Otter Tail Stock Earnings Reports

Otter Tail reported Q3 2025 diluted EPS of $1.86 (down 8% YoY) but beat internal expectations. Management raised 2025 EPS guidance to a narrowed range with a midpoint of $6.47, driven by better-than-expected Plastics results and lower raw material costs. Otter Tail Power updated its 5-year capital plan to $1.9 billion, targeting a 10% rate-base CAGR and converting rate-base growth into EPS at approximately a 1:1 ratio. Management raised long-term targets to 7%–9% EPS growth and 10%–12% total shareholder return, expecting a 70/30 earnings mix (Electric/Manufacturing) by 2028. Plastics segment continues to face price pressure (PVC prices down ~17% YoY) but volumes rose ~4% due to Vinyltech capacity additions; Vinyltech Phase 2 is on track to add ~26 million pounds early next year and overall Plastics capacity has grown ~50 million pounds over two years. Manufacturing (BTD) remains in a downcycle expected to persist through most of 2026, though some stabilization was seen in Q3. Regulatory updates: Minnesota rate case filed (requested net revenue +$44.8M) and South Dakota case progressing with interim rates beginning Dec 1, 2025. Financial position is strong with $325M cash, ROE ~16%, and management expects to fund utility growth without issuing equity through at least 2030. A 155 MW (mostly non-firm/interruptible) large load will come online soon and should contribute positively to earnings next year.