Otter Tail Corp Issues Lower 2026 EPS Guidance After 2025 Earnings Miss
OTTR sits 23% above its 52-week low of $71.79.
Summary
Otter Tail Corporation announced its 2025 financial results, reporting a decline in Q4 and full-year diluted EPS compared to 2024, and initiated 2026 earnings guidance significantly below 2025 actuals.
Key Events · Earnings and Guidance · OTTR
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2025 Full-Year Results
Reported diluted EPS of $6.55, down from $7.17 in 2024, and a consolidated return on equity of 16%.
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2026 Earnings Guidance
Initiated diluted EPS guidance range of $5.22 to $5.62, with a midpoint of $5.42, representing a substantial decrease from 2025 actuals.
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Segment Performance Outlook
Anticipates a 36% decline in Plastics segment earnings in 2026 due to continued price erosion, while Electric and Manufacturing segments are projected to see increases.
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Capital Expenditure Plan
Reaffirmed a robust five-year capital spending plan of $2.05 billion, driving a 10% compounded annual growth rate in the Electric segment's average rate base.
Analysis · OTTR · Energy & Transportation
Otter Tail Corporation's latest 8-K filing reveals a challenging outlook for 2026, with diluted earnings per share guidance significantly below the 2025 actuals. The projected decline is primarily driven by an anticipated 36% drop in the Plastics segment's earnings due to continued price erosion, despite expected growth in the Electric and Manufacturing segments. While the company maintains a strong long-term capital expenditure plan for its Electric segment, the near-term earnings forecast suggests a period of contraction. This guidance cut, especially with the stock trading near its 52-week high, could lead to negative market reaction as investors re-evaluate growth expectations.
At the time of this filing, OTTR was trading at $88.16 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $3.7B. The 52-week trading range was $71.79 to $90.11. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.