Otter Tail Reports 2025 EPS $6.55, 2026 Guidance $5.22-$5.62

Otter Tail Corporation, headquartered in Fergus Falls, reported annual diluted earnings per share of $6.55 for 2025 and initiated 2026 diluted EPS guidance of $5.22 to $5.62, announcing a return on equity projection of 12 percent at the midpoint of that guidance. The company said consolidated return on equity was 16 percent in 2025 on an equity ratio of 63 percent, and reiterated long-term targets of 7 to 9 percent EPS growth and total shareholder return of 10 to 12 percent.

“We are pleased with our 2025 financial results as they exceeded our expectations for the year,” said President and CEO Chuck MacFarlane. “Our results are fueled by our team members’ efforts, and I am proud of the ways they delivered for our customers and shareholders amidst dynamic market conditions.”

“We are initiating our 2026 diluted earnings per share guidance range of $5.22 to $5.62 and affirming our long-term financial targets. The fundamentals of our business and diversified portfolio remain strong and we are confident in our ability to deliver on our growth plan for the benefit of our customers and shareholders. We continue to target a long-term earnings per share growth rate of 7 to 9 percent, resulting in a total shareholder return of 10 to 12 percent.”

Otter Tail reported consolidated cash provided by operating activities of $386.0 million in 2025, down from $452.7 million in 2024, a decrease the company attributed to “higher working capital requirements, including the timing of fuel cost and rider recoveries from our utility customers, and lower earnings.” Investing activities included capital expenditures of $288.1 million in 2025, which the company said were primarily within its Electric segment and included investments in wind repowering initiatives, solar facilities, and other projects.

On financing, Otter Tail Power issued $100.0 million of long-term debt in 2025, with proceeds used to repay short-term borrowings, fund capital investments, and support operating activities. The company paid dividends totaling $88.1 million in 2025 and earlier this year announced a 10 percent quarterly dividend increase on Jan 8, 2026, according to the company’s filing timeline.

Liquidity at year end was reported as $319.3 million available under credit facilities plus $386.2 million of available cash and cash equivalents, for total available liquidity of $705.5 million as of December 31, 2025. The company emphasized progress in the Electric segment, saying Otter Tail Power “made significant progress on several capital projects, including wind repowering, solar development, and large regional transmission projects.”

Segment revenue figures in the company’s published table (amounts in thousands) showed Electric operating revenues for the three months ended Dec. 31, 2025 at $149,708 and total operating revenues for that quarter at $308,099. For the twelve months ended Dec. 31, 2025 the table lists Electric $566,756; Manufacturing $314,547; Plastics $422,755; and Total Operating Revenues $1,304,058 (in thousands). The excerpted segment table in the release did not include operating income values in the captured text.

The Feb. 16, 2026 press release was distributed via Business Wire and republished on Yahoo Finance as a paid press release. The company filed the release with SEC exhibits and a signature block dated Feb. 17, 2026; the filing was signed by Chief Financial Officer Todd R. Wahlund, /s/ Todd R. Wahlund. Exhibit listings in the filing include EX-99.1 (press release, 349.7 KB) and EX-101 XBRL taxonomy extension files (schema 1.7 KB, label linkbase 22.0 KB, presentation linkbase 12.7 KB).