Otter Tail 2025 Q2 Earnings Misses Targets as Net Income Falls 10.7%

Otter Tail reported its fiscal 2025 Q2 earnings on Aug 06, 2025, with results showing a decline in both revenue and earnings. The company posted revenue of $333.04 million, a 2.7% drop year-over-year, while net income fell 10.7% to $77.73 million. Despite the dip, Otter Tail raised its full-year 2025 diluted EPS guidance, signaling confidence in its long-term growth trajectory.

Otter Tail’s Q2 revenue totaled $333.04 million, representing a 2.7% decline compared to the same period in 2024. The Electric segment generated $128.73 million in revenue, while the Manufacturing segment brought in $78.73 million. The Plastics segment contributed $125.59 million, rounding out the total revenue figure. Each segment plays a crucial role in the company’s diversified business model, with the Electric and Plastics segments accounting for the largest share of sales.

Otter Tail's earnings per share (EPS) declined 10.6% to $1.86 in 2025 Q2 from $2.08 in 2024 Q2, while net income fell 10.7% to $77.73 million from $87 million. Despite the decrease, the company has remained profitable for 17 consecutive years, demonstrating its ability to maintain stable performance under varying market conditions.

The stock price of Otter Tail edged down 2.92% during the latest trading day, but showed a 0.76% increase over the most recent full week. Month-to-date, it was down 0.32%. Investors who purchased shares following the company’s revenue beat in Q2 2025 have seen favorable returns in the subsequent 30-day holding period, with the stock appreciating above the purchase price. The company’s raised full-year 2025 diluted EPS guidance to $6.06–$6.46, along with a “buy” analyst rating, supports a positive long-term outlook. A defined 30-day holding period also provides a risk management buffer against market volatility.

Following the earnings report, Otter Tail’s CEO, Robert L. Young, emphasized strong operational execution and favorable market conditions in the energy sector. He noted the company’s robust demand for wire and cable products, along with strategic investments in digital transformation and sustainability. While acknowledging supply chain and inflationary challenges, Young expressed confidence in Otter Tail’s ability to maintain profitability and deliver shareholder value through disciplined operations and long-term positioning.

Otter Tail expects full-year 2025 EPS to meet or exceed current estimates, driven by continued operational performance and cost control. The company anticipates modest capital expenditures, prioritizing efficiency and return on investment. It also plans to maintain strong cash flow and debt management, reinforcing its commitment to long-term value creation.

Within three weeks of the August 6, 2025 earnings release, no major mergers or acquisitions were reported by Otter Tail. The CEO, Robert L. Young, remains in his position, providing stability in leadership. Additionally, there were no announced dividend adjustments or share repurchase programs during this period. The company’s focus remains on operational efficiency, strategic investments, and long-term growth, with no significant changes to its capital return strategy at this time.