to $422.8 million, an 8.8% decrease. Net income in the plastics segment decreased from $200.7 million to $170.4 million, a 15.1% decrease.
For the fourth quarter of 2025, Otter Tail Corporation reported a net income of $51.8 million, a decrease of 5.6% from the same period in the previous year.
Looking ahead to 2026, the company anticipates diluted earnings per share to be in the range of $5.22 to $5.62. The earnings mix is expected to be approximately 49% from the electric segment and 51% from the manufacturing and plastics segments, net of corporate costs.
The company's updated five-year capital expenditure plan includes electric segment investments in solar and battery storage resources, transmission and distribution assets, and investments in system reliability and technology. The electric segment's capital expenditure plan produces a compounded annual growth rate on average rate base of 10% over the next five years, which will serve as a key driver in increasing electric segment earnings over this timeframe.
Otter Tail Corporation will host a live webcast on Tuesday, February 17, 2026, at 10:00 a.m. CT to discuss its financial and operating performance.
The market has reacted to these announcements by moving the company's shares -0.5% to a price of $87.85. For the full picture, make sure to review Otter Tail Corp's 8-K report.
