Otter Tail Q4 EPS Tops by $0.07; Fiscal EPS Down 9%, Unveils $1.9B Capex and 10% Dividend
Otter Tail reported fiscal 2025 diluted EPS of $6.55, down 9% year-over-year due to Plastics segment declines, and Q4 EPS of $1.23 topped estimates by $0.07 despite $308.1M in revenue missing forecasts. It maintained a strong balance sheet, approved a $1.9B capex plan, and raised its dividend by 10%.
1. Earnings Performance
Otter Tail posted fiscal 2025 diluted earnings per share of $6.55, a 9% decline from the prior year driven by lower Plastics segment profitability. In Q4, EPS reached $1.23, outperforming consensus by $0.07, while revenue totaled $308.1 million, falling short of the $311.1 million forecast.
2. Balance Sheet and Capital Plan
The company ended 2025 with a robust balance sheet, ample liquidity and no anticipated external equity needs through 2030. Management approved a $1.9 billion five-year capital spending plan targeting 10% rate base growth and secured interim rate revenue increases in key service territories.
3. Dividend Growth and Future Targets
Otter Tail raised its quarterly dividend by 10%, marking the second consecutive year of double-digit increases, underscoring its commitment to shareholder returns. Leadership reiterated long-term goals of 7%–9% EPS growth and 10%–12% total shareholder return once Plastics segment earnings normalize by 2028.