Press Release
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November 3, 2025
Otter Tail Corporation Announces Third Quarter Earnings, Increases Annual Earnings Guidance and Uplifts Long-Term Financial Targets
FERGUS FALLS, Minnesota - Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended September 30, 2025.
SUMMARY
•Produced diluted earnings per share of $1.86 in the third quarter of 2025.
•Increased the midpoint of the 2025 earnings guidance by $0.21 to $6.47.
•Updated our electric utility’s five-year rate base compounded annual growth rate to 10% from 9%.
•Increased our long-term earnings per share growth rate target to 7% to 9%.
CEO OVERVIEW
“We are pleased with our third quarter financial results,” said President and CEO Chuck MacFarlane. “Our team members continue to execute well on our growth plan despite dynamic market conditions. Due to strong Plastics segment performance, and our revised expectations for the remainder of the year, we are increasing and tightening our 2025 diluted earnings per share guidance to a range of $6.32 to $6.62 from $6.06 to $6.46.
“Otter Tail Power continues to deliver on our significant rate base growth plan and regulatory priorities. In October, we filed a request with the Minnesota Public Utilities Commission to increase our rates by approximately $44.8 million, or 17.7 percent. The increase is largely driven by customer-focused infrastructure investments supporting immediate and long-term reliability, grid resilience efforts, accelerated recovery of Coyote Station and the impact of inflation since our last rate review five years ago. Even with the proposed increase, Otter Tail Power will continue to have some of the lowest electric rates in the region and country. We remain committed to providing safe, reliable and affordable electric service to our customers.
“Our Manufacturing segment businesses continue to face end market demand headwinds. Sales volumes remain below historic levels after sharply declining in the third quarter of 2024. Our cost structure is aligned with current business volumes and we remain well positioned to respond when industry conditions improve. Our quarterly financial results reflect our lower cost structure and improved productivity compared to the same time last year.
“Plastics segment performance exceeded expectations in the third quarter even as our product pricing continues to decline. We continue to benefit from lower input material costs and the new large diameter pipe capacity we added late last year. Additionally, the second phase of our Vinyltech expansion project is progressing well and we look forward to further increasing our capacity in early 2026.
“We are introducing our new five-year capital spending plan and revised long-term financial targets. Otter Tail Power’s new investment plan totals $1.9 billion and is expected to produce a rate base compounded annual growth rate of 10 percent. Driven by our updated capital investment plan, we are updating our targeted long-term earnings per share growth rate to 7 to 9 percent, resulting in a targeted total shareholder return of 10 to 12 percent.
“We remain optimistic about the fundamentals of our business and confident in our ability to deliver on our growth plan. Our customer-focused investments position us to provide high-quality electric service and products to our customers while delivering on our investment targets over the long-term. The combination of a high-performing utility coupled with our strategic diversification continues to serve us and our stakeholders well.”
QUARTERLY DIVIDEND
On November 3, 2025, the corporation’s Board of Directors declared a quarterly common stock dividend of $0.525 per share. This dividend is payable December 10, 2025 to shareholders of record on November 14, 2025.
CASH FLOWS AND LIQUIDITY
Our consolidated cash provided by operating activities for the nine months ended September 30, 2025 was $288.9 million compared to $322.8 million for the nine months ended September 30, 2024. The decrease in cash provided by operating activities was primarily due to the timing of fuel cost and rider recoveries from our utility customers and a decrease in earnings.
Investing activities for the nine months ended September 30, 2025 included capital expenditures of $213.3 million. Capital expenditures during the period were largely within our Electric segment and included investments in our wind repowering and other projects.



Financing activities for the nine months ended September 30, 2025 included the issuance of $100.0 million of long-term debt at Otter Tail Power; the proceeds of which were used to repay short-term borrowings, fund capital investments, and support operating activities. Financing activities for the nine months ended September 30, 2025 also included net repayments of short-term borrowings totaling $69.6 million and dividend payments of $66.0 million.
As of September 30, 2025, we had $170.0 million and $209.5 million of available liquidity under our Otter Tail Corporation and Otter Tail Power credit facilities, respectively, along with $325.8 million of available cash and cash equivalents, for total available liquidity of $705.3 million.
SEGMENT PERFORMANCE
Electric Segment
Three Months Ended September 30,
($ in thousands)20252024Change% Change
Operating Revenues$138,597 $130,380 $8,217 6.3 %
Net Income27,308 28,530 (1,222)(4.3)
Retail MWh Sales1,373,054 1,304,446 68,608 5.3 %
Heating Degree Days25 2 23 n/m
Cooling Degree Days326 378 (52)(13.8)
The following table shows heating and cooling degree days as a percent of normal.
Three Months Ended September 30,
20252024
Heating Degree Days
61.0 %4.7 %
Cooling Degree Days
93.1 %111.5 %
The following table summarizes the estimated effect on diluted earnings per share of the difference in retail kilowatt-hour (kwh) sales under actual weather conditions and expected retail kwh sales under normal weather conditions for the three months ended September 30, 2025 and 2024.
 2025 vs Normal2025 vs
 2024		2024 vs Normal
Effect on Diluted Earnings Per Share$(0.01)$(0.02)$0.01 
Operating Revenues increased $8.2 million primarily due to increased fuel recovery revenue, increased sales volumes excluding the impact of weather, and increased rider revenue, primarily driven by the recovery of our investments in our wind repowering projects. These increases were partially offset by the impact of seasonal rate differences between interim and final rates in North Dakota, which went into effect in March 2025. The impact of unfavorable weather compared to the same period last year also negatively impacted operating revenues.
Net Income decreased $1.2 million primarily due to the impacts of lower pension-related income and unfavorable weather, as well as increased depreciation expense associated with our rate base investments. The impact of these changes was partially offset by a decrease in operating and maintenance expenses.
Manufacturing Segment
Three Months Ended September 30,
(in thousands)20252024$ Change% Change
Operating Revenues$76,951 $79,896 $(2,945)(3.7)%
Net Income3,916 2,174 1,742 80.1 
Operating Revenues decreased $2.9 million primarily due to an 8% decrease in sales volumes, with declines experienced across several end markets, including lawn and garden, agriculture, and horticulture. Sales volumes were down due to continued soft demand and inventory management efforts by manufacturers and dealers amid continued challenging market conditions. The impact of lower sales volumes was partially offset by a 3% increase in steel costs, which are passed through to customers.
Net Income increased $1.7 million primarily due to improved production efficiencies, as our cost structure is aligned with the current demand environment. The timing of pass-through steel cost fluctuations and increased labor productivity resulted in increased margins compared to the same period last year. Lower sales volumes, as described above, and an increase in general and administrative and income tax expenses, partially offset the impact of increased profit margins.



Plastics Segment
Three Months Ended September 30,
(in thousands)20252024$ Change% Change
Operating Revenues$110,015 $127,757 $(17,742)(13.9)%
Net Income43,495 54,479 (10,984)(20.2)
Operating Revenues decreased $17.7 million primarily due to a 17% decrease in sales prices compared to the same period last year, continuing the decline in product pricing from peak levels in late 2022. The impact of decreased sales prices was partially offset by a 4% increase in sales volumes, primarily driven by increased production capacity following the completion of our expansion project at Vinyltech in late 2024.
Net Income decreased $11.0 million primarily due to decreased sales prices, as described above, partially offset by a 16% decrease in PVC resin and other input material costs and the 4% increase in sales volumes.
Corporate
Three Months Ended September 30,
(in thousands)20252024$ Change% Change
Net Income
$3,573 $296 $3,277 n/m
Net Income increased $3.3 million primarily due to decreases in costs associated with workers’ compensation and employee health insurance claims, as well as an increase in income tax benefits compared to the same period last year.
2025 OUTLOOK
We are increasing our 2025 diluted earnings per share guidance to a range of $6.32 to $6.62. We expect our earnings mix in 2025 to be approximately 36% from our Electric segment and 64% from our Manufacturing and Plastics segments, net of corporate costs. Our anticipated earnings mix in 2025 deviates from our long-term expected earnings mix of 70% Electric / 30% Non-Electric as we expect Plastics segment earnings to remain elevated in 2025 compared to our long-term view of normal earnings for this segment.
The segment components of our 2025 diluted earnings per share guidance compared with actual earnings for 2024 are as follows:
2024 EPS
by Segment
2025 EPS Guidance
2025 EPS Guidance
August 4, 2025November 3, 2025
LowHighLowHigh
Electric$2.16 $2.29 $2.35 $2.31 $2.35 
Manufacturing0.33 0.21 0.27 0.22 0.26 
Plastics4.77 3.64 3.88 3.86 4.05 
Corporate(0.09)(0.08)(0.04)(0.07)(0.04)
Total$7.17 $6.06 $6.46 $6.32 $6.62 
Return on Equity19.3 %14.5 %15.3 %15.1 %15.7 %
The following items contribute to our revised 2025 earnings guidance:
Electric Segment - We are increasing the midpoint of our earnings expectation and narrowed our guidance range. Our updated guidance is primarily based on better than expected financial results in the third quarter of 2025, largely driven by higher than anticipated sales volumes.
Manufacturing Segment - We are maintaining the midpoint of our earnings expectation but narrowing the range of our guidance.
Plastics Segment - We are increasing our earnings expectation and narrowing the range of our guidance based on:
•Better than expected financial results in the third quarter of 2025, and
•Lower material costs anticipated for the remainder of the year, as the forecasted price of PVC resin has declined.
Corporate Costs - We are narrowing our guidance range based on year-to-date results and expectations for the remainder of the year.



CAPITAL EXPENDITURES
The following provides a summary of actual capital expenditures for the year ended December 31, 2024, as well as anticipated annual capital expenditures for the current year ending December 31, 2025, and the subsequent five years, along with electric utility average rate base and annual rate base growth:
(in millions)20242025202620272028202920302026 - 2030 Total
Electric Segment:
Renewable Generation
$134 $108 $169 $177 $154 $4 $6 $510 
Transmission
60 60 88 183 208 206 309 994 
Distribution
46 83 50 49 53 54 57 263 
Other61 49 47 37 24 23 20 151 
Total Electric Segment$301 $300 $354 $446 $439 $287 $392 $1,918 
Manufacturing and Plastics Segments58 21 31 27 29 23 19 129 
Total Capital Expenditures$359 $321 $385 $473 $468 $310 $411 $2,047 
Total Electric Utility Average Rate Base$1,892 $2,115 $2,360 $2,647 $2,998 $3,210 $3,413 
Annual Rate Base Growth8.6 %11.8 %11.6 %12.2 %13.3 %7.1 %6.3 %
Our capital expenditure plan for the 2026 to 2030 time period includes Electric segment investments in transmission assets and solar generation resources. This plan produces a compounded annual growth rate in rate base of 10.0% from the end of 2025 to the end of 2030, and will serve as a key driver in Electric segment earnings growth over this timeframe. Our capital expenditure plan in our Manufacturing and Plastics segments includes investments to bring additional capacity to our operations, providing an opportunity for organic growth within these segments.
CONFERENCE CALL AND WEBCAST
The corporation will host a live webcast on Tuesday, November 4, 2025, at 10:00 a.m. CT to discuss its financial and operating performance.
The presentation will be posted on our website before the webcast. To access the live webcast, go to www.ottertail.com/presentations and select “Webcast.” Please allow time prior to the call to visit the site and download any software needed to listen in. An archived copy of the webcast will be available on our website shortly after the call.
If you are interested in asking a question during the live webcast, visit and follow the link provided in the press release announcing the upcoming conference call.
FORWARD-LOOKING STATEMENTS
Except for historical information contained here, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “can,” “confident,” “could,” “estimate,” “expect,” “future,” “goal,” “intend,” “likely,” “may,” “optimistic,” “opportunity,” “outlook,” “plan,” “possible,” “potential,” “predict,” “probable,” “projected,” “should,” “target,” “will,” “would” and similar words and expressions are intended to identify forward-looking statements. Such statements are based upon the current beliefs and expectations of management. Forward-looking statements made herein, which may include statements regarding 2025 earnings and earnings per share, long-term earnings, earnings per share growth and earnings mix, anticipated levels of energy generation from renewable resources, anticipated reductions in carbon dioxide emissions, future investments and capital expenditures, rate base levels and rate base growth, future raw materials costs, future raw materials availability and supply constraints, future operating revenues and operating results, and expectations regarding regulatory proceedings, as well as other assumptions and statements, involve known and unknown risks and uncertainties that may cause our actual results in current or future periods to differ materially from the forecasted assumptions and expected results. The Company’s risks and uncertainties include, among other things, uncertainty of future investments and capital expenditures; rate base levels and rate base growth; risks associated with energy markets; the availability and pricing of resource materials; inflationary cost pressures; attracting and maintaining a qualified and stable workforce; changing macroeconomic and industry conditions that impact the demand for our products, pricing and margin; long-term investment risk; seasonal weather patterns and extreme weather events; future business volumes with key customers; reductions in our credit ratings; our ability to access capital markets on favorable terms; assumptions and costs relating to funding our employee benefit plans; our subsidiaries’ ability to make dividend payments; cybersecurity threats or data breaches; the impact of government executive orders, legislation and regulation including foreign trade policy and environmental; health and safety laws and regulations; changes in tax laws and regulations; the impact of climate change including compliance with legislative and regulatory changes to address climate change; expectations regarding regulatory proceedings, assigned service areas, the construction of major facilities, capital structure, and allowed customer rates; actual and threatened claims or litigation; and operational and economic risks associated with our electric generating and manufacturing facilities. These and other risks are more fully described in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information.
Category: Earnings



About the Corporation: Otter Tail Corporation, a member of the S&P SmallCap 600 Index, has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the Nasdaq Global Select Market under the symbol OTTR. The latest investor and corporate information is available at www.ottertail.com. Corporate offices are in Fergus Falls, Minnesota, and Fargo, North Dakota.
Investor Contacts:    Beth Eiken, Manager of Investor Relations, (701) 451-3571
Media Contact:    Stephanie Hoff, Director of Corporate Communications, (218) 739-8535
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OTTER TAIL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands, except per-share amounts)2025202420252024
Operating Revenues
Electric$138,597 $130,380 $417,048 $384,696 
Product Sales186,966 207,653 578,911 642,741 
Total Operating Revenues325,563 338,033 995,959 1,027,437 
Operating Expenses
Electric Production Fuel25,442 14,991 56,055 45,009 
Electric Purchased Power9,495 10,735 55,862 42,507 
Electric Operating and Maintenance Expense41,144 43,737 136,830 136,367 
Cost of Products Sold (excluding depreciation)101,198 111,444 311,551 342,962 
Nonelectric Selling, General, and Administrative Expenses
17,792 18,829 56,434 55,896 
Depreciation and Amortization29,554 27,051 88,376 79,579 
Electric Property Taxes4,333 3,705 12,788 11,691 
Total Operating Expenses228,958 230,492 717,896 714,011 
Operating Income96,605 107,541 278,063 313,426 
Other Income and (Expense)
Interest Expense(11,790)(11,173)(35,063)(31,225)
Nonservice Components of Postretirement Benefits304 2,367 2,441 7,197 
Other Income (Expense), net5,990 5,421 15,231 14,491 
Income Before Income Taxes91,109 104,156 260,672 303,889 
Income Tax Expense12,817 18,677 36,553 57,077 
Net Income$78,292 $85,479 $224,119 $246,812 
Weighted-Average Common Shares Outstanding:
Basic41,877 41,800 41,859 41,770 
Diluted42,138 42,081 42,106 42,068 
Earnings Per Share:
Basic$1.87 $2.04 $5.35 $5.91 
Diluted$1.86 $2.03 $5.32 $5.87 



OTTER TAIL CORPORATION
CONSOLIDATED BALANCE SHEETS (unaudited)
September 30,December 31,
(in thousands)20252024
Assets
Current Assets
Cash and Cash Equivalents$325,786 $294,651 
Receivables, net of allowance for credit losses166,694 145,964 
Inventories155,765 148,885 
Investments
53,877 753 
Regulatory Assets9,433 9,962 
Other Current Assets25,688 29,826 
Total Current Assets737,243 630,041 
Noncurrent Assets
Investments77,662 121,177 
Property, Plant and Equipment, net of accumulated depreciation2,820,689 2,692,460 
Regulatory Assets97,936 98,673 
Intangible Assets, net of accumulated amortization4,917 5,743 
Goodwill37,572 37,572 
Other Noncurrent Assets67,804 66,416 
Total Noncurrent Assets3,106,580 3,022,041 
Total Assets$3,843,823 $3,652,082 
Liabilities and Shareholders' Equity
Current Liabilities
Short-Term Debt$— $69,615 
Accounts Payable95,441 113,574 
Accrued Salaries and Wages32,197 34,398 
Accrued Taxes21,267 17,314 
Regulatory Liabilities21,753 29,307 
Other Current Liabilities35,702 45,582 
Total Current Liabilities206,360 309,790 
Noncurrent Liabilities and Deferred Credits
Pension Benefit Liability
32,001 32,614 
Other Postretirement Benefits Liability26,502 27,385 
Regulatory Liabilities296,216 288,928 
Deferred Income Taxes288,013 267,745 
Deferred Tax Credits14,513 14,990 
Other Noncurrent Liabilities105,330 98,397 
Total Noncurrent Liabilities and Deferred Credits762,575 730,059 
Commitments and Contingencies
Capitalization
Long-Term Debt1,043,437 943,734 
Shareholders’ Equity
  Common Shares209,528 209,140 
  Additional Paid-In Capital433,368 429,089 
  Retained Earnings1,187,813 1,029,738 
  Accumulated Other Comprehensive Income742 532 
Total Shareholders' Equity1,831,451 1,668,499 
Total Capitalization2,874,888 2,612,233 
Total Liabilities and Shareholders' Equity$3,843,823 $3,652,082 



OTTER TAIL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Nine Months Ended September 30,
(in thousands)20252024
Operating Activities
Net Income$224,119 $246,812 
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization88,376 79,579 
Deferred Tax Credits(477)(559)
Deferred Income Taxes14,527 8,840 
Investment Gains
(5,519)(5,259)
Stock Compensation Expense8,106 8,082 
Other, net(3,636)(2,167)
Change in Operating Assets and Liabilities:
Receivables(20,730)(29,130)
Inventories(2,837)(2,198)
Regulatory Assets(1,429)7,209 
Other Assets4,985 (2,785)
Accounts Payable(8,702)3,180 
Accrued and Other Liabilities(3,530)(5,745)
Regulatory Liabilities(363)24,083 
Pension and Other Postretirement Benefits(3,941)(7,167)
Net Cash Provided by Operating Activities288,949 322,775 
Investing Activities
Capital Expenditures(213,329)(259,750)
Proceeds from Disposal of Noncurrent Assets4,957 6,684 
Purchases of Investments and Other Assets(7,642)(59,100)
Net Cash Used in Investing Activities(216,014)(312,166)
Financing Activities
Net Repayments of Short-Term Debt
(69,615)(14,021)
Proceeds from Issuance of Long-Term Debt100,000 120,000 
Dividends Paid(66,044)(58,693)
Payments for Shares Withheld for Employee Tax Obligations(3,134)(6,457)
Other, net(3,007)(1,791)
Net Cash (Used in) Provided by Financing Activities
(41,800)39,038 
Net Change in Cash and Cash Equivalents31,135 49,647 
Cash and Cash Equivalents at Beginning of Period294,651 230,373 
Cash and Cash Equivalents at End of Period$325,786 $280,020 



OTTER TAIL CORPORATION
SEGMENT RESULTS (unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2025202420252024
Operating Revenues
Electric$138,597 $130,380 $417,048 $384,696 
Manufacturing76,951 79,896 237,363 275,961 
Plastics110,015 127,757 341,548 366,780 
Total Operating Revenues$325,563 $338,033 $995,959 $1,027,437 
Operating Income (Loss)
Electric$35,750 $36,471 $88,426 $88,108 
Manufacturing5,690 2,683 13,184 19,699 
Plastics58,957 73,746 189,867 219,136 
Corporate(3,792)(5,358)(13,414)(13,517)
Total Operating Income$96,605 $107,542 $278,063 $313,426 
Net Income
Electric$27,308 $28,530 $71,211 $69,486 
Manufacturing3,916 2,174 8,930 14,271 
Plastics43,495 54,479 140,038 161,829 
Corporate3,573 296 3,940 1,226 
Total Net Income$78,292 $85,479 $224,119 $246,812